Document:

Sixth Omnibus Amendment and Reaffirmation of Loan Documents

 Exhibit 10.1 
 SIXTH OMNIBUS AMENDMENT AND 
 REAFFIRMATION OF LOAN DOCUMENTS

 This Sixth Omnibus Amendment and Reaffirmation of Loan Documents (this
“Amendment”) is dated as of the 10th day of December, 2010 (the “Effective Date”) by and among TNP Strategic Retail Operating Partnership, LP, a Delaware limited partnership having an address of 1900 Main
Street, Suite 700, Irvine, California 92614 (“Original Borrower”), TNP Strategic Retail Trust, Inc., a Maryland corporation having an address of 1900 Main Street, Suite 700, Irvine, California 92614 (the
“REIT”), Thompson National Properties, LLC, a Delaware limited liability company having an address of 1900 Main Street, Suite 700, Irvine, California 92614 (“TNP”), Anthony W. Thompson, an individual
having an address of 1900 Main Street, Suite 700, Irvine, California 92614 (“Thompson”, and together with the REIT and TNP, the “Guarantors” and individually, a “Guarantor”). TNP SRT Northgate
Plaza Tucson Holdings, LLC, a Delaware limited liability company, having an address of 1900 Main Street, Suite 700, Irvine, California 92614 (the “Northgate Intermediate Entity”), and TNP SRT San Jacinto, LLC, a Delaware
limited liability company, having an address of 1900 Main Street, Suite 700, Irvine, California 92614 (the “San Jacinto Borrower”, and together with the Original Borrower, the Guarantors and the Northgate Intermediate Entity, the
“Loan Parties” and individually, a “Loan Party”), and KeyBank National Association, a national banking association having a principal place of business at 225 Franklin Street, 18th Floor, Boston, Massachusetts 02110, as agent (in such capacity,
“Agent”) for itself and any other lenders who become lenders under the Credit Agreement (as hereinafter defined) collectively referred to as “Lenders” and each individually referred to as a
“Lender”). 
 Witnesseth That: 
 WHEREAS, the Original Borrower, the Agent and the Lenders are parties to that certain Revolving Credit Agreement dated as of November 12, 2009, as amended by that certain Omnibus Amendment and
Reaffirmation of Loan Documents dated as of January 12, 2010 among the Original Borrower, the Guarantors and the Agent (the “First Omnibus Amendment”), as amended by that certain Second Omnibus Amendment and Reaffirmation of
Loan Documents dated as of June 3, 2010 among the Original Borrower, the Guarantors and the Agent (the “Second Omnibus Amendment”), as amended by that certain Third Omnibus Amendment and Reaffirmation of Loan Documents dated as
of July 6, 2010 among the Original Borrower, the Guarantors, the Northgate Intermediate Entity and the Agent (the “Third Omnibus Amendment”), as amended by that certain Fourth Omnibus Amendment and Reaffirmation of Loan
Agreement dated as of August 11, 2010 among the Original Borrower, the Guarantors, the Northgate Intermediate Entity, San Jacinto Borrower, and the Agent (the “Fourth Omnibus Amendment”): as amended by that certain Fifth
Omnibus Amendment and Reaffirmation of Loan Agreement dated as of November 10, 2010 among the Original Borrower, the Guarantors, the Northgate Intermediate Entity, San Jacinto Borrower, and the Agent (the “Fifth Amendment” and
together with the First Omnibus Amendment, the Second Omnibus Amendment, the Third Omnibus Amendment, the Fourth Omnibus Amendment and the Fifth Omnibus Amendment, the “Omnibus Amendments” and individually, an “Omnibus
Amendment”) (and as further amended, restated and/or modified from time to time, the “Credit Agreement”), pursuant to which, among other things, the Lenders agreed to provide to the Original Borrower a revolving credit
facility in the maximum principal amount of $15,000,000, and which obligations of the Original Borrower to the Lenders under the Credit Agreement are evidenced by, among other things, that certain Revolving Credit Note dated as of November 12,
2009 by the Original Borrower in favor of the Lenders and in the original principal amount of $15,000,000 (as amended by the Omnibus Amendments and as further amended, restated and/or modified from time to time, the “Note”), and are
secured by, among other things, (a) that certain Pledge and Security Agreement dated as of November 12, 2009 by the Original Borrower and the Northgate Intermediate Entity in favor of the Agent for the benefit of the Lenders (as amended by
the Omnibus Amendments and as further amended, restated and/or modified from time to time, the “Borrower Pledge Agreement”), (b) that certain Guaranty 

