Document:

Executive Employment Agreement between G&L Realty Corp and Steven D. Lebowitz

  
 Exhibit 10.2

  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT (the “Agreement”) is made and entered into
this 31st of March, 2005, by and between G&L Realty Corp LLC, a Nevada limited liability company (the
“Company”) and Steven D. Lebowitz (“Executive”) with reference to the following facts 
  
 1. Employment and Duties. 
  
 (a) The Company hereby employs Executive who will serve as an executive officer of the Company. Executive acknowledges and agrees that the Company is a management company and that, as a part of his duties, he may be requested to serve as an
executive officer of (i) the Company’s parent company, G&L Realty Corp, a Maryland corporation (“GLR”), (ii) one or more of GLR’s subsidiaries or affiliates, (iii) G&L Senior Care Properties, LLC, (“Senior Care
LLC”), and/or any one or more of Senior Care LLC’s subsidiaries or affiliates (the entities referred to in clauses (i) through (iv) above being referred to as the “Client Entities”), and agrees, if so requested, to serve in such
capacities. 
  
 (b) Executive shall devote a reasonable amount of
his working time and his best efforts to the performance of his duties hereunder and to advance the interests of the Company and such one or more of the Client Entities as the Company may direct. Notwithstanding the above, Executive may spend a
reasonable amount of time with respect to charitable and civic activities (including serving on the board of directors of charitable organizations) and, subject to the limitations set forth in Section 8 of this Agreement, may make personal
investments or conduct private business affairs if such activities do not interfere with the services required of Executive under this Agreement. It is specifically recognized that Executive is the owner of membership units in Senior Care LLC, of
limited partnership interests in G&L Realty Partnership, LP and G&L Senior Care Partnership, LP, and of shares in GLR, and that nothing in this Agreement is intended to prevent or limit Executive from serving on the management committee
and/or board of directors of any one or more such entities or from pursuing his own interests as a member, partner and/or stockholder of such entities. 
  
 (c) Executive acknowledges and agrees that he is an employee only of the Company and that he is not an employee of any of the Client Entities to which he
may provide services as an employee of the Company, and that he will look exclusively to the Company for the payment of any compensation that may be owed to him with respect to any such services. 
  
 2. Compensation. 
  
 (a) Annual Base Compensation. The Company shall pay to Executive for any and all services that Executive may
render to the Company an annual base compensation of Six Hundred Fifty Thousand Dollars ($650,000), payable in equal installments on the Company’s regular payroll dates. The Compensation Committee of the Management Committee of the Company
shall review Executives annual base compensation after the end of each calendar year commencing with the year ended December 31, 2005 in light of additional responsibilities which may be assumed by Executive, the result of operations and prospects
of the Company, the compensation being paid to other persons holding similar positions with comparable companies and such other factors as it deems relevant; provided, however, that no such raise in compensation will be effective unless approved by
the Company’s members acting through the Compensation Committee of the Board of Directors of GLR 

  

 
(“Member Approval”). Following each such review, and subject to Member Approval, the annual base compensation of Executive may be increased but may
not be decreased below its then existing level. 
  
 (c)
Bonus Compensation. In addition, at the end of each year commencing with the year ended December 31, 2004, Executive, the Management Committee shall review, and may approve, a bonus in such amount as the Management Committee determines
to be appropriate considering the efforts expended and the results achieved by the Executive, such bonus to be ordinarily no less than five percent (5%) nor more than one hundred percent (100%) of annual base compensation. Any such bonus, however,
unless reimbursed in full by one or more Client Entities, will be subject to Member Approval. 
  
 3. Expenses. The Company will reimburse Executive for all usual, reasonable and necessary expenses paid or incurred by Executive in the performance of his duties hereunder in accordance with its
policy for executives of the company, provided that such expenses are substantiated by written documentation and in accordance with the Company’s written policies and procedures on reimbursement of expenses as may be established from time to
time by the Management Committee. 
  
 4. Employee Benefits.

  
 (a) Executive shall be entitled to participate in all
medical, dental, life insurance, retirement, profit sharing, stock incentive, disability and all other plans now made available, or which may be made available in the future, to executives of the Company. 
  
 (b) Executive shall be entitled to annual vacation in accordance with the
Company’s policy for executives as such time. 
  
