Document:

Exhibit 10.8

Exhibit 10.8

SECURITY AGREEMENT

This SECURITY AGREEMENT (this “Agreement”) is entered into at Pittsburgh, Pennsylvania, as of
December 13, 2010, between Orbit/FR, Inc., a Delaware corporation, with an address of 506 Prudential
Road, Horsham Pennsylvania 19044, Advanced ElectroMagnetics, Inc., a California corporation, with
an address of 9311 Stevens Road San Tee, CA 92071, Orbit Advanced Technologies, Inc., a Delaware
corporation, with an address of 506 Prudential Road, Horsham
Pennsylvania 19044 and Flam & Russell,
Inc., a Delaware corporation, with an address of 506 Prudential Road, Horsham Pennsylvania 19044
(collectively, the “Borrower” and each a “Borrower”) and Citizens Bank of Pennsylvania, a
Pennsylvania, state-chartered bank, with an address of 525 William Penn Place, Pittsburgh,
Pennsylvania 15219-1724 (the “Bank”).

FOR VALUE RECEIVED, and in consideration of the granting by the Bank of financial
accommodations to or for the benefit of the Borrower, including without limitation respecting the
Obligations (as hereinafter defined), the Borrower represents to and agrees with the Bank, as of
the date hereof and as of the date of each loan, credit and/or other financial accommodation, as
follows:

1. GRANT OF SECURITY INTEREST

1.1 Grant of Security Interest. In consideration of the Bank’s extending credit and other
financial accommodations to or for the benefit of the Borrower, the Borrower hereby grants to the
Bank a security interest in, a lien on and pledge and assignment of the Collateral (as hereinafter
defined). The security interest granted by this Agreement is given to and shall be held by the
Bank as security for the payment and performance of all Obligations (as hereinafter defined),
including without limitation, all amounts due and owing to the Bank and all obligations respecting
that certain Term Note-Non Revolving-Line of Credit dated 12/13, 2010, by Orbit/FR, Inc.,
Advanced ElectroMagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc. in
favor of the Bank in the original principal amount of $250,000.00 (the “Note”; and collectively,
along with all other agreements, documents, certificates and instruments delivered in connection
therewith, the “Loan Documents”), and any substitutions, modifications, extensions or
amendments to any of the Loan Documents.

1.2 Definitions. The following definitions shall apply:

	 	(a)	 	“Bank Affiliate” shall mean any “Affiliate” of the Bank or any lender acting as a
participant under any loan arrangement between the Bank and the Borrower(s). The term
“Affiliate” shall mean with respect to any person, (a) any person which, directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, such person, or (b) any person who is a director or officer (i) of
such person, (ii) of any subsidiary of such person, or (iii) any person described in
clause (a) above. For purposes of this definition, control of a person shall mean the
power, direct or indirect, (x) to vote 5% or more of the Capital Stock having ordinary
voting power for the election of directors (or comparable equivalent) of such person, or
(y) to direct or cause the direction of the management and policies of such person whether
by contract or otherwise. Control may be by ownership, contract, or otherwise.

 

 

 

	 	(b)	 	“Code” shall mean the Pennsylvania Uniform Commercial Code, Title 13 PaCSA as amended
from time to time.

	 	(c)	 	“Collateral” shall mean all of the Borrower’s present and future right, title and interest in
and to any and all of the personal property of the Borrower whether such property is now
existing or hereafter created, acquired or arising and wherever located from time to time,
including without limitation:

	 	(i)	 	accounts;

	 
	 	(ii)	 	chattel paper;

	 
	 	(iii)	 	goods;

	 
	 	(iv)	 	inventory;

	 
	 	(v)	 	equipment;

	 
	 	(vi)	 	fixtures

	 
	 	(vii)	 	farm products;

	 
	 	(viii)	 	instruments;

	 
	 	(ix)	 	investment property;

	 
	 	(x)	 	documents;

	 
	 	(xi)	 	commercial tort claims;

	 
	 	(xii)	 	deposit accounts;

	 
	 	(xiii)	 	letter-of-credit rights;

	 
	 	(xiv)	 	general intangibles;

	 
	 	(xv)	 	supporting obligations; and

	 
	 	(xvi)	 	records of, accession to and proceeds and products of the foregoing.

	 	(d)	 	“Debtors” shall mean the Borrower’s customers who are indebted to the Borrower.

	 	(e)	 	“Obligation(s)”
shall mean, without limitation, all loans, advances, indebtedness, notes,
liabilities, rate swap transactions, basis swaps, forward rate transactions, commodity swaps,
commodity options, equity or equity index swaps, equity or equity index options, bond options,
interest rate options, foreign exchange transactions, cap transactions, floor transactions,
collar transactions, forward transactions, currency swap transactions, cross-currency rate
swap transactions, currency options and amounts, liquidated or unliquidated, owing by the
Borrower to the Bank or any Bank Affiliate at any time, of each and every kind, nature and
description, whether arising under this Agreement or otherwise, and whether secured or
unsecured, direct or indirect (that is, whether the same are due directly by the Borrower to
the Bank or any Bank Affiliate; or are due indirectly by the Borrower to the Bank or any Bank
Affiliate as endorser, guarantor or other surety, or as borrower of obligations due third
persons which have been endorsed or assigned to the Bank or any Bank Affiliate, or otherwise),
absolute or contingent, due or to become due, now existing or hereafter arising or contracted,
including, without
limitation, payment when due of all amounts outstanding respecting any of the Loan
Documents. Said term shall also include all interest and other charges chargeable to
the Borrower or due from the Borrower to the Bank or any Bank Affiliate from time to
time and all costs and expenses referred to in this Agreement.

	 	(f)	 	“Person” or “party” shall mean individuals, partnerships, corporations,
limited liability companies and all other entities.

 

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All words and terms used in this Agreement other than those specifically defined herein shall
have the meanings accorded to them in the Code.

1.3 Ordinary Course of Business. The Bank hereby authorizes and permits the Borrower to
hold, process, sell, use or consume in the manufacture or processing of finished goods, or
otherwise dispose of inventory for fair consideration, all in the ordinary course of the Borrower’s
business, excluding, without limitation, sales to creditors or in bulk or sales or other
dispositions occurring under circumstances which would or could create any lien or interest adverse
to the Bank’s security interest or other right hereunder in the proceeds resulting therefrom. The
Bank also hereby authorizes and permits the Borrower to receive from the Debtors all amounts due as
proceeds of the Collateral at the Borrower’s own cost and expense, and also liability, if any,
subject to the direction and control of the Bank at all times; and the Bank may at any time,
without cause or notice, and whether or not an Event of Default has occurred or demand has been
made, terminate all or any part of the authority and permission herein or elsewhere in this
Agreement granted to the Borrower with reference to the Collateral, and notify Debtors to make all
payments due as proceeds of the Collateral to the Bank. Until Bank shall otherwise notify
Borrower, all proceeds of and collections of Collateral shall be retained by Borrower and used
solely for the ordinary and usual operation of Borrower’s business. From and after notice by Bank
to Borrower, all proceeds of and collections of the Collateral shall be held in trust by Borrower
for Bank and shall not be commingled with Borrower’s other funds or deposited in any Bank account
of Borrower; and Borrower agrees to deliver to Bank on the dates of receipt thereof by Borrower,
duly endorsed to Bank or to bearer, or assigned to Bank, as may be
appropriate, all proceeds of the
Collateral in the identical form received by Borrower.

1.4 Allowances. Absent an Event of Default the Borrower may grant such allowances or other
adjustments to Debtors (exclusive of extending the time for payment of any item which shall not be
done without first obtaining the Bank’s written consent in each instance) as the Borrower may
reasonably deem to accord with sound business practice, including, without limiting the generality
of the foregoing, accepting the return of all or any part of the inventory (subject to the
provisions set forth in this Agreement with reference to returned inventory).

1.5 Records. The Borrower shall hold its books and records relating to the Collateral
segregated from all the Borrower’s other books and records in a manner satisfactory to the Bank;
and shall deliver to the Bank from time to time promptly at its request all invoices, original
documents of title, contracts, chattel paper, instruments and any other writings relating thereto,
and other evidence of performance of contracts, or evidence of shipment or delivery of the
merchandise or of the rendering of services; and the Borrower will deliver to the Bank promptly at
the Bank’s request from time to time additional copies of any or all of such papers or writings,
and such other information with respect to any of the Collateral and such schedules of inventory,
schedules of accounts and such other writings as the Bank may in its sole discretion deem to be
necessary or effectual to evidence any loan hereunder or the Bank’s security interest in the
Collateral.

1.6 Legends. The Borrower shall promptly make, stamp or record such entries or legends on
the Borrower’s books and records or on any of the Collateral (including, without limitation,
chattel paper) as Bank shall request from time to time, to indicate and disclose that Bank has a
security interest in such Collateral.

1.7 Inspection. The Bank, or its representatives, at any time and from time to time, shall
have the right at the sole cost and expense of Borrower, and the Borrower will permit the Bank
and/or its
representatives: (a) to examine, check, make copies of or extracts from any of the Borrower’s
books, records and files (including, without limitation, orders and original correspondence); (b)
to perform field exams or otherwise inspect and examine the Collateral and to check, test or
appraise the same as to quality, quantity, value and condition; and (c) to verify the Collateral or
any portion or portions thereof or the Borrower’s compliance with the provisions of this Agreement.

 

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1.8 Purchase Money Security Interests. To the extent the Borrower uses proceeds of any
loans to purchase Collateral, the repayment of such loans shall be on a “first-in-first-out” basis
so that the portion of the loan used to purchase a particular item of Collateral shall be repaid in
the order in which Borrower purchased such item of Collateral.

1.9 Search Reports. Bank shall receive prior to the date of this Agreement UCC search
results under all names used by the Borrower during the prior five (5) years, from each
jurisdiction where any Collateral is located, from the State, if any, where the Borrower is
organized and registered (as such terms are used in the Code), and the State where the Borrower’s
chief executive office is located. The search results shall confirm that the security interest in
the Collateral granted Bank hereunder is prior to all other security interests in favor of any
other person.

