Document:

biosolex101.htm

Exhibit 10.1

 

 

 

EMPLOYMENT AGREEMENT

    This EMPLOYMENT AGREEMENT (“ Agreement”) dated as of August 17th, 2009, (the "Effective Date") is entered into by and between Bio-Solutions Corp., a Nevada
corporation located 14517 Joseph Marc Vermette,  Mirabel,   Province  of  Quebec,  J7J  1X2_( the “Company”), and Gilles Chaumillon, PhD, MBA , an individual residing  at 141,  rue Ovila,   Rosemère,
Province  of  Quebec, Canada, J7A 4L2. (the "Executive").

    WHEREAS, the Executive has heretofore been employed by the Company as President and Chief Executive Officer;

 

    WHEREAS, both the Company and the Executive wish the Executive to continue his employment pursuant to a formal employment contract between the parties;

 

    WHEREAS the Executive represents that he possesses the necessary qualifications and experience and wishes to provide the Company with the benefit of such experience; and

 

    WHEREAS the Company represents that it will provide the necessary latitude to the Executive to assume fully his role as Chief Executive Officer and is in a position to honor its obligations and undertakings
mentioned in this Agreement.

BOTH PARTIES HAVE AGREED AS FOLLOWS:

1.    PREAMBLE

1.1. The preamble forms part of this agreement as if recited at length herein;

2     TERM

2.1   The Company hereby agrees to employ the Executive as President and Chief Executive Officer for the Company and on the representations and undertakings of the Company; the Executive agrees
to accept such employment, all in accordance with the express terms in appendix 1, duties and obligations hereinafter set forth. The Executive will be entitled to the rights and benefits provided by the Company to its employees.

2.1   Subject to Section 5, the present agreement shall be for a period of an indeterminate term starting on the Effective Date, (hereinafter referred to as the "Term"),

3.    DUTIES

3.1   The Company will employ the Executive on a full time basis in the position of President and Chief Executive Officer reporting to the board of directors of the Company (the "Board").  The
Executive shall  carry out his  duties and exercise his powers in connection with the Company as the Board shall from time to time  reasonably  require and confer upon him; The Executive shall be given the necessary  latitude,  discretion  and power to adequately and properly discharge his duties and responsibilities,

3.2   The Executive shall, during the term of this agreement:

      a)    Devote his full time and effort to the Company,  well and faithfully serve the Company and use his best efforts,  talents and  endeavors
to promote the interest of the Company; and

      b)    Carry out such other duties as may be from time to time, assigned to him by the Board.

3.3   The Executive shall not without prior written consent of the Company fulfill a paid function or a time-consuming non-paid function on his own behalf or that of third parties.

3.4   The Executive may continue his engagement as a Business Development member of BioQuébec.

4     COMPENSATION

The Executive shall be entitled to an annual salary of $100,000 Can. The salary will be reviewed annually by the Compensation Committee of the Board. Performance bonuses of 10% annual salary or stock shares may be paid to the Executive in accordance to the yearly objectives set by
the Compensation Committee and the yearly business plan adopted by the Board.

The Executive shall be entitled to three weeks paid vacation. Additional vacation allotments up to a maximum of an additional two weeks shall be determined by the Board.  The Executive shall participate in all executive benefit plans (the "Executive Benefits") which the
Company may provide, including medical/hospital and extended health care benefits and life insurance.  These plans provided to the Executive will be at least equivalent with those provided to the other Executives of the Company. The Company reserves the right to unilaterally revise the terms of the Executive Benefits.

The Company will reimburse the Executive for any reasonable expense incurred in connection with his duties under this Agreement, provided that the Executive provides to the Company in a timely  manner
an  itemized  written  account and receipts acceptable to the Company and the Board's Audit Committee in accordance with the policies established  from time to time by the Company.

The Executive shall be entitled to a car allowance which will be reimbursed in accordance to the policies of the Company.

The Executive shall be granted 750,000 shares of the Company's common stock, at their closing price, on the business day prior to the date of ratification of this agreement by the Board, of which 375,000 will be disbursed immediately, 375,000 shall
be distributed 6 months after the signature of the contract.  Notwithstanding the foregoing, all of the Executive's shares shall be vested ipso facto, in the event of a take-over bid which results in a change in the control of the Company

 

4

 

 

5     RESTRICTIVE COVENANTS

5.1   The Company acknowledges that the Executive is bound by confidentiality, non-solicitation, non-competition and intellectual property agreement with Biosyntech Corporation and the Company will
not cause the Executive to breach the terms and conditions of the Agreement.