 5. Term of
Agreement. This Agreement shall have an initial term of three years commencing on the date hereof. This Agreement shall be renewed automatically for succeeding terms of one year each unless either party gives notice to the other at least
three (3) months prior to the expiration of any term (including the initial term) of his or its determination not to renew. 
  
 6. Termination. Executive’s employment hereunder may be terminated by the Company, on the one hand, or the Executive, on the other hand, as applicable,
prior to the expiration of this Agreement, under the following circumstances: 
  
 (a) Death. Executive’s employment hereunder shall terminate upon his death. In the case of Executive’s death, the Company shall pay to Executive’s beneficiaries or estate, as appropriate,
promptly after Executive’s death, the unpaid annual base compensation to which he is entitled pursuant to Section 2 through the date of his termination. This subsection 6(a) shall riot limit the entitlement of Executive’s estate or
beneficiaries to any death or other benefits then available to Executive under any life insurance or other benefit plan or policy which is maintained by the Company for Executive’s benefit. 
  

 (b) Disability. 
  
 (i) If the Company determines in good faith that Executive has incurred a Disability (as defined below)
during the term of this Agreement, the Company may give Executive written notice of its intention to terminate Executive’s employment. In such event, Executive’s employment with the Company shall terminate effective on the thirtieth
(30th) day after receipt of such notice by Executive, provided that within the thirty (30) days after such receipt,
Executive shall not have returned to full-time performance of his duties. Executive shall continue to receive his annual base compensation and benefits until the date of termination. In the case of Executive’s Disability, the Company shall pay
to Executive promptly after the Executive’s termination, the unpaid annual base compensation to which he is entitled pursuant to Section 2 through the Executive’s termination. This subsection 6(b) shall not limit the entitlement of
Executive or his estate or beneficiaries to any disability or other benefits then available to Executive under any disability insurance or other benefit plan or policy which is maintained by the Company for Executive’s benefit. 
  
 (ii) For the purpose of this Section, “Disability”
shall mean Executive’s failure to perform his duties to the Company on a full-time basis for a total of 12 consecutive weeks during any 12-month period as a result of incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Company and acceptable to Executive or Executive’s legal representative (such agreement as to acceptability not to be withheld unreasonably). 
  
 (c) Cause. 
  
 (i) The Company may terminate Executive’s employment
hereunder for Cause (as defined below). In the case of the Executive’s termination for cause, the Company shall promptly pay to the Executive (or his representative) the unpaid annual base compensation to which he is entitled pursuant to
Section 2 through the date the Executive is terminated and the Executive shall be entitled to no other compensation. 
  
 (ii) For purposes of this Agreement, “Cause” to terminate Executive’s employment hereunder shall exist upon a finding by
the Management Committee of the Company that Executive has (i) engaged in acts or omissions with respect to the Company or any one or more of the Client Entities which constitute intentional misconduct or a knowing violation of law; (2) engaged in
gross negligence in the performance of his duties; or (3) frequently and repeatedly failed to perform services which have been reasonably requested of him by the Management Committee and which are consistent with the terms of the Agreement;
provided, however, that “Cause” shall not exist unless and until the Company provides Executive with (a) at least fifteen (15) days prior written notice of its intention to terminate his employment for Cause and a written statement
describing the nature of the Cause, and (b) a reasonable opportunity and a reasonable period of time to cure any curable acts or omissions on which the finding of cause is based. If the Executive cures the acts or omissions on which the finding of
Cause is based, the Company shall not have Cause to terminate the Executive’s employment hereunder. 
  
 (d) Good Reason. 
  
 (i) The Executive may terminate his employment for Good Reason (as defined below). In the event that the Executive terminates his
employment with the Company for Good Reason, the Company shall pay to Executive promptly after the Executive’s termination, the unpaid annual base compensation to which he is entitled pursuant to Section 2 through Executive’s 

  

 
termination. In addition, the Company shall pay the Executive separation pay as set forth in Section 7 and provide the additional benefits set forth in
Section 7. 
  
 (ii) For purposes of this
Agreement, Executive shall have “Good Reason” to terminate his employment with the Company in the event of (a) any breach by the Company of, or default by the Company under, the provisions of the Agreement which Executive in good faith
regards as material; provided, however, that in the case of any curable non-monetary breach of default, Executive shall not have Good Reason to terminate his employment unless and until he has provided the Company with written notice
of such breach at least fifteen (15) days in advance of his intended termination date and a reasonable period of time to cure such breach ox default; or (b) any substantial diminution of duties or status, or other imposition by the Company of
unreasonable requirements or working conditions on Executive which are not withdrawn or corrected within a thirty (30) day period following notice by Executive to the Company of such diminution or imposition. 
  