 
Agreement dated as of November 12, 2009 by the Guarantors in favor of the Agent for the benefit of the Lenders (as amended by the Omnibus Amendments and as further amended, restated and/or
modified from time to time, the “Guaranty”), and (c) that certain Pledge and Security Agreement dated as of November 12, 2009 by the REIT in favor of the Agent for the benefit of the Lenders (as amended by the Omnibus
Amendments and as further amended, restated and/or modified from time to time, the “REIT Pledge Agreement”): 

WHEREAS, the Borrower has requested an extension of the maturity date of the Loan from December 10, 2010 to December 17, 2010;
and the Lender has agreed to such extension upon the terms and conditions more particularly set forth in this Amendment; and 

WHEREAS, in connection with the aforementioned extension of the maturity date of the Loan, the parties have agreed to make certain
additional changes to the Note and the Loan Documents, all upon the terms and conditions more particularly set forth herein. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby amend the Loan Documents and agree as follows: 
 1. Recitals and Definitions. The foregoing recitals are
hereby incorporated by reference as if set forth at length herein. Capitalized terms used herein without definition shall have the meaning assigned to such terms in the Credit Agreement. 

2. Amendments to the Credit Agreement. As of the Effective Date, each of the Loan Parties and the Agent agree that the
Stated Maturity Date shall be extended from December 10, 2010 until December 17, 2010. 
 3. Amendment to the
Note. As of the Effective Date, each of the Loan Parties and the Lender agree that: 
 (a)
Section 1 of the Note (captioned “Payment Schedule and Maturity Date”) is hereby amended and restated in its entirety to read as follows: 
 “Section 1 Payment Schedule and Maturity Date. Prior to maturity, accrued and unpaid interest shall be due and payable in arrears on the first (1st) day of each month commencing on
December 1, 2009. The entire principal balance of this Note then unpaid, together with all accrued and unpaid interest and all other amounts payable hereunder and under the other Loan Documents (as hereinafter defined), shall be due and payable
in full on the earlier to occur of (a) December 17, 2010 or (b) any earlier date that the indebtedness evidenced by this Note shall become due and payable as provided herein or in the Agreement (as defined in Section 2 below)
(the earlier to occur of clauses (a) or (b) is referred to herein as the “Maturity Date”). Additional payments of principal and interest shall also be payable hereunder as provided in the Credit Agreement. 

4. References in Loan Documents. All references in any of the Loan Documents to the “Stated Maturity Date” or
“Maturity Date” shall, from and after the Effective Date, be deemed to mean and refer to the Stated Maturity Date and Maturity Date as amended by this Amendment. All references in any of the Loan Documents to the “Credit
Agreement” or the “Note” shall, from and after the Effective Date, be deemed to mean and refer to the Credit Agreement and the Note or such Loan Document (as applicable), as amended and affected by this Amendment. This Amendment shall
be deemed to be a “Loan Document” for the purposes of the Credit Agreement and the other Loan Documents. 

 5. Ratification by the Loan Parties. (a) Each Loan Party hereby ratifies,
affirms and confirms the Loan Documents (as modified by this Amendment), and acknowledges and agrees that the Loan Documents (as modified by this Amendment) remain in full force and effect and are enforceable against such Loan Party and against the
Collateral described therein in accordance with their respective terms. Each Loan Party hereby further acknowledges and agrees that, as of the Effective Date, the Loan Documents, as amended by this Amendment, are not subject to any defenses, rights
of setoff, claims or counterclaims that might limit the enforceability thereof, the obligations created and evidenced thereby or the terms and provisions thereof. 
 (b) In furtherance of the provisions of subsection (a) above, and not in limitation or derogation thereof, by its execution of this Amendment, each Guarantor hereby (a) acknowledges and consents
to the terms and provisions of this Amendment; (b) ratifies, affirms and confirms the Guaranty; (c) agrees that the Guaranty is and shall remain in full force and effect and that the terms and provisions of the Guaranty covers and pertains
to the Guaranteed Obligations (as defined in the Guaranty), Notes, Credit Agreement and other Loan Documents; (d) acknowledges that there are no claims or offsets against, or defenses or counterclaims to, the terms and provisions of the
Guaranty or other obligations created and evidenced by the Guaranty; and (e) certifies that the representations and warranties contained in the Guaranty, the Credit Agreement, and the other Loan Documents with respect to each Guarantor remains
the true and correct representations and warranties of such Guarantor as of the Effective Date. 
 6. Security and
Liens. All Obligations of the Loan Parties under the Loan Documents, each as amended by this Amendment, shall be secured by and be entitled to the benefits of, and the Collateral shall remain in all respects subject to the liens, charges and
encumbrances of, the Security Documents and the other Loan Documents, and nothing herein contained, and nothing done pursuant hereto or in connection herewith shall affect or be construed to affect the liens, charges or encumbrances or conveyances
effected thereby or the priority thereof or to release or affect the liability of any party or parties whomsoever may now, or hereafter be, liable on account of the Obligations. 

