Document:

<PAGE>   1
                                                                    Exhibit 10.5

                               SERVICES AGREEMENT

     THIS SERVICES AGREEMENT (this "Agreement") is made, executed and delivered
as of March 28, 2000, by and between INTEGRATED INFORMATION SYSTEMS, INC., a
Delaware corporation ("IIS"), and goracing.com,inc., a Delaware corporation,
("goracing").

                                    RECITALS

     A.   As of the date hereof, IIS and goracing intend to enter into, among
other agreements, an Asset Purchase Agreement (the "Asset Purchase Agreement")
whereby IIS will purchase certain assets of goracing, and a Sublease Agreement
(the "Sublease Agreement") whereby IIS will assume the rights and obligations
of goracing and Action Performance Companies, Inc., an Arizona corporation and
sole shareholder of goracing ("Action"), respectively, with respect to certain
Master Lease Agreements dated December 22, 1998 and August 9, 1999,
respectively.

     B.   As an inducement for IIS to enter into the Asset Purchase Agreement
and the Sublease Agreement, goracing desires to purchase certain services from
IIS, and IIS desires to provide certain services to goracing upon the terms and
conditions herein set forth.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:

     1.   SERVICES OF IIS. goracing hereby agrees to purchase or shall direct
one or more of its affiliates, including without limitation, Action Performance
Companies, an Arizona corporation, to purchase $2,000,000 (the "Purchase
Amount") worth of services provided by IIS in the ordinary course of IIS's
business (the "IIS Services"). Of the Purchase Price Amount, goracing agrees to
purchase, or direct one or more of its affiliates to purchase, at fair market
value $1,000,000 (the "Annual Amount") of IIS Services between the date first
written above and one (1) year following the date first written above ("Year
One"). The obligation of goracing to purchase the Year One Annual Amount shall
include any amounts paid by goracing or its affiliates with regard to the work
orders attached as Schedule A hereto. goracing further agrees to purchase the
Annual Amount of IIS Services between the date beginning one (1) year from the
date first written above and ending two (2) years from the date first written
above ("Year Two").

     2.   FAILURE TO PURCHASE

          (a)  YEAR ONE. In the event that goracing fails to purchase the
Annual Amount of IIS Services in Year One, goracing shall pay IIS the
difference between the Annual Amount and the amount of IIS Services actually
purchased by goracing in Year One. Such payment shall be due thirty (30) days
following the end of Year One.

          (b)  YEAR TWO. In the event that goracing fails to purchase the
Annual Amount of IIS Services in Year Two, goracing shall pay IIS the
difference between the Annual

                                       1
<PAGE>   2
Amount and the amount of IIS Services actually purchased in Year Two. Such
payment shall be due within thirty (30) days following the end of Year Two.

          (c)  FAILURE TO MAKE PAYMENT. If any payment is not received when due,
that amount shall bear interest from the due date at the rate of ten percent
(10%) per year until paid.

    3.    NOTICES. All notices of communication required or permitted hereunder
or with regard to the Base Equipment Leases shall be in writing and may be
given by depositing the same in the United States mail, addressed to the party
to be notified, postage prepaid and registered or certified with return receipt
requested, or by delivering the same in person to an officer or agent of such
party.

               (i)   If to goracing, addressed to it at:

                     goracing.com, inc.
                     4707 East Baseline Road
                     Tempe, Arizona 85040
                     Attn: Chief Financial Officer
                     Fax: (602) 337-3780

                     With a copy to:
                     Greenberg Traurig, LLP
                     1 E. Camelback Road, Suite 1100
                     Phoenix, Arizona 85012
                     Attn: Robert S. Kant, Esq.
                     Fax: (602) 263-2350

               (ii)  If to IIS, addressed to it at:

                     Integrated Information Systems, Inc.
                     1480 S. Hohokam Drive
                     Tempe, Arizona 85281
                     Attn: Jeffrey Frankel
                     Fax: (480) 317-8010

                     With a copy to:
                     Snell & Wilmer, LLP
                     One Arizona Center
                     400 East Van Buren
                     Phoenix, Arizona 85004-2202
                     Attn: Michael Christopher, Esq.
                     Fax: (602) 382-6070

    4.    GENERAL PROVISIONS.

          (a)  ENTIRE AGREEMENT. This Agreement contains the entire agreement
and understanding among the parties hereto with respect to the subject matter
hereof, and supersedes

                                       2

<PAGE>   3
all prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof.

          (b)  CONTROLLING LAW. This Agreement and all questions relating to
its validity, interpretation, performance and enforcement, shall be governed
by and construed, interpreted and enforced in accordance with the laws of the
State of Arizona, notwithstanding any Arizona or other conflict-of-law
provision to the contrary.

          (c)  COSTS AND FEES. goracing agrees to reimburse IIS and IIS agrees
to reimburse goracing for any reasonable costs and expenses, including
attorney's fees incurred by such party in connection with the enforcement or
preservation of any rights or remedies of the other party under this Agreement.

     IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS SERVICE AGREEMENT AS OF
THE DATE FIRST ABOVE WRITTEN.

                                 IIS:

                                 INTEGRATED INFORMATION SYSTEMS,
                                 INC., a Delaware corporation

                                 By: /s/ Craig A. King
                                     ------------------------------------

                                 Name:  Craig A. King
                                       ----------------------------------

                                 Its:  Vice President
                                      -----------------------------------

                                 GORACING:

                                 goracing.com,inc., a Delaware corporation

                                 By: David Husband
                                    --------------------------------------

                                 Name:  David Husband
                                       -----------------------------------

                                 Its: ____________________________________

                                       3

<PAGE>   4
                                   SCHEDULE A

                                       4
<PAGE>   5
[INTEGRATED INFORMATION SYSTEMS LOGO]

                                WORK ORDER #008
          IN CONNECTION WITH THE MASTER CONSULTING SERVICES AGREEMENT

                PROJECT NAME: GORACING ASP AND HTML DEVELOPMENT

This Work Order is made pursuant to the Master Consulting Services Agreement
(the "Agreement") effective on October 19, 1999 between Integrated Information
Systems, Inc. ("IIS") and GoRacing.com ("Client") and is incorporated therein
by reference. Capitalized terms not otherwise defined have the meanings
provided in the Agreement.

1.  Services. IIS shall perform the Scope of Work identified below for Client.
    Any dates provided are estimates only.

   Provide two months of interim development support utilizing ASP and HTML.

2.  Rates.
    The hourly rates shown below shall be applicable to this Work Order only for
    the Scope of Work set forth above. Any hours incurred outside of the scope
    of this agreement will be billed at a rate specified below.

