Document:

Pledge Agreement dated August 24, 2005 among Laurus Master Fund, Ltd., the
      registrant and certain subsidiaries of the registrant identified therein

    

       

      Exhibit
        10.10

       

       

      PLEDGE
        AGREEMENT

       

       

      This
        Pledge Agreement (this “Agreement”),
        dated
        as of August 24, 2005, among Laurus Master Fund, Ltd. (the “Pledgee”),
        Magnetech Integrated Services Corp., an Indiana corporation (the “Company”),
        and
        each of the other undersigned parties (other than the Pledgee) (the Company
        and
        each such other undersigned party, a “Pledgor”
        and
        collectively, the “Pledgors”).

       

      BACKGROUND

       

      The
        Company has entered into a Security and Purchase Agreement dated as of August
        24, 2005 (as amended, modified, restated or supplemented from time to time,
        the
“Security
        Agreement”),
        pursuant to which the Pledgee provides or will provide certain financial
        accommodations to the Company and certain subsidiaries of the
        Company.

       

      In
        order
        to induce the Pledgee to provide or continue to provide the financial
        accommodations described in the Security Agreement, each Pledgor has agreed
        to
        pledge and grant a security interest in the collateral described herein to
        the
        Pledgee on the terms and conditions set forth herein.

       

      NOW,
        THEREFORE, in consideration of the premises and for other good and valuable
        consideration the receipt of which is hereby acknowledged, the parties hereto
        agree as follows:

       

      1. Defined
        Terms.
        All
        capitalized terms used herein which are not defined shall have the meanings
        given to them in the Security Agreement.

       

      2. Pledge
        and Grant of Security Interest.
        To
        secure the full and punctual payment and performance of (the following clauses
        (a) and (b), collectively, the “Obligations”)
        (a)
        the obligations under the Security Agreement and the Ancillary Agreements
        referred to in the Security Agreement (the Security Agreement and the Ancillary
        Agreements, as each may be amended, restated, modified and/or supplemented
        from
        time to time, collectively, the “Documents”)
        and
        (b) all other obligations and liabilities of each Pledgor to the Pledgee
        whether
        now existing or hereafter arising, direct or indirect, liquidated or
        unliquidated, absolute or contingent, due or not due and whether under, pursuant
        to or evidenced by a note, agreement, guaranty, instrument or otherwise (in
        each
        case, irrespective of the genuineness, validity, regularity or enforceability
        of
        such Obligations, or of any instrument evidencing any of the Obligations
        or of
        any collateral therefor or of the existence or extent of such collateral,
        and
        irrespective of the allowability, allowance or disallowance of any or all
        of
        such in any case commenced by or against any Pledgor under Title 11, United
        States Code, including, without limitation, obligations of each Pledgor for
        post-petition interest, fees, costs and charges that would have accrued or
        been
        added to the Obligations but for the commencement of such case), each Pledgor
        hereby pledges, assigns, hypothecates, transfers and grants a security interest
        to Pledgee in all of the following (the “Collateral”):

       

      (a) the
        shares of stock, partnership interests, limited liability company interests
        and
        other equity interests set forth on Schedule
        A
        annexed
        hereto and expressly made a 

      
        
          
          

        

        
          
            

          

        

        
          
          

        

      

       

      part
        hereof (together with any additional shares of stock, partnership interests,
        limited liability company interests, membership interests or other equity
        interests acquired by any Pledgor, the “Pledged Stock”), the certificates
        representing the Pledged Stock (if any) and all dividends, cash, instruments
        and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of the Pledged
        Stock;

       

      (b) all
        additional shares of stock, partnership interests, limited liability company
        interests, membership interests and other equity interests of any issuer
        (each,
        an “Issuer”) of the Pledged Stock from time to time acquired by any Pledgor in
        any manner, including, without limitation, stock dividends or a distribution
        in
        connection with any increase or reduction of capital, reclassification, merger,
        consolidation, sale of assets, combination of shares, stock split, spin-off
        or
        split-off (which shares shall be deemed to be part of the Collateral), and
        the
        certificates representing such additional shares or interests, as the case
        may
        be (if any), and all dividends, cash, instruments and other property or proceeds
        from time to time received, receivable or otherwise distributed in respect
        of or
        in exchange for any or all of such shares; and

       

      (c) all
        options and rights, whether as an addition to, in substitution of or in exchange
        for any shares of any Pledged Stock and all dividends, cash, instruments
        and
        other property or proceeds from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all such options and
        rights.

       

      3. Delivery
        of Collateral.
        All
        certificates representing or evidencing the Pledged Stock shall be delivered
        to
        and held by or on behalf of Pledgee pursuant hereto and shall be accompanied
        by
        duly executed instruments of transfer or assignments in blank, all in form
        and
        substance satisfactory to Pledgee. Each Pledgor hereby authorizes the Issuer
        upon demand by the Pledgee to deliver any certificates, instruments or other
        distributions issued in connection with the Collateral directly to the Pledgee,
        in each case to be held by the Pledgee, subject to the terms hereof. Upon
        the
        occurrence and during the continuance of an Event of Default (as defined
        below),
        the Pledgee shall have the right, during such time in its discretion and
        without
        notice to the Pledgor, to transfer to or to register in the name of the Pledgee
        or any of its nominees any or all of the Pledged Stock. In addition, the
        Pledgee
        shall have the right at such time to exchange certificates or instruments
        representing or evidencing Pledged Stock for certificates or instruments
        of
        smaller or larger denominations.