7. No Waiver. This Amendment is only a modification of the Loan Documents and is not intended to, and shall not be
construed to, effect a novation of any Loan Document, or to constitute a modification of, or a course of dealing at variance with, the Loan Documents (each as amended by this Amendment), such as to require further notice by Lenders or Agent to
require strict compliance with the terms the other Loan Documents in the future. 
 8. Representations and
Warranties. Except for those covenants that have been waived in writing by Agent prior to the Effective Date, the Loan Parties hereby warrant that all of the representations and warranties contained in the Loan Documents are true and correct
as of the Effective Date and that no Event of Default has occurred and is continuing or would result by the execution of this Amendment which constitutes an Event of Default under the Credit Agreement or any Loan Document or would constitute such an
Event of Default but for the requirement that notice be given or time elapse or both. Each Loan Party further represents and warrants that the execution and delivery of this Amendment and all related documents have been duly authorized by each such
Loan Party. 
 9. Release: Set-off. Each Loan Party hereby unconditionally releases and forever discharges Agent,
each Lender and their respective officers, directors, shareholders, and employees from any and all claims, demands, causes of action, expenses, losses and other damages of whatever kind, whether known or unknown, liquidated or unliquidated, at law
or in equity, that exists as of the Effective Date in connection with the Credit Agreement, the Loan Documents and any other documents relating thereto. 

 10. Miscellaneous. (a) all costs and expenses of Agent, including,
without limitation, appraisal fees and reasonable attorney’s fees of counsel to Agent relating to the negotiation, preparation, execution and delivery of this Amendment and all instruments, agreements and documents contemplated hereby, shall be
the responsibility of Borrower; (b) this Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts applicable to contracts made and performed within such state; and (c) this Amendment may
be executed in any number of counterparts, all of which when taken together shall constitute one agreement binding on the parties hereto, notwithstanding that all parties are not signatories to the same counterpart. Delivery of an executed signature
page of this Amendment by facsimile transmission or by means of electronic mail (in so-called “pdf”, “TIF” or any similar format) shall be effective as an in-hand delivery of an original executed counterpart hereof. 

[The Next Page is the Signature Page] 

 IN WITNESS WHEREOF, the Loan Parties and the Agent have caused this Amendment to be duly
executed by their respective duly authorized officers, as an instrument under seal, as of the date and year first above written. 
  

							
	 BORROWER:
	 	 TNP STRATEGIC RETAIL OPERATING
 PARTNERSHIP, LP, a Delaware limited partnership

			
		 	By:	 	 TNP Strategic Retail Trust, Inc., a Maryland
 corporation, its general partner

				
		 		 	 By
	 	 /s/ Christopher S. Cameron

		 		 	 Name:
	 	 Christopher S. Cameron

		 		 	 Title:
	 	 CFO, Secretary

		
	AGENT AND LENDER:	 	KEYBANK NATIONAL ASSOCIATION
			
		 	By:	 	 /s/ Christopher T. Neil

		 		 	Christopher T. Neil
		 		 	Senior Relationship Manager
		
		 	 TNP STRATEGIC RETAIL TRUST, INC., a

Maryland corporation

			
		 	 By:
	 	 /s/ Christopher S. Cameron

		 	 Print Name:
	 	 Christopher S. Cameron

		 	 Title:
	 	 CFO, Secretary

** Signatures Continued on Next Page** 
 [Signature Page to Sixth Omnibus Amendment and Reaffirmation of Loan Documents] 

  

					
		 	 THOMPSON NATIONAL PROPERTIES, LLC, a
 Delaware limited liability company

			
		 	By:	  	 /s/ Anthony W. Thompson

		 	Print Name:	  	 Anthony W. Thompson

		 	Title:	  	 CEO

  

									
		 	 /s/ Anthony W. Thompson

		 	Anthony W. Thompson, an individual
		
		 	 TNP SRT NORTHGATE PLAZA TUCSON
 HOLDINGS, LLC, a Delaware limited liability
 company

			
		 	By	 	 TNP Strategic Retail Operating Partnership, LP, a
 Delaware limited partnership, its Sole Member