<TABLE>
<CAPTION>
        RESOURCE            RATE        ESTIMATED HOURS
     ------------------------------------------------------
<S>                        <C>              <C>
     ASP/HTML               $130            320
     Developer
     ------------------------------------------------------
     HTML Developer         $125            320
     ------------------------------------------------------
</TABLE>

    Any services performed by IIS not included in the Scope of Work shall be
    performed by IIS at an hourly rate based on standard rate schedule.

                                                    Work Order #008--Page 1 of 2
<PAGE>   6
    IIS invoices shall be directed to Client's representative for payment at the
    address shown below.

          Client Contact for Invoices: John Doucette
          Company Name: GoRacing.com
          Address: 1480 S. Hohokam Dr., Tempe, AZ 85281
          Phone #: (602) 636-7000
          E-Mail Address: ddoucette@goracing.com

3.  Commencement Date. Services under this Work Order will begin on or about
    March 23, 2000 and will continue until May 19, 2000 or until the Scope of
    Work is finished by IIS.

    THEREFORE, the parties have executed this Work Order in duplicate originals.

    INTEGRATED INFORMATION SYSTEMS, Inc.      CLIENT
    1560 W. Fountainhead Pkwy. #200           GoRacing.com
    Tempe, Arizona 85282-1839                 1480 S. Hohokam Dr.
                                              Tempe, AZ 85281
    IIS MANAGEMENT APPROVAL

    By: ______________________________        By: ______________________________
                                                  Signature

    __________________________________        __________________________________
    Name (Print)                              Name (Print)

    __________________________________        __________________________________
    Title                                     Title

    __________________________________        __________________________________
    Date                                      Date

                                                    Work Order #008--Page 2 of 2
<PAGE>   7
     [IIS LOGO]
Integrated Information
 S  Y  S  T  E  M  S

                                WORK ORDER #007
          IN CONNECTION WITH THE MASTER CONSULTING SERVICES AGREEMENT

              PROJECT NAME: GORACING NETWORK ADMINISTRATOR SUPPORT

This Work Order is made pursuant to the Master Consulting Services Agreement
(the "Agreement") effective on October 19, 1999 between Integrated Information
Systems, Inc. ("IIS") and GoRacing.com ("Client") and is incorporated therein by
reference. Capitalized terms not otherwise defined have the meanings provided in
the Agreement.

1. Services. IIS shall perform the Scope of Work identified below for Client.
   Any dates provided are estimates only.

         Provide interim support for the goracing.com web site and supporting
         infrastructure during transition stage of attaining a signed agreement
         for site hosting.

2. Rates.

   The hourly rates shown below shall be applicable to this Work Order only for
   the Scope of Work set forth above. Billing rate will be at $150.00/hr.

<TABLE>
<CAPTION>
     RESOURCE                      RATE                     ESTIMATED HOURS
-------------------              --------                   ---------------
<S>                              <C>                        <C>
Thomas Pierce                     150.00                           80
Jeffrey Tye                       150.00                           80
</TABLE>

   Any services performed by IIS not included in the Scope of Work shall be
   performed by IIS at an hourly rate based on standard rate schedule.

                                                    Work Order #007--Page 1 of 2

<PAGE>   8
    IIS invoices shall be directed to Client's representative for payment at the
    address shown below.

          Client Contact for Invoices: Dean Jargo
          Company Name: GoRacing.com
          Address: 1480 S. Hohokam Dr., Tempe, AZ 85281
          Phone #: (602) 337-3782
          E-Mail Address: djargo@goracing.com

3.  Commencement Date. Services under this Work Order will begin on or about
    March 22, 2000 and will continue until April 7, 2000 or until the Scope of
    Work is finished by IIS.

    THEREFORE, the parties have executed this Work Order in duplicate originals.

    INTEGRATED INFORMATION SYSTEMS, Inc.      CLIENT
    1560 W. Fountainhead Pkwy. #200           GoRacing.com
    Tempe, Arizona 85282-1839                 1480 S. Hohokam Dr.
                                              Tempe, AZ 85281
    IIS MANAGEMENT APPROVAL

    By: ______________________________        By: ______________________________
                                                  Signature

    __________________________________        __________________________________
    Name (Print)                              Name (Print)

    __________________________________        __________________________________
    Title                                     Title

    __________________________________        __________________________________
    Date                                      Date

                                                    Work Order #007--Page 2 of 2
<PAGE>   9

                                WORK ORDER #003
          IN CONNECTION WITH THE MASTER CONSULTING SERVICES AGREEMENT

                   PROJECT NAME: B2B OPERATIONS MODEL DESIGN

This Work Order is made pursuant to the Master Consulting Services Agreement
(the "Agreement") effective on August 27, 1999, between Integrated Information
Systems, Inc. ("IIS") and Action Performance ("Client") and is incorporated
therein by reference. Capitalized terms not otherwise defined have the meanings
provided in the Agreement.

1.   Services. IIS shall perform the Scope of Work identified below for
     Client. Any dates provided are estimates only.

     1.   PROJECT INITIATION
          -  Business Case Development

     2.   DEFINE SYSTEM REQUIREMENTS
          Define Objectives
          -  Business Requirements
          -  Quality Requirements
          Define Business Model
          -  Business Process Design

     3.   DEVELOP CONCEPTUAL DESIGN
          Develop Positioning
          -  Develop Conceptual Design
          -  Review Design with Task Force
          -  Update Business Functions and Process
          -  Document Changes to Conceptual Design

     4.   SYSTEM DESIGN ALTERNATIVES
          Investigate Alternatives
          -  Review Software Policy
          -  Review HW/SW/COM Environment
          -  Identify Development Alternatives
          -  Produce Pro's and Con's
          -  Define Screening Criteria
          -  Determine Process to Rank Candidates
          -  Develop Implementation Recommendations
          Prepare Project Impact Analysis
          -  Approximate Cost
          -  Produce Software Development Plan
          -  Prepare Economic Analysis
          -  Identify Risks
          -  Draft Impact Part of Conceptual Vision Document

     5.   MANAGEMENT REVIEW AND APPROVAL

     Work Order #003 -- Page 1
<PAGE>   10
   Present Conceptual Vision Document
     -  Complete Draft of Conceptual Vision Document
     -  Review with Task Force
     -  Finalize and Issue Report

2. Estimate and Rates.

   The hourly rates shown below shall be applicable to this Work Order only for
   the Scope of Work set forth above. The overall "in good faith estimate" for
   work authorized in section one is estimated to be $132,267 and will be
   completed by April 28th, 2000. The date specified is achievable given
   approval cycles are adequately met and appropriate project sponsorship is
   allocated by Action Performance.

   Any services performed by IIS not included in the Scope of Work shall be
   performed by IIS at the hourly rates specified below with prior approval.