5.2   The Executive believes that he is not in breach of the confidentiality, non-solicitation, non-competition and intellectual property agreement with Biosyntech Corporation by accepting employment by the Company.

5.3   The Executive acknowledges  that as a result of his  employment,  he will have  access to  confidential information  of  the Company  which is highly important to the
Company. Such confidential information includes, but is not limited to, all present and future technical knowledge, unpatented or non-patentable inventions, manufacturing  and trade  secrets, processes,  manufacturing procedures, methods, discoveries, concepts, formulas, techniques, systems, data,  results,  drawings, algorithms, models,  prototypes, products developed  by and for the
Company, in whatever  form, codes, ideas, designs, integrated circuit topographies, trademarks, copyrights, business information relating to inventions or products, research and development, strategies  and  methods  which  are not standard  industry practices, proposals, industrial skills, operating and testing procedures, production processes,  finances,  customers, marketing, and future business plans (hereinafter, referred
to as the "Confidential Information").

      The Executive agrees that he will maintain in confidence and will not disclose or make use of, the Confidential Information, other than for the benefit of the Company, at any time during or after the term of his employment with the
Company, without the prior written consent of the Company, any Confidential Information whether or not the Confidential Information is in writing or in any other form.

      Upon termination of his employment or upon request by the Company, the Executive will deliver to the Company any and all written and tangible material in the Executive's possession
incorporating the Confidential Information or otherwise relating to the business.

      This obligation with respect to the Confidential Information extends to information belonging to the customers and suppliers of the Company, or persons or entities who license Confidential Information or technology rights from or to the
Company, and who may have disclosed such information to the Executive.

5.4   Subject to article 2095 of the Quebec Civil Code, the Executive agrees with and for the benefit of the Company that during his employment with the Company and for a period of twelve (12)
months from the date of termination of his employment, however caused, he will not for any reason, directly or indirectly, either as an individual or as a partner or joint venture or as an employee, principal, consultant, agent, shareholder,(excluding ownership by the Executive, as a passive  investment of less than one percent (1%) of the outstanding shares of capital stock of any entity with one or more classes of its capital  stock listed on a Security Exchange or publicly traded in the
over the  counter market) officer, director, or salesperson for any person, firm, association, organization, syndicate, company or corporation, or in any other manner carry on, be engaged in, concerned with, interested in, advise, lend money to, guarantee the debts or obligations of, permit his or her name or any part of it to be used or employed by any person,  business, firm, association, syndicate, company, organization or corporation concerned with or engaged or interested in a business
which  manufactures or sells the same products as the Company within the geographical area of Canada.

5.5   Should the Executive cease to be an officer, director or employee of the Company, he shall immediately provide the Board with a sworn  statement identifying any and all of the business and research and  development prospects of which he is aware at that point in time.  Throughout the employment
period and for a period of one year thereafter, the Executive agrees that, directly or indirectly, he will not solicit any person employed by the Company to leave or employ or solicit for employment any person who is, at the time of employment or solicitation, employed by the Company or who was in the employment of the Company during
the twenty-four month period preceding the date of the termination of his employment.

5.6   Subject to article 2095 of the Quebec Civil Code, the Executive acknowledges that any violation of the provisions of this Section 4 may cause irreparable harm to the Company and that damages are not an adequate remedy. Therefore, the Executive agrees that the
Company shall be entitled, in addition to all other rights provided by law or by this agreement, to obtain an injunction to prevent the Executive or a person acting on his behalf, from violating these provisions. The Executive hereby agrees that all restrictions contained in this Section 5 are      reasonable and will not prevent the Executive from earning his living.

5.7   The Executive hereby assigns to the Company, and confirms that the Executive has assigned all of his rights, title and interest throughout the world in and to any invention, copyright, design, integrated circuit topography, discovery, improvement to any
of Bio-Solution's products and any other intellectual property rights developed by the Executive during the course of his employment with the Company and for a period of one (1) year thereafter.  The Executive hereby waives his moral rights in all work created by the Executive during the course of his employment with the Company.

5.8   Upon request by the Company, the Executive shall execute and deliver such additional or further documents, assignments, concepts and other instrument as the Company may reasonably request
for the purpose of effectively carrying out this agreement including without limitation, any instruments deemed necessary by the Company to register any intellectual property rights in the Company's name or to protect or to defend its rights on such intellectual property.

5.9   If any part of clause of this Article 5 be determined to be void or unenforceable in whole or in part, it shall not be deemed to affect the validity of the remainder thereof, each part or clause being thereby declared separate and distinct covenants.  In the event this covenant not to compete shall be determined
by any Court to be too broad in geographic restriction, or too broad in scope, or to endure for too long a period of time, the Executive agrees that said covenant not to compete shall be only for such geographical area, scope and period of time reasonable in the circumstances.