				
		 		 	By	 	 TNP Strategic Retail Trust, Inc., a Maryland
 corporation, its general partner

					
		 		 		 	By	 	 /s/ Christopher S. Cameron

		 		 		 	Print Name:	 	 Christopher S. Cameron

		 		 		 	Title:	 	 CFO, Secretary

		
		 	 TNP SRT SAN JACINTO, LLC, a Delaware limited
 liability company

			
		 	By	 	 TNP Strategic Retail Operating Partnership, LP, a
 Delaware limited partnership, its Sole Member

				
		 		 	By	 	 TNP Strategic Retail Trust, Inc., a Maryland
 corporation, its general partner

					
		 		 		 	By	 	 /s/ Christopher S. Cameron

		 		 		 	Print Name:	 	 Christopher S. Cameron

		 		 		 	Title:	 	 CFO, Secretary

 [Signature Page to Sixth Omnibus Amendment and Reaffirmation of Loan Documents]Amended and Restated Promissory Note

 Exhibit 10.1 
 AMENDED AND RESTATED PROMISSORY NOTE 
  

			
	$9,100,000.00	  	December 14, 2010

FOR VALUE RECEIVED, API Systems, Inc., a Delaware corporation (“Systems”), API Defense, Inc., a Delaware corporation
(“API Defense”), API Defense USA Inc., a Delaware corporation (“API USA” and collectively, with Systems and API Defense, the “Makers” or when the context requires, each individually, a
“Maker”), each promise to pay to the order of Kuchera Industries LLC, a Pennsylvania limited liability company (“K Industries” or “Payee”), the principal sum of Nine Million One Hundred Thousand and
No/100 Dollars ($9,100,000.00), lawful money of the United States of America, together with interest from the date hereof, at the rates and on the terms set forth in this Amended and Restated Promissory Note (this “Note”).

 RECITALS: 
 WHEREAS, the Makers executed and delivered to Currency, Inc., a Pennsylvania corporation (f/k/a Kuchera Defense Systems, Inc., a Pennsylvania corporation) (“Currency”), for the benefit of
Currency, KII Inc., a Pennsylvania corporation (“KII”), and Payee, that certain Promissory Note dated as of January 20, 2010, in the original principal amount of Nine Million One Hundred Thousand and No/100 Dollars
($9,100,000.00) (the “Original Note”); 
 WHEREAS, Currency and KII irrevocably and unconditionally assigned
all of their right, title and interest in and to the Original Note and Security Interest (as hereinafter defined) to Payee; 

WHEREAS, the Original Note is secured by that certain Security Agreement made as of January 15, 2010, by and among API Technologies
Corp., a Delaware corporation (“API Parent”), the Makers, and the Payee (the “Security Agreement”); 
 WHEREAS, this Note, the Loan Documents and the Purchase Agreement (each hereinafter defined), must be read in pari materia, and each such document is to be consideration for the other; and

 WHEREAS, the Makers and the Payee desire to amend and restate the Original Note as provided in this Note and that, as so
amended and restated the obligations of the Makers under this Note shall continue to be secured by the Security Agreement. 

NOW THEREFORE, in consideration of the sum of Ten Dollar ($10.00), surrender of the Original Note to Payee concurrently with the
execution and delivery of this Note and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, hereby amend, and restate the Original Note, as follows:

 1. INITIAL INTEREST RATE AND ORIGINAL NOTE INTEREST PAYOFF. 

(a) Subject to Section 5 of this Note, from and including the Closing Date (hereinafter defined), this Note shall bear interest on
the Principal Balance (hereinafter defined) at a rate of five percent (5%) per annum (the “Initial Interest Rate”). Interest at the applicable Interest Rate (hereinafter defined) shall be calculated on the basis of the actual
number of days elapsed and a 365 day year. 

  

					
		  	1	  	EXECUTION VERSION

 (b) Accrued and unpaid interest on the Principal Balance for the period beginning
(i) on the Closing Date (hereinafter defined) through the date of this Note, and (ii) on the date of this Note through December 31, 2010, shall be paid to the Payee concurrently with the execution and delivery of this Note.