<TABLE>
<CAPTION>
     RESOURCE          RATE      HOURS        FEES
     --------          ----      -----      --------
<S>                    <C>       <C>        <C>
Project Manager        $225        84        $18,697
eBusiness Architect    $265       222        $58,724
Sr. Consultant         $165       322        $54,846
                                 -----      --------
Total                             638       $132,267
                                 =====      ========
</TABLE>

   IIS invoices shall be directed to Client's representative for payment at the
   address shown below.

     Client Contact for Invoices: Dean Jargo
     Company Name: Action Performance
     Address: 4707 E. Baseline Rd.
              Phoenix AZ 85040

3. Commencement Date. Services under this Work Order will begin on or about
   February 29, 2000 and will continue until April 28th, 2000 or until the Scope
   of Work is completed by IIS.

   THEREFORE, the parties have executed this Work Order in duplicate originals.

-------------------------------------------------------------------------------

INTEGRATED INFORMATION SYSTEMS, Inc.              CLIENT
1560 W. Fountainhead Pkwy. #200                   Dean Jargo
Tempe, Arizona 85282-1839                         4707 E. Baseline Rd.
                                                  Phoenix, AZ 85040

By: /s/ Troy D. Keys                              By:
    ----------------------------                     --------------------------
    Signature                                        Signature

Troy D. Keys
--------------------------------                  -----------------------------
Name (Print)                                      Name (Print)

VP of Sales
--------------------------------                  -----------------------------
Title                                             Title

2/25/2000
--------------------------------                  -----------------------------
Effective Date                                    Date

-------------------------------------------------------------------------------

Work Order #003--Page 2Loan Agreement                                                          PNC BANK

     THIS LOAN AGREEMENT (the "Agreement"),  is entered into as of September 19,
1999, among ACRODYNE COMMUNICATIONS,  INC., a Delaware corporation, and ACRODYNE
INDUSTRIES, INC., a Pennsylvania corporation (together, the "Borrower"), and PNC
BANK, NATIONAL ASSOCIATION (the "Bank").

     The Borrower and the Bank,  with the intent to be legally  bound,  agree as
follows:

     1. Loan. The Bank has made or may make one or more loans (collectively, the
"Loan")  to the  Borrower  subject  to the  terms  and  conditions  and upon the
representations and warranties of the Borrower set forth in this Agreement.  The
Loan is or will be evidenced  by a promissory  note or notes of the Borrower and
all renewals,  extensions,  amendments and restatements thereof (if one or more,
collectively,  the  "Note")  acceptable  to the Bank,  which shall set forth the
interest  rate,  repayment  and  other  provisions,   the  terms  of  which  are
incorporated into this Agreement by reference.

     2.  Security.  The security for repayment of the Loan shall include but not
be  limited  to the  collateral,  guaranties  and  other  documents  heretofore,
contemporaneously or hereafter executed and delivered to the Bank (the "Security
Documents"),  which shall secure  repayment of the Loan,  the Note and all other
loans, advances, debts, liabilities,  obligations, covenants and duties owing by
the  Borrower to the Bank or to any other direct or indirect  subsidiary  of PNC
Bank Corp.,  of any kind or nature,  present or future  (including  any interest
accruing  thereon  after  maturity,  or after  the  filing  of any  petition  in
bankruptcy,  or the  commencement  of any  insolvency,  reorganization  or  like
proceeding  relating to the Borrower,  whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding),  whether or not evidenced
by any note, guaranty or other instrument,  whether arising under any agreement,
instrument or document whether or not for the payment of money,  whether arising
by reason of an  extension  of  credit,  opening  of a letter of  credit,  loan,
equipment  lease or  guarantee,  under any  interest or currency  swap,  future,
option or other interest rate protection or similar  agreement,  or in any other
manner,  whether  arising  out of  overdrafts  on deposit or other  accounts  or
electronic  funds  transfers  (whether  through  automated  clearing  houses  or
otherwise) or out of the Bank's  non-receipt of or inability to collect funds or
otherwise not being made whole in connection with  depository  transfer check or
other similar arrangements, whether direct or indirect (including those acquired
by assignment or participation),  absolute or contingent,  joint or several, due
or to become  due,  now  existing  or  hereafter  arising,  and any  amendments,
extensions,  renewals  or  increases  and all  costs  and  expenses  of the Bank
incurred  in  the   documentation,   negotiation,   modification,   enforcement,
collection  or  otherwise in  connection  with any of the  foregoing,  including
reasonable attorneys' fees and expenses (hereinafter referred to collectively as
the  "Obligations").  Unless expressly provided to the contrary in documentation
for any  other  loan or  loans,  it is the  express  intent  of the Bank and the
Borrower  that  all  Obligations   including  those  included  in  the  Loan  be
cross-collateralized  and cross-defaulted,  such that collateral securing any of
the  Obligations  shall secure  repayment of all Obligations and a default under
any Obligation shall be a default under all Obligations.

     This  Agreement,  the  Note and the  Security  Documents  are  collectively
referred to as the "Loan Documents."  Capitalized terms not defined herein shall
have the meanings ascribed to them in the Loan Documents.

     3. Representations and Warranties.  The Borrower hereby makes the following
representations  and warranties,  which shall be continuing in nature and remain
in full force and effect until the Obligations are paid in full, and which shall
be true and  correct  except as  otherwise  set forth on the  Addendum  attached
hereto and incorporated herein by reference (the "Addendum"):

          3.1.  Existence,  Power and Authority.  If not a natural  person,  the
Borrower is duly organized, validly existing and in good standing under the laws
of the  State  of its  incorporation  or  organization  and  has the  power  and
authority  to own and operate  its assets and to conduct its  business as now or
proposed to be carried on, and is duly qualified,  licensed and in good standing
to do  business  in all  jurisdictions  where its  ownership  of property or the
nature of its business requires such qualification or licensing. The Borrower is
duly authorized to execute and deliver the Loan Documents,  all necessary action
to authorize the execution and delivery of the Loan  Documents has been properly
taken,  and the Borrower is and will  continue to be duly  authorized  to borrow
under this Agreement and to perform all of the other terms and provisions of the
Loan Documents.

                                       1
<PAGE>

     3.2. Financial Statements.  If the Borrower is not a natural person, it has
delivered  or caused to be  delivered  its most  recent  balance  sheet,  income
statement and statement of cash flows,  or if the Borrower is a natural  person,
its personal financial statement and tax returns (as applicable, the "Historical
Financial Statements").  Thee Historical Financial Statements are true, complete
and  accurate  in  all  material  respects  and  fairly  present  the  financial
condition,  assets and  liabilities,  whether accrued,  absolute,  contingent or
otherwise and the results of the Borrower's  operations for the period specified
therein.  The Historical  Financial  Statements have been prepared in accordance
with generally accepted accounting principles ("GAAP") consistently applied from
period to period  subject in the case of interim  statements to normal  year-end
adjustments  and to any  comments and notes  acceptable  to the Bank in its sole
discretion.