6     TERMINATION

6.1   The Company may, by written notice, terminate this Agreement with immediate effect if:

      A)    the Executive becomes substantially disabled or incapacitated and is unable to perform his duties and  obligations  under this Agreement for a period of six months in any twenty-four month period; or

      B)    Without Cause, by giving the Executive a written notice of termination and delivering his full compensation for a period of twelve months paid in twelve monthly installments.

6.2   The Company may terminate this Agreement with Cause by giving the Executive a written notice of termination. Upon termination with Cause the Executive is not entitled to any indemnity.

6.3   "Cause" includes, without limitation:

      A)    Executive's material breach of any provision of this Agreement and his failure to cure that breach after having been given  notice in writing and a reasonable opportunity to cure the breach specified in the notice;

      B)    Without limiting the generality of subparagraph a), Executive's breach of the restrictive covenants set forth in section 5;

      C)    Executive's acting or failing to act that causes serious harm to the Company or any of its affiliates' standing, reputation, business or financial condition, provided that such act or failure to act is not in accordance with the instructions or directions given to the Executive
by the Board, and provided that the Executive was not acting in the best interest of the Company;

      D)    Executive being charged with a crime or offence that would, in the judgment of the Board, impair Executive’s ability to perform his duties and discharge his responsibilities under this Agreement;

      E)    Executive acting dishonestly, disloyally with regard to the Company or Executive's violation of any rules, or being charged with fraud or violating any law or order having a material negative impact
on the Company;

      F)    Executive's insubordination;

      G)    The voluntary or involuntary bankruptcy of Executive; and

      H)    The Executive concealing from the Board any fact which is material to the Company, its business or its financial position.

7     FULL FORCE AND EFFECT

7.1   In the event where any one of the provisions of this Agreement is considered invalid by a competent court in Quebec, the parties hereto agree that the remainder of this Agreement shall continue to have full force and effect.

 

5

 

8     APPLICABLE LAW

8.1   This Agreement shall be governed by and construed in accordance with the laws of Quebec. Any dispute arising between the parties hereto shall be referred to the competent court in Quebec.

9     NOTICE

9.1   The addresses of the parties for notice purposes are as follows:

         BIO-SOLUTIONS CORP.

         14517 Joseph Marc Vermette,  Mirabel,

         Quebec, J7J 1X2

      Attention to: the Chairman

         Gilles Chaumillon

         141 rue Ovila,

         Rosemère QC, J7A4L2

or such other address as may be given by either party to the other in writing from time to time, all notices shall be sent by registered  mail postage prepaid or by personal delivery;

10    LANGUAGE

10.1 La présente convention a été redigée en anglais à la demande des parties, this agreement has been drafted in English at the request of all parties.

            IN WITNESS WHEREOF the parties have duly signed this Agreement on 17th August
2009.

BIO-SOLUTIONS CORP.

Gilles Chaumillon

 

 

 

*Followed by Appendix 1: Duties and responsibilities of CEO

  

6

  

Appendix 1: Duties and responsibilities of CEO

 

Description of tasks and responsibilities for the Chief Executive officer.

 

 

 The Chief Executive Officer

 

 

As the Chief Executive Officer, you will be responsible for Management, the managing of the day to day operations and the control of the various activities of the company. These operations may be the commercial activities, the activities of research and development, as well as the production, in accordance with the various standards of conformity.
As CEO, you will be responsible for the process of value creation for the various stakeholders and shareholders, by the attainment of the following objectives, for the first 12 months of your entrance in function: *Note 1

 

 

Objectives:

 

 

	
  
	
1.      Releasing a positive treasury flow, for the first 12 months of your tenure, by the sale of licenses and the marketing of the products.

 

	
  
	
1.1   To operate the company with at a minimal burn-rate.

 

	
  
	
1.2   To aim at organizational efficiency by the means of a company built in networks (in-licensing, out-licensing and made-to-order manufacturing).

 

	
  
	
2.     To develop a line of products by the means of licensing agreements; thus permitting to create short-term revenues.

 

	
  
	
3.   To develop a medium-term growth strategy for the company; which will allow Bio-Solutions to be different in its positioning, in comparison to the competition with products of added value.

 

 

 

 

 

*Note 1: After 6 months of operation, an examination of the objectives and the evolution of the businesses will be made in order to revise the objectives and the various forecasts.

