Termination of the given JBC could be disproven:

(0) Obligation:

JBC Problem based on JBC Program:
Manifest-Version: 1.0 Created-By: 1.6.0_26 (Sun Microsystems Inc.) Main-Class: simple/ex08/Main

package simple.ex08;

public class Ex08 {

	public static void loop(int i) {
		boolean up = false;
		while (i > 0) {
			if (i == 1) {
				up = true;
			}
			if (i == 10) {
				up = false;
			}
			if (up) {
				i++;
			} else {
				i--;
			}
		}
	}
}


package simple.ex08;

public class Main {

	/**
	 * @param args
	 */
	public static void main(String[] args) {
		Ex08.loop(args.length);
	}

}

(1) JBCNonTerm (EQUIVALENT transformation)

Reached a loop using the following run:
0:

<simple.ex08.Main.main||0: load ADDR args||args: a202|| ->
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

1:

<simple.ex08.Main.main||1: arraylength|| - ||a202>
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

2:

<simple.ex08.Main.main||2: simple.ex08.Ex08.loop(I)V|| - ||1>
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

3:

<simple.ex08.Ex08.loop||0: push 0||i: 1|| ->
<simple.ex08.Main.main||2: simple.ex08.Ex08.loop|| - ||1>
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

4:

<simple.ex08.Ex08.loop||1: store INT to up||i: 1||0>
<simple.ex08.Main.main||2: simple.ex08.Ex08.loop|| - ||1>
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

5:

<simple.ex08.Ex08.loop||2: load INT i||i: 1, up: 0|| ->
<simple.ex08.Main.main||2: simple.ex08.Ex08.loop|| - ||1>
	String.serialVersionUID: -6849794470754667710L
	String.serialPersistentFields: a200
	String.CASE_INSENSITIVE_ORDER: o101
	String$CaseInsensitiveComparator.serialVersionUID: 8575799808933029326L
	RuntimeException.serialVersionUID: -7034897190745766939L
	Exception.serialVersionUID: -3387516993124229948L
	Throwable.serialVersionUID: -3042686055658047285L
	o101!: String$CaseInsensitiveComparator()
	a200([java.io.ObjectStreamField|]): length 0
	a202([java.lang.String...]): length 1

In the loop head node, references [i41, i42, iconst_0] were interesting.
By SMT, we could prove
((0 <= initial_i41 and 0 <= initial_i42 and initial_i42 <= 1 and 0 <= initial_i18) and ((((path1_i41 = path1_i77 and 2 = res_i41 and 1 = res_i42 and path1_i18 = res_i18 and path1_i41 = initial_i41 and path1_i42 = initial_i42 and path1_i18 = initial_i18) and (path1_i77 > 0 and path1_i77 = 1 and 1 > 0)) or ((path2_i41 = path2_i77 and path2_i77 = path2_i79 and path2_i79 = path2_i82 and path2_i85 = (path2_i82 + 1) and path2_i85 = res_i41 and 1 = res_i42 and path2_i18 = res_i18 and path2_i41 = initial_i41 and path2_i42 = initial_i42 and path2_i18 = initial_i18) and (path2_i77 > 0 and path2_i82 != 10 and path2_i42 = 1 and 1 > 0 and path2_i79 < 1)) or ((path2_i41 = path2_i77 and path2_i77 = path2_i79 and path2_i79 = path2_i82 and path2_i85 = (path2_i82 + 1) and path2_i85 = res_i41 and 1 = res_i42 and path2_i18 = res_i18 and path2_i41 = initial_i41 and path2_i42 = initial_i42 and path2_i18 = initial_i18) and (path2_i77 > 0 and path2_i79 != 1 and path2_i42 = 1 and 1 > 0 and path2_i82 > 10))) and ((res_i41 = res_i77 and !(res_i77 > 0 and res_i77 = 1 and 1 > 0)) and ((res_i41 = res_i77 and res_i77 = res_i79 and res_i79 = res_i82 and res_i85 = (res_i82 + 1)) and !(res_i77 > 0 and res_i79 != 1 and res_i82 != 10 and res_i42 = 1 and 1 > 0)) and ((res_i41 = res_i77 and res_i77 = res_i79 and res_i79 = res_i82 and res_i85 = (res_i82 + 1)) and !(res_i77 > 0 and res_i79 != 1 and res_i82 != 10 and res_i42 = 1 and 1 > 0)))))
to be UNSAT. Consequently, the loop will not terminate.

(2) NO