 2. BALLOON PAYMENT. THE MAKERS ACKNOWLEDGE AND AGREE THAT THIS NOTE WILL RESULT IN A “BALLOON PAYMENT” ON
THE MATURITY DATE, AS SUCH MATURITY DATE MAY BE EXTENDED PURSUANT TO THE TERMS OF THIS NOTE. 
 3. PAYMENT
ACCELERATION. Subject to the proviso at the end of this Paragraph 3, the unpaid Principal Balance with all accrued and unpaid interest thereon, and any other unpaid sums due and owing under this Note and the other Loan Documents, shall be
due and payable within thirty (30) days the occurrence of any of the following events (each an “Acceleration Event”): 
 (a) a Change-in-Control; or 
 (b) any other Event of Default; or 

(c) a sale of all or substantially all of the assets of API Parent or any of the Makers; or 

(d) the declaration or payment of any dividend by API Parent. 
 Provided, however, that the if the Maturity Date occurs before the full thirty day period following any Acceleration Event, the unpaid Principal Balance with all accrued and unpaid interest thereon, and
any other unpaid sums due and owing under this Note and the other Loan Documents, shall be due and payable on the Maturity Date, unless extended pursuant to Paragraph 4 of this Note, and if the Maturity Date is so extended then the unpaid Principal
Balance with all accrued and unpaid interest thereon, and any other unpaid sums due and owing under this Note and the other Loan Documents, shall be due and payable upon the earlier of the thirty day period following any Acceleration Event or
Initial Extension Maturity Date or the Secondary Extension Maturity Date, as the case may be. 
 4. MATURITY DATE.
Subject to the terms of Section 5 of this Note, the entire Principal Balance, together with all accrued and unpaid interest thereon and any other unpaid sums due and owing under this Note and the Loan Documents, shall be due, payable and paid
on December 31, 2010 (the “Maturity Date”). 

  

					
		  	2	  	EXECUTION VERSION

 5. MATURITY DATE EXTENSION TERMS. 

(a) Initial Extension Period. Upon the Makers’ election and written notice to the Payee, which such written notice of
election must be provided to the Payee no less than ten (10) business days prior to the Maturity Date, the Maturity Date may be extended for the period (the “Initial Extension Period”) from December 31, 2010 to
March 31, 2011 (the “Initial Extension Maturity Date”), provided that, (x) during the Initial Extension Period, this Note shall bear interest on the Principal Balance at a rate of eight percent (8%) per
annum (the “Initial Extension Interest Rate”), and (y) concurrently upon Makers’ election under this Section 5(a), Makers shall pre-pay to the Payee the interest on the Principal Balance applicable to the Initial
Extension Period, such amount being equal to $179,506.85 Notwithstanding the foregoing, if the Makers pay to the Payee the unpaid Principal Balance with all accrued and unpaid interest thereon (and any other unpaid sums due and owing under this Note
and the Loan Documents), after the Maturity Date and on or before the Initial Extension Maturity Date, the Payee shall reimburse the Makers an amount equal to the portion of any interest paid by the Makers to Payee in respect of the Initial
Extension Period which did not accrue. 
 (b) Secondary Extension Period. Upon the Makers’ election and written
notice to the Payee, which such written notice of election must be provided to the Payee no less than ten (10) business days prior to the Initial Extension Maturity Date, the Initial Extension Maturity Date may be extended for the period (the
“Secondary Extension Period”) from March 31, 2011 to June 30, 2011 (the “Secondary Extension Maturity Date”), provided that, (x) during the Secondary Extension Period, this Note shall
bear interest on the Principal Balance at a rate of ten percent (10%) per annum retroactive to January 1, 2011 (the “Secondary Extension Interest Rate” and together with the Initial Interest Rate and the Initial Extension
Interest Rate, the “Interest Rate”), and (y) concurrently upon Makers’ election under this Section 5(b), Makers shall pre-pay to the Payee the interest on the Principal Balance applicable to the Secondary Extension
Period, such amount equal to $271,753.42 ($451,260.27 - $179,506.85). Notwithstanding the foregoing, if the Makers pay to the Payee the unpaid Principal Balance with all accrued and unpaid interest thereon (and any other unpaid sums due and owing
under this Note and the Loan Documents), after the Initial Extension Maturity Date and on or before the Secondary Extension Maturity Date, the Payee shall reimburse the Makers an amount equal to the portion of any interest paid by the Makers to
Payee in respect of the Secondary Extension Period which did not accrue. 
 6. PRINCIPAL AMOUNT GROSS UP. The Makers
acknowledge and agree that, if an increase in the long term capital gain tax rate applicable to all or any portion of the Principal Balance shall be adopted at any time prior to the payment in full of the Principal Balance that increases such
applicable rate above fifteen percent (15%) for Federal Capital Gains, and 3.07% for Pennsylvania Capital Gains (collectively, the “2010 Capital Gain Rates”), then effective as of the date such increase shall be adopted, the
principal amount of this Note shall be automatically increased by an amount equal the Tax Gross Up Amount. “Tax Gross Up 

  