 (e) Without Cause. The Company may terminate Executive’s
employment hereunder without Cause upon ninety (90) days written notice. In the event the Company terminates the Executive’s employment without Cause, the Company shall pay to Executive promptly after Executive’s termination, the unpaid
annual base compensation to which he is entitled pursuant to Section 2 through the Executive’s termination. In addition, the Company shall pay the Executive separation pay as set forth in Section 7 and provide the additional benefits set forth
in Section 7. 
  
 7. Separation Pay. Upon termination of
Executive’s employment with the Company without Cause or by the Executive with Good Reason, Executive shall be entitled to receive aggregate severance payments equal to three times (3X) his annual base compensation at such time. Such aggregate
separation payments shall be paid in cash upon the termination of Executive’s employment. In addition, if Executive’s employment is terminated by the Company without Cause or by the Executive with Good Reason and Executive is no longer
eligible for employee benefits because of such termination, Executive shall be entitled, and the Company shall provide, benefits substantially equivalent to those benefits in the nature of health and welfare benefits to which Executive was entitled
immediately prior to such termination for the remainder of the term of this Agreement under Section 5 hereof but only to the extent that Executive is not entitled to comparable benefits from another employer or provider and subject to any express
limitations in any applicable plan. 
  
 8. Restrictive Covenant.

  
 (a) Employee hereby agrees that for a period of one (1)
year from an employment termination, he shall not, directly or indirectly, induce or recruit any employee of the Company to apply for or accept employment with any other person or entity. 
  
 (b) Executive hereby agrees that both during the term of his employment and for a period of three (3) years after an
employment termination, he will not reveal, report, publish, disclose or transfer, directly or indirectly, any Confidential Information for any purpose except in the ordinary course of the business of the Company. For purposes of this Section 8, the
term “Confidential Information” shall include all information and strategies of the Company and/or any one or more Client Entities, records, data, and any and all other confidential or proprietary information and trade secrets of the
Company and/or any one or more Client Entities. 
  

 (c) While Executive is employed by the Company, without the prior approval of the Management Committee,
Executive may not, directly or indirectly, own, operate, control or otherwise invest or participate or engage in (either as principal, agent, employee, employer, consultant, stockholder, partner, or in any other individual representative capacity)
any other business that is in competition with the business of the Company or of any one or more of the Client Entities, except for ownership (without any other involvement) of not more than one percent (1%) of the outstanding stock of a
publicly-owned company. If such prior approval of a majority of the Management Committee of the Company is obtained, Executive may engage in the activities consented to and in so doing shall incur no liability to the Company or to any one or more of
the Client Entities. 
  
 (d) if, in any judicial proceeding, a
court shall refuse to enforce one or more of the separate covenants referred to in this Section 8, (i) because the time limit therein is too long, it is expressly understood and agreed that for the purpose of such proceeding such time limitations
shall be deemed reduced by the minimum amount necessary to permit the enforcement of such covenant or covenants; or (ii) because, taken together, they are more extensive (whether as to geographic area, scope of business, or otherwise) than necessary
to protect the business and goodwill of the Company, or otherwise, it is expressly understood and agreed that such of those covenants which, if eliminated, would permit the remaining separate covenants to be enforced in such proceeding shall, for
the purpose of such proceeding, be deemed eliminated from the provisions hereof. 
  
 (e) The covenants contained in this Section 8 are cumulative of the rights of the Company (or any successor thereto) under the laws of the State of California, the United States of America and other applicable laws
with respect to the rights to protect Confidential information. 
  
 (f) Executive hereby agrees that the remedy at law for any breach or threatened breach of any of the covenants Contained in this Section 8 will be inadequate and that the company, the Company (or any successor thereto) shall be entitled to
equitable relief including, without limitation, specific performance and injunctive relief. 
  
 (g) Nothing in this Section 8 shall be interpreted as in any way limiting Executive’s right to exercise his rights as a shareholder of GLR, as a partner of either G&L Realty Partnership, LP or G&L Senior
Care Partnership, LP, or as a member of Senior Care, LLC, or as a director, managing director or management committee members of any of the above entities or any of their respective subsidiaries. 
  