2. REPRESENTATIONS AND WARRANTIES

2.1 Accounts and Contract Rights. All accounts arise out of legally enforceable and
existing contracts, and represent unconditional and undisputed bona fide indebtedness by a Debtor,
and are not and will not be subject to any discount (except such cash or trade discount as may be
shown on any invoice, contract or other writing delivered to the Bank). No contract right,
account, general intangible or chattel paper is or will be represented by any note or other
instrument, and no contract right, account or general intangible is, or will be represented by any
conditional or installment sales obligation or other chattel paper, except such instruments or
chattel paper as have been or immediately upon receipt by the Borrower will be delivered to the
Bank (duly endorsed or assigned), such delivery, in the case of chattel paper, to include all
executed copies except those in the possession of the installment buyer and any security for or
guaranty of any of the Collateral shall be delivered to the Bank immediately upon receipt thereof
by the Borrower, with such assignments and endorsements thereof as the Bank may request.

2.2 Title to Collateral. At the date hereof the Borrower is (and as to Collateral that the
Borrower may acquire after the date hereof, will be) the lawful owner of the Collateral, and the
Collateral and each item thereof is, will be and shall continue to be free of all restrictions,
liens, encumbrances or other rights, title or interests (other than the security interest therein
granted to the Bank), credits, defenses, recoupments, set-offs or counterclaims whatsoever. The
Borrower has and will have full power and authority to grant to the Bank a security interest in the
Collateral and the Borrower has not transferred, assigned, sold, pledged, encumbered, subjected to
lien or granted any security interest in, and will not transfer, assign, sell (except sales or
other dispositions in the ordinary course of business in respect to inventory as expressly
permitted in this Agreement), pledge, encumber, subject to lien or grant any security interest in
any of the Collateral (or any of the Borrower’s right, title or interest therein), to any person
other than the Bank. The Collateral is and will be valid and genuine in all respects. The Borrower
will warrant and defend the Bank’s right to and interest in the Collateral against all claims and
demands of all persons whatsoever.

2.3 Location of Collateral. Except for sale, processing, use, consumption or other
disposition in the ordinary course of business, the Borrower will keep all inventory and equipment
only at locations specified in this Agreement or specified to the Bank in writing. The Borrower
shall, during the term of this Agreement, keep the Bank currently and accurately informed in
writing of each location where the Borrower’s records relating to its accounts and contract rights,
respectively, are kept, and shall not remove such records or any of them to another location
without giving the Bank at least thirty (30) days prior written notice thereof.

 

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2.4 Third Parties. The Bank shall not be deemed to have assumed any liability or
responsibility to the Borrower or any third person for the correctness, validity or genuineness of
any instruments or documents that may be released or endorsed to the Borrower by the Bank (which
shall automatically be deemed to be without recourse to the Bank in any event) or for the
existence, character, quantity, quality, condition, value or delivery of any goods purporting to be
represented by any such documents; and the Bank, by accepting such security interest in the
Collateral, or by releasing any Collateral to the Borrower, shall not be deemed to have assumed any
obligation or liability to any supplier or Debtor or to any other third party, and the Borrower
agrees to indemnify and defend the Bank and hold it harmless in respect to any claim or proceeding
arising out of any matter referred to in this paragraph.

2.5 Payment of Accounts. Each account or other item of Collateral, other than inventory
and equipment, will be paid in full on or before the date shown as its due date in the schedule of
Collateral, in the copy of the invoice(s) relating to the account or other Collateral or in
contracts relating thereto. Upon any suspension of business, assignment or trust mortgage for the
benefit of creditors, dissolution, petition in receivership or under any chapter of the Bankruptcy
Code as amended from time to time by or against any Debtor, any Debtor becoming insolvent or unable
to pay its debts as they mature or any other act of the same or different nature amounting to a
business failure, the Borrower will immediately notify the Bank thereof.

3. AFFIRMATIVE COVENANTS

3.1 Inspection. Borrower will at all reasonable times make its books and records available
in its offices for inspection, examination and duplication by the Bank and the Bank’s
representatives and will permit inspection of the Collateral and all of its properties by the Bank
and the Bank’s representatives. Borrower will from time to time furnish the Bank with such
information and statements as the Bank may request in its sole discretion with respect to the
Obligations or the Bank’s security interest in the Collateral. Borrower shall, during the term of
this Agreement, keep the Bank currently and accurately informed in writing of each location where
Borrower’s records relating to its accounts and contract rights are kept, and shall not remove such
records to another location without giving the Bank at least thirty (30) days prior written notice
thereof.

3.2 Notice to Account Debtors. The Borrower agrees, at the request of the Bank, to notify
all or any of the Debtors in writing of the Bank’s security interest in the Collateral in whatever
manner the Bank requests and, hereby authorizes the Bank to notify all or any of the Debtors of the
Bank’s security interest in the Borrower’s accounts at the Borrower’s expense.

3.3 Taxes. Borrower will promptly pay all real and personal property taxes, assessments
and charges and all franchise, income, unemployment, retirement benefits, withholding, sales and
other taxes assessed against it or payable by it before delinquent; provided that this covenant
shall not apply to any tax assessment or charge which is being contested in good faith and with
respect to which reserves have been established and are being maintained. The Bank may, at its
option, from time to time, discharge any taxes, liens or encumbrances of any of the Collateral, and
the Borrower will pay to the Bank on demand or the Bank in its sole discretion may charge to the
Borrower all amounts so paid or incurred by it.

3.4 Maintenance. Borrower will keep and maintain the Collateral and its other properties,
if any, in good repair, working order and condition. The Borrower will immediately notify the Bank
of any loss or damage to or any occurrence which would adversely affect the value of any
Collateral. The Bank may, at its option, from time to time, take any other action that the Bank may
deem proper to repair, maintain or preserve any of the Collateral, and the Borrower will pay to the
Bank on demand or the Bank in its sole discretion may charge to the Borrower all amounts so paid or
incurred by it.

3.5 Insurance. Borrower will maintain in force property and casualty insurance on all
Collateral and any other property of Borrower, if any, against risks customarily insured against by
companies engaged in businesses similar to that of Borrower containing such terms and written by
such companies
as may be satisfactory to the Bank, such insurance to be payable to the Bank as its interest may
appear in the event of loss and to name the Bank as insured pursuant to a standard loss payee
clause; no loss shall be adjusted thereunder without the Bank’s approval; and all such policies
shall provide that they may not be canceled without first giving at least Ten (10) days written
notice of cancellation to the Bank. In the event that Borrower fails to provide evidence of such
insurance, the Bank may, at its option, secure such insurance and charge the cost thereof to the
Borrower. At the option of the Bank, all insurance proceeds received from any loss or damage to any
of the Collateral shall be applied either to the replacement or repair thereof or as a payment on
account of the Obligations. From and after the occurrence of an Event of Default, the Bank is
authorized to cancel any insurance maintained hereunder and apply any returned or unearned
premiums, all of which are hereby assigned to the Bank, as a payment on account of the Obligations.

 

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4. DEFAULT

4.1 Default. “Event of Default” shall mean the occurrence of one or more of any of the
following
events:

	 	(a)	 	default of any liability, obligation, covenant or undertaking of the Borrower or any
guarantor of the Obligations to the Bank, hereunder or otherwise, including, without
limitation, failure to pay in full and when due any installment of principal or interest or
default of the Borrower or any guarantor of the Obligations under any other Loan Document or
any other agreement with the Bank;

	 
	 	(b)	 	failure of the Borrower or any guarantor of the Obligations to maintain aggregate
collateral security value satisfactory to the Bank;

	 
	 	(c)	 	default of any material liability, obligation or undertaking of the Borrower or any
guarantor of the Obligations to any other party;

	 
	 	(d)	 	if any statement, representation or warranty heretofore, now or hereafter made by the
Borrower or any guarantor of the Obligations in connection with this Agreement or in any
supporting financial statement of the Borrower or any guarantor of the Obligations shall be
determined by the Bank to have been false or misleading in any material respect when made;

	 
	 	(e)	 	if the Borrower or any guarantor of the Obligations is a corporation, trust, partnership
or limited liability company, the liquidation, termination or dissolution of any such
organization, or the merger or consolidation of such organization into another entity, or
its ceasing to carry on actively its present business or the appointment of a receiver for
its property;

	 
	 	(f)	 	the death of the Borrower or any guarantor of the Obligations and, if the Borrower or any
guarantor of the Obligations is a partnership or limited liability company, the death of any
partner or member;

	 
	 	(g)	 	the institution by or against the Borrower or any guarantor of the Obligations of any
proceedings under the Bankruptcy Code 11 USC §101 et seq. or any other law in which the
Borrower or any guarantor of the Obligations is alleged to be insolvent or unable to pay its
debts as they mature, or the making by the Borrower or any guarantor of the Obligations of
an assignment for the benefit of creditors or the granting by the Borrower or any guarantor
of the Obligations of a trust mortgage for the benefit of creditors;

	 
	 	(h)	 	the service upon the Bank of a writ in which the Bank is named as trustee of the
Borrower or any guarantor of the Obligations;

	 
	 	(i)	 	a judgment or judgments for the payment of money shall be rendered against the
Borrower or any guarantor of the Obligations, and any such judgment shall remain
unsatisfied and in effect for any period of thirty (30) consecutive days without a stay
of execution;

	 
	 	(j)	 	any levy, lien (including mechanics lien), seizure, attachment, execution or similar
process shall be issued or levied on any of the property of the Borrower or any guarantor
of the Obligations;

	 
	 	(k)	 	the termination or revocation of any guaranty of the Obligations; or

	 
	 	(l)	 	the occurrence of such a change in the condition or affairs (financial or otherwise) of
the Borrower or any guarantor of the Obligations, or the occurrence of any other event or
circumstance, such that the Bank, in its sole discretion, deems that it is insecure or that
the prospects for timely or full payment or performance of any obligation of the Borrower
or any guarantor of the Obligations to the Bank has been or may be impaired.

 

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4.2 Acceleration. If an Event of Default shall occur, at the election of the Bank, all
Obligations

shall become immediately due and payable without notice or demand, except with respect to
Obligations payable on DEMAND, which shall be due and payable on DEMAND, whether or not an Event
of Default has occurred.