       

      4. Representations
        and Warranties of each Pledgor.
        Each
        Pledgor jointly and severally represents and warrants to the Pledgee (which
        representations and warranties shall be deemed to continue to be made until
        all
        of the Obligations have been paid in full and each Document and each agreement
        and instrument entered into in connection therewith has been irrevocably
        terminated) that, except as may be disclosed in any Schedule to the Security
        Agreement:

       

      (a) the
        execution, delivery and performance by each Pledgor of this Agreement and
        the
        pledge of the Collateral hereunder do not and will not result in any violation
        of any agreement, indenture, instrument, license, judgment, decree, order,
        law,
        statute, ordinance or other governmental rule or regulation applicable to
        any
        Pledgor;

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (b) this
        Agreement constitutes the legal, valid, and binding obligation of each Pledgor
        enforceable against each Pledgor in accordance with its terms;

       

      (c) (i)
        all
        Pledged Stock owned by each Pledgor is set forth on Schedule
        A
        hereto
        and (ii) each Pledgor is the direct and beneficial owner of each share of
        the
        Pledged Stock;

       

      (d) all
        of
        the shares of the Pledged Stock have been duly authorized, validly issued
        and
        are fully paid and nonassessable;

       

      (e) no
        consent or approval of any person, corporation, governmental body, regulatory
        authority or other entity, is or will be necessary for (i) the execution,
        delivery and performance of this Agreement, (ii) the exercise by the Pledgee
        of
        any rights with respect to the Collateral or (iii) the pledge and assignment
        of,
        and the grant of a security interest in, the Collateral hereunder;

       

      (f) there
        are
        no pending or, to the best of each Pledgor’s knowledge, threatened actions or
        proceedings before any court, judicial body, administrative agency or arbitrator
        which may materially adversely affect the Collateral;

       

      (g) each
        Pledgor has the requisite power and authority to enter into this Agreement
        and
        to pledge and assign the Collateral to the Pledgee in accordance with the
        terms
        of this Agreement;

       

      (h) each
        Pledgor owns each item of the Collateral and, except for the pledge and security
        interest granted to Pledgee hereunder, the Collateral shall be, immediately
        following the closing of the transactions contemplated by the Documents,
        free
        and clear of any other security interest, mortgage, pledge, claim, lien,
        charge,
        hypothecation, assignment, offset or encumbrance whatsoever (collectively,
        “Liens”);

       

      (i) there
        are
        no restrictions on transfer of the Pledged Stock contained in the certificate
        of
        incorporation or by-laws (or equivalent organizational documents) of the
        Issuer
        or otherwise which have not otherwise been enforceably and legally waived
        by the
        necessary parties;

       

      (j) none
        of
        the Pledged Stock has been issued or transferred in violation of the securities
        registration, securities disclosure or similar laws of any jurisdiction to
        which
        such issuance or transfer may be subject;

       

      (k) the
        pledge and assignment of the Collateral and the grant of a security interest
        under this Agreement vest in the Pledgee all rights of each Pledgor in the
        Collateral as contemplated by this Agreement; 

       

      (l) The
        Pledged Stock constitutes one hundred percent (100%) of the issued and
        outstanding shares of capital stock of each Issuer; and

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (m) Except
        for the membership interests issued by Martell Electric, LLC to Magnetech
        Industrial Services, Inc., none of the membership interests included in the
        Pledged Stock is, and its charter documents do not require it to be,
        certificated.

       

      5. Covenants.
        Each
        Pledgor jointly and severally covenants that, until the Obligations shall
        be
        indefeasibly satisfied in full and each Document and each agreement and
        instrument entered into in connection therewith is irrevocably
        terminated:

       

      (a) No
        Pledgor will sell, assign, transfer, convey, or otherwise dispose of its
        rights
        in or to the Collateral or any interest therein; nor will any Pledgor create,
        incur or permit to exist any Lien whatsoever with respect to any of the
        Collateral or the proceeds thereof other than that created hereby. 

       

      (b) Each
        Pledgor will, at its expense, defend Pledgee’s right, title and security
        interest in and to the Collateral against the claims of any other
        party.

       

      (c) Each
        Pledgor shall at any time, and from time to time, upon the written request
        of
        Pledgee, execute and deliver such further documents and do such further acts
        and
        things as Pledgee may reasonably request in order to effectuate the purposes
        of
        this Agreement including, but without limitation, delivering to Pledgee,
        upon
        the occurrence of an Event of Default, irrevocable proxies in respect of
        the
        Collateral in form satisfactory to Pledgee. Until receipt thereof, upon an
        Event
        of Default that has occurred and is continuing beyond any applicable grace
        period, this Agreement shall constitute Pledgor’s proxy to Pledgee or its
        nominee to vote all shares of Collateral then registered in each Pledgor’s
        name.