 9. Waiver or modification. Any waiver, alteration or modification of any of the
provisions of this Agreement or cancellation or replacement of this Agreement shall not be valid unless made in writing and signed by the parties hereto. Waiver by either party of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any subsequent breach. 
  
 10.
Construction. This Agreement shall be governed by the laws of the State of California. 
  
 11. Hinging Effect: Entire Agreement. 
  
 11.1 The rights and obligations of the Company and Executive under this Agreement shall 

  

 
be binding upon and shall inure to the benefit of any successors or assigns of the Company and Executive. 
  
 11.2 This Agreement constitutes the entire understanding of the parties with
respect to the subject matter hereof and supersedes all prior agreements, amendments, memoranda or understandings between the Company and Executive. 
  
 12. No Mitigation of Damages. Executive shall have no duty to seek other employment to mitigate damages in connection with a termination of
Executive’s employment, and any income eared by Executive shall not offset any obligations of the company to Executive under this Agreement. 
  
 13. Assignment. Executive may not assign his duties under this Agreement. 
  
 14. Counterparts. This Agreement may be executed in counterparts, each of which shall be construed as an original for
all purposes, but all of which taken together shall constitute one and the same Agreement. 
  
 15. Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be delivered in person, sent by facsimile or by registered or certified United States
mail, postage and fees prepaid, to the addresses of the parties set forth below, or such other address or facsimile number as shall be furnished by notice hereunder by any such party. Except as otherwise expressly provided for herein, each such
notice or communication shall be effective when delivered at the address specified in this Section 13. Any notice or communication delivered by telecopier, facsimile or similar means shall be confirmed by hard copy delivered as soon as practicable.

  

			
	 The Company:
	 	 G&L Realty Corp, LLC
 439 North Bedford
Drive
 Beverly Hills, California 90210

		
	 Executive:
	 	 Steven D. Lebowitz
 439 North Bedford Drive

Beverly Hills, California 90210

  
 No failure or refusal to accept
delivery of any envelope containing such notice shall affect the validity of such notice or the giving thereof. 
  

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

									
	 G&L REALTY CORP, LLC
	 	 	 	 
					
	 	 	 	 	 	 	By:	 	    /s/ Daniel M. Gottlieb
	 	 	 	 	 	 	 	 	         Title: Managing Director.

				
	 	 	 	 	 	 	    /s/ Steven D. Lebowitz
	 	 	 	 	 	 	 Steven D. LebowitzRevolving Loan and Security Agreement

 EXHIBIT 10.1 
  
 REVOLVING LOAN AND SECURITY AGREEMENT 
  
 This Agreement is made as of this 10TH day of May, 2005, by and between Micronetics, Inc., a Delaware corporation with an address of 26 Hampshire Drive, Hudson, New Hampshire 03051 (the “Debtor”), and Banknorth,
N.A., a national banking association, with its principal New Hampshire office at 300 Franklin Street, Manchester, New Hampshire and a mailing address of P.O. Box 600, Manchester, New Hampshire 03105-0600 (the “Secured Party”).

  
 WITNESSETH: 
  
 WHEREAS, the Debtor desires to borrow from the Secured Party up to Five
Million and No/100ths Dollars ($5,000,000.00) for working capital needs and, subject to the prior written approval of the Secured Party, to assist in the financing of the acquisition of other companies; and 
  
 WHEREAS, the Secured Party is willing to lend to the Debtor up to Five
Million and No/100ths Dollars ($5,000,000.00) subject to the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the covenants set forth herein, the loan made hereunder, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows: 
  
 I. LOANS: The Secured Party agrees that it will establish an account on its books to be referred to herein as “Debtor’s Loan Account”, and it will lend to the Debtor, (upon the written or oral instructions of the Chief
Executive Officer or the Principal Financial Officer of the Debtor, or such other person or persons designated by either of them, in writing, provided however that in the event the request for an advance is made orally, the Debtor shall confirm such
request in writing within two (2) business days of said oral request), from time to time, sums not to exceed a total of Five Million and No/100ths Dollars ($5,000,000.00) (hereinafter referred to as the “Borrowing Base”) in the aggregate
outstanding at any one time, said sums outstanding from time to time defined as “Debit Balance in Debtor’s Loan Account” and repayable with interest as set forth in the Promissory Note (as hereinafter defined) and being otherwise
subject to the terms and conditions set forth in Article II.A, below, and otherwise in this Agreement. Debtor’s obligations under Debtor’s Loan Account shall be evidenced by a promissory note in the form satisfactory to Secured Party (the
“Promissory Note”). 
  