The Bank is hereby authorized, at its election, after an Event of Default or after Demand,
without any further demand or notice except to such extent as notice may be required by applicable
law, to take possession and/or sell or otherwise dispose of all or any of the Collateral at public
or private sale; and the Bank may also exercise any and all other rights and remedies of a secured
party under the Code or which are otherwise accorded to it in equity or at law, all as Bank may
determine, and such exercise of rights in compliance with the requirements of law will not be
considered adversely to affect the commercial reasonableness of any sale or other disposition of
the Collateral. If notice of a sale or other action by the Bank is required by applicable law,
unless the Collateral is perishable or threatens to decline speedily in value or is of a type
customarily sold on a recognized market, the Borrower agrees that ten (10) days written notice to
the Borrower, or the shortest period of written notice permitted by such law, whichever is
smaller, shall be sufficient notice; and that to the extent permitted by law, the Bank, its
officers, attorneys and agents may bid and become purchasers at any such sale, if public, and may
purchase at any private sale any of the Collateral that is of a type customarily sold on a
recognized market or which is the subject of widely distributed standard price quotations. Any
sale (public or private) shall be without warranty and free from any right of redemption, which
the Borrower shall waive and release after default upon the Bank’s request therefor, and may be
free of any warranties as to the Collateral if Bank shall so decide. No purchaser at any sale
(public or private) shall be responsible for the application of the purchase money. Any balance of
the net proceeds of sale remaining after paying all Obligations of the Borrower to the Bank shall
be returned to such other party as may be legally entitled thereto; and if there is a deficiency,
the Borrower shall be responsible for repayment of the same, with interest. Upon demand by the
Bank, the Borrower shall assemble the Collateral and make it available to the Bank at a place
designated by the Bank which is reasonably convenient to the Bank and the Borrower. The Borrower
hereby acknowledges that the Bank has extended credit and other financial accommodations to the
Borrower upon reliance of the Borrower’s granting the Bank the rights and remedies contained in
this Agreement including without limitation the right to take immediate possession of the
Collateral upon the occurrence of an Event of Default or after DEMAND with respect to Obligations
payable on DEMAND and the Borrower hereby acknowledges that the Bank is entitled to equitable and
injunctive relief to enforce any of its rights and remedies hereunder or under the Code and the
Borrower hereby waives any defense to such equitable or injunctive relief based upon any
allegation of the absence of irreparable harm to the Bank.

The Bank shall not be required to marshal any present or future security for (including but
not limited to this Agreement and the Collateral subject to the security interest created hereby),
or guarantees of, the Obligations or any of them, or to resort to such security or guarantees in
any particular order; and all of its rights hereunder and in respect of such securities and
guaranties shall be cumulative and in
addition to all other rights, however existing or arising. To the
extent that it lawfully may do
so, the Borrower hereby agrees that it will not invoke and irrevocably waives the benefits of any
law relating to the marshaling of collateral which might cause delay in or impede the enforcement
of the Bank’s rights under this Agreement or under any other instrument evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations
is secured or guaranteed. Except as required by applicable law, the Bank shall have no duty as to
the collection or protection of the Collateral or any income thereon, nor as to the preservation of
rights against prior parties, nor as to the preservation of any rights pertaining thereto beyond
the safe custody thereof.

 

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4.3 Power of Attorney. The Borrower hereby irrevocably constitutes and appoints the Bank
as the Borrower’s true and lawful attorney, with full power of substitution, at the sole cost and
expense of the Borrower but for the sole benefit of the Bank, upon the occurrence of an Event of
Default or after DEMAND with respect to Obligations payable on DEMAND, to convert the Collateral
into cash, including, without limitation, completing the manufacture or processing of work in
process, and the sale (either public or private) of all or any portion or portions of the inventory
and other Collateral; to enforce collection of the Collateral, either in its own name or in the
name of the Borrower, including, without limitation, executing releases or waivers, compromising or
settling with any Debtors and prosecuting, defending, compromising or releasing any action relating
to the Collateral; to receive, open and dispose of all mail addressed to the Borrower and to take
therefrom any remittances or proceeds of Collateral in which the Bank has a security interest; to
notify Post Office authorities to change the address for delivery of mail addressed to the Borrower
to such address as the Bank shall designate; to endorse the name of the Borrower in favor of the
Bank upon any and all checks, drafts, money orders, notes, acceptances or other instruments of the
same or different nature; to sign and endorse the name of the Borrower on and to receive as secured
party any of the Collateral, any invoices, freight or express receipts, or bills of lading, storage
receipts, warehouse receipts, or other documents of title of the same or different nature relating
to the Collateral; to sign the name of the Borrower on any notice of the Debtors or on verification
of the Collateral; and to sign, if necessary, and file or record on behalf of the Borrower any
financing or other statement in order to perfect or protect the Bank’s security interest. The Bank
shall not be obliged to do any of the acts or exercise any of the powers hereinabove authorized,
but if the Bank elects to do any such act or exercise any such power, it shall not be accountable
for more than it actually receives as a result of such exercise of power, and it shall not be
responsible to the Borrower except for its own gross negligence or willful misconduct. All powers
conferred upon the Bank by this Agreement, being coupled with an interest, shall be irrevocable so
long as any Obligation of the Borrower or any guarantor or surety to the Bank shall remain unpaid
or the Bank is obligated under this Agreement to extend any credit to
the Borrower.

4.4 Nonexclusive Remedies. All of the Bank’s rights and remedies not only under the
provisions of this Agreement but also under any other agreement or transaction shall be cumulative
and not alternative or exclusive, and may be exercised by the Bank at such time or times and in
such order of preference as the Bank in its sole discretion may determine.

5. MISCELLANEOUS

5.1
Costs and Expenses. the Borrower shall pay to the Bank on demand any and all costs and
expenses (including, without limitation, reasonable attorneys’ fees and disbursements, court costs,
litigation and other expenses) incurred or paid by the Bank in establishing, maintaining,
protecting or enforcing any of the Bank’s rights or the Obligations, including, without limitation,
any and all such costs and expenses incurred or paid by the Bank in defending the Bank’s security
interest in, title or right to the Collateral or in collecting or attempting to collect or
enforcing or attempting to enforce payment of the Obligations.

5.2 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute but one agreement.

5.3
Severability. If any provision of this Agreement or portion of such provision or the
application thereof to any person or circumstance shall to any extent be held invalid or
unenforceable, the remainder
of this Agreement (or the remainder of such provision) and the application thereof to other persons
or circumstances shall not be affected thereby.

 

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5.4 Complete Agreement. This Agreement and the other Loan Documents constitute the entire
agreement and understanding between and among the parties hereto relating to the subject matter
hereof, and supersedes all prior proposals, negotiations, agreements and understandings among the
parties hereto with respect to such subject matter.

5.5 Binding Effect of Agreement. This Agreement shall be binding upon and inure to the
benefit of the respective heirs, executors, administrators, legal representatives, successors and
assigns of the parties hereto, and shall remain in full force and effect (and the Bank shall be
entitled to rely thereon) until released in writing by the Bank. Notwithstanding any such
termination, the Bank shall have a security interest in all Collateral to secure the payment and
performance of Obligations arising after such termination as a result of commitments or
undertakings made or entered into by the Bank prior to such termination. The Bank may transfer and
assign this Agreement and deliver the Collateral to the assignee, who shall thereupon have all of
the rights of the Bank; and the Bank shall then be relieved and discharged of any responsibility or
liability with respect to this Agreement and the Collateral. The Borrower may not assign or
transfer any of its rights or obligations under this Agreement. Except as expressly provided
herein or in the other Loan Documents, nothing, expressed or implied, is intended to confer upon
any party, other than the parties hereto, any rights, remedies, obligations or liabilities under or
by reason of this Agreement or the other Loan Documents.

5.6 Further Assurances. Borrower will from time to time execute and deliver to Bank such
documents, and take or cause to be taken, all such other or further action, as Bank may request in
order to effect and confirm or vest more securely in Bank all rights contemplated by this Agreement
and the other Loan Documents (including, without limitation, to correct clerical errors) or to vest
more fully in or assure to the Bank the security interest in the Collateral granted to the Bank by
this Agreement or to comply with applicable statute or law and to facilitate the collection of the
Collateral (including, without limitation, the execution of stock transfer orders and stock powers,
endorsement of promissory notes and instruments and notifications to obligors on the Collateral).
To the extent permitted by applicable law, Borrower authorizes the Bank to file financing
statements, continuation statements or amendments, and any such financing statements, continuation
statements or amendments may be filed at any time in any jurisdiction. Bank may at any time and
from time to time file financing statements, continuation statements and amendments thereto which
contain any information required by the Code for the sufficiency or filing office acceptance of any
financing statement, continuation statement or amendment, including whether Borrower is an
organization, the type of organization and any organization identification number issued to
Borrower. Borrower agrees to furnish any such information to Bank promptly upon request. In
addition, Borrower shall at any time and from time to time take such steps as Bank may reasonably
request for Bank (i) to obtain an acknowledgment, in form and substance satisfactory to Bank, of
any bailee having possession of any of the Collateral that the bailee holds such Collateral for
Bank, (ii) to obtain “control” (as defined in the Code) of any Collateral comprised of deposit
accounts, electronic chattel paper, letter of credit rights or investment property, with any
agreements establishing control to be in form and substance satisfactory to Bank, and (iii)
otherwise to insure the continued perfection and priority of Bank’s security interest in any of the
Collateral and the preservation of its rights therein. Borrower hereby constitutes Bank its
attorney-in-fact to execute, if necessary, and file all filings required or so requested for the
foregoing purposes, all acts of such attorney being hereby ratified and confirmed; and such power,
being coupled with an interest, shall be irrevocable until this Agreement terminates in accordance
with its terms, all Obligations are irrevocably paid in full and the
Collateral is released.

5.7 Amendments and Waivers. This Agreement may be amended and Borrower may take any action
herein prohibited, or omit to perform any act herein required to be performed by it, if Borrower
shall obtain the Bank’s prior written consent to each such amendment, action or omission to act. No
course of dealing and no delay or omission on the part of Bank in exercising any right hereunder
shall operate as a waiver of such right or any other right and waiver on any one or more occasions
shall not be construed as a bar to or waiver of any right or remedy of Bank on any future occasion.