       

      (d) No
        Pledgor will consent to or approve the issuance of (i) any additional shares
        of
        any class of capital stock or other equity interests of the Issuer; or (ii)
        any
        securities convertible either voluntarily by the holder thereof or automatically
        upon the occurrence or nonoccurrence of any event or condition into, or any
        securities exchangeable for, any such shares, unless, in either case, such
        shares are pledged as Collateral pursuant to this Agreement.

       

      (e) If
        after
        the date hereof any limited liability company membership interests included
        in
        the Pledged Stock are certificated, then the Pledgor holding such membership
        interests shall pledge the certificated membership interests as Collateral
        pursuant to this Agreement and deliver to the Pledgee, within two (2) business
        days, the certificates evidencing such membership interests, together with
        effective endorsements. 

       

      (f) No
        Pledgor shall participate in any amendment to (x) any limited liability company
        agreement that is related to any Pledged Stock consisting of membership
        interests or (y) any certificate of formation of any Issuer that, in any
        case,
        (i) would extend any voting rights to any owner of any equity interest in
        an
        Issuer unless such equity interest is subject to the terms and provisions
        of
        this Pledge Agreement or such other pledge agreement as is reasonably acceptable
        to the Pledgee, (ii) would otherwise impair the Collateral or adversely affect
        in any material respect the rights, privileges, benefits and security interests
        provided to or intended to be provided to the Pledgee or (iii) would adversely
        affect the perfection of the security interest of Pledgee in the Collateral,
        including, without limitation, any amendment electing to treat any

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      membership
        interest as a security under Section 8-103 of the Code, or any election to
        turn
        any previously uncertificated membership interest into a certificated membership
        interest.

       

      6. Voting
        Rights and Dividends.
        In
        addition to the Pledgee’s rights and remedies set forth in Section 8 hereof, in
        case an Event of Default shall have occurred and be continuing, beyond any
        applicable cure period, the Pledgee shall (i) be entitled to vote the
        Collateral, (ii) be entitled to give consents, waivers and ratifications
        in
        respect of the Collateral (each Pledgor hereby irrevocably constituting and
        appointing the Pledgee, with full power of substitution, the proxy and
        attorney-in-fact of each Pledgor for such purposes) and (iii) be entitled
        to
        collect and receive for its own use cash dividends paid on the Collateral.
        No
        Pledgor shall be permitted to exercise or refrain from exercising any voting
        rights or other powers if, in the reasonable judgment of the Pledgee, such
        action would have a material adverse effect on the value of the Collateral
        or
        any part thereof; and, provided,
        further,
        that
        each Pledgor shall give at least five (5) days’ written notice of the manner in
        which such Pledgor intends to exercise, or the reasons for refraining from
        exercising, any voting rights or other powers other than with respect to
        any
        election of directors and voting with respect to any incidental matters.
        Following the occurrence of an Event of Default, all dividends and all other
        distributions in respect of any of the Collateral, shall be delivered to
        the
        Pledgee to hold as Collateral and shall, if received by any Pledgor, be received
        in trust for the benefit of the Pledgee, be segregated from the other property
        or funds of any other Pledgor, and be forthwith delivered to the Pledgee
        as
        Collateral in the same form as so received (with any necessary
        endorsement).

       

      7. Event
        of Default.
        An
“Event of Default” under this Agreement shall occur upon the happening of any of
        the following events:

       

      (a) An
“Event
        of Default” under any Document or any agreement or note related to any Document
        shall have occurred and be continuing beyond any applicable cure
        period;

       

      (b) Any
        Pledgor shall default in the performance of any of its obligations under
        any
        Document, including, without limitation, this Agreement, and such default
        shall
        not be cured during the cure period applicable thereto;

       

      (c) Any
        representation or warranty of any Pledgor made herein, in any Document or
        in any
        agreement, statement or certificate given in writing pursuant hereto or thereto
        or in connection herewith or therewith shall be false or misleading in any
        material respect; 

       

      (d) Any
        portion of the Collateral is subjected to a levy of execution, attachment,
        distraint or other judicial process or any portion of the Collateral is the
        subject of a claim (other than by the Pledgee) of a Lien or other right or
        interest in or to the Collateral and such levy or claim shall not be cured,
        disputed or stayed within a period of thirty (30) days after the occurrence
        thereof; or

       

      (e) Any
        Pledgor shall (i) apply for, consent to, or suffer to exist the appointment
        of,
        or the taking of possession by, a receiver, custodian, trustee, liquidator
        or
        other fiduciary of itself or of all or a substantial part of its property,
        (ii)
        make a general assignment for 

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      the
        benefit of creditors, (iii) commence a voluntary case under any state or
        federal
        bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt
        or insolvent, (v) file a petition seeking to take advantage of any other
        law
        providing for the relief of debtors, (vi) acquiesce to, or fail to have
        dismissed, within thirty (30) days, any petition filed against it in any
        involuntary case under such bankruptcy laws, or (vii) take any action for
        the
        purpose of effecting any of the foregoing.