          3.3. No  Material  Adverse  Change.  Since the date of the most recent
Financial Statements,  the Borrower has not suffered any damage,  destruction or
loss,  and no event or condition  has occurred or exists,  which has resulted or
could result in a material adverse change in its business,  assets,  operations,
financial condition or results of operation.

          3.4. Binding Obligations. The Borrower has full power and authority to
enter into the  transactions  provided for in this  Agreement  and has been duly
authorized  to do so by  appropriate  action  of its Board of  Directors  if the
Borrower  is a  corporation,  all its  general  partners  if the  Borrower  is a
partnership   or   otherwise  as  may  be  required  by  law,   charter,   other
organizational  documents or agreements;  and the Loan Documents,  when executed
and  delivered by the Borrower,  will  constitute  the legal,  valid and binding
obligations of the Borrower enforceable in accordance with their terms.

          3.5.  No  Defaults  or  Violations.  There does not exist any Event of
Default  under this  Agreement or any default or violation by the Borrower of or
under any of the  terms,  conditions  or  obligations  of:  (i) its  partnership
agreement  if the Borrower is a  partnership,  its  articles or  certificate  of
incorporation,  regulations  or bylaws if the Borrower is a  corporation  or its
other organizational documents as applicable; (ii) any indenture, mortgage, deed
of trust, franchise,  permit, contract,  agreement, or other instrument to which
it is a party of by which it is  bound;  or (iii) any law,  regulation,  ruling,
order,  injunction,  decree,  condition or other  requirement  applicable  to or
imposed  upon  it by any  law,  the  action  by any  court  or any  governmental
authority or agency; and the consummation of this Agreement and the transactions
set forth herein will not result in any such default or violation.

          3.6. Title to Assets.  The Borrower has good and  marketable  title to
the assets reflected on the most recent Financial Statements,  free and clear of
all liens and encumbrances, except for (i) current taxes and assessments not yet
due and payable,  (ii) assets disposed of by the Borrower in the ordinary course
of business since the date of the most recent  Financial  Statements,  and (iii)
those liens or encumbrances, if any, specified on the Addendum.

          3.7.  Litigation.   There  are  no  actions,  suits,   proceedings  or
governmental  investigations  pending  or,  to the  knowledge  of the  Borrower,
threatened against the Borrower, which could result in a material adverse change
in  its  business,  assets,  operations,   financial  condition  or  results  of
operations  and there is no basis known to the  Borrower  for any action,  suit,
proceeding  or  investigation  which  could  result in such a  material  adverse
change.  All pending or threatened  litigation against the Borrower is listed on
the Addendum.

          3.8. Tax Returns.  The Borrower has filed all returns and reports that
are required to be filed by it in  connection  with any federal,  state or local
tax,  duty or charge  levied,  assessed  or imposed  upon it or its  property or
withheld by it, including  unemployment,  social security and similar taxes, and
all of such taxes have been either paid or adequate  reserve or other  provision
has been made therefor.

          3.9.  Employee  Benefit Plans.  Each employee benefit plan as to which
the Borrower may have any liability  complies in all material  respects with all
applicable  provisions of the Employee  Retirement  Income  Security Act of 1974
("ERISA"),  including  minimum  funding  requirements,  and  (i)  no  Prohibited
Transaction (as defined under ERISA) has occurred with respect to any such plan,
(ii) no  Reportable  Event (as defined under Section 4043 of ERISA) has occurred
with  respect to any such plan which would cause the  Pension  Benefit  Guaranty
Corporation  to institute  proceedings  under  Section 4042 of ERISA,  (iii) the
Borrower has not withdrawn  from any such plan or initiated  steps to do so, and
(iv) no steps have been taken to terminate any such plan.

          3.10.  Environmental  Matters.  The Borrower is in compliance,  in all
material respects,  with all Environmental Laws, including,  without limitation,
all Environmental  Laws in jurisdictions in which the Borrower owns or operates,
or has owned or operated, a facility or site, stores Collateral, arranges or has
arranged for disposal or treatment of hazardous substances, solid waste or other
waste, accepts or has accepted for transport any hazardous

                                       2
<PAGE>
substances,  solid  waste or other  wastes or holds or has held any  interest in
real property or otherwise.  Except as otherwise  disclosed on the Addendum,  no
litigation or proceeding  arising under,  relating to or in connection  with any
Environmental  Law is  pending  or,  to the  best of the  Borrower's  knowledge,
threatened  against the Borrower,  any real property which the Borrower holds or
has held an  interest  or any past or  present  operation  of the  Borrower.  No
release, threatened release or disposal of hazardous waste, solid waste or other
wastes is occurring,  or to the best of the  Borrower's  knowledge has occurred,
on, under or to any real  property in which the  Borrower  holds any interest or
performs any of its operations,  in violation of any Environmental  Law. As used
in this Section,  "litigation  or  proceeding"  means any demand,  claim notice,
suit, suit in equity, action,  administrative  action,  investigation or inquiry
whether brought by a governmental  authority or other person, and "Environmental
Laws" means all provisions of laws, statutes,  ordinances,  rules,  regulations,
permits, licenses,  judgments,  writs, injunctions,  decrees, orders, awards and
standards  promulgated by any governmental  authority concerning health,  safety
and  protection  of, or  regulation of the  discharge of  substances  into,  the
environment.

          3.11.  Intellectual  Property. The Borrower owns or is licensed to use
all patents, patent rights, trademarks,  trade names, service marks, copyrights,
intellectual  property,  technology,  know-how and  processes  necessary for the
conduct  of its  business  as  currently  conducted  that  are  material  to the
condition (financial or otherwise), business or operations of the Borrower.

          3.12.  Regulatory Matters. No part of the proceeds of the Loan will be
used for  "purchasing"  or carrying  any "margin  stock"  within the  respective
meanings  of each  of the  quoted  terms  under  Regulation  U of the  Board  of
Governors of the Federal  Reserve  System as now and from time to time in effect
or for any purpose  which  violates the  provisions of the  Regulations  of such
Board of Governors.

          3.13.  Solvency.  As of the date hereof and after giving effect to the
transactions  contemplated by the Loan Documents, (i) the aggregate value of the
Borrower's   assets  will   exceed  its   liabilities   (including   contingent,
subordinated,  unmatured and unliquidated  liabilities),  (ii) the Borrower will
have  sufficient  cash flow to enable  it to pay its debts as they  mature,  and
(iii) the Borrower will not have unreasonably  small capital for the business in
which it is engaged.