 II. AFFIRMATIVE
COVENANTS: The Debtor agrees that: 
  
 A. Commencing one
month from the date hereof, it will pay to the Secured Party interest monthly on the daily Debit Balances in Debtor’s Loan Account at the rate per annum as set forth in the Promissory Note, which it has delivered to the Secured Party herewith,
and it will pay to Secured Party the principal amounts and interest as provided in the Promissory Note according to its tenor. 
  

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 In the event of default as defined in Article X of this Agreement, the entire Debit Balance in
Debtor’s Loan Account and all interest thereon shall be immediately due and payable without demand at the option of the Secured Party. 
  
 The Secured Party may enter loans made pursuant to Article I, above as debits in Debtor’s Loan Account. The Secured Party shall also record in
Debtor’s Loan Account in accordance with customary accounting practice: all other charges, expenses, and other items properly chargeable to the Debtor; all payments made by or on behalf of the Debtor on account of indebtedness evidenced by
Debtor’s Loan Account; and other appropriate debits and credits. The Debit Balance in Debtor’s Loan Account shall reflect the amount of the Debtor’s indebtedness to the Secured Party from time to time by reason of loans under Article
I, above, and other appropriate charges hereunder. At least once each month the Secured Party shall render a billing statement for the Debtor’s Loan Account, which billing statement shall be considered correct and accepted by the Debtor and
presumptively correct upon the Debtor unless it notifies the Secured Party to the contrary within thirty (30) days of the sending of said statement by the Secured Party to the Debtor. 
  
 The Debtor understands that the Secured Party will use the Borrowing Base as a maximum ceiling under a revolving line of
credit pursuant to which the Debtor may borrow, repay and reborrow up to the amount of the Borrowing Base. The Debtor agrees that the Debit Balance in Debtor’s Loan Account shall at no time exceed the Borrowing Base. The Debtor further agrees
that in the event it is requesting an advance for purposes other than working capital, it will first obtain the prior written consent of the Secured Party. 
  
 B. It will promptly reimburse the Secured Party for all reasonable charges and expenses incurred by the Secured Party in connection with the making of
this Agreement and all reasonable legal fees incurred by the Secured Party in connection with the making of this Agreement. 
  
 C. It will promptly reimburse the Secured Party for (i) all damages sustained by any breach of warranty or covenant of the Debtor herein; and (ii) all
fees, court costs, collection charges, reasonable attorneys’ fees, reasonable accountants’ fees, and all other costs and expenses which may be incurred by the Secured Party to enforce any provisions of this Agreement, as against the
Debtor, or in the prosecution of any proceeding arising from the efforts of the Secured Party to recover money or other things of value, or the enforcement of rights or remedies under this Agreement, as the same may from time to time be amended,
unless the enforcement of such provision is held unlawful by a Court of competent jurisdiction. 
  
 D. It will deliver, at its expense, (i) annually, within one hundred twenty (120) days after its fiscal year end the audited financial statements of the
Debtor and all of the Debtor’s subsidiaries, prepared by a certified public accountant satisfactory to the Lender, and (ii) quarterly, within forty-five (45) days after the end of each fiscal quarter, (a) company prepared financial statements
of the Debtor, (b) copy of 10Q report, and (c) accounts receivable aging, all in form satisfactory to Lender. All of the foregoing financial statements and reports shall be signed by a duly authorized representative of the Debtor. 
  
 E. It will, at all reasonable times, and upon reasonable notice, allow
Secured Party, by or through any of its officers, agents, attorneys or accountants, or such other persons, associations or corporations that Secured Party in its sole discretion should deem 
  

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 acceptable, to inspect the Collateral (as hereinafter defined), to examine or make extracts from the books and records of
the Debtor, and to arrange for the verification of accounts receivable under reasonable procedures directly with account debtors or by other methods, provided, however, that the Secured Party shall give reasonable notification to the Debtor prior to
contacting account debtors for such verification. It will furnish to the Secured Party upon request additional statements of any accounts receivable, together with all notes or other papers evidencing the same, and any guaranties, securities or
other documents or information relating thereto. Secured Party will protect the confidentiality of accounts receivable customer lists and other books and records of the Debtor in connection with the verification of same. The Secured Party
acknowledges that portions of the Collateral and Debtor’s facilities are classified and may be subject to certain confidentiality and security requirements as imposed by the federal government of the United States of America, and the
enforcement of this Revolving Loan and Security Agreement may be subject to the terms of such confidentiality and security requirements. 
  