 

 

 

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Primary tasks and responsibilities of the Chief Executive Officer: 

 

	
  
	
1.    Management operations:

 

	
  
	
·       Producing reports to the various regulatory authorities (SEC, Edgar, federal and   provincial governments, etc).+

 

·      Producing official documents, press release, annual reports, quarterly reports, financial statements, annual reports, annual notices and general assembly.

 

 

	
  
	
1.1.  Establishment of a system and internal control:

 

	
  
	
·       Risk management  and implementation of an accounting system meeting the compliance standards.

 

 

	
  
	
2.  Fianancing  activities:

 

	
  
	
·       Responsible of all strategies and implementation of the various means of financing (credit margins, bank loans and public financing).

 

	
  
	
2.1 To identify the potential of various taxation benefits

 

	
  
	
·       Tax credit to Research and Development,  government subsidies, etc

 

	
 

  
	
3.      Sales operations:

	
  
	
·       Responsible for the implementation of the various sales strategies and activities; in accord with their respective targets (products, licensing and other).

 

 

	
  
	
4.     Scientific operations :

 

	
  
	
·   Identification of molecules or products: potentiality evaluation, effectiveness analyses, dosage, yield.

 

	
  
	
·  Accomplishing technology transferring activities.

 

	
 
	
·  Management of the research protocols, establishing of regulatory files, CMC, registration files (Health Canada agency, FDA)

 

 

	
  
	
5.      Made-to-order production operations:

 

	
  
	
·  To establish manufacturing network, in compliance to regulations and standards of practice.

 

	
 
	
·  Tests of stability, insurance and quality control

 

·  To evaluate the intellectual property of the products and their patenting strategies.

 

 

	
  
	
6.      Public activities:

 

	
  
	
·       Drafting of scientific publications

 

·       Public speaking and presentations at conferences of the field.

 

	
  
	
·  Establishing scientific collaborations according to strategies and needs.

 

 

	
  
	
7.      Business development  operations:

 

	
 
	
·  To develop strategies and the implementation of licensing agreements to add value to the company’s portfolio

 

	
  
	
·  To develop strategic alliances and Co-development agreements.

 

 

	
  
	
8.     Corporate development activities:

 

·      To develop a program and  an integrated communication plan for the various audiences : industrialists, investors (journalists)

 

	
  
	
·      To create a communication policy.

 

	
  
	
·      To update the official public information (website, Edgar, etc).

 

 

	
  
	
9.     Producing the information for the account rendering to the Board of Directors.

 

  Requirements relating to the position:

 

	
·  
	
Doctorate studies in biology, pharmacology or veterinary medicine.

	
·  
	
An MBA would be an asset

	
·  
	
15 years of experience is required as lead management of projects or  a company

	
·  
	
Place of work: Montreal although the CEO position requires trips abroad.

	
·  
	
Bilinguism is required.

 

 8EXHIBIT 10.1

                                   MERRILL LYNCH COMMERCIAL FINANCE CORP.
                                   222 North LaSalle Street
                                   17th Floor
                                   Chicago, Illinois 60601
[GRAPHIC OMITTED]
MERRILL LYNCH
                                   Anne Easter
                                   TEL: (312) 499-3044

                                   August 17,2009

Orbit  International  Corp
80  Cabot  Court
Hauppauge, NY  11788

 Re:  Limited  Covenant  Waiver  and  Amendment  to  Loan  Documents

Dear  Gentlemen:

This amendment and limited waiver (the "Amendment") is dated August 17, 2009, by
                                        ---------
and  among  MERRILL  LYNCH  COMMERCIAL  FINANCE  CORP.  ("MLCFC")  and  ORBIT
                                                          -----
INTERNATIONAL  CORP.  ("Customer")  and will serve to confirm certain agreements
                        --------
with  respect  to  the  following  documents:

(i) WCMA LOAN AND SECURITY AGREEMENT NO. 885-07587 dated January 28, 2003 by and
between  MLCFC  and  Customer,  as  thereafter  supplemented, modified, renewed,
extended  and/or  amended  (the  "  WCMA  Loan  Agreement");
                                    ---------------------

(ii)  TERM  LOAN AND SECURITY AGREEMENT dated April 4, 2005 by and between MLCFC
and  Customer,  as  thereafter  supplemented, modified, renewed, extended and/or
amended  (the  "Term  Loan  Agreement  A");
                ------------------------

(iii)  TERM  LOAN AND SECURITY AGREEMENT dated June 5, 2007 by and between MLCFC
and  Customer,  as  thereafter  supplemented, modified, renewed, extended and/or
amended  (the  "Term  Loan  Agreement  B");
                ------------------------