          3.14.  Year 2000,  The  Borrower  has  reviewed  the areas  within its
business and operations which could be adversely  affected by, and has developed
or is  developing  a program to address on a timely  basis the risk that certain
computer  applications  used by the  Borrower  may be  unable to  recognize  and
perform  properly  date-sensitive  functions  involving dates prior to and after
December  31, 1999 (the "Year 2000  Problem").  The Year 2000  Problem  will not
result, and is not reasonably expected to result, in any material adverse effect
on the business,  properties, assets, financial condition, results of operations
or  prospects  of the  Borrower,  or the  ability  of the  Borrower  to duly and
punctually  pay or perform its  obligations  hereunder  and under the other Loan
Documents.

          3.15. Disclosure.  None of the Loan Documents contains or will contain
any untrue  statement of material fact or omits or will omit to state a material
fact  necessary in order to make the  statements  contained in this Agreement or
the Loan Documents not misleading.  There is no fact known to the Borrower which
materially  adversely affects or, so far as the Borrower can now foresee,  might
materially  adversely  affect  the  business,  assets,   operations,   financial
condition or results of  operation  of the Borrower and which has not  otherwise
been fully set forth in this Agreement or in the Loan Documents.

     4.  Affirmative  Covenants.  The  Borrower  agrees  that  from  the date of
execution of this Agreement until all  Obligations  have been fully paid and any
commitments of the Bank to the Borrower have been terminated, the Borrower will:

          4.1. Books and Records.  Maintain books and records in accordance with
GAAP and give  representatives  of the Bank  access  thereto  at all  reasonable
times, including permission to examine, copy and make abstracts from any of such
books and records and such other  information  as the Bank may from time to time
reasonably  request,  and the  Borrower  will  make  available  to the  Bank for
examination copies of any reports,  statements or returns which the Borrower may
make to or file with any governmental  department,  bureau or agency, federal or
state.

          4.2. Interim Financial Statements;  Certificate of No Default. Furnish
the Bank within  forty-five  (45) days after the end of each fiscal  quarter the
Borrower's  Financial Statements for such period, in reasonable detail certified
by an authorized  officer of the Borrower and prepared in  accordance  with GAAP
applied  from period to period.  The Borrower  shall also deliver a  certificate
from the Chief Executive  Officer,  President or Chief Financial  Officer of the
Borrower as to compliance by the Borrower with  applicable  financial  covenants
(containing  detailed  calculations  of all financial  covenants) for the period
then ended and  whether  any Event of  Default  exists,  and,  if so, the nature
thereof and the  corrective  measures  the  Borrower  proposes  to take.  If the
Borrower is not a

                                       3
<PAGE>

natural person, "Financial Statements" means the Borrower's consolidated and, if
required  by the  Bank in its sole  discretion,  consolidating  balance  sheets,
income  statements and  statements of cash flows for the year,  month or quarter
together with year-to-date figures and comparative figures for the corresponding
periods of the prior  year.  If the  Borrower  is a natural  person,  "Financial
Statements" means the Borrower's personal financial statement and tax returns.

          4.3. Annual  Financial  Statements.  Furnish the Borrower's  financial
Statements  to the Bank  within one hundred  twenty  (120) days after the end of
each fiscal year. Those Financial Statements will be prepared on a consolidating
and  consolidated  basis in  accordance  with GAAP by an  independent  certified
public  accountant  selected  by the  Borrower  and  satisfactory  to the  Bank,
together  with (i) a report  of such  independent  certified  public  accountant
satisfactory  to the  Bank;  (ii) any  management  letters  of such  accountants
addressed to the Borrower,  or either of them; and (iii) a certificate  from the
Chief Executive Officer, President or Chief Financial Officer of the Borrower as
to compliance by the Borrower with applicable  financial  covenants  (containing
detailed  calculations of all financial covenants) for the period then ended and
whether any Event of Default exists.  Audited Financial Statements shall contain
the unqualified  opinion of an independent  certified public  accountant and its
examination  shall have been made in accordance with GAAP  consistently  applied
from period to period.

          4.4 Annual Budgets and Forecasts.  Finish annual budgets and forecasts
for the Borrower to the Bank within one hundred  twenty (120) days after the end
of each fiscal year of the Borrower.

          4.5 Annual Financial Statements of Guarantor.  Furnish the Bank within
one  hundred  twenty  (120) days after the end of each  fiscal  year of Sinclair
Broadcast Group, Inc., a Maryland corporation ("Guarantor"),  the Form 1OK filed
by Guarantor with the Securities and Exchange Commission.

          4.6 Payment of Taxes and Other Charges. Pay and discharge when due all
indebtedness and all taxes,  assessments,  charges, levies and other liabilities
imposed upon the Borrower,  its income,  profits,  property or business,  except
those  which  currently  are  being  contested  in  good  faith  by  appropriate
proceedings and for which the Borrower shall have set aside adequate reserves or
made other adequate provision with respect thereto acceptable to the Bank in its
sole discretion.

          4.7  Maintenance  of  Existence,  Operation  and Asset.  Do all things
necessary   to   maintain,   renew  and  keep  in  full  force  and  effect  its
organizational  existence and all rights,  permits and  franchises  necessary to
enable it to continue its business;  continue in operation in substantially  the
same manner as at present;  keep its properties in good operating  condition and
repair;  and make all  necessary  and proper  repairs,  renewals,  replacements,
additions and improvements thereto.

          4.8 Insurance. Maintain with financially sound and reputable insurers,
insurance with respect to its property and business  against such casualties and
contingencies, of such types and in such amounts as is customary for established
companies engaged in the same or similar business and similarly situated. In the
event of a conflict  between the provisions of this Section and the terms of any
Security  Documents  relating  to  insurance,  the  provisions  in the  Security
Documents will control.

          4.9  Compliance  with Laws.  Comply  with all laws  applicable  to the
Borrower and to the operation of its business  (including  any statute,  rule or
regulation  relating  to  employment   practices  and  pension  benefits  or  to
environmental, occupational and health standards and controls).

          4.10 Bank Accounts.  Establish and maintain at the Bank the Borrower's
primary depository accounts.

          4.11 Financial  Covenants.  Comply with all of the financial and other
covenants, if any, set forth on the Addendum.

          4.12 Additional Reports.  Provide prompt written notice to the Bank of
the  occurrence of any of the  following  (together  with a  description  of the
action which the Borrower proposes to take with respect thereto):  (i) any Event
of  Default or  potential  Event of  Default,  (ii) any  litigation  filed by or
against the  Borrower  that has  potential  exposure  for  Borrower in excess of
$50,000,  or that might  result in a material  adverse  change in the  business,
assets,  operations,  financial  condition  or results of operation of Borrower;
(iii)  any  Reportable  Event or  Prohibited  Transaction  with  respect  to any
Employee  Benefit  Plans(s)  (as defined in ERISA) or (iv) any event which might
result  in a  material  adverse  change  in the  business,  assets,  operations,
financial condition or results of operation of the Borrower.

