Laurus Escrow Disbursement Letter


    Exhibit
      10.7(b)
      Magnetech
        Integrated Services Corp.

      August
        24, 2005

      


      Scott
        J.
        Giordano

      Loeb
        & Loeb LLP

      345
        Park
        Avenue

      New
        York,
        New York 10154

      Direct
        Dial:  (212) 407-4104

      Fax: 
        (212) 407-4990

      


      
        	 	
                RE:

              	
                Magnetech
                  Integrated Services Corp. - Escrow Release 

                Gross
                  Escrow Deposit: $7,000,000

              


      

      


      Dear
        Mr.
        Giordano:

      


      These
        instructions are given to you pursuant to a Funds Escrow Agreement
        among Magnetech
        Integrated Services Corp.
        (the
“Company”), Laurus Master Fund, Ltd. and Loeb & Loeb LLP as Escrow Agent.
        Subject to the terms set forth below, you are instructed to disburse $7,000,000
        of the investor’s funds received by you to and on the Company’s behalf as
        follows:

       

      1. $[omitted]
        - Magnetech Integrated Services Corp., pursuant to the following wire
        instructions:

      


      
        	 	
                Bank:

              	 	
                MFB
                  Financial

                4100
                  Edison Lakes Parkway, Suite 300

                P.O.
                  Box 528

                Mishawaka,
                  Indiana 46546 

              
	 	
                ABA#

              	 	
                271274128

              
	 	
                Account
                  #:

              	 	
                588011082

              
	 	
                Account
                  Name:

              	 	
                MISCOR
                  General Account

              


      

      


      2. $[omitted]
        - MFB Financial, pursuant to the following wire instructions for payoff in
        full
        of obligations owed:

      


      
        	 	
                Bank:

              	 	
                MFB
                  Financial

                4100
                  Edison Lakes Parkway, Suite 300

                P.O.
                  Box 528

                Mishawaka,
                  Indiana 46546 

              
	 	
                ABA#

              	 	
                271274128

              
	 	
                Account
                  #:

              	 	
                352114582-700022228

              
	 	
                Account
                  Name:

              	 	
                Magnetech
                  

              
	 	
                Reference:

              	 	
                Loan
                  pay off

              


      

      


      3. $[omitted]
        - Laurus Capital Management, L.L.C. (management fees), pursuant to the following
        wire instructions:

      


      
        	 	
                Bank:

              	 	
                North
                  Fork Bank

                New
                  York, NY 10022

              
	 	
                ABA
                  Number:

              	 	
                021407912

              
	 	
                For
                  Credit to:

              	 	
                Laurus
                  Capital Management, L.L.C

              
	 	
                Account
                  Number:

              	 	
                2774045278

              


      

      



      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      


       

      4. $[omitted]
        - Laurus Capital Management, L.L.C. (for payment in full of all due diligence
        and documentation fees owed by the Company), pursuant to the following wire
        instructions:

       

      
        	 	
                Bank:

              	 	
                North
                  Fork Bank

                New
                  York, NY 10022

              
	 	
                ABA
                  Number:

              	 	
                021407912

              
	 	
                For
                  Credit to:

              	 	
                Laurus
                  Capital Management, L.L.C

              
	 	
                Account
                  Number:

              	 	
                2774045278

              


      

       

      
        
          


          5. $[omitted]
            - Loeb & Loeb LLP (for escrow agent fee), pursuant to the following wire
            instructions:

          


          
            	 	
                    Bank:

                  	 	
                    Citibank,
                      N.A.

                  
	 	
                    ABA
                      No:

                  	 	
                    021000089

                  
	 	
                    Acct.
                      No.:

                  	 	
                    02674308

                  
	 	
                    Reference:

                  	 	
                    Laurus
                      Escrow Arrangement

                  


          

          
 

        

      

      
        	 	
                Very
                  truly yours,

              
	 	 	 
	 	
                MAGNETECH
                  INTEGRATED SERVICES CORP.

              
	 	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 President
                & Chief Executive Officer


      

      


       

      
        	
                Accepted
                  and Agreed:

              	 
	 	 	 
	
                Laurus
                  Master Fund, Ltd.

              	 
	 	 	 
	
                By:

              	 /s/
                David Grin	 
	
                Name:

              	 David
                Grin	 
	
                Title:

              	 Director	 


      

       

      



      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      


       

      Schedule
        1

       

      


       

      


      Magnetech
        Integrated Services Corp.

      1125
        S.
        Walnut Street

      South
        Bend, Indiana 46619

      


      Laurus
        Capital Management LLC

      825
        3rd
        Ave.
        14th
        Floor

      New
        York,
        NY 10022

      


      Loeb
        & Loeb

      345
        Park
        Avenue

      New
        York,
        NY 10154

      


      MFB
        Financial

      4100
        Edison Lakes Parkway, Suite 300

      P.O.
        Box
        528

      Mishawaka,
        Indiana 46546