(iv)  TERM  LOAN  AND  SECURITY AGREEMENT dated December 19, 2007 by and between
MLCFC  and  Customer,  as  thereafter  supplemented, modified, renewed, extended
and/or  amended  (the  "Term  Loan  Agreement  C");
                        ------------------------

(v)  UNCONDITIONAL  GUARANTIES  (the  "Guaranties")  dated December 31, 2007 and
                                       ----------
given  to MLBFS by Integrated Consulting Services, Inc. and those dated April 4,
2005  and  June  5,  2007  and  given  to  MLCFC  in  both  cases by each of TDL
Manufacturing,  Inc.,  Tulip  Development  Laboratory, Inc., Orbit Instrument of
California,  Inc.  and  Behlman  Electronics,  Inc, (collectively, the "Business
                                                                        --------
Guarantors");  and
----------

(vi)  all other agreements between MLCFC and Customer, or any other party who at
any time has guaranteed or provided collateral, or will hereinafter guarantee or
provide  collateral, for Customer's obligations to MLCFC in connection therewith
(the  "Additional  Agreements")
       ----------------------

For  purposes  of  this  Amendment,  (i)  Customer  and  Business Guarantors are
collectively  referred  to as the "Obligors", (ii) the WCMA Loan Agreement, Term
                                   --------
Loan  Agreement  A,  Term  Loan  Agreement  B  and  Term  Loan  Agreement C, the
Guaranties,  and  the  Additional Agreements are collectively referred to as the
"Loan  Documents".
 ---------------

Capitalized terms used herein and not defined herein shall have the same meaning
as  set  forth  in  the  Loan  Documents.

I.  LIMITED  WAIVER  OF  EXISTING  FINANCIAL  AND  OTHER  COVENANTS.  Obligors
    ---------------------------------------------------------------
acknowledge  that  for  the period ending June 30, 2009 they are in violation of
the  following  covenants  under  the  Loan  Documents  ("Identified Defaults"):
                                                          -------------------

      FIXED  CHARGE  COVERAGE  RATIO

      TOTAL  FUNDED  DEBT  TO  EBITDA

Obligors  have requested, and, subject to the terms and conditions hereof, MLCFC
has  agreed to waive the default for only the period ending June 30, 2009.  This
is  a  limited  waiver.

Strict  compliance with each of these covenants shall be required going forward.
Furthermore,  nothing in this letter shall be construed as a waiver of any other
term or condition of the Loan Documents, nor shall this letter be construed as a
commitment on the part of MLCFC to waive any subsequent violation of the same or
any  other  term  or  condition set forth in the Loan Documents.  This waiver is
expressly  limited  to the covenants referenced above, for the period referenced
above.  In  all other respects and except as expressly amended hereby, the terms
and  conditions  of  the  Loan  Documents  remain  in  full  force  and  effect.

II.  AMENDMENT  OF  LOAN  DOCUMENTS.  Obligors  and  MLCFC  have  agreed  to the
     ------------------------------
following  amendments  to  the  Loan  Documents:

 A.  WCMA  LOAN  AGREEMENT.  The  WCMA Loan Agreement is amended and restated as
     ----------------------
applicable  as  follows:

     1.  Applicable  Margin.  The  definition  of  "Applicable  Margin" shall be
         ------------------
amended  as  follows:

    "Applicable  Margin  shall  mean  3.50%."

     2.  Maximum  WCMA  Line  of Credit. The definition of "Maximum WCMA Line of
         ------------------------------
Credit"  shall  be  amended  as  follows:

"Maximum  WCMA  Line  of  Credit"  shall  mean,  as of any date of determination
thereof  through  October  30,  2009,  an  amount  equal  to  the lesser of: (A)
$2,500,000.00  or  (B)  85%  of Customer's and Business Guarantors' Accounts and
Chattel  Paper,  as  shown  on its regular books and records (excluding Accounts
over 90 days past the invoice date, Accounts directly or indirectly due from any
person  or  entity  not  domiciled in the United States, Accounts arising out of
bonded  jobs, retainage or from any shareholder, officer or employee of Customer
or  any  affiliated entity, Accounts deemed as ineligible by MLCFC, and Accounts
where  the  account  debtor with respect to which is not any foreign government,
the  United  States  of  America,  any State, political subdivision, department,
agency  or instrumentality thereof, unless, if such account debtor is the United
States  of  America,  or  any department, agency or instrumentality thereof, the
Federal  Assignment of Claims Act of 1940, as amended, has been compiled with in
a manner satisfactory to MLCFC), and 50% of Customer's raw material Inventory as
shown  on  its  regular  books  and  records  up  to a maximum of $1,000,000.00.