                                       4
<PAGE>

     5. Negative Covenants. The Borrower covenants and agrees that from the date
of execution of this Agreement  until all  Obligations  have been fully paid and
any commitments of the Bank to the Borrower have been  terminated,  the Borrower
will not, except as set forth in the Addendum,  without the Bank's prior written
consent:

          5.1.  Idebtedness.  Incur any  indebtedness  for borrowed  money other
than;  (i) the Loan and any  subsequent  indebtedness  to the  Bank;  (ii)  open
account trade debt incurred in the ordinary course of business and not past due;
and (iii)  operating  leases  incurred in the ordinary course of business not to
exceed $50,000 in additional lease obligations incurred in any one year period.

          5.2.  Liens and  Encumbrances.  Except as  provided  in  Section  3.6,
create,  assume or permit to exist any mortgage,  pledge,  encumbrance  or other
security  interest  or lien upon any assets now owned or  hereafter  acquired or
enter  into any  arrangement  for the  acquisition  of  property  subject to any
conditional sales agreement.

          5.3. Guarantees.  Guarantee, endorse or become contingently liable for
the obligations of any person,  firm or  corporation,  except in connection with
the  endorsement  and deposit of checks in the  ordinary  course of business for
collection.

          5.4. Loans or Advances. Purchase or hold beneficially any stock, other
securities or evidences of  indebtedness  of, or make or have  outstanding,  any
loans or advances to, or make any investment or acquire any interest  whatsoever
in, any other person, firm or corporation, except investments with or in Bank or
its affiliates or investments  disclosed on the Borrower's  Historical Financial
Statements or acceptable to the Bank in its sole discretion. Notwithstanding the
foregoing,  Borrower  may make loans or  advances  not to exceed  $25,000 in the
aggregate made within any one year period to employees.

          5.5. Merger or Transfer of Assets.  Merge or consolidate  with or into
any person, firm or corporation or lease, sell, transfer or otherwise dispose of
all, or  substantially  all, of its  property,  assets and business  whether now
owned or hereafter acquired.

          5.6. Change in Business,  Management or Ownership.  Make or permit any
material  change in the  nature of its  business  as  carried  on as of the date
hereof, in the composition of its current executive management, or in its equity
ownership.

          5.7.   Dividends   Declare  or  pay  any  dividends  on  or  make  any
distribution with respect to any class of its equity or ownership  interest,  or
purchase,  redeem, retire or otherwise acquire any of its equity, except for the
amount of  federal  and  state  income  tax of the  principals  of the  Borrower
attributable  to the  earnings  of  the  Borrower  where  the  Borrower  is an S
corporation, or a partnership or a limited liability company.

     6. Events of Default. The occurrence of any of the following will be deemed
to be an Event of Default:

          6.1. Covenant  Default.  The Borrower shall default in the performance
of any of the covenants or agreements  contained in this  Agreement  (other than
the  requirement for the payment of money) and such default shall remain uncured
for a period of thirty (30) days after written notice by Bank to Borrower of the
default.

          6.2.  Breach of Warranty.  Any  Financial  Statement,  representation,
warranty  or  certificate  made or  furnished  by the  Borrower  to the  Bank in
connection  with this  Agreement  shall be false,  incorrect or incomplete  when
made.

          6.3. Other Default The occurrence of an Event of Default as defined in
the Note or any of the Security Documents.

Upon the  occurrence  of an Event of Default,  the Bank will have all rights and
remedies  specified  in the Note and the Security  Documents  and all rights and
remedies (which are cumulative and not exclusive) available under applicable law
or in equity.

     7. Conditions.  The Bank's obligation to make any advance under the Loan is
subject to the conditions that as of the date of the advance:

          7.1. No Event of Default.  No Event of Default or event which with the
passage  of time,  provision  of notice  or both  would  constitute  an Event of
Default shall have occurred and be continuing;

          7.2.  Authorization  Documents.  The Bank  shall  have been  furnished
certified copies of resolutions of the board of directors,  the general partners
or the members or managers of any partnership,

                                       5
<PAGE>
corporation or limited liability company that executes this Agreement,  the Note
or any of the Security Documents or the other Loan Documents;  or other proof of
authorization satisfactory to the Bank; and

          7.3. Receipt of Loan Documents.  The Bank shall have received the Loan
Documents and such other instruments and documents which the Bank may reasonably
request in  connection  with the  transactions  provided for in this  Agreement,
which may include an opinion of counsel for any party  executing any of the Loan
Documents in form and substance satisfactory to the Bank.

          8. Expenses.  The Borrower agrees to pay the Bank, upon the closing of
this  Agreement,  and  otherwise on demand,  all  reasonable  costs and expenses
incurred  by the  Bank in  connection  with  the  preparation,  negotiation  and
delivery of this Agreement and the other Loan Documents,  and any  modifications
thereto,  and the  collection  of all of  Borrower's  Obligations  to the  Bank,
including but not limited to enforcement actions,  relating to the Loan, whether
through  judicial  proceedings or otherwise,  or in defending or prosecuting any
actions or proceedings  arising out of or relating to this Agreement,  including
reasonable  fees and  expenses of counsel  (which may include  costs of in-house
counsel), expenses for auditors,  appraisers and environmental consultants, lien
searches, recording and filing fees and taxes.

     9. Increased  Costs. On written demand,  together with the written evidence
of the justification  therefor,  the Borrower agrees to pay the Bank, all direct
costs  incurred  and any  losses  suffered  or  payments  made by the  Bank as a
consequence  of making the Loan by reason of any change in law or  regulation or
its  interpretation  imposing any  reserve,  deposit,  allocation  of capital or
similar requirement (including without limitation,  Regulation D of the Board of
Governors of the Federal Reserve System) on the Bank, its holding company or any
of their respective assets.

     10. Miscellaneous.

          10.1. Notices All notices, demands, requests,  consents, approvals and
other communications required or permitted hereunder must be in writing and will
be  effective  upon  receipt.  Such  notices  and  other  communications  may be
hand-delivered, sent by facsimile transmission with confirmation of delivery and
a copy sent by  first-class  mail,  or sent by nationally  recognized  overnight
courier  service,  to a party's address set forth below or to such other address
as any party may give to the other in writing for such purpose:

To the Bank:          PNC Bank, National Association
                      Valley Forge Regional Banking Center
                      1000 Westlakes Drive  Suite 200
                      Berwyn, PA 19312
                      Facsimile No. (610)725-5799
                      Telephone No.: (610)725-5700
                      Attention; Diane M. Shaak, Vice-President

To the Borrower:      Acrodyne Communications, Inc.
                      Acrodyne Industries, Inc.
                      516 Township Line Road
                      Blue Bell, PA 19422
                      Facsimile No.:  (215)542-0664
                      Telephone No.: (215) 542-7000 Ext. 158
                      Attention: Ronald R. Lanchoney

With a copy to:       Steven A. Thomas, Esquire
                      Thomas & Libowitz, P.A.
                      100 Light Street
                      Baltimore, MD 21202-1053
                      Facsimile No.: (410)252-2046
                      Telephone No.: (410) 752-2468

                                       6
<PAGE>

          10.2.  Preservation of Rights. No delay or omission on the Bank's part
to exercise any right or power arising  hereunder  will impair any such right or
power or be considered a waiver of any such right or power, nor will the Bank 's
action or  inaction  impair  any such  right or power.  The  Bank's  rights  and
remedies  hereunder  are  cumulative  and not  exclusive  of any other rights or
remedies which the Bank may have under other agreements, at law or in equity.