 F. It will promptly and from time to time pay and discharge all taxes, charges and assessments which may be or shall be levied, charged or assessed on or
against it or any of its property, or any part thereof, or on or against the income and profits therefrom, before they become delinquent. Debtor shall have the right, however, to contest by legal proceeding the validity or amount of any tax, charge
or assessment, and Debtor need not pay any amount of such tax, charge or assessment under dispute if the proceedings shall operate to prevent or stay the collection of such tax, charge or assessment. 
  
 G. It will provide and maintain hazard insurance, fire and extended coverage,
on all of its property including the Collateral, in such amounts and for such other coverages as shall be satisfactory in all respects to the Secured Party, naming the Secured Party as loss payee, as its interests may appear. It will provide the
Secured Party with a schedule of all insurance policies annually, at the time it submits its annual financial statements as herein required. 
  
 III. SECURITY INTEREST: The Debtor, to secure the payment of the Promissory Note, and all sums required by, and the performance of all covenants
contained in this Agreement hereby grants to the Secured Party a security interest in all of the Debtor’s fixtures, goods, equipment, inventory, accounts, chattel paper (tangible and electronic), documents (negotiable and nonnegotiable)
instruments (including promissory notes), investment property, securities, general intangibles, commercial tort claims, deposits accounts and letter of credit rights, now in existence or hereafter arising and all proceeds therefrom ( the
“Collateral”). 
  
 IV. FINANCING STATEMENTS AND
FILING: Debtor hereby authorizes the Secured Party to file financing statements covering the Collateral in which perfection may be made by filing, and will assist the Secured Party in obtaining possession and/or control of the Collateral in
which perfection is made by possession or control. 
  
 V.
WAIVER: Other than as provided in Article X hereinbelow, the Debtor hereby expressly waives presentment, demand, protest, notice of default, nonpayment, partial payment and all other notices and formalities, consents to and waives notice of
granting indulgence or extensions of time of payment, the taking or releasing of security, the addition or release of persons primarily or secondarily liable on any of the assigned accounts receivable, the acceptance of partial payments thereon
and/or the settlement, 
  

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 compromising or compounding of any thereof, all in such manner and at such time or times as the Secured Party may deem
advisable. The Secured Party shall not be required to enforce or resort to any security, liens, collateral, guaranty, or other remedies before calling on the Debtor for payment, nor shall any act or omission of the Secured Party in any way impair or
affect any of the indebtedness or liabilities of the Debtor to the Secured Party, or the rights of the Secured Party in any security. No delay or omission of the Secured Party to exercise any rights, powers or remedies hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such rights, powers or remedies preclude other rights, powers or remedies which the Secured Party might otherwise have; and no indulgence given to the Debtor in case of any default
shall impair any such rights, powers or remedies or be construed as a waiver of any default of the Debtor or any acquiescence therein, or as a variation or waiver of any of the terms or provisions of this Agreement. 
  
 VI. CONDITIONS TO LOAN AND COVENANTS: The Debtor hereby further
covenants and agrees that it will: 
  
 A. At or before the time
of the execution and delivery of this agreement, deliver to the Secured Party: 
  
 1. Certificate of Good Standing from the Secretary of State of the State of Delaware as to the Debtor, and a Certificate of Authority as a Foreign Corporation from the Secretary of State of the State of New Hampshire
as to Debtor. 
  
 2. Certified copies of resolutions of directors
of Debtor authorizing the execution and delivery of the Promissory Note and this Agreement. 
  
 3. Certificate of insurance as hereinabove required. 
  
 4. Written opinion of counsel to the Debtor, in form and substance satisfactory to the Secured Party and its counsel, including an opinion that this Agreement and the Promissory Note constitute the Debtor’s valid
and binding obligations enforceable against it in accordance with their terms. 
  