       

      8. Remedies.
        In case
        an Event of Default shall have occurred and is continuing, the Pledgee may:
        

       

      (a) Transfer
        any or all of the Collateral into its name, or into the name of its nominee
        or
        nominees;

       

      (b) Exercise
        all corporate rights with respect to the Collateral including, without
        limitation, all rights of conversion, exchange, subscription or any other
        rights, privileges or options pertaining to any shares of the Collateral
        as if
        it were the absolute owner thereof, including, but without limitation, the
        right
        to exchange, at its discretion, any or all of the Collateral upon the merger,
        consolidation, reorganization, recapitalization or other readjustment of
        the
        Issuer thereof, or upon the exercise by the Issuer of any right, privilege
        or
        option pertaining to any of the Collateral, and, in connection therewith,
        to
        deposit and deliver any and all of the Collateral with any committee,
        depository, transfer agent, registrar or other designated agent upon such
        terms
        and conditions as it may determine, all without liability except to account
        for
        property actually received by it; and

       

      (c) Subject
        to any requirement of applicable law, sell, assign and deliver the whole
        or,
        from time to time, any part of the Collateral at the time held by the Pledgee,
        at any private sale or at public auction, with or without demand, advertisement
        or notice of the time or place of sale or adjournment thereof or otherwise
        (all
        of which are hereby waived, except such notice as is required by applicable
        law
        and cannot be waived), for cash or credit or for other property for immediate
        or
        future delivery, and for such price or prices and on such terms as the Pledgee
        in its sole discretion may determine, or as may be required by applicable
        law.

       

      Each
        Pledgor hereby waives and releases any and all right or equity of redemption,
        whether before or after sale hereunder. At any such sale, unless prohibited
        by
        applicable law, the Pledgee may bid for and purchase the whole or any part
        of
        the Collateral so sold free from any such right or equity of redemption.
        All
        moneys received by the Pledgee hereunder, whether upon sale of the Collateral
        or
        any part thereof or otherwise, shall be held by the Pledgee and applied by
        it as
        provided in Section 10 hereof. No failure or delay on the part of the Pledgee
        in
        exercising any rights hereunder shall operate as a waiver of any such rights
        nor
        shall any single or partial exercise of any such rights preclude any other
        or
        future exercise thereof or the exercise of any other rights hereunder. The
        Pledgee shall have no duty as to the collection or protection of the Collateral
        or any income thereon nor any duty as to preservation of any rights pertaining
        thereto, except to apply the funds in accordance with the requirements of
        Section 10 hereof. The Pledgee may exercise its rights with respect to property
        held hereunder without resort to other security for or sources of reimbursement
        for the Obligations. In addition to the foregoing, Pledgee shall have all
        of the
        rights, remedies and privileges of a secured party 

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      under
        the
        Uniform Commercial Code of New York (the “UCC”) regardless of the jurisdiction
        in which enforcement hereof is sought.

       

      9. Private
        Sale.
        Each
        Pledgor recognizes that the Pledgee may be unable to effect (or to do so
        only
        after delay which would adversely affect the value that might be realized
        from
        the Collateral) a public sale of all or part of the Collateral by reason
        of
        certain prohibitions contained in the Securities Act, and may be compelled
        to
        resort to one or more private sales to a restricted group of purchasers who
        will
        be obliged to agree, among other things, to acquire such Collateral for their
        own account, for investment and not with a view to the distribution or resale
        thereof. Each Pledgor agrees that any such private sale may be at prices
        and on
        terms less favorable to the seller than if sold at public sales and that
        such
        private sales shall be deemed to have been made in a commercially reasonable
        manner. Each Pledgor agrees that the Pledgee has no obligation to delay sale
        of
        any Collateral for the period of time necessary to permit the Issuer to register
        the Collateral for public sale under the Securities Act.

       

      10. Proceeds
        of Sale.
        The
        proceeds of any collection, recovery, receipt, appropriation, realization
        or
        sale of the Collateral shall be applied by the Pledgee as follows:

       

      (a) First,
        to
        the payment of all costs, reasonable expenses and charges of the Pledgee
        and to
        the reimbursement of the Pledgee for the prior payment of such costs, reasonable
        expenses and charges incurred in connection with the care and safekeeping
        of the
        Collateral (including, without limitation, the reasonable expenses of any
        sale
        or any other disposition of any of the Collateral), attorneys’ fees and
        reasonable expenses, court costs, any other fees or expenses incurred or
        expenditures or advances made by Pledgee in the protection, enforcement or
        exercise of its rights, powers or remedies hereunder;

       

      (b) Second,
        to the payment of the Obligations, in whole or in part, in such order as
        the
        Pledgee may elect, whether or not such Obligations are then due;

       

      (c) Third,
        to
        such persons, firms, corporations or other entities as required by applicable
        law including, without limitation, Section 9-615(a)(3) of the UCC;
        and

       

      (d) Fourth,
        to the extent of any surplus to the Pledgors or as a court of competent
        jurisdiction may direct.

       

      In
        the
        event that the proceeds of any collection, recovery, receipt, appropriation,
        realization or sale are insufficient to satisfy the Obligations, each Pledgor
        shall be jointly and severally liable for the deficiency plus the costs and
        fees
        of any attorneys employed by Pledgee to collect such deficiency.

       

      11. Waiver
        of Marshaling.
        Each
        Pledgor hereby waives any right to compel any marshaling of any of the
        Collateral.