 

9

 

5.8 Terms of Agreement. This Agreement shall continue in full force and effect so long as
any Obligations or obligation of Borrower to Bank shall be outstanding, or the Bank shall have any
obligation to extend any financial accommodation hereunder, and is supplementary to each and every
other agreement between Borrower and Bank and shall not be so construed as to limit or otherwise
derogate from any of the rights or remedies of Bank or any of the liabilities, obligations or
undertakings of Borrower under any such agreement, nor shall any contemporaneous or subsequent
agreement between Borrower and the Bank be construed to limit or otherwise derogate from any of the
rights or remedies of Bank or any of the liabilities, obligations or undertakings of Borrower
hereunder, unless such other agreement specifically refers to this Agreement and expressly so
provides.

5.9 Notices. Any notice under or pursuant to this Agreement shall be a signed writing or
other authenticated record (within the meaning of Article 9 of the Code). Any notices under or
pursuant to this Agreement shall be deemed duly received and effective if delivered in hand to any
officer or agent of the Borrower or Bank, or if mailed by registered or certified mail, return
receipt requested, addressed to the Borrower or Bank at the address set forth in this Agreement or
as any party may from time to time designate by written notice to the other party.

5.10 Governing Law. This Agreement shall be governed by federal law applicable to the
Bank and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania.

5.11 Reproductions. This Agreement and all documents which have been or may be hereinafter
furnished by Borrower to the Bank may be reproduced by the Bank by any photographic, photostatic,
microfilm, xerographic or similar process, and any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding (whether or not the
original is in existence and whether or not such reproduction was made in the regular course of
business).

5.12 Jurisdiction and Venue. Borrower irrevocably submits to the nonexclusive jurisdiction
of any Federal or state court sitting in Pennsylvania, over any suit, action or proceeding arising
out of or relating to this Agreement. Borrower irrevocably waives, to the fullest extent it may
effectively do so under applicable law, any objection it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding brought in any such court and any claim that the
same has been brought in an inconvenient forum. Borrower hereby consents to any and all process
which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by
registered and certified mail, postage prepaid, return receipt requested, to the Borrower’s address
shown in this Agreement or as notified to the Bank and (ii) by serving the same upon the Borrower
in any other manner otherwise permitted by law, and agrees that such service shall in every respect
be deemed effective service upon Borrower.

 

10

 

5.13 JURY WAIVER. THE BORROWER AND BANK EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE
ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS
AGREEMENT, THE OBLIGATIONS, ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION
HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER CERTIFIES THAT NEITHER THE BANK NOR ANY
OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK
WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY
JURY.

Executed as an instrument under seal as of Dec 13, 2010.

	 	 	 	 	 
	 	Borrower:

Orbit/FR, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per lversen
 
	 	 	Per lversen, President & CEO 	 
	 

 

11

 

	 	 	 	 	 
	 	Borrower:

Advanced ElectroMagnetics, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                         /s/ Per lversen
 	 
	 	 	Per lversen, President & CEO 	 
	 	 	 	 
	 	Borrower:

Orbit Advanced Technologies, Inc.

 	 
	 	By:  	/s/  Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                         /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 
	 	 	 	 
	 	Borrower:

Flam & Russell, Inc.

 	 
	 	By:  	/s/  Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 

Accepted:
Citizens Bank of Pennsylvania

	 	 	 	 	 
	By: 

	 	/s/ Christina Scott
 

Name: Christina Scott
	 	 
	 

	 	Title:    Vice President	 	 

©
2010 Medici, a division of Wolters Kluwer Financial Services

 

12Exhibit 10.9

Exhibit 10.9

LOAN AGREEMENT

This LOAN AGREEMENT (this “Agreement”) is entered into at Pittsburgh, Pennsylvania, as of
December 13, 2010, between Orbit/FR, Inc., a Delaware corporation, with an address of 506
Prudential Road, Horsham Pennsylvania 19044, Advanced ElectroMagnetics, Inc., a California
corporation, with an address of 9311 Stevens Road San Tee, CA 92071, Orbit Advanced Technologies,
Inc., a Delaware corporation, with an address of 506 Prudential Road, Horsham Pennsylvania 19044
and Flam & Russell, Inc., a Delaware corporation, with an address of 506 Prudential Road, Horsham
Pennsylvania 19044 (collectively, the “Borrower” and each a “Borrower”) and Citizens Bank of
Pennsylvania, a Pennsylvania, state-chartered bank, with an address of 525 William Penn Place,
Pittsburgh, Pennsylvania 15219-1724 (the “Bank”).

FOR VALUE RECEIVED, and in consideration of the granting by the Bank of financial
accommodations to or for the benefit of the Borrowers, including without limitation respecting the
Obligations (as hereinafter defined), each Borrower represents to and agrees with the Bank, as of
the date hereof and as of the date of each loan, credit and/or other financial accommodation, as
follows:

1. THE LOAN

1.1 Revolving Credits. Bank agrees, in its sole discretion, to make or issue, as
applicable, Revolving Credits (as hereinafter defined) to or for the account of
Orbit/FR, Inc., Advanced ElectroMagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam &
Russell, Inc., upon any Borrower’s request therefor, in an aggregate amount of up to Two Million
Two Hundred Fifty Thousand Dollars and Zero Cents ($2,250,000.00) (the “Revolving Credit Amount”)
or such other amounts as may from time to time be established by Bank, subject to the terms and
conditions set forth herein. The Revolving Credits shall be evidenced by that certain Revolving
Demand Note, of even date herewith (the “Revolving Note”), by Orbit/FR, Inc., Advanced
ElectroMagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc. in favor of the
Bank in the face amount of the Revolving Credit Amount. This Agreement, the Revolving Note, and any
and all other documents, amendments or renewals executed and delivered in connection with any of
the foregoing are collectively hereinafter referred to as the “Loan Documents”.

1.2 Working Capital Loans. Revolving Credits shall include revolving bans for the purpose
of funding the working capital requirements of each Borrower’s business (“Working Capital Loans”)
in an aggregate amount of up to Two Million Two Hundred Fifty Thousand Dollars and Zero Cents
($2,250,000.00) (the “Working Capital Loan Amount”) or such other amounts as may from time to time
be established by Bank. Advances respecting Working Capital Loans shall not be made if after giving
effect thereto (measured by the face amount of any such loan) the amount of Revolving Credits would
exceed the Revolving Credit Amount.

1.3 Letters of Credit. Revolving Credits shall include Letters of Credit (as hereinafter
defined). Upon the request of any Borrower, and subject to such conditions to the issuing of
Letters of Credit as Bank requires of its customers generally, Bank may, subject to the terms of
this Agreement, from time to time issue Letters of Credit for the account of each Borrower, the
aggregate undrawn amount of all outstanding Letters of Credit not at any time to exceed
$2,250,000.00; provided, however, that Bank shall not be obligated to issue a Letter of Credit if
after giving effect thereto (measured by the face amount of such Letter of Credit) the amount of
Revolving Credits including the face amount of all outstanding Letters of Credit would exceed the Revolving Credit Amount.

 

 

 

1.4 Revolving Credit Account. An account shall be opened on the books of Bank in which
account a record will be kept of all Revolving Credits, and all payments thereon and other
appropriate debits and credits as provided by this Agreement.

1.5 Interest. Interest respecting the Revolving Credits will be charged to Borrowers on
the principal amount from time to time outstanding at the interest rate specified in the Revolving
Note in accordance with the terms of the Revolving Note or as otherwise set forth in this Agreement
with respect to any particular type of Revolving Credit.

1.6 Demand. All loans and advances made respecting the Working Capital Loans shall be
payable to Bank on DEMAND, notwithstanding the inclusion of events of default in this Agreement or
in any other Loan Document and whether or not any event of default has occurred under this
Agreement or any of the Loan Documents.

1.7 Clean-Up The Borrower shall fully repay to the Bank all amounts outstanding respecting
the Revolving Loans for a period of 30 consecutive days in each year.

1.8 Overadvances. Any Revolving Credits that may be made, at the Bank’s sole discretion,
in excess of the Revolving Credit Amount shall not limit the obligations of any Borrower or any of
the Bank’s rights or remedies hereunder or under the Loan Documents or otherwise; all such
Revolving Credits shall be due and payable to the Bank in accordance with the terms of the
Revolving Note, and shall bear interest at the rate set forth in the Revolving Note. All checks or
other items paid by Bank which cause an overdraft in any deposit account maintained by any Borrower
with Bank shall, at the option of the Bank, constitute an advance to each Borrower pursuant to this
Agreement respecting the Revolving Credits, repayable on demand.

1.9 Authorized Persons; Advances. Any person duly authorized by a general borrowing
resolution of any Borrower, or in the absence of such a resolution, the President, Treasurer or any
Vice President of any Borrower, or any person otherwise authorized in this paragraph, may
request discretionary loans hereunder, either orally or otherwise, but the Bank at its option may
require that all requests for loans hereunder shall be in writing. The Bank shall incur no
liability to any Borrower in acting upon any request referred to herein which the Bank believes in
good faith to have been made by an authorized person or persons. Each loan hereunder may be
credited by Bank to any deposit account of any Borrower with Bank or with any other Bank with which
such Borrower maintains a deposit account, or may be paid to any Borrower (or as any Borrower
instructs) or may be applied to any Obligations, as Bank may in each instance elect.

1.10 Monthly Statement. At the option of the Bank, after the end of each month, Bank
will render to Borrowers a statement of the Revolving Credit account, showing all applicable
credits and debits. Each statement shall be considered correct and to have been accepted by
each Borrower and shall be conclusively binding upon each Borrower in respect of all charges,
debits and credits of whatsoever nature contained therein respecting the Revolving Credits, and
the closing balance shown therein, unless each Borrower notifies Bank in writing of any
discrepancy within Twenty (20) days from the mailing by Bank to any Borrower of any such
monthly statement.

1.11 Issuance of Letters of Credit. The issuance of each Letter of Credit shall be made on
at least Three Business Days prior written notice from Borrowers to Bank, which written notice shall be an
application for a Letter of Credit on Bank’s customary form completed to the satisfaction of Bank,
together with the proposed form of the Letter of Credit (which shall be satisfactory to Bank) and
such other certificates, documents and other papers and information as Bank may request. Bank
shall not at any time be obligated to issue any Letter of Credit if such issuance would conflict
with, or cause Bank to exceed any limits imposed by, this agreement or any applicable requirements
of law. The expiration date of any Letter of Credit shall not be later than One year from issuance
thereof, and, in any event, no Letter
of Credit shall have an expiration date later than the expiration date of this Agreement, if any.
Letters of Credit shall be issued solely with respect to transactions occurring in the ordinary
course of business of a Borrower.