          10.3. Illegality.  In case any one or more of the provisions contained
in this Agreement  should be invalid,  illegal or  unenforceable in any respect,
the validity,  legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

          10.4. Changes In Writing. No modification,  amendment or waiver of any
provision  of this  Agreement  nor  consent  to any  departure  by the  Borrower
therefrom  will be effective  unless made in a writing signed by the party to be
charged, and then such waiver or consent shall be effective only in the specific
instance  and for the  purpose  for which  given.  No notice to or demand on the
Borrower in any case will entitle the Borrower to any other or further notice or
demand in the same, similar or other circumstance.

          10.5.  Entire Agreement.  This Agreement  (including the documents and
instruments  referred to herein) constitutes the entire agreement and supersedes
all other prior agreements and  understandings,  both written and oral,  between
the parties with respect to the subject matter hereof.

          10.6.  Counterparts.  This  Agreement  may be signed in any  number of
counterpart copies and by the parties hereto on separate  counterparts,  but all
such  copies  shall  constitute  one and the  same  instrument.  Delivery  of an
executed  counterpart  of a  signature  page  to  this  Agreement  by  facsimile
transmission shall be effective as delivery of a manually executed  counterpart.
Any party so executing this Agreement by facsimile  transmission  shall promptly
deliver a manually  executed  counterpart,  provided  that any  failure to do so
shall  not  affect  the  validity  of  the  counterpart  executed  by  facsimile
transmission.

          10.7.  Successors and Assigns. This Agreement will be binding upon and
inure to the benefit of the  Borrower and the Bank and their  respective  heirs,
executors,  administrators,  successors and assigns;  provided however, that the
Borrower  may not assign this  Agreement  in whole or in part without the Bank's
prior  written  consent  and the Bank at any time may assign this  Agreement  in
whole or in part.

          10.8.  Interpretation.  In this  Agreement  unless  the  Bank  and the
Borrower  otherwise agree in writing,  the singular  includes the plural and the
plural the  singular;  words  importing  any gender  include the other  genders;
references to statutes are to be construed as including all statutory provisions
consolidating,  amending or  replacing  the statute  referred  to; the word "or"
shall be deemed to  include  "and/or",  the words  "including",  "includes"  and
"include"  shall be deemed to be  followed  by the words  "without  limitation";
references to articles,  sections (or  subdivisions of sections) or exhibits are
to those  of this  Agreement  unless  otherwise  indicated;  and  references  to
agreements  and other  contractual  instruments  shall be deemed to include  all
subsequent  amendments and other modifications to such instruments,  but only to
the extent such  amendments  and other  modifications  are not prohibited by the
terms of this  Agreement.  Section  headings in this  Agreement are included for
convenience  of reference only and shall not constitute a part of this Agreement
for any  other  purpose.  Unless  otherwise  specified  in this  Agreement,  all
accounting terms shall be interpreted and all accounting determinations shall be
made in  accordance  with GAAP.  If this  Agreement is executed by more than one
party as Borrower, the obligations of such persons or entities will be joint and
several.

          10.9.  Indemnity.  The Borrower  agrees to indemnify each of the Bank,
its  directors,  officers  and  employees  and each legal  entity,  if any,  who
controls the Bank (the Indemnified  Parties ) and to hold each Indemnified Party
harmless from and against any and all claims, damages,  losses,  liabilities and
expenses  (including,  without  limitation,  all fees and charges of internal or
external counsel with whom any Indemnified Party may consult and all expenses of
litigation or preparation  therefor)  which any  Indemnified  Party may incur or
which may be  asserted  against  any  Indemnified  Party in  connection  with or
arising out of the matters  referred to in this  Agreement  or in the other Loan
Documents by any person, entity or governmental  authority (including any person
or entity claiming derivatively on behalf of the Borrower),  whether (a) arising
from or incurred in connection with any breach of a representation,  warranty or
covenant by the  Borrower,  or (b) arising  out of or  resulting  from any suit,
action, claim, proceeding or governmental investigation,  pending or threatened,
whether  based on  statute,  regulation  or  order,  or  tort,  or  contract  or
otherwise,  before any court or governmental  authority,  which arises out of or
relates to this Agreement,  any other Loan Document,  or the use of the proceeds
of the Loan; provided, however, that the foregoing indemnity agreement shall not
apply to claims, damages,  losses,  liabilities and expenses solely attributable
to an Indemnified Party's gross negligence or willful misconduct.  The indemnity
agreement  contained  in this  Section  shall  survive the  termination  of this
Agreement,  payment  of any Loan and  assignment  of any rights  hereunder.  The
Borrower  may  participate  at its  expense in the defense of any such action or
claim.

                                       7
<PAGE>

          10.10. Assignments and Participations. At any time, without any notice
to  the  Borrower,  the  Bank  may  sell,  assign,  transfer,  negotiate,  grant
participations  in,  or  otherwise  dispose  of all or any  part  of the  Bank's
interest in the Loan. Notwithstanding the foregoing, Bank shall endeavor to give
notice to Borrower of such disposition,  but failure by Bank to give such notice
shall not in any  manner  constitute  a default  by Bank in its  obligations  to
Borrower. The Borrower hereby authorizes the Bank to provide, without any notice
to the Borrower, any information concerning the Borrower,  including information
pertaining to the Borrower's financial condition, business operations or general
creditworthiness, to any person or entity which may succeed to or participate in
all or any part of the Bank's interest in the Loan.