       

      12. No
        Waiver.
        Any and
        all of the Pledgee’s rights with respect to the Liens granted under this
        Agreement shall continue unimpaired, and Pledgor shall be and remain obligated
        in accordance with the terms hereof, notwithstanding (a) the bankruptcy,
        insolvency or reorganization of any Pledgor, (b) the release or substitution
        of
        any item of the Collateral at any 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      time,
        or
        of any rights or interests therein, or (c) any delay, extension of time,
        renewal, compromise or other indulgence granted by the Pledgee in reference
        to
        any of the Obligations. Each Pledgor hereby waives all notice of any such
        delay,
        extension, release, substitution, renewal, compromise or other indulgence,
        and
        hereby consents to be bound hereby as fully and effectively as if such Pledgor
        had expressly agreed thereto in advance. No delay or extension of time by
        the
        Pledgee in exercising any power of sale, option or other right or remedy
        hereunder, and no failure by the Pledgee to give notice or make demand, shall
        constitute a waiver thereof, or limit, impair or prejudice the Pledgee’s right
        to take any action against any Pledgor or to exercise any other power of
        sale,
        option or any other right or remedy.

       

      13. Expenses.
        The
        Collateral shall secure, and each Pledgor shall pay to Pledgee on demand,
        from
        time to time, all reasonable costs and expenses, (including but not limited
        to,
        reasonable attorneys’ fees and costs, taxes, and all transfer, recording, filing
        and other charges) of, or incidental to, the custody, care, transfer,
        administration of the Collateral or any other collateral, or in any way relating
        to the enforcement, protection or preservation of the rights or remedies
        of the
        Pledgee under this Agreement or with respect to any of the
        Obligations.

       

      14. The
        Pledgee Appointed Attorney-In-Fact and Performance by the
        Pledgee.
        Upon
        the occurrence of an Event of Default, each Pledgor hereby irrevocably
        constitutes and appoints the Pledgee as such Pledgor’s true and lawful
        attorney-in-fact, with full power of substitution, to execute, acknowledge
        and
        deliver any instruments and to do in such Pledgor’s name, place and stead, all
        such acts, things and deeds for and on behalf of and in the name of such
        Pledgor, which such Pledgor could or might do or which the Pledgee may deem
        necessary, desirable or convenient to accomplish the purposes of this Agreement,
        including, without limitation, to execute such instruments of assignment
        or
        transfer or orders and to register, convey or otherwise transfer title to
        the
        Collateral into the Pledgee’s name. Each Pledgor hereby ratifies and confirms
        all that said attorney-in-fact may so do and hereby declares this power of
        attorney to be coupled with an interest and irrevocable. If any Pledgor fails
        to
        perform any agreement herein contained, the Pledgee may itself perform or
        cause
        performance thereof, and any costs and expenses of the Pledgee incurred in
        connection therewith shall be paid by the Pledgors as provided in Section
        10
        hereof.

       

      15. Waivers.
        THE
        PARTIES HERETO DESIRES THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING
        SUCH
        APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
        OF
        THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS
        TO
        TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
        WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN PLEDGEE, AND/OR ANY
        PLEDGOR ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
        RELATIONSHIP ESTABLISHED BETWEEN THEN IN CONNECTION WITH THIS AGREEMENT,
        ANY
        OTHER DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO. 

       

      16. Recapture.
        Notwithstanding anything to the contrary in this Agreement, if the Pledgee
        receives any payment or payments on account of the Obligations, which payment
        or
        payments or any part thereof are subsequently invalidated, declared to be
        fraudulent or preferential, set aside and/or required to be repaid to a trustee,
        receiver, or any other party under 

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      the
        United States Bankruptcy Code, as amended, or any other federal or state
        bankruptcy, reorganization, moratorium or insolvency law relating to or
        affecting the enforcement of creditors’ rights generally, common law or
        equitable doctrine, then to the extent of any sum not finally retained by
        the
        Pledgee, each Pledgor’s obligations to the Pledgee shall be reinstated and this
        Agreement shall remain in full force and effect (or be reinstated) until
        payment
        shall have been made to Pledgee, which payment shall be due on
        demand.

       

      17. Captions.
        All
        captions in this Agreement are included herein for convenience of reference
        only
        and shall not constitute part of this Agreement for any other
        purpose.

       

      18. Miscellaneous.

       

      (a) This
        Agreement constitutes the entire and final agreement among the parties with
        respect to the subject matter hereof and may not be changed, terminated or
        otherwise varied except by a writing duly executed by the parties
        hereto.

       

      (b) No
        waiver
        of any term or condition of this Agreement, whether by delay, omission or
        otherwise, shall be effective unless in writing and signed by the party sought
        to be charged, and then such waiver shall be effective only in the specific
        instance and for the purpose for which given.