 

2

 

1.12 Payment of Letters of Credit; Reimbursement. Bank shall review each draft and any
accompanying documents presented under a Letter of Credit. Promptly after it shall have
ascertained that any draft and any accompanying documents presented under such Letter of Credit
appear on their face to be in substantial conformity with the terms and conditions of the Letter
of Credit, Bank shall give telephonic or facsimile notice to Borrowers of the receipt and amount
of such draft and the date on which payment thereon will be made, and Bank, not later than 3:00
p.m. (Bank’s local time) on such day, shall make the appropriate payment to the beneficiary of
such Letter of Credit. If in accordance with the prior sentence Bank shall pay any draft presented
under a Letter of Credit, then Bank shall charge the general deposit account of any Borrower with
Bank for the amount thereof, together with Bank’s customary overdraft fee in the event the funds
available in such account shall not be sufficient to reimburse Bank for such payment and Borrowers
shall not otherwise have discharged such reimbursement obligation by 11:00 a.m. (Bank’s local
time), on the date of such payment. If Bank has not been reimbursed with respect to such drawing
as provided above, Borrowers shall pay to Bank ON DEMAND the amount of the drawing together with
interest on such amount, for each day such drawing is not reimbursed, at a rate per annum equal to
the interest rate applicable to the Working Capital Loan as set forth in the Revolving Note plus
three percent (3%). The obligations of each Borrower under this Section to reimburse Bank for all
drawings under Letters of Credit shall be absolute, unconditional and irrevocable and shall be
satisfied strictly in accordance with their terms, irrespective of:

	 	(a)	 	any lack of validity or enforceability of any Letter of Credit;

	 	(b)	 	the existence of any claim, setoff, defense or other right which any Borrower or any
other person may at any time have against the beneficiary under any Letter of Credit or
Bank (other than the defense of payment in accordance with the terms of this Agreement or a
defense based on the gross negligence or willful misconduct of Bank) or any other person
in connection with this Agreement or any other transaction;

	 	(c)	 	any draft or other document presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect;

	 	(d)	 	payment by Bank under any Letter of Credit against presentation of a draft or other
document which does not comply with the terms of such Letter of Credit; and

	 	(e)	 	any other circumstance or event whatsoever, whether or not similar to any of the foregoing.

Nothing herein shall obligate Bank to honor any drawing under a Letter of Credit that does
not strictly comply in all respects with the requirements of such Letter of Credit, and Bank shall
have no liability for refusing to honor any drawing that does not so strictly comply even though
any Borrower may request or demand that such drawing be honored or waive any nonconformities
therein.

It is understood that in making any payment under any Letter of Credit, Bank’s exclusive
reliance on the documents presented to it under such Letter of Credit as to any and all matters
set forth therein, including, without limitation, reliance on the amount of any draft presented
under such Letter of Credit, whether or not the amount due to the beneficiary equals the amount of
such draft and whether or not any document presented pursuant to such Letter of Credit proves to
be insufficient in any respect, if such document on its face appears to be in order, and whether
or not any other statement or any other document presented pursuant to such Letter of Credit
proves to be forged or invalid or any statement therein proves to be inaccurate or untrue in any
respect whatsoever, and any noncompliance in any immaterial respect of the documents presented
under such Letter of Credit with the terms thereof shall, in each case, not be deemed willful
misconduct or gross negligence of Bank.

 

3

 

1.13 Bank’s Actions with respect to Letters of Credit. Any Letter of Credit may, in the
discretion of Bank or its correspondents, be interpreted by them (to the extent not inconsistent
with such Letter of Credit) in accordance with the Uniform Customs and Practice for Documentary
Credits of the International Chamber of Commerce, as adopted or amended from time to time, or any
other rules, regulations and customs prevailing at the place where any Letter of Credit is
available or the drafts are drawn or negotiated. Bank and its correspondents may accept and act
upon the name, signature, or act of any party purporting to be the executor, administrator,
receiver, trustee in bankruptcy, or other legal representative of any party designated in any
Letter of Credit in the place of the name, signature, or act of such party.

1.14 Letter of Credit_Fees. Borrowers agree to pay to Bank, with respect to each Letter of
Credit, (i) for so long as such Letter of Credit shall be outstanding, a letter of credit fee equal
to One Percent (1.00%) of the face amount thereof per annum payable to Bank, plus (ii) an issuance
fee charged by Bank for transactions of this nature in an amount of the Standard Issuance Fee
payable to Bank on the date of issuance of such Letter of Credit. In addition, Borrowers shall
pay to Bank with respect to any amendment to a Letter of Credit a fee charged by Bank for
transactions of this nature (but in no event less than the standard L/C issuance fee).

1.15 Definitions. The following definitions shall apply:

	 	(a)	 	“Bank Affiliate” shall mean any “Affiliate” of the Bank or any lender acting as a
participant under any loan arrangement between the Bank and the Borrower(s). The term
“Affiliate” shall mean with respect to any person, (a) any person which, directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, such person, or (b) any person who is a director or officer (i) of such
person, (ii) of any subsidiary of such person, or (iii) any person described in clause (a)
above. For purposes of this definition, control of a person shall mean the power, direct or
indirect, (x) to vote 5% or more of the Capital Stock having ordinary voting power for the
election of directors (or comparable equivalent) of such person, or (y) to direct or cause
the direction of the management and policies of such person whether by contract or
otherwise. Control may be by ownership, contract, or otherwise.

	 	(b)	 	“Code” shall mean the Pennsylvania Uniform Commercial Code, Title 13 PaCSA as amended
from time to time.

	 	(c)	 	“Letter of Credit” shall mean standby letters of credit issued by the Bank for the
account of a Borrower in accordance with Section 1.10.

	 	(d)	 	“Obligation(s)” shall mean, without limitation, all loans, advances, indebtedness,
notes, liabilities, rate swap transactions, basis swaps, forward rate transactions,
commodity swaps, commodity options, equity or equity index swaps, equity or equity index
options, bond options, interest rate options, foreign exchange transactions, cap
transactions, floor transactions, collar transactions, forward transactions, currency swap
transactions, cross-currency rate swap transactions, currency options and amounts (including
under Letters of Credit) , liquidated or unliquidated, owing by any Borrower to the Bank or
any Bank Affiliate at any time, of each and every kind, nature and description, whether
arising under this Agreement or otherwise, and whether secured or unsecured, direct or
indirect (that is, whether the same are due directly by any Borrower to the Bank or any Bank
Affiliate; or are due indirectly by any Borrower to the Bank or any Bank Affiliate as
endorser, guarantor or other surety, or as borrower of obligations due third persons which
have been endorsed or assigned to the Bank or any Bank Affiliate, or otherwise), absolute or
contingent, due or to become due, now existing or hereafter arising or contracted,
including, without limitation, payment when due of all amounts outstanding respecting any
of the Loan Documents. Said term shall also include all interest and other charges
chargeable to any Borrower or due from any Borrower to the Bank or any Bank Affiliate from
time to time and all costs and expenses referred to in this Agreement.

 

4

 

	 	(e)	 	“Person” or “party” shall mean individuals, partnerships, corporations,
limited liability companies and all other entities.

	 
	 	(f)	 	“Revolving Credits” shall mean any Working Capital Loans or Letters of Credit made or
issued hereunder.

All words and terms used in this Agreement other than those specifically defined herein shall
have the meanings accorded to them in the Code.

2. REPRESENTATIONS AND WARRANTIES

2.1 Organization and Qualification. Each Borrower that is not an individual, represents
and warrants that: (i) it is duly formed and validly existing under the laws of the state of its
formation, (ii) its exact legal name is set forth in the first paragraph of this Agreement; (iii)
it is in good standing under the laws of said state; (iv) it has the power to own its property and
conduct its business as now conducted and as currently proposed to be conducted, and; (v) it is
duly qualified to do business under the laws of each state where the nature of the business done or
property owned requires such qualification.

2.2 Related Parties. Each Borrower has no interest in any entities other than as
previously specifically consented to in writing by the Bank, if any, and each Borrower has never
consolidated, merged or acquired substantially all of the assets of any other entity or person
other than as previously specifically consented to in writing by the Bank, if any.

2.3 Partnership Records. In the event that a Borrower is a partnership, its
Partnership Agreement and all amendments thereto have been duly filed (if required) and are in
proper order. All outstanding limited partnership interests issued by such Borrower were and are
properly issued and all books and records of such Borrower, including but not limited to its minute
books and books of account, are accurate and up to date and will be so maintained.

2.4 Corporate Records. In the event that a Borrower is a corporation, its corporate
charter, articles or certificate of organization or incorporation and all amendments thereto have
been duly filed and are in proper order. All outstanding capital stock issued by such Borrower was
and is properly issued and all books and records of such Borrower, including but not limited to its
minute books, bylaws and books of account, are accurate and up to date and will be so maintained.

2.5 Trust Records. In the event that a Borrower is a trust, its Declaration of Trust or
Trust Indenture or other charter document and all amendments thereto are in proper order. All
beneficial interests in such Borrower were and are properly issued and all books and records of
such Borrower, including but not limited to its books of account, are accurate and up to date and
will be so maintained.

2.6 Limited Liability Company Records. In the event that a Borrower is a limited
liability company, its certificate of organization, articles of organization or other charter
document and all amendments thereto have been duly filed and are in proper order. All members of
such Borrower are properly reflected on all books and records of such Borrower, including but not
limited to its operating agreement, minute books, bylaws and books of account, all of which are
accurate and up to date and will be so maintained.

2.7 Title to Properties: Absence of Liens. Each Borrower has good and clear record
and marketable title to all of its properties and assets, and all of its properties and assets are
free and clear of all mortgages, liens, pledges, charges, encumbrances and setoffs, except those
mortgages, deeds of trust, leases of personal property and security interests previously
specifically consented to in writing by the Bank.

2.8 Places of Business. Each Borrower’s chief executive office is correctly stated in the
preamble to this Agreement, and each Borrower shall, during the term of this Agreement, keep the
Bank currently and accurately informed in writing of each of its other places of business, and shall not change
the location of such chief executive office or open or close, move or change any existing or new
place of business without giving the Bank at !east thirty
(30) days prior written notice thereof.