Beginning October 31, 2009 and thereafter, the "Maximum WCMA Line of Credit"
shall mean, as of any date of determination thereof, an amount equal to the
lesser of: (A) $2,000,000.00 or (B) 85% of Customer's and Business Guarantors'
Accounts and Chattel Paper, as shown on its regular books and records (excluding
Accounts over 90 days past the invoice date, Accounts directly or indirectly due
from any person or entity not domiciled in the United States, Accounts arising
out of bonded jobs, retainage or from any shareholder, officer or employee of
Customer or any affiliated entity, Accounts deemed as ineligible by MLCFC,
 and Accounts where the account debtor with respect to which is not any foreign
government, the United States of America, any State, political subdivision,
department, agency or instrumentality thereof, unless, if such account debtor is
the United States of America, or any department, agency or instrumentality
thereof, the Federal Assignment of Claims Act of 1940, as amended, has been
compiled with in a manner satisfactory to MLCFC), and 50% of Customer's raw
material Inventory as shown on its regular books and records up to a maximum of
$1,000,000.00"

 B.  TERM  LOAN  AGREEMENT  A.  Term Loan Agreement A is amended and restated as
     -------------------------
applicable  as  follows:

     1.  Applicable  Margin.  The  definition  of  "Applicable  Margin" shall be
         ------------------
amended  as  follows:

"Applicable  Margin  shall  mean  3.50%."

C.  TERM  LOAN  AGREEMENT  B.  Term  Loan Agreement B is amended and restated as
    -------------------------
applicable  as  follows:

     1.  Applicable  Margin.  The  definition  of  "Applicable  margin" shall be
         ------------------
amended  as  follows:

"Applicable  Margin  shall  mean  3.50%."

  D.  TERM  LOAN  AGREEMENT C.  Term Loan Agreement C is amended and restated as
      ------------------------
applicable  as  follows:

1.  Applicable Margin. The definition of "Applicable Margin" shall be amended as
    -----------------
follows:

"Applicable  Margin  shall  mean  3.50%."

III.  ADDITIONAL  AGREEMENTS.
      -----------------------

1.  Covenant  Waiver Fee.  In consideration of these limited covenant waivers by
    ---------------------
MLCFC  of  the  Identified Defaults, Obligors shall pay a covenant waiver fee in
the  amount  of  Ten  Thousand Dollars 00/100 ($10,000.00) (the "Covenant Waiver
Fee").  Obligors  hereby  authorize  MLCFC to charge the WCMA Line of Credit the
Covenant  Waiver  Fee.  The  Covenant  Waiver Fee is non-refundable and shall be
deemed  fully  earned  by  MLCFC  upon  charge.

2.  Field Audit.  Obligors agree that MLCFC shall retain the services of a third
    ------------
party  firm (said third party firm(s) shall be selected by MLCFC in its sole and
absolute  discretion)  for  the  purpose of conducting a field examination/asset
based  audit.  Obligors  agree  that the field audit shall commence on a date no
later  than  September  14,  2009. Obligors understand and unconditionally agree
that any such field examination or audit of the Collateral shall be for the sole
benefit  of  MLCFC.  Furthermore,  the  Obligors  agree  and understand that the
Obligors  shall  be  solely  responsible  for  the cost of conducting said field
examination/asset  based  audit  Collateral  (the "Audit Expense"). The Obligors
agree  that  MLCFC  (and/or  its authorized representatives) shall be given full
access  to  the  Customer's  properties  (both  real  and personal), operations,
Location(s)  of  Tangible  Collateral.

3.  Termination  of  WCMA Line of Credit No. 885-02776.  Obligors agree that the
    ---------------------------------------------------
WCMA loans made by MLCFC to Integrated Consulting Services, Inc. pursuant to the
WCMA  Loan  and  Security  Agreement No. 885-02776 dated as of December 31, 2007
between  Integrated  Consulting Services, Inc. and MLCFC shall be repaid and the
WCMA  Line  of  Credit  terminated.  The  Unconditional  Guaranty  and  Security
Agreement  dated  as  of  December  31,  2007  provided by Integrated Consulting
Services,  Inc.  to  MLCFC  will  remain  in  full  force  and  effect.