 B. Maintain its principal deposit account with the Secured Party. 
  
 C. Promptly notify the Secured Party in writing of any default under this Agreement. 
  
 D. Promptly notify Secured Party in writing of any litigation brought against the Debtor not covered by appropriate
insurance and where the amount claimed in the action is in excess of $20,000.00. 
  
 VII. REPRESENTATIONS AND WARRANTIES: The Debtor hereby makes the following representations and warranties: 
  
 A. It is and will continue to be a duly organized and validly existing corporation under the laws of Delaware, is duly authorized to do business as a
foreign corporation in New Hampshire and in each other state in which the character of the properties owned by the Debtor, or the nature of the business transacted by it therein make such qualifications necessary, and is duly authorized to enter
into and perform this Agreement and the acts required by it. 
  

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 B. None of the terms and conditions of this Agreement are beyond its corporate powers or in contravention
or violation of any provisions of Delaware or New Hampshire law, or of its Certificate of Incorporation or bylaws, or of any contract to which it is or may become a party. 
  
 C. No litigation or proceeding, governmental or otherwise, is pending, or to the knowledge of its directors, threatened
against it, which could have a material adverse effect on its financial condition or business. 
  
 D. Financial reports of the Debtor, copies of which were furnished to the Secured Party, fairly present its financial condition as of the date of said reports and said reports were prepared in accordance with
generally accepted accounting practices and principles, consistently applied, and there has been no material adverse change in the financial condition since that date of which the Secured Party has not been informed in writing. 
  
 E. At the time the Debtor pledges, sells, assigns or transfers to the Secured
Party any contract right, instrument, document of title, security, chattel paper or other property, or any interest therein, including, without limitation, any Collateral, the Debtor shall be the lawful owner thereof and shall have good right and
title to pledge, sell, assign or transfer the same; except for sales from inventory in the ordinary course of business, none of such property shall have been, or will be, pledged, sold, assigned or transferred to any person other than the Secured
Party, or is in any way encumbered; and the Debtor shall defend the same against the claims and demands of all persons. 
  
 F. It is fully qualified to enter into this Agreement with no approvals required by any other persons whomsoever, other than the approval of its
directors, which has been obtained. 
  
 G. It has fully paid its
Federal, State and any other income taxes and any other taxes it is obligated to pay. 
  
 VIII. ADDITIONAL COVENANTS: The Debtor hereby covenants and agrees that so long as it is indebted to the Secured Party, whether under this Agreement or otherwise, it will not, without the prior written consent
of the Secured Party, which consent shall not be unreasonably withheld: 
  
 A. Merge or consolidate with any other person, firm or corporation as a result of which Debtor is not the surviving corporation, or purchase the securities of any other company or invest in any other business, except
publicly traded companies. 
  
 B. Lend any money to, or make any
advances or assume, guaranty or endorse any obligations of, any other person, firm or corporation (other than wholly owned subsidiaries), including the Debtor’s officers, directors and shareholders. 
  
 C. Except for (i) trade debt in the ordinary course of business (ii)
subordinated loans from Debtor’s shareholders and/or their respective revocable trusts, and (iii) equipment financing leases in the ordinary course of business, borrow from any source other than the Secured Party. 
  

 - 5 - 

 D. Grant, convey or hypothecate other than to the Secured Party a security interest in any Collateral or
in any accounts or contract rights of the Debtor now existing or hereafter arising, or the proceeds therefrom, or any inventory of the Debtor, now owned or hereafter acquired, or the proceeds or products therefrom, except for subordinate security
interest to Debtor’s shareholders and/or their respective revocable trusts and for indebtedness permitted by Section VIII.C., above. 
  
 IX. SET OFF: The Debtor hereby agrees that upon notice of issue of any legal process by any court of competent jurisdiction by which process any of
the assets of the Debtor in the hands of the Secured Party may be trusteed, garnished or levied upon, the Secured Party is authorized to and may at its sole discretion apply said assets to the balance owed by the Debtor to the Secured Party whether
or not such balance may be then due and owing. 
  