 

5

 

2.9 Valid Obligations. The execution, delivery and performance of the Loan Documents have
been duly authorized by all necessary actions of each Borrower and each Loan Document represents a
legal, valid and binding obligation of each Borrower and is fully enforceable according to its
terms, except as limited by laws relating to the enforcement of creditors’ rights.

2.10 Conflicts. There is no provision in any Borrower’s organizational or charter
documents, if any, or in any indenture, contract or agreement to which any Borrower is a party
which prohibits, limits or restricts the execution, delivery or performance of the Loan Documents.

2.11 Governmental Approvals. The execution, delivery and performance of the Loan
Documents does not require any approval of or filing with any governmental agency or authority.

2.12 Litigation, etc. There are no actions, claims or proceedings pending or to the
knowledge of any Borrower threatened against any Borrower which might materially adversely affect
the ability of any Borrower to conduct its business or to pay or perform the Obligations.

2.13 Taxes. Each Borrower has filed all Federal, state and other tax returns required to
be filed (except for such returns for which current and valid extensions have been filed), and all
taxes, assessments and other governmental charges due from each Borrower have been fully paid.
Each Borrower has established on its books reserves adequate for the payment of all Federal, state
and other tax liabilities (if any).

2.14 Use of Proceeds. No portion of any loan is to be used for (i) the purpose of
purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. 221 and 224
or (ii) primarily personal, family or household purposes.

2.15 Environmental. As of the date hereof none of any Borrowers nor any of their agents,
employees or independent contractors (1) have caused or are aware of a release or threat of release
of Hazardous Materials (as defined herein) on any of the premises or personal property owned or
controlled by any Borrower (“Controlled Property”) or any property abutting Controlled
Properly (“Abutting Property”), which could give rise to liability under any Environmental Law (as
defined herein) or any other Federal, state or local law, rule or regulation; (2) have arranged for
the transport of or transported any Hazardous Materials in a manner as to violate, or result in
potential liabilities under, any Environmental Law; (3) have received any notice, order or demand
from the Environmental Protection Agency or any other Federal, state or local agency under any
Environmental Law; (4) have incurred any liability under any Environmental Law in connection
with the mismanagement, improper disposal or release of Hazardous Materials; or (5) are aware of
any inspection or investigation of any Controlled Property or Abutting Property by any Federal,
state or local agency for possible violations of any Environmental Law.

To the best of each Borrower’s knowledge, neither any Borrower, nor any prior owner or tenant
of any Controlled Property, committed or omitted any act which caused the release of Hazardous
Materials on such Controlled Property which could give rise to a lien thereon by any Federal, state
or local government. No notice or statement of claim or lien affecting any Controlled Property has
been recorded or filed in any public records by any Federal, state or local government for costs,
penalties, fines or other charges as to such property. All notices, permits, licenses or similar
authorizations, if any, required to be obtained or filed in connection with the ownership,
operation, or use of the Controlled Property, including without limitation, the past or present
generation, treatment, storage, disposal or release of any Hazardous Materials into the
environment, have been duly obtained or filed.

 

6

 

Each Borrower agrees to indemnify and hold the Bank and any Bank Affiliate harmless from all
liability, loss, cost, damage and expense, including attorney fees and costs of litigation, arising
from any and all of its violations of any Environmental Law (including those arising from any lien
by any Federal, state or local government arising from the presence of Hazardous Materials) or from
the presence of Hazardous Materials located on or emanating from any Controlled Property or
Abutting Property whether existing or not existing and whether known or unknown at the time of the
execution hereof and regardless of whether or not caused by, or within the control of any Borrower.
Each Borrower further agrees to reimburse Bank upon demand for any costs incurred by Bank in
connection with the foregoing. Each Borrower agrees that its obligations hereunder shall be
continuous and shall survive the repayment of all debts to Bank and shall continue so long as a
valid claim may be lawfully asserted against the Bank.

The term “Hazardous Materials” includes but is not limited to any and all substances (whether
solid, liquid or gas) defined, listed, or otherwise classified as pollutants, hazardous wastes,
hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning
or regulatory effect under any present or future Environmental Law or that may have a negative
impact on human health or the environment, including but not limited to petroleum and petroleum
products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon,
radioactive materials, flammables and explosives.

The term “Environmental Law” means any present and future Federal, state and local laws,
statutes, ordinances, rules, regulations and the like, as well as common law, relating to
protection of human health or the environment, relating to Hazardous Materials, relating to
liability for or costs of remediation or prevention of releases of Hazardous Materials or relating
to liability for or costs of other actual or threatened danger to human health or the environment.
The term “Environmental Law” includes, but is not limited to, the following statutes, as amended,
any successor thereto, and any regulations promulgated pursuant thereto, and any state or local
statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive
Environmental Response, Compensation and Liability Act; the Emergency Planning and Community
Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation and
Recovery Act (including but not limited to Subtitle I relating to underground storage tanks); the
Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control
Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water
Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered
Species Act; the National Environmental Policy Act; the River and Harbors Appropriation Act; and
35 PaCSA Chapter 29J.

3. AFFIRMATIVE COVENANTS

3.1 Payments and Performance. Each Borrower will duly and punctually pay all Obligations
becoming due to the Bank and will duly and punctually perform all Obligations on its part to be
done or performed under this Agreement.

3.2 Books and Records; Inspection. Each Borrower will at all times keep proper books of
account in which full, true and correct entries will be made of its transactions in accordance with
generally accepted accounting principles, consistently applied and which are, in the opinion of a
Certified Public Accountant acceptable to Bank, adequate to determine fairly the financial
condition and the results of operations of such Borrower. Each Borrower will at all reasonable
times make its books and records available in its offices for inspection, examination and
duplication by the Bank and the Bank’s representatives and will permit inspection of all
of its properties by the Bank and the Bank’s representatives. Each Borrower will from time
to time furnish the Bank with such information and statements as the Bank may request in its sole
discretion with respect to the Obligations.

 

7

 

3.3 Financial Statements. Each Borrower will furnish to Bank:

	 	(a)	 	as soon as available to such Borrower, but in any event within 60 days after the close
of each quarterly period of its fiscal year, a full and complete signed copy of financial
statements, on a consolidated and consolidating basis with Orbit/FR, Inc., Advanced
Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc., which shall include a
balance sheet of Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit Advanced
Technologies, Inc. and Flam & Russell, Inc., as at the end of such quarter, and
statement of profit and loss of Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit
Advanced Technologies, Inc. and Flam & Russell, Inc., reflecting the results of their
operations during such quarter and shall be prepared by Orbit/FR, Inc., Advanced
Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc., and
certified by such Borrower’s chief financial officer as to correctness in accordance
with generally accepted accounting principles, consistently applied, subject to year-end
adjustments;

	 	(b)	 	as soon as available to such Borrower, but in any event within 120 days after the close
of each annual period of its fiscal year, a full and complete signed copy of financial
statements, on a consolidated and consolidating basis with Orbit/FR, Inc., Advanced
Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc., which
shall include a balance sheet of Orbit/FR, Inc., Advanced Electromagnetics,
Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc., as at the end of such
quarter, and statement of profit and loss of Orbit/FR, Inc., Advanced
Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam & Russell, Inc.,
reflecting the results of their operations during such quarter and shall be prepared by
Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam
& Russell, Inc., and certified by such Borrower’s chief financial officer as to correctness
in accordance with generally accepted accounting principles, consistently applied, subject
to year-end adjustments;

	 	(c)	 	as soon as available to such Borrower, but in any event within 120 days after the close
of each fiscal year, a full and complete signed copy of audited financial statements,
prepared by certified public accountants acceptable to Bank, on a consolidated and
consolidating basis with Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit Advanced
Technologies, Inc. and Flam & Russell, Inc., which shall include a balance sheet of
Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit Advanced Technologies, Inc. and Flam
& Russell, Inc., as at the end of such year, statement of cash flows and statement of
profit and loss of Orbit/FR, Inc., Advanced Electromagnetics, Inc., Orbit Advanced
Technologies, Inc. and Flam & Russell, Inc., reflecting the results of its operations
during such year, bearing the opinion of such certified public accountants and prepared on
an audited basis in accordance with generally accepted accounting principles, consistently
applied together with any so-called management letter;

	 	(d)	 	within 30 days after the close of each quarterly fiscal period of such Borrower, an
Accounts Receivable aging report in form satisfactory to Bank showing the total amount due
from each account debtor, the month in which each Account Receivable was created, as well
as an accounts payable aging report and such other information as Bank shall request;

	 	(e)	 	from time to time, such consolidated and consolidating financial data and information
about each Borrower as Bank may reasonably request; and

	 	(f)	 	any financial data and information about any guarantors of the Obligations as Bank may
reasonably request.

3.4 Conduct of Business. Each Borrower will maintain its existence in good standing and
comply with all laws and regulations of the United States and of any state or states thereof and of
any political subdivision thereof, and of any governmental authority which may be applicable to it
or to its business; provided that this covenant shall not apply to any tax, assessment or charge
which is being contested in good faith and with respect to which reserves have been established and
are being maintained.

3.5 Contact with Accountant. Each Borrower hereby authorizes the Bank to directly contact
and communicate with any accountant employed by any Borrower in connection with the review and/or
maintenance of any Borrower’s books and records or preparation of any financial reports delivered
by or at the request of any Borrower to Bank.

 

8

 

3.6 Operating and Deposit Accounts. Each Borrower shall maintain with the Bank its
primary operating and deposit accounts. At the option of the Bank, all loan payments and fees will
automatically be debited from any Borrower’s primary operating account and all advances will
automatically be credited to any Borrower’s primary operating account.

3.7 Taxes. Each Borrower will promptly pay all real and personal property taxes,
assessments and charges and all franchise, income, unemployment, retirement benefits, withholding,
sales and other taxes assessed against it or payable by it before delinquent; provided that this
covenant shall not apply to any tax assessment or charge which is being contested in good faith and
with respect to which reserves have been established and are being maintained.

3.8 Maintenance. Each Borrower will keep and maintain its properties, if any, in good
repair, working order and condition. Each Borrower will immediately notify the Bank of any loss or
damage to or any occurrence which would adversely affect the value of any such property.