       

      (c) In
        the
        event that any provision of this Agreement or the application thereof to
        any
        Pledgor or any circumstance in any jurisdiction governing this Agreement
        shall,
        to any extent, be invalid or unenforceable under any applicable statute,
        regulation, or rule of law, such provision shall be deemed inoperative to
        the
        extent that it may conflict therewith and shall be deemed modified to conform
        to
        such statute, regulation or rule of law, and the remainder of this Agreement
        and
        the application of any such invalid or unenforceable provision to parties,
        jurisdictions, or circumstances other than to whom or to which it is held
        invalid or unenforceable shall not be affected thereby, nor shall same affect
        the validity or enforceability of any other provision of this
        Agreement.

       

      (d) This
        Agreement shall be binding upon each Pledgor, and each Pledgor’s successors and
        assigns, and shall inure to the benefit of the Pledgee and its successors
        and
        assigns.

       

      (e) Any
        notice or other communication required or permitted pursuant to this Agreement
        shall be given in accordance with the Security Agreement. 

       

      (f) THIS
        AGREEMENT AND THE OTHER DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND
        ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
        TO
        CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES
        OF
        CONFLICTS OF LAW.

       

      (g) EACH
        PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
        IN
        THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
        TO
        HEAR AND DETERMINE 

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      ANY
        CLAIMS OR DISPUTES BETWEEN ANY PLEDGOR, ON THE ONE HAND, AND THE PLEDGEE,
        ON THE
        OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS OR
        TO ANY
        MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER
        DOCUMENTS, PROVIDED,
        THAT
        EACH PLEDGOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO
        BE
        HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW
        YORK;
        AND FURTHER PROVIDED,
        THAT
        NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE PLEDGEE
        FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION
        TO
        COLLECT THE INDEBTEDNESS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY
        FOR
        THE INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR
        OF THE
        PLEDGEE. EACH PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
        JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
        PLEDGOR
        HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
        JURISDICTION, IMPROPER VENUE OR FORUM
        NON CONVENIENS.
        EACH
        PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
        PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
        SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
        MAIL
        ADDRESSED TO SUCH PLEDGOR AT THE ADDRESS SET FORTH IN THE SECURITY
        AGREEMENT
        AND THAT
        SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE SUCH PLEDGOR’S
        ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS,
        PROPER
        POSTAGE PREPAID.

       

      (h) It
        is
        understood and agreed that any person or entity that desires to become a
        Pledgor
        hereunder, or is required to execute a counterpart of this Agreement after
        the
        date hereof pursuant to the requirements of any Document, shall become a
        Pledgor
        hereunder by (x) executing a Joinder Agreement in form and substance
        satisfactory to the Pledgee, (y) delivering supplements to such exhibits
        and annexes to such Documents as the Pledgee shall reasonably request and/or
        set
        forth in such joinder agreement and (z) taking all actions as specified in
        this
        Agreement as would have been taken by such Pledgor had it been an original
        party
        to this Agreement, in each case with all documents required above to be
        delivered to the Pledgee and with all documents and actions required above
        to be
        taken to the reasonable satisfaction of the Pledgee.

       

      (i) This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed an original and all of which when taken together shall constitute
        one and
        the same agreement. Any signature delivered by a party by facsimile transmission
        shall be deemed an original signature hereto.

       

      [Remainder
        of Page Intentionally Left Blank]

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the parties have duly executed this Agreement as of the
        day and
        year first written above.

       

      

         

        

        
          	 	
                  MAGNETECH
                    INTEGRATED SERVICES CORP.

                
	 	 
	 	
                  By:

                	 /s/
                  John A. Martell
	 	
                  Name:

                	 John
                  A. Martell
	 	
                  Title:

                	 President
&
                  CEO

        

         

        

        
          	 	
                  MAGNETECH
                    INDUSTRIAL SERVICES, INC.

                
	 	 
	 	
                  By:

                	 /s/
                  John A. Martell
	 	
                  Name:

                	 John
                  A. Martell
	 	
                  Title:

                	 President

        

         

        

      
        	 	
                MARTELL
                  ELECTRIC, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 President

      

       

      

      
        	 	
                HK
                  ENGINE COMPONENTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager

      

       

      

      
        	 	
                HK
                  MACHINED PARTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      

      
        	 	
                HK
                  WESTON PRODUCTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager

      

       

      

      
        	 	
                HK
                  CAST PRODUCTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager

      

       

      

      
        	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 
	 	
                By:

              	 /s/
                David Grin
	 	
                Name:

              	 David
                Grin
	 	
                Title:

              	 Director

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A to Pledge Agreement

       

      Pledged
        Stock

       

      
        	
                Pledgor

              	
                Issuer

              	
                Class
                  of Stock

              	
                Stock
                  Certificate Number

              	
                Par
                  Value

              	
                Number
                  of 

                Shares

              
	
                 

                Magnetech
                  Integrated Services Corp.

              	
                 

                Magnetech
                  Industrial Services, Inc.

              	
                 

                Common
                  Stock

              	
                 

                2

              	
                 

                no
                  par value

              	
                 

                1,000

              
	
                 

                Magnetech
                  Industrial Services, Inc.

              	
                 

                Martell
                  Electric, LLC

              	
                 

                Membership
                  Interest

              	
                 

                1

              	
                 

                N/A

              	
                 

                100%

              
	
                 

                Magnetech
                  Integrated Services Corp.