          10.11.  Governing  Law  and  Jurisdiction.  This  Agreement  has  been
delivered to and accepted by the Bank and will be deemed to be made in the State
where the Bank's  office  indicated  above is located.  THIS  AGREEMENT  WILL BE
INTERPRETED AND THE RIGHTS AND  LIABILITIES OF THE PARTIES HERETO  DETERMINED IN
ACCORDANCE WITH THE LAWS OF THE STATE WHERE THE BANK'S OFFICE INDICATED ABOVE IS
LOCATED,  EXCLUDING ITS CONFLICT OF LAWS RULES. The Borrower hereby  irrevocably
consents  to the  exclusive  jurisdiction  of any state or federal  court in the
county or judicial  district where the Bank's office indicated above is located;
provided  that nothing  contained in this  Agreement  will prevent the Bank from
bringing any action,  enforcing any award or judgment or  exercising  any rights
against the Borrower individually,  against any security or against any property
of the  Borrower  within any other  county,  state or other  foreign or domestic
jurisdiction.  The Bank and the Borrower  agree that the venue provided above is
the most  convenient  forum  for both the Bank and the  Borrower.  The  Borrower
waives any objection to venue and any objection based on a more convenient forum
in any action instituted under this Agreement.

          WAIVER OF JURY TRIAL.  EACH OF THE BORROWER  AND THE BANK  IRREVOCABLY
WAIVES  ANY AND  ALL  RIGHT  IT MAY  HAVE  TO A  TRIAL  BY  JURY IN ANY  ACTION,
PROCEEDING  OR CLAIM OF ANY NATURE  RELATING TO THIS  AGREEMENT,  ANY  DOCUMENTS
EXECUTED IN CONNECTION  WITH THIS AGREEMENT OR ANY  TRANSACTION  CONTEMPLATED IN
ANY OF SUCH DOCUMENTS.  THE BORROWER AND THE BANK ACKNOWLEDGE THAT THE FOREGOING
WAIVER IS KNOWING AND VOLUNTARY.

     11.  Additional  Conditions.  The Bank's obligation to make any Loan to the
Borrower hereunder shall be subject to the following conditions:

          11.1 Cancellation of Sovereign Bank  Commitments.  The Bank shall have
been  furnished  with evidence of  cancellation  of all  commitments  from,  and
evidence of repayment in full of all indebtedness by the Borrower,  or either of
them, to Sovereign Bank.

          11.2  Termination  of  Sovereign  Liens.  The  Bank  shall  have  been
furnished  with evidence of  termination  all liens granted by the Borrower,  or
either of them,  to  Sovereign  Bank on any and all personal  property  owned by
either of them  (both  tangible  and  intangible),  both now owned or  hereafter
acquired or arising.

The Borrower  acknowledges that it has read and understood all the provisions of
this  Agreement,  including  the waiver of jury trial,  and his been  advised by
counsel as necessary or appropriate.

                                       8
<PAGE>

WITNESS the due execution  hereof as a document under seal, as of the date first
written above.

ATTEST:                                 ACRODYNE COMMUNICATIONS, INC.

/s/ Carol E. McCormack                  By: /s/ A. Robert Mancuso
Print Name: Carol E. McCormack                                        (SEAL)
Title:                                  Print Name: A. Robert Mancuso
(Include title only if an officer       Title: President
of entity signing to the
right)

ATTEST:
                                        ACRODYNE INDUSTRIES, INC.
/s/ Carol E. McCormack                  By: /s/ Ronald R. Lanchoney
Print Name: Carol E. McCormack                                        (SEAL)
Title:                                  Print Name: Ronald R. Lanchoney
(Include title only if an officer       Title: CFO
of entity signing to the
right)

                                        PNC BANK, NATIONAL ASSOCIATION
                                                                      (SEAL)
                                        By: /s/ Daniel Takonshian
                                        Print Name: Daniel Takonshian
                                        Title: Vice President

                                       9
<PAGE>
COMMONWEALTH OF Pennsylvania  )
                              )    ss:
COUNTY OF Montgomery          )

     On  this,  the 19th  day of Sept  1999,  before  me a  Notary  Public,  the
undersigned  officer,  personally  appeared A. Robert Mancuso,  who acknowledged
himself/herself to be the Pres CEO of Acrodyne  Communications,  Inc. a Delaware
corporation,  and that  he/she,  as such  officer,  being  authorized  to do so,
executed the foregoing  instrument for the purposes therein contained by signing
on behalf of said corporation as such officer.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

NOTORIAL SEAL
EVE R. BROZYNO, Notary Public
Plymouth Twp., Montgomery County
My Commission Expires Nov. 8, 1999                /s/ Eve R. Brozyno
                                                  Notary Public
My commission expires:

COMMONWEALTH OF Pennsylvania  )
                              )    ss:
COUNTY OF Montgomery          )

     On  this,  the  19th of  Sept,  1999,  before  me,  a  Notary  Public,  the
undersigned  officer,  personally  appeared Ronald  Lanchoney,  who acknowledged
himself/herself  to be the  CFO of  Acrodyne  Industries,  Inc.  a  Pennsylvania
corporation,  and that  he/she,  as such  officer,  being  authorized  to do so,
executed the foregoing  instrument for the purposes therein contained by signing
on behalf of said corporation as such officer.

IN WITNESS WHEREOF I hereunto set my hand and official seal.

NOTORIAL SEAL
EVE R. BROZYNO, Notary Public
Plymouth Twp., Montgomery County
My Commission Expires Nov. 8, 1999                /s/ Eve R. Brozyno
                                                  Notary Public
My commission expires:

                                       10
<PAGE>

ADDENDUM to that certain Loan Agreement  dated  September _, 1999 among ACRODYNE
COMMUNICATIONS,  INC., a Delaware corporation,  and ACRODYNE INDUSTRIES, INC., a
Pennsylvania  corporation,  together  as the  Borrower  and PNC  BANK,  NATIONAL
ASSOCIATION,  as the  Bank.  Capitalized  terms  used in this  Addendum  and not
otherwise  defined shall have the meanings given them in the Agreement.  Section
numbers below refer to the sections of the Agreement.

3.6 Title to Assets. Describe additional liens and encumbrances below:

3.7 Litigation.  Describe pending or threatened  litigation,  proceedings,  etc,
below:
<PAGE>
CONTINUATION OF ADDENDUM

                              FINANCIAL COVENANTS

X The  Borrower  will  maintain  at all times on and after  December  31, 1999 a
minimum Tangible Net Worth of S4,500,000.00.

Cash Flow  means net  income  plus  depreciation  plus  amortization  plus other
non-cash items.

Current  Maturities means the current  principal  maturities of all indebtedness
for borrowed money  (including  amortization of capitalized  lease  obligations)
having an original term of one year or more, as shown on the Borrower's  balance
sheet as of the end of the prior fiscal year,  together with any  prepayments of
such indebtedness made [during the prior fiscal year] [during the prior 12 month
period].

Tangible  Net  Worth  means  stockholders'  equity  in  the  Borrower  less  any
indebtedness to third parties and all items properly  classified as intangibles,
in accordance with generally accepted accounting principles (including good will
and the value of all non-compete  agreements)  plus advances that the Bank deems
has been satisfactorily subordinated.

Unfunded Capital Expenditures mews capital expenditures made from the Borrower's
funds other than borrowed funds.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]