Except  as  expressly  amended hereby, the Loan Documents shall continue in full
force  and effect upon all of their terms and conditions.  Customer and Business
Guarantor hereby confirm that (a) each of the warranties of Customer in the Loan
Documents  are true and correct as of the date hereof and shall be deemed remade
as  of  the  date  hereof  and  on  the effective date; (b) neither Customer nor
Business Guarantors have any claim against MLCFC arising out of or in connection
with  the  Loan  Documents  or  any  other matter whatsoever; and do each hereby
release  and  forever  discharge  MLCFC and their parents, and affiliates of and
from  any  and all causes of action, claims, or demands whatsoever, in law or in
equity  arising  from  the  conduct  of  MLCFC.

By their execution of this Letter Amendment, the below-named Business Guarantors
do  hereby  consent  to the foregoing amendment to the Loan Documents, and agree
that  the  obligations  under  the  Guaranties  shall  extend to and include the
Obligations  of  Customer  under  the  Loan  Documents,  as  amended  hereby.

In  consideration  for  MLCFC  waiving  the Identified Defaults, Customer hereby
certifies to MLCFC that no Event of Default, or event (other than the Identified
Defaults)  which  with  the  giving  of  notice, passage of time, or both, would
constitute  an  Event  of  Default,  has  occurred  or is continuing and that no
material  adverse change in the financial condition of Customer or each Business
Guarantor  has  occurred  or  is  continuing  (other  than what will be publicly
disclosed  by  Customer  in  its Form 10-Q for the period ending June 30, 2009).

Customer  and Business Guarantors hereby confirm that (a) each of the warranties
in  the  Loan Documents, are true and correct as of the date hereof and shall be
deemed  remade  as  of  the  date  hereof and on the effective date; (b) neither
Customer  nor  Business Guarantors have any claim against MLBFS or MLCFC arising
out  of or in connection with the Loan Documents or any other matter whatsoever;
and (c) neither Customer, nor any Business Guarantor, has any defense to payment
of any amounts owing, or any right of counterclaim for any reason under the Loan
Documents.

This Amendment shall become effective upon execution and delivery by Obligors of
the  executed document together, provided however, if the effective date of this
Amendment  has  not occurred within five (5) business days from the date hereof,
then  this  Amendment  will, at the sole option of MLCFC, be void and no effect.

Very  truly  yours,

MERRILL  LYNCH  COMMERCIAL  FINANCE  CORP.

By:  /s/  Anne  Easter
    -------------------
    Anne  Easter
    Vice  President

Accepted:

ORBIT  INTERNATIONAL  CORP.

By:  /s/  Dennis  Sunshine
     ---------------------

Name:  Dennis  Sunshine

Title: President, CEO

Approved:

INTEGRATED  CONSULTING  SERVICES,  INC.

By: /s/  Mitchell  Binder
    ----------------------

Printed  Name:  Mitchell  Binder

Title:  Executive  VP  and  CFO

TDL  MANUFACTURING,  INC.

By:  /s/  Mitchell  Binder
   -----------------------

Printed  Name:  Mitchell  Binder

Title:  Vice President and  CFO

TULIP  DEVELOPMENT  LABORATORY,  INC.

By: /s/  Mitchell  Binder
    ----------------------

Printed  Name:  Mitchell  Binder

Title:  Vice President and  CFO

ORBIT  INSTRUMENT  OF  CALIFORNIA,  INC.

By: /s/  Mitchell  Binder
    ----------------------

Printed  name:  Mitchell  Binder

Title:  Vice President  and  CFO

BEHLMAN  ELECTRONICS,  INC,

By: /s/  Mark  Tublisky
    -------------------

Printed  Name:  Mark  Tublisky

Title:  President

                                        MERRILL LYNCH COMMERCIAL FINANCE CORP.
                                        222 North LaSalle Street
                                        17th Floor
                                        Chicago, Illinois 60601
[GRAPHIC OMITTED]
MERRILL LYNCH
                                        Anne Easter
                                        TEL: (312) 499-3044

                                        August 17,2009

Integrated  Consulting  Services,  Inc.
163  Rochester  Drive
Louisville, KY  40214

  Re:  Limited  Waiver

Dear  Gentlemen:

This  limited  waiver  is  dated  August  17,  2009,  by and among MERRILL LYNCH
COMMERCIAL  FINANCE  CORP.  ("MLCFC")  and  INTEGRATED CONSULTING SERVICES, INC.
                              -----
("Customer")  and  will  serve to confirm certain agreements with respect to the
  --------
following  documents:

(i)  WCMA  LOAN  AND SECURITY AGREEMENT NO. 885-02776 dated December 31, 2007 by
and  between  MLCFC and Customer, as thereafter supplemented, modified, renewed,
extended  and/or  amended  (the  "  WCMA  Loan  Agreement");
                                    ---------------------