              	
                 

                HK
                  Engine Components, LLC

              	
                 

                Membership
                  Interest

              	
                 

                N/A

              	
                 

                N/A

              	
                 

                100%

              
	
                 

                HK
                  Engine Components, LLC Ltd.

              	
                 

                HK
                  Machined Parts, LLC

              	
                 

                Membership
                  Interest

              	
                 

                N/A

              	
                 

                N/A

              	
                 

                100%

              
	
                 

                HK
                  Engine Components, LLC Ltd.

              	
                 

                HK
                  Weston Properties, LLC

              	
                 

                Membership
                  Interest

              	
                 

                N/A

              	
                 

                N/A

              	
                 

                100%

              
	
                 

                HK
                  Engine Components, LLC Ltd.

              	
                 

                HK
                  Cast Products, LLC

              	
                 

                Membership
                  Interest

              	
                 

                N/A

              	
                 

                N/A

              	
                 

                100%Guaranty dated August 24, 2005 made by certain subsidiaries of the registrant
      identified therein in favor of Laurus Master Fund, Ltd.

    

      Exhibit
        10.11

       

      GUARANTY

       

      

      
        	
                New
                  York, New York

              	 	 	
                August
                  24, 2005

              

      

       

      FOR
        VALUE
        RECEIVED, and in consideration of note purchases from, or credit otherwise
        extended or to be extended by Laurus Master Fund, Ltd. (“Laurus”) to or for the
        account of Magnetech Integrated Services Corp., an Indiana corporation (the
        “Parent”), Magnetech Industrial Services, Inc., an Indiana corporation
        (“Magnetech Industrial”), Martell Electric, LLC, an Indiana limited liability
        company (“Martell”), and HK Engine Components, LLC, an Indiana limited liability
        company (“HK Engine” and together with the Parent, the “Companies” and each, a
“Company”) from time to time and at any time and for other good and valuable
        consideration and to induce Laurus, in its discretion, to purchase such notes
        or
        make other extensions of credit and to make or grant such renewals, extensions,
        releases of collateral or relinquishments of legal rights as Laurus may deem
        advisable, each of the undersigned (and each of them if more than one, the
        liability under this Guaranty being joint and several) (jointly and severally
        referred to as “Guarantors” or “the undersigned”) unconditionally guaranties to
        Laurus, its successors, endorsees and assigns the prompt payment when due
        (whether by acceleration or otherwise) of all present and future obligations
        and
        liabilities of any and all kinds of each Company to Laurus and of all
        instruments of any nature evidencing or relating to any such obligations
        and
        liabilities upon which such Company or one or more parties and such Company
        is
        or may become liable to Laurus, whether incurred by such Company as maker,
        endorser, drawer, acceptor, guarantors, accommodation party or otherwise,
        and
        whether due or to become due, secured or unsecured, absolute or contingent,
        joint or several, and however or whenever acquired by Laurus, whether arising
        under, out of, or in connection with that certain Security Agreement dated
        as of
        the date hereof by and among the Parent, the other Companies named therein
        and
        Laurus (the “Security Agreement”) and (ii) each Ancillary Agreement referred to
        in the Security Agreement (the Security Agreement and each Ancillary Agreement,
        as each may be amended, modified, restated and/or supplemented from time
        to
        time, are collectively referred to herein as the “Documents”), or any documents,
        instruments or agreements relating to or executed in connection with the
        Documents or any documents, instruments or agreements referred to therein
        or
        otherwise, or any other obligations or liabilities of such Company to Laurus,
        whether now existing or hereafter arising, direct or indirect, liquidated
        or
        unliquidated, absolute or contingent, due or not due and whether under, pursuant
        to or evidenced by a note, agreement, guaranty, instrument or otherwise (all
        of
        which are herein collectively referred to as the “Obligations”), and
        irrespective of the genuineness, validity, regularity or enforceability of
        such
        Obligations, or of any instrument evidencing any of the Obligations or of
        any
        collateral therefor or of the existence or extent of such collateral, and
        irrespective of the allowability, allowance or disallowance of any or all
        of the
        Obligations in any case commenced by or against any Company under Title 11,
        United States Code, including, without limitation, obligations or indebtedness
        of any Company for post-petition interest, fees, costs and charges that would
        have accrued or been added to the Obligations but for the commencement of
        such
        case. Terms not otherwise defined herein shall have the meaning assigned
        such
        terms in the Security Agreement. In furtherance of the foregoing, the
        undersigned hereby agrees as follows:

      
        
          
          

        

        
          
            

          

        

        
          
          

        

      

       

      1. No
        Impairment.
        Laurus
        may at any time and from time to time, either before or after the maturity
        thereof, without notice to or further consent of the undersigned, extend
        the
        time of payment of, exchange or surrender any collateral for, renew or extend
        any of the Obligations or increase or decrease the interest rate thereon,
        or any
        other agreement with any Company or with any other party to or person liable
        on
        any of the Obligations, or interested therein, for the extension, renewal,
        payment, compromise, discharge or release thereof, in whole or in part, or
        for
        any modification of the terms thereof or of any agreement between Laurus
        and any
        Company or any such other party or person, or make any election of rights
        Laurus
        may deem desirable under the United States Bankruptcy Code, as amended, or
        any
        other federal or state bankruptcy, reorganization, moratorium or insolvency
        law
        relating to or affecting the enforcement of creditors’ rights generally (any of
        the foregoing, an “Insolvency Law”) without in any way impairing or affecting
        this Guaranty. This Guaranty shall be effective regardless of the subsequent
        incorporation, merger or consolidation of any Company, or any change in the
        composition, nature, personnel or location of any Company and shall extend
        to
        any successor entity to each Company, including a debtor in possession or
        the
        like under any Insolvency Law.