					
		  	3	  	EXECUTION VERSION

 
Amount” sum of (i) product of the portion of the Principal Balance subject to such increase multiplied by the increase in such rate (over the applicable 2010 Capital Gain
Rate) and (ii) that amount which is needed to reimburse Payee for the taxes resulting from the amount that would be charged as income tax on the gross up amount described in clause (i) assuming the highest individual rate of state and
federal Capital Gains. By way of illustration only, If the Payee’ gain on the on the $10,000,000 Principal Balance of the Original Note were $6,768,356 and the federal long term capital gain tax rate was increased from 15% to 20% (for an
increase of 5%), then Payee’ federal long term capital gain tax would increase by $338,418 (5% x $6,768,356). The Principal Balance on the Note would be increased by $356,229 so that after deducting the 5% increase in the federal long term
capital gain tax rate on such increase, Payee would net after taxes $338,418. Such increased Principal Balance from and after such date interest shall continue to accrue at the applicable Interest Rate provided herein on the Principal Balance as so
increased. 
 7. Waiver: Without limiting or impairing any of Payee’ rights, claims, privileges or defenses arising
under this Note, the Loan Documents or the Purchase Agreement and any other document that was executed and delivered to effect to the transactions contemplated by the Purchase Agreement, as part of the consideration of this Note, Makers for
themselves and their affiliates and their respective successors and assigns, hereby irrevocably and unconditionally waive as a defense to payment of any amounts due under this Note, any defense based on (i) the provisional billing rates
recently submitted by one or more of Makers to the Defense Contract Audit Agency (“DCAA”) with respect to certain of the government contracts that were transferred to one or more of Makers by one or more of the Payee pursuant to the
Purchase Agreement and (ii) the fact that DCAA has not finalized audits of other government contracts that were transferred to one or more of Makers by one or more of the Payee pursuant to the Purchase Agreement. Nothing in this Section 7
is intended to amend, modify or diminish the undertakings of the Payee in that certain Amendment No. 1 to Asset Purchase Agreement (“APA Amendment”) dated the same date as this Note, by and among API Technologies Corp.,
API Systems, Inc., API Defense, Inc., API Defense USA Inc., Currency, Inc., a Pennsylvania corporation (f/k/a Kuchera Defense Systems, Inc., KII Inc., and Kuchera Industries LLC, William Kuchera and Ronald Kuchera. 

8. DEFINITIONS. 
 (a) Assets. The term “Assets”, as used herein, has the meaning given to it in the Purchase Agreement, and includes any and all after acquired contracts relating to the Business.

 (b) Business. The term “Business”, as used herein, has the meaning given to it in the Purchase
Agreement. 
 (c) Business Day. The term “Business Day”, as used herein, has the meaning given to it in
the Purchase Agreement. 

  

					
		  	4	  	EXECUTION VERSION

 (d) Change-in-Control. The term “Change-in-Control”, as used herein
means an event or series of events by which: 
 (i) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any
such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such
person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of 51% or more of the equity securities of API
Parent entitled to vote for members of the board of directors or equivalent governing body of the API Parent on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any
option right); 
 (ii) during any period of 12 consecutive months, a majority of the members of the board of directors or other
equivalent governing body of API Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that
board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened
solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors); 

(iii) the passage of thirty days from the date upon which any Person or two or more Persons (other than Subsidiaries of API Parent)
acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a
controlling influence over the management or policies of API Parent (other than Subsidiaries of API Parent), or control over the equity securities of any Person entitled to vote for members of the board of directors or equivalent governing body of
API Parent on a fully-diluted basis (and taking into account all such securities that such Person or group has the right to acquire pursuant to any option right) representing 51% or more of the combined voting power of such securities; or

 (iv) Other than the effect of the provisions of the proxy agreement dated September 13, 2010, by and among API Defense
USA, Inc., API Technologies Corp., Messrs. Phillip DeZwirek and Jason DeZwirek, Robert T. Conway, Jr., Kenneth L. Fisher, and Richard D. Hearney, and their successors and the United States Department of Defense (the

  