3.9 Insurance. Each Borrower will maintain in force property and casualty insurance on
any property of such Borrower, if any, against risks customarily insured against by companies
engaged in businesses similar to that of such Borrower containing such terms and written by such
companies as may be satisfactory to the Bank, such insurance to be payable to the Bank as its
interest may appear in the event of loss and to name the Bank as insured pursuant to a standard
loss payee clause; no loss shall be adjusted thereunder without the Bank’s approval; and all such
policies shall provide that they may not be canceled without first giving at least Ten (10) days
written notice of cancellation to the Bank. In the event that any Borrower fails to provide
evidence of such insurance, the Bank may, at its option, secure such insurance and charge the cost
thereof to such Borrower. At the option of the Bank, all insurance proceeds received from any
loss or damage to any property shall be applied either to the replacement or repair thereof or as a
payment on account of the Obligations. From and after the occurrence of an Event of Default, the
Bank is authorized to cancel any insurance maintained hereunder and apply any returned or unearned
premiums, all of which are hereby assigned to the Bank, as a payment on account of the Obligations.

3.10 Notification of Default. Immediately upon becoming aware of the existence of any
condition or event which constitutes an Event of Default, or any condition or event which would
upon notice or lapse of time, or both, constitute an Event of Default, each Borrower shall give
Bank written notice thereof specifying the nature and duration thereof and the action being or
proposed to be taken with respect thereto.

3.11 Notification of Material Litigation. Each Borrower will immediately notify the Bank in
writing of any litigation or of any investigative proceedings of a governmental agency or authority
commenced or threatened against it which would or might be materially adverse to the financial
condition of any Borrower or any guarantor of the Obligations.

3.12 Pension Plans. With respect to any pension or benefit plan maintained by any
Borrower, or to which any Borrower contributes (“Plan”), the benefits under which are guarantied,
in whole or in part, by the Pension Benefit Guaranty Corporation created by the Employee Retirement
Income Security Act of 1974, P.L. 93-406, as amended (“ERISA”) or any governmental authority
succeeding to any or all of the functions of the Pension Benefit Guaranty Corporation (“Pension
Benefit Guaranty Corporation”), such Borrower will (a) fund each Plan as required by the provisions
of Section 412 of the Internal Revenue Code of 1986, as amended; (b) cause each Plan to pay all
benefits when due; (c) furnish Bank (i) promptly with a copy of any notice of each Plan’s
termination sent to the Pension Benefit Guaranty Corporation (ii) no later than the date of
submission to the Department of Labor or to the Internal Revenue Service, as the case may be, a
copy of any request for waiver from the funding standards or extension of the amortization periods
required by Section 412 of the Internal Revenue Code of 1986, as
amended and (iii) notice of any Reportable Event as such term is defined in ERISA; and (d)
subscribe to any contingent liability insurance provided by the Pension Benefit Guaranty
Corporation to protect against employer liability upon termination of a guarantied pension plan,
if available to such Borrower.

 

9

 

3.13 Special Conditions

(a) Citizens Bank must be notified within 30 days if Satimo Industries, SA or Microwave
Vision, SA sells 10% or more of ORBIT/FR, Inc’s shares of common stock.

(b) Borrowers are not to advance funds (loans, advances, profits, cost sharing/subsidizing,
etc) to its parent companies (Microwave Vision &/or its subsidiaries, including Satimo) and/or
foreign subsidiaries, except for reasonable payments for services provided under the “Assistance
and Provision of Services Agreement” with Microwave Vision and its subsidiaries (including Satimo),
the management fee (1% of gross sales) paid to Microwave Vision, and/or payments for transactions
with its foreign subsidiaries conducted within the ordinary course of business at rates/amounts
considered reasonable for general market conditions.

(c) Borrowers are not to guaranty any debt of its parent companies and/or foreign
subsidiaries, except for the current guaranty maintained for existing credit arrangements ($500M
line of credit & $3MM letter of credit facility) for Orbit/FR Engineering, LTD.

4. NEGATIVE COVENANTS

4.1 Limitations on Indebtedness. Each Borrower shall not issue any evidence of indebtedness
or create, assume, guarantee, become contingently liable for, or suffer to exist indebtedness in
addition to indebtedness to the Bank, except indebtedness or liabilities of such Borrower, other
than for money borrowed, incurred or arising in the ordinary course of business.

4.2 Sale of Interest. There shall not be any sale or transfer of ownership of any interest
in any Borrower that is not an individual without the Bank’s prior written consent.

4.3 Loans or Advances. Each Borrower shall not make any loans or advances to any
individual, partnership, corporation, limited liability company, trust, or other organization or
person, including without limitation its officers, members and employees; provided, however, that
each Borrower may make advances to its employees, including its officers, with respect to expenses
incurred or to be incurred by such employees in the ordinary course of business which expenses are
reimbursable by such Borrower; and provided further, however, that each Borrower may extend credit
in the ordinary course of business in accordance with customary trade practices.

4.4 Dividends and Distributions. If any Borrower is a corporation, such Borrower shall
not, without prior written consent of the Bank, pay any dividends on or make any distribution on
account of any class of such Borrower’s capital stock in cash or in property (other than additional
shares of such stock), or redeem, purchase or otherwise acquire, directly or indirectly, any of
such stock, except, so long as such Borrower is not in default hereunder, if such Borrower is a
Subchapter S corporation, under the regulations of the Internal Revenue Service of the United
States, distributions to the stockholders of such Borrower in such amounts as are necessary to pay
the tax liability of such stockholders due as a result of such stockholders’ interest in such
Borrower. If any Borrower is a partnership, such Borrower shall not, without prior written
permission of the Bank, make any distribution to any of such Borrower’s partners in cash or in
property or redeem, purchase or otherwise acquire, directly or indirectly, any partnership
interests. If any Borrower is a limited liability company, such Borrower shall not, without prior
written permission of the Bank, make any distribution to any of such Borrower’s beneficiaries in
cash or in property or redeem, purchase or otherwise acquire, directly or indirectly, any
beneficial interests. If any Borrower is a trust, such Borrower shall not, without prior written
permission of the Bank, make any
distribution to any of such Borrower’s beneficiaries in cash or in property or redeem, purchase or
otherwise acquire, directly or indirectly, any beneficial interests. If any Borrower is an
association, such Borrower shall not, without prior written permission of the Bank, make any
distribution to any of such Borrower’s members in cash or in property or redeem, purchase or
otherwise acquire, directly or indirectly, any member interests.

 

10

 

4.5 Investments. Each Borrower shall not make investments in, or advances to, any
individual, partnership, corporation, limited liability company, trust or other organization or
person other than as previously specifically consented to in writing by the Bank. Each Borrower
will not purchase or otherwise invest in or hold securities, nonoperating real estate or other
nonoperating assets or purchase all or substantially all the assets of any entity other than as
previously specifically consented to in writing by the Bank.

4.6 Merger. Each Borrower that is not an individual shall not merge or consolidate or be
merged or consolidated with or into any other entity.

4.7 Capital Expenditures. Each Borrower shall not, directly or indirectly, make or commit
to make capital expenditures by lease, purchase, or otherwise, except in the ordinary and usual
course of business for the purpose of replacing machinery, equipment or other personal property
which, as a consequence of wear, duplication or obsolescence, is no longer used or necessary in
such Borrower’s business.

4.8 Sale of Assets. Each Borrower shall not sell, lease or otherwise dispose of any of its
assets, except in the ordinary and usual course of business and except for the purpose of replacing
machinery, equipment or other personal property which, as a consequence of wear, duplication or
obsolescence, is no longer used or necessary in such Borrower’s business, provided that fair
consideration is received therefor; provided, however, in no event shall any Borrower sell, lease
or otherwise dispose of any equipment purchased with the proceeds of any loans made by the Bank.

4.9 Restriction on Liens. Each Borrower shall not grant any security interest in, or
mortgage of, any of its properties or assets. Each Borrower shall not enter into any agreement
with any person other than the Bank that prohibits the Borrower from granting any security interest
in, or mortgage of, any of its properties or assets.

4.10 Other Business. Each Borrower shall not engage in any business other than the
business in which it is currently engaged or a business reasonably allied thereto.

4.11 Change of Name, etc. Each Borrower shall not change its legal name or the State or the
type of its organization, without giving the Bank at least 30 days prior written notice thereof.

4.12 Negative Pledge. The Borrower will not grant a security interest in US assets to
another lender.

5. DEFAULT

5.1 Default. “Event of Default” shall mean the occurrence of one or more of any of the
following events:

	 	(a)	 	default of any liability, obligation, covenant or undertaking of any Borrower or any
guarantor of the Obligations to the Bank, hereunder or otherwise, including, without
limitation, failure to pay in full and when due any installment of principal or interest
or default of any Borrower or any guarantor of the Obligations under any other Loan
Document or any other agreement with the Bank;

	 	(b)	 	failure of any Borrower or any guarantor of the Obligations to maintain aggregate
collateral security value satisfactory to the Bank;

 

11

 

	 	(c)	 	default of any material liability, obligation or undertaking of any Borrower or any
guarantor of the Obligations to any other party;

	 	(d)	 	if any statement, representation or warranty heretofore, now or hereafter made by any
Borrower or any guarantor of the Obligations in connection with this Agreement or in any
supporting financial statement of any Borrower or any guarantor of the Obligations shall be
determined by the Bank to have been false or misleading in any material respect when made;

	 	(e)	 	if any Borrower or any guarantor of the Obligations is a corporation, trust,
partnership or limited liability company, the liquidation, termination or dissolution of
any such organization, or the merger or consolidation of such organization into another
entity, or its ceasing to carry on actively its present business or the appointment of a
receiver for its property;

	 	(f)	 	the death of any Borrower or any guarantor of the Obligations and, if any Borrower or
any guarantor of the Obligations is a partnership or limited liability company, the death
of any partner or member;

	 	(g)	 	the institution by or against any Borrower or any guarantor of the Obligations of any
proceedings under the Bankruptcy Code 11 USC §101 et seq. or any other law in which any
Borrower or any guarantor of the Obligations is alleged to be insolvent or unable to pay
its debts as they mature, or the making by any Borrower or any guarantor of the Obligations
of an assignment for the benefit of creditors or the granting by any Borrower or any
guarantor of the Obligations of a trust mortgage for the benefit of creditors;

	 	(h)	 	the service upon the Bank of a writ in which the Bank is named as trustee of any
Borrower or any guarantor of the Obligations;

	 	(i)	 	a judgment or judgments for the payment of money shall be rendered against any
Borrower or any guarantor of the Obligations, and any such judgment shall remain
unsatisfied and in effect for any period of thirty (30) consecutive days without a stay of
execution;

	 	(j)	 	any levy, lien (including mechanics lien), seizure, attachment, execution or similar
process shall be issued or levied on any of the property of any Borrower or any guarantor
of the Obligations;

	 	(k)	 	the termination or revocation of any guaranty of the Obligations; or

	 	(l)	 	the occurrence of such a change in the condition or affairs (financial or otherwise)
of any Borrower or any guarantor of the Obligations, or the occurrence of any other event
or circumstance, such that the Bank, in its sole discretion, deems that it is insecure or
that the prospects for timely or full payment or performance of any obligation of any
Borrower or any guarantor of the Obligations to the Bank has been or may be impaired.