(ii)  UNCONDITIONAL  GUARANTY (the "Guaranty") dated December 31, 2007 and given
                                    ---------
to  MLCFC  by  Orbit  International  Corp.  (the  "Business  Guarantor");  and
                                                   -------------------

(ix)  all other agreements between MLCFC and Customer, or any other party who at
any time has guaranteed or provided collateral, or will hereinafter guarantee or
provide  collateral, for Customer's obligations to MLCFC in connection therewith
(the  "Additional  Agreements")
       ----------------------

For  purposes  of  this  limited waiver, (i) Customer and Business Guarantor are
collectively  referred to as the "Obligors", and (ii) the WCMA Loan and Security
Agreement,  Guaranty  and  Additional Agreements are collectively referred to as
the  "Loan  Documents".

Capitalized terms used herein and not defined herein shall have the same meaning
as set forth in the Loan Documents, and the Loan Documents are hereby amended in
all  respects  to  effectuate  such  change.

I.  LIMITED  WAIVER  OF  EXISTING  FINANCIAL  AND  OTHER  COVENANTS.  Obligors
    ---------------------------------------------------------------
acknowledge  that  for  the period ending June 30, 2009 they are in violation of
the  following  covenants  under  the  Loan  Documents  ("Identified Defaults"):
                                                          -------------------

   FIXED  CHARGE  COVERAGE  RATIO

   TOTAL  FUNDED  DEBT  TO  EBITDA

Obligors  have  requested, and subject to the terms and conditions hereof, MLCFC
has  agreed  to waive the default for only the period ending June 30, 2009. This
is  a  limited  waiver.

Strict  compliance  with  each  of these covenants, as amended by this Amendment
shall  be  required  going forward. Furthermore, nothing in this letter shall be
construed  as a waiver of any other term or condition of the Loan Documents, nor
shall this letter be construed as a commitment on the part of MLCFC to waive any
subsequent violation of the same or any other term or condition set forth in the
Loan  Documents.  This  waiver  is expressly limited to the covenants referenced
above,  for  the  period  referenced  above. In all other respects and except as
expressly  amended hereby, the terms and conditions of the Loan Documents remain
in  full  force  and  effect.

Except  as  expressly  amended hereby, the Loan Documents shall continue in full
force  and  effect upon all of their terms and conditions. Customer and Business
Guarantor hereby confirm that (a) each of the warranties of Customer in the Loan
Documents  are true and correct as of the date hereof and shall be deemed remade
as  of  the  date  hereof  and  on  the effective date; (b) neither Customer nor
Business  Guarantor have any claim against MLCFC arising out of or in connection
with  the  Loan  Documents  or  any  other matter whatsoever; and do each hereby
release  and  forever  discharge  MLCFC and their parents, and affiliates of and
from  any  and all causes of action, claims, or demands whatsoever, in law or in
equity  arising  from  the  conduct  of  MLCFC.

In  consideration  for  MLCFC  waiving  the Identified Defaults, Customer hereby
certifies  to  MLCFC  that  no  Event  of  Default  (other  than  the Identified
Defaults),  or  event which with the giving of notice, passage of time, or both,
would  constitute an Event of Default, has occurred or is continuing and that no
material  adverse  change  in  the  financial  condition of Customer or Business
Guarantor  has  occurred  or  is  continuing  (other  than what will be publicly
disclosed  by  Business  Guarantor in their Form 10-Q for the period ending June
30,  2009).

Customer  and  Business Guarantor hereby confirm that (a) each of the warranties
in  the  Loan  Documents are true and correct as of the date hereof and shall be
deemed  remade  as  of  the  date  hereof and on the effective date; (b) neither
Customer  nor  Business Guarantor have any claim against MLCFC arising out of or
in  connection  with  the Loan Documents or any other matter whatsoever; and (c)
neither  Customer,  nor  Business  Guarantor,  has any defense to payment of any
amounts  owing,  or  any  right  of  counterclaim  for any reason under the Loan
Documents.

Very  truly  yours,

MERRILL  LYNCH  COMMERCIAL  FINANCE  CORP.

By:  /s/  Anne  Easter
     ------------------
    Anne  Easter
    Vice  President

Accepted:

INTEGRATED  CONSULTING  SERVICES,  INC.

By:  /s/  Mitchell  Binder
     ----------------------

Name:  Mitchell  Binder

Title:  Executive  VP  and  CFO

Approved:

ORBIT  INTERNATIONAL  CORP.

By:  /s/  Dennis  Sunshine
     -----------------------

Printed  Name:  Dennis  Sunshine

Title:  President,CEO

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