					
		  	5	  	EXECUTION VERSION

 
“Proxy Agreement”), API Parent ceases to control, directly or indirectly, 100% of the equity securities of any of the Makers entitled to vote for members of the board of directors or
equivalent governing body of such Maker on a fully-diluted basis; or 
 (v) the passage of thirty days from the date upon which
any Person or two or more Persons (other than API Parent or any of its Subsidiaries or the proxy board established at API Defense USA, Inc. under the Proxy Agreement (the “Proxy Board”)) acting in concert shall have acquired by contract or
otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to exercise, directly or indirectly, a controlling influence over the management or policies of any
of the Makers (other than API Parent or any of its Subsidiaries or the Proxy Board), or control over any of the equity securities of any Person entitled to vote for members of the board of directors or equivalent governing body of such Maker on a
fully-diluted basis. 
 (e) Closing Date. The term “Closing Date”, as used herein, has the meaning
given to it in the Purchase Agreement. 
 (f) Person. The term “Person”, as used herein, has the
meaning given to it in the Purchase Agreement. 
 (g) Principal Balance. The term “Principal Balance”,
as used herein, means on any date the outstanding and unpaid principal sum or amount of this Note as of such date. 
 (h)
Purchase Agreement. The term “Purchase Agreement”, as used herein, means that certain Asset Purchase Agreement, dated January 20, 2010, by and among API Parent, the Makers, the Payee, and William Kuchera and Ronald
Kuchera. 
 (i) Subsidiary. The term “Subsidiary”, as used herein, has the meaning given to it in the
Purchase Agreement. 
 9. PLACE OF PAYMENT. All sums due hereunder and under the Loan Documents shall be payable to
Currency, for the benefit of the Payee, at Kuchera Industries, LLC, 1700 Somerset Ave, Windber, PA 15963, or at such other place as Payee from time to time may designate to Makers in writing, delivered to Makers at API Technologies Corp., 2300 Yonge
Street, P.O. Box 2408, Suite 1710, Toronto M4P 1E4. 
 10. PREPAYMENT. The Makers shall have the right to prepay the
Principal Balance, in whole or part; provided, however, that Makers shall have given the Payee at least thirty (30) days’ prior written notice of Makers’ intention to make such prepayment and the amount of such
prepayment, if partial, and provided, further, that any such prepayment is accompanied by payment of all accrued and unpaid interest on the amount so prepaid to the date of prepayment. 

  

					
		  	6	  	EXECUTION VERSION

 11. SECURITY. Makers acknowledge and agree that payment of this Note is secured by a
first priority lien and security interest in the Assets, as evidenced by (i) the Security Agreement, and (ii) those certain UCC-1 financing statements naming the Makers as debtor and the Payee as secured parties, and previously recorded
(collectively referred to as the “Financing Statements”). All of the agreements, conditions, covenants, provisions and stipulations contained in this Note, the aforesaid Security Agreement and Financing Statements, collectively
referred to as the “Loan Documents”, are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein, and the Makers covenant and agree to keep and perform them, or
cause them to be kept and performed, strictly in accordance with their terms. 
 12. DEFAULT; JOINT AND SEVERAL
LIABILITY. 
 (a) It is understood that the following defaults shall constitute events of default hereunder and are
hereinbefore and hereinafter referred to as an “Event of Default” or “Events of Default”: (i) a default in the payment, in immediately available and collectible funds, of any payment of the Principal Balance or
interest when due, or any other monetary sum due hereunder or under the Loan Documents and such default is not fully cured within five (5) days, after the Makers receive written notice from the Payee of such default, or (ii) a default in
the performance of any of the non-monetary agreements, conditions, covenants, provisions or stipulations contained in this Note or in the Security Agreement and such default is not cured within thirty (30) days after receipt of written notice
thereof or, if longer, such cure period as is otherwise provided in this Note or the Loan Documents; or (iii) a Change-in-Control or any other occurrence identified in Section 3. Upon the occurrence of an Event of Default hereunder
or under the Security Agreement, the Payee, at their option and without notice to the Makers, and in addition to any other remedy available to the Payee under the Security Agreement or otherwise, may declare immediately due and payable the entire
Principal Balance with interest accrued thereon at the applicable Interest Rate to the date of such Event of Default, and all other sums due by Maker hereunder or under the Loan Documents, anything herein or in the Loan Documents to the contrary
notwithstanding; and payment thereof may be enforced and recovered in whole or in part at any time by one or more of the remedies provided to the Payee in this Note or in the Security Agreement or any other remedy provided at law or equity. In such
case, the Payee may also recover all costs of suit and other expenses in connection therewith, together with reasonable attorney’s fees for collection, together with interest on any judgment obtained by the Payee at the rate of ten percent
(10%) from and after the date of any such judgment. 
 (b) If an Event of Default occurs during the term of this Note, the
Makers acknowledge and agree that they each are jointly and severally liable for the entire Principal Balance with interest accrued thereon at the applicable Interest Rate. 
 13. GENERAL PROVISIONS. 
 (a) The Recitals to this Note are herein
incorporated and made a part of this Note as if set forth in the body of this Note. 