5.2 Acceleration. If an Event of Default shall occur, at the election of the Bank, all
Obligations shall become immediately due and payable without notice or demand, except with respect to
Obligations payable on DEMAND, which shall be due and payable on DEMAND, whether or not an Event
of Default has occurred. In addition, the Bank may require that the Borrowers remit to the Bank
cash collateral in an amount equal to 110% of the aggregate undrawn amount of all outstanding
Letters of Credit at such time, such cash collateral to be held by the Bank in a cash collateral
account on terms and conditions satisfactory to the Bank.

 

12

 

5.3 Nonexclusive Remedies. All of the Bank’s rights and remedies not only under the
provisions of this Agreement but also under any other agreement or transaction shall be cumulative and not
alternative or exclusive, and may be exercised by the Bank at such time or times and in such order
of preference as the Bank in its sole discretion may determine.

6. MISCELLANEOUS

6.1 Waivers. Each Borrower waives notice of intent to accelerate, notice of acceleration,
notice of nonpayment, demand, presentment, protest or notice of protest of the Obligations, and all
other notices, consents to any renewals or extensions of time of payment thereof, and generally
waives any and all suretyship defenses and defenses in the nature thereof.

6.2 Waiver of Homestead. To the maximum extent permitted under applicable law, each
Borrower hereby waives and terminates any homestead rights and/or exemptions respecting any of its
property under the provisions of any applicable homestead laws, including without limitation, Title
42, Section 8123, of the Pennsylvania Consolidated Statutes Annotated.

6.3 Joint and Several. Each Borrower shall be jointly and severally liable for payment
and/or performance of all Obligations and the term “Borrower” shall include each as well as all of
them.

6.4 Deposit Collateral. Each Borrower hereby grants to the Bank a continuing lien and
security interest in any and all deposits or other sums at any time credited by or due from the
Bank or any Bank Affiliate to any Borrower and any cash, securities, instruments or other property
of any Borrower in the possession of the Bank or any Bank Affiliate, whether for safekeeping or
otherwise, or in transit to or from the Bank or any Bank Affiliate (regardless of the reason the
Bank or Bank Affiliate had received the same or whether the Bank or Bank Affiliate has
conditionally released the same) as security for the full and punctual payment and performance of
all of the liabilities and obligations of each Borrower to the Bank or any Bank Affiliate and such
deposits and other sums may be applied or set off against such liabilities and obligations of any
Borrower to the Bank or any Bank Affiliate at any time, whether or not such are then due, whether
or not demand has been made and whether or not other collateral is then available to the Bank or
any Bank Affiliate.

6.5 Indemnification. Each Borrower shall indemnify, defend and hold the Bank and any Bank
Affiliate and their directors, officers, employees, agents and attorneys (each an “Indemnitee”)
harmless of and from any claim brought or threatened against any Indemnitee by any Borrower, any
guarantor or endorser of the Obligations, or any other person (as well as from reasonable
attorneys’ fees and expenses in connection therewith) on account of the Bank’s relationship with
any Borrower, or any guarantor or endorser of the Obligations (each of which may be defended,
compromised, settled or pursued by the Bank with counsel of the Bank’s election, but at the expense
of the Borrowers), except for any claim arising out of the gross negligence or willful misconduct
of the Bank. The within indemnification shall survive payment of the Obligations, and/or any
termination, release or discharge executed by the Bank in favor of any Borrower.

6.6 Costs and Expenses. Each Borrower shall pay to the Bank on demand any and all costs
and expenses (including, without limitation, reasonable attorneys’ fees and disbursements, court
costs, litigation and other expenses) incurred or paid by the Bank in establishing, maintaining,
protecting or enforcing any of the Bank’s rights or the Obligations, including, without limitation,
any and all such costs and expenses incurred or paid by the Bank in defending the Bank’s security
interest in, title or right to any collateral or in collecting or attempting to collect or
enforcing or attempting to enforce payment of any Obligation.

6.7 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute but one agreement.

 

13

 

6.8 Severability. If any provision of this Agreement or portion of such provision or the
application thereof to any person or circumstance shall to any extent be held invalid or
unenforceable, the remainder of this Agreement (or the remainder of such provision) and the
application thereof to other persons or circumstances shall not be affected thereby.

6.9 Complete Agreement. This Agreement and the other Loan Documents constitute the entire
agreement and understanding between and among the parties hereto relating to the subject matter
hereof, and supersedes all prior proposals, negotiations, agreements and understandings among the
parties hereto with respect to such subject matter.

6.10 Binding Effect of Agreement. This Agreement shall be binding upon and inure to the
benefit of the respective heirs, executors, administrators, legal representatives, successors and
assigns of the parties hereto, and shall remain in full force and effect (and the Bank shall be
entitled to rely thereon) until released in writing by the Bank. The Bank may transfer and assign
this Agreement and any Revolving Credit and deliver it to the assignee, who shall thereupon have
all of the rights of the Bank; and the Bank shall then be relieved and discharged of any
responsibility or liability with respect to this Agreement, and any such Revolving Credit. Each
Borrower may not assign or transfer any of its rights or obligations under this Agreement. Except
as expressly provided herein or in the other Loan Documents, nothing, expressed or implied, is
intended to confer upon any party, other than the parties hereto, any rights, remedies, obligations
or liabilities under or by reason of this Agreement or the other Loan Documents.

6.11 Further Assurances. Each Borrower will from time to time execute and deliver to Bank
such documents, and take or cause to be taken, all such other or further action, as Bank may
request in order to effect and confirm or vest more securely in Bank all rights contemplated by
this Agreement and the other Loan Documents (including, without limitation, to correct clerical
errors) or to comply with applicable statute or law.

6.12 Amendments and Waivers. This Agreement may be amended and any Borrower may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, if such
Borrower shall obtain the Bank’s prior written consent to each such amendment, action or omission
to act. No course of dealing and no delay or omission on the part of Bank in exercising any right
hereunder shall operate as a waiver of such right or any other right and waiver on any one or more
occasions shall not be construed as a bar to or waiver of any right or remedy of Bank on any future
occasion.

6.13 Terms of Agreement. This Agreement shall continue in full force and effect so long as
any Obligations or obligation of any Borrower to Bank shall be outstanding, or the Bank shall have
any obligation to extend any financial accommodation hereunder, and is supplementary to each and
every other agreement between any Borrower and Bank and shall not be so construed as to limit or
otherwise derogate from any of the rights or remedies of Bank or any of the liabilities,
obligations or undertakings of any Borrower under any such agreement, nor shall any contemporaneous
or subsequent agreement between any Borrower and the Bank be construed to limit or otherwise
derogate from any of the rights or remedies of Bank or any of the liabilities, obligations or
undertakings of any Borrower hereunder, unless such other agreement specifically refers to this
Agreement and expressly so provides.

6.14 Notices. Any notices under or pursuant to this Agreement shall be deemed duly received
and effective if delivered in hand to any officer or agent of any Borrower or Bank, or if mailed by
registered or certified mail, return receipt requested, addressed to any Borrower or Bank at the
address set forth in this Agreement or as any party may from time to time designate by written
notice to the other party.

6.15 Governing Law. This Agreement shall be governed by federal law applicable to the
Bank and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania.

6.16 Reproductions. This Agreement and all documents which have been or may be hereinafter
furnished by any Borrower to the Bank may be reproduced by the Bank by any photographic,
photostatic, microfilm, xerographic or similar process, and any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is
in existence and whether or not such reproduction was made in the regular course of business).

 

14

 

6.17 Jurisdiction and Venue. Each Borrower irrevocably submits to the nonexclusive
jurisdiction of any Federal or state court sitting in Pennsylvania, over any suit, action or
proceeding arising out of or relating to this Agreement. Each Borrower irrevocably waives, to the
fullest extent it may effectively do so under applicable law, any objection it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding brought in any such court
and any claim that the same has been brought in an inconvenient forum. Each Borrower hereby
consents to any and all process which may be served in any such suit, action or proceeding, (i) by
mailing a copy thereof by registered and certified mail, postage prepaid, return receipt requested,
to such Borrower’s address shown in this Agreement or as notified to the Bank and (ii) by serving
the same upon such Borrower in any other manner otherwise permitted by law, and agrees that such
service shall in every respect be deemed effective service upon Borrower.

6.18 JURY WAIVER. EACH BORROWER AND BANK EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, (A) WAIVE
ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS
AGREEMENT, THE OBLIGATIONS, ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION
HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. EACH BORROWER CERTIFIES THAT NEITHER THE BANK NOR
ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
BANK WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY
JURY.

Executed as an instrument under seal as of Dec 13, 2010.

	 	 	 	 	 
	 	Borrower:

Orbit/FR, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 

 

15

 

	 	 	 	 	 
	 	Borrower:

Advanced ElectroMagnetics, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 
	 	 	 
	 	Borrower:

Orbit Advanced Technologies, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 
	 	 	 
	 	Borrower

Flam & Russell, Inc.

 	 
	 	By:  	/s/ Relland Winand
 	 
	 	 	Relland Winand, CFO 	 
	 	 	 
	 	By:  	                                        /s/ Per Iversen
 	 
	 	 	Per Iversen, President & CEO 	 

	 	 	 	 	 
	Accepted: Citizens Bank of Pennsylvania

 	 	 
	By:  	/s/ Christina Scott
 	 	 
	 	Name:  	Christina Scott 	 	 
	 	Title:  	Vice President 	 	 

©
2010 Medici, a division of Wolters Kiuwer Financial Services

 

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