 X.
DEFAULT: Each of the following events shall constitute an “Event of Default” under this Agreement: 
  
 A. Any failure on the part of the Debtor to perform or observe any of the covenants or agreements as provided herein, which default continues for thirty
(30) days after written notice of the specific default from the Secured Party to the Debtor; or 
  
 B. Nonpayment on the due date of accrued interest, or any required principal payment or payments or of any fee or other charge under this Agreement which
nonpayment continues for five (5) days after written notice thereof; or 
  
 C. Any change in management wherein David Robbins is no longer the Chief Executive Officer, and Dennis Dow is no longer the Principal Financial Officer; or 
  
 D. Any representation or warranty made by the Debtor herein, or any statements, certificates or instruments delivered
hereunder proving to be untrue or defective in any material respect, provided however, any such untruth or defect which, in the reasonable discretion of the Secured Party have been made without fraudulent intent, shall not be an Event of Default if
cured by the Debtor on demand; or 
  
 E. Any appointment of a
trustee or receiver or assignee for the benefit of creditors, filed by or against the Debtor, or petition in bankruptcy, or for reorganization under the federal bankruptcy laws, or any act without the prior written consent of the Secured Party which
involves an extension of time for payments or compromise of indebtedness of the Debtor, except that in the event any involuntary petition of alleged bankruptcy or petition of a trustee or receiver is filed against the Debtor, the Debtor shall have
sixty (60) days within which to obtain the dismissal of said petition, provided the Debtor is not sooner adjudicated bankrupt; or 
  
 F. Failure to satisfy any final judgment rendered against the Debtor by any court of competent jurisdiction; or 
  

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 G. The failure of the Debtor to maintain a debt service coverage ratio of at least 1.25:1, which shall be
tested annually commencing with the year end financial report for the Debtor’s fiscal year ended March 31, 2005 (debt service coverage ratio shall be defined as (net income + depreciation + interest expense) divided by (current potion of
long term debt + interest expense); or 
  
 H. Total debt to net
worth ratio of the (including the debt evidenced by this Promissory Note), based upon the Debtor’s annual audited financial statements, commencing with the year end financial report for the Debtor’s fiscal year ended March 31, 2005, shall
exceed 1.5 to 1, which shall be tested annually. Total debt to net worth ratio shall be defined as the ratio of: total liabilities to (total assets, minus intangibles, minus liabilities). 
  
 I. A declaration of default under other notes, loan agreements or guaranties of the Debtor with, or in favor of, the Secured
Party by the Debtor. 
  
 Upon the occurrence of an Event of
Default, and at any time thereafter, or at such other time as herein agreed, the Secured Party may declare all obligations secured hereby immediately due and payable, and shall have all remedies at law or in equity, including, but not limited to,
the remedies of a secured party under the Uniform Commercial Code as enacted in the State of New Hampshire; the Secured Party may require the Debtor to assemble the Collateral and make it available to the Secured Party at a place to be designated by
the Secured Party, which is reasonably convenient to both parties. The Secured Party may commence to collect or continue to collect the accounts which are or may become Collateral hereunder and take control of any proceeds as hereinbefore provided.
The Secured Party will give the Debtor reasonable notice of the time and place of any public sale of any of the Collateral or of the time at which any private sale or any other disposition is to be made. The requirements of reasonable notice shall
be met if such notice is mailed postage prepaid to the address of the Debtor as hereinabove stated, not less than ten (10) days before the time of sale or disposition. Expenses of retaking, holding, preparing for sale, selling or otherwise disposing
shall include the Secured Party’s reasonable attorney’s fees and legal expenses. 
  
 XI. MISCELLANEOUS: The Debtor further agrees that: 
  
 A. The rights conferred upon the Secured Party by this Agreement will automatically extend to and be vested in any assignee or transferee of the Secured Party. 
  
 B. This Agreement will be governed by the laws of the State of New Hampshire.

  
 XII. NOTICES: Any notices required to be given by the
parties to this Agreement shall be given in writing and mailed postage prepaid to the party entitled to such notice at the addresses first hereinabove written, or such other place as the parties designate in writing. 
  

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 In Witness Whereof, the parties hereto have caused this Agreement to be executed and delivered by their
respective officers, duly authorized, the day and date first hereinabove written. 
  

					
	 	 	Micronetics, Inc.
			
	 /s/ Dennis Dow

	 	By:	 	 /s/ David Robbins

	Witness	 	 	 	David Robbins
	 	 	 	 	Its President
		
	 	 	Banknorth, N.A.
			
	 /s/ [Illegible]

	 	By:	 	 /s/ Michael F. Fox

	Witness	 	 	 	Michael F. Fox
	 	 	 	 	Its Senior Vice President

  

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