  

					
		  	7	  	EXECUTION VERSION

 (b) No judgment or judgment obtained against less than all of the Makers shall be a bar to
a subsequent judgment or judgments against one or more of the Makers against whom judgment has not been obtained. 
 (c) The
remedies of the Payee as provided herein, or in the Loan Documents, and the warrants contained herein or in the Loan Documents shall be cumulative and concurrent, and may be pursued singularly, successively, or together at the sole discretion of the
Payee, and may be exercised as often as occasion therefore shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. 

(d) The Makers and all endorsers, sureties and guarantors, if any, hereby jointly and severally waive presentment for payment, demand,
notice of demand, notice of nonpayment or dishonor, protest and notice of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, unless specifically
required herein or in the Loan Documents, and they agree that the liability of each of them shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time,
renewal, waiver or modification granted or consented to by the Payee. The Maker and all endorsers, sureties, and guarantors, if any, consent to any and all extensions of time, renewals, waivers or modifications that may be granted by the Payee with
respect to the payment or other provisions of this Note, and to the release of the collateral or any part thereof, with or without substitution and agree that additional makers, endorsers, guarantors, or sureties may become parties hereto without
notice to them or affecting their liability hereunder. 
 (e) The Payee shall not be deemed, by any act of omission or
commission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by the Payee, and then only to the extent specifically set forth in the writing. A waiver on one event shall not be construed as
continuing or as a bar to or waiver of any right or remedy to a subsequent event. 
 (f) If any term or provision of this Note
or the application thereof to any person, property or circumstance shall to any extent be invalid or unenforceable as to the remainder of this Note, then the application of such term or provision to persons, properties and circumstances other than
those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Note shall be valid and enforceable to the fullest extent permitted by law. 

(g) Notwithstanding anything to the contrary contained in this Note or in the Loan Documents, the effective rate of interest on the
obligation evidenced by this Note shall not exceed the lawful maximum rate of interest permitted to be paid. Without limiting the generality of the foregoing, if the interest charged under this Note results in an effective rate of interest higher
than that lawfully permitted to be paid, then such charges shall be reduced by the sum sufficient to result in an effective rate of interest no greater than the maximum effective rate of interest permitted by law and any amount that would exceed the
highest lawful rate already received and held by the Payee shall be applied to a reduction of principal (without premium or penalty) and not to the payment of interest. 

  

					
		  	8	  	EXECUTION VERSION

 (h) Part of the consideration for the loan evidenced by this Note is that the loan
(i) is and shall be deemed made under, and governed by and construed in accordance with the internal law of the Commonwealth of Pennsylvania, and (ii) may be enforceable in the State Courts of Pennsylvania, with an action commenced in the
Court of Common Pleas of Somerset County or Cambria County, Pennsylvania, and/or in the United States District Court of said Commonwealth in whose jurisdiction Somerset County and Cambria County lies. Maker hereby waives any claim that either
Pittsburgh, Somerset or Johnstown, Pennsylvania is an inconvenient forum and any claim that any action or proceeding arising out of or relating to this Note and commenced in the aforesaid Courts lacks proper venue. 

(i) Whenever used, the singular number shall include the plural, the plural the singular, the use of any gender shall be applicable to
all genders, the word “Payee” shall be deemed to include the successors and assigns of any applicable Payee, and the word “Maker” shall be deemed to include the successors and assigns of any applicable Maker. 

(j) The captions preceding the text of the paragraphs or subparagraphs of this Note are inserted only for convenience of reference and
shall not constitute a part of this Note, nor shall they in any way affect its meaning, construction or effect. 
 [Remainder
of page left blank intentionally.] 

  

					
		  	9	  	EXECUTION VERSION

 IN WITNESS WHEREOF, this Note has been duly signed and delivered by the undersigned at the
place and as of the day and year first above written. 
 MAKERS: 
 API SYSTEMS, INC., a Delaware corporation 
  

			
	By:	 	 /s/ Stephen Pudles

		
	Name:	 	 Stephen Pudles

		
	Title:	 	 CEO

 API DEFENSE, INC., a Delaware corporation 
  

			
	By:	 	 /s/ Stephen Pudles

		
	Name:	 	 Stephen Pudles

		
	Title:	 	 CEO

 API DEFENSE USA INC., a Delaware corporation 
  

			
	By:	 	 /s/ Stephen Pudles

		
	Name:	 	 Stephen Pudles

		
	Title:	 	 CEO

  

					
		  	10	  	EXECUTION VERSION

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