       

      2. Guaranty
        Absolute.
        Subject
        to Section 5(c) hereof, each of the undersigned jointly and severally guarantees
        that the Obligations will be paid strictly in accordance with the terms of
        the
        Documents and/or any other document, instrument or agreement creating or
        evidencing the Obligations, regardless of any law, regulation or order now
        or
        hereafter in effect in any jurisdiction affecting any of such terms or the
        rights of any Company with respect thereto. Guarantors hereby knowingly accept
        the full range of risk encompassed within a contract of “continuing guaranty”
        which risk includes the possibility that a Company will contract additional
        obligations and liabilities for which Guarantors may be liable hereunder
        after
        such Company’s financial condition or ability to pay its lawful debts when they
        fall due has deteriorated, whether or not such Company has properly authorized
        incurring such additional obligations and liabilities. The undersigned
        acknowledge that (i) no oral representations, including any representations
        to
        extend credit or provide other financial accommodations to any Company, have
        been made by Laurus to induce the undersigned to enter into this Guaranty
        and
        (ii) any extension of credit to any Company shall be governed solely by the
        provisions of the Documents. The liability of each of the undersigned under
        this
        Guaranty shall be absolute and unconditional, in accordance with its terms,
        and
        shall remain in full force and effect without regard to, and shall not be
        released, suspended, discharged, terminated or otherwise affected by, any
        circumstance or occurrence whatsoever, including, without limitation: (a)
        any
        waiver, indulgence, renewal, extension, amendment or modification of or
        addition, consent or supplement to or deletion from or any other action or
        inaction under or in respect of the Documents or any other instruments or
        agreements relating to the Obligations or any assignment or transfer of any
        thereof, (b) any lack of validity or enforceability of any Document or other
        documents, instruments or agreements relating to the Obligations or any
        assignment or transfer of any thereof, (c) any furnishing of any additional
        security to Laurus or its assignees or any acceptance thereof or any release
        of
        any security by Laurus or its assignees, (d) any limitation on any party’s
        liability or obligation under the Documents or any other documents, instruments
        or agreements relating to the Obligations or any assignment or transfer of
        any
        thereof or any invalidity or unenforceability, in whole or in part, of any
        such
        document, instrument or agreement or any term thereof, (e) any bankruptcy,
        insolvency, reorganization, composition, adjustment, dissolution, liquidation
        or
        other like proceeding relating to any Company, or any action taken with respect
        to this Guaranty by any 

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      trustee
        or receiver, or by any court, in any such proceeding, whether or not the
        undersigned shall have notice or knowledge of any of the foregoing, (f) any
        exchange, release or nonperfection of any collateral, or any release, or
        amendment or waiver of or consent to departure from any guaranty or security,
        for all or any of the Obligations or (g) any other circumstance which might
        otherwise constitute a defense available to, or a discharge of, the undersigned.
        Any amounts due from the undersigned to Laurus shall bear interest until
        such
        amounts are paid in full at the highest rate then applicable to the Obligations.
        Obligations include post-petition interest whether or not allowed or
        allowable.

       

      3. Waivers.

       

      (a) This
        Guaranty is a guaranty of payment and not of collection. Laurus shall be
        under
        no obligation to institute suit, exercise rights or remedies or take any
        other
        action against any Company or any other person or entity liable with respect
        to
        any of the Obligations or resort to any collateral security held by it to
        secure
        any of the Obligations as a condition precedent to the undersigned being
        obligated to perform as agreed herein and each of the Guarantors hereby waives
        any and all rights which it may have by statute or otherwise which would
        require
        Laurus to do any of the foregoing. Each of the Guarantors further consents
        and
        agrees that Laurus shall be under no obligation to marshal any assets in
        favor
        of Guarantors, or against or in payment of any or all of the Obligations.
        Each
        of the undersigned hereby waives all suretyship defenses and any rights to
        interpose any defense, counterclaim or offset of any nature and description
        which the undersigned may have or which may exist between and among Laurus,
        any
        Company and/or the undersigned with respect to the undersigned’s obligations
        under this Guaranty, or which any Company may assert on the underlying debt,
        including but not limited to failure of consideration, breach of warranty,
        fraud, payment (other than cash payment in full of the Obligations), statute
        of
        frauds, bankruptcy, infancy, statute of limitations, accord and satisfaction,
        and usury. 

       

      (b) Each
        of
        the undersigned further waives (i) notice of the acceptance of this Guaranty,
        of
        the extensions of credit, and of all notices and demands of any kind to which
        the undersigned may be entitled, including, without limitation, notice of
        adverse change in any Company’s financial condition or of any other fact which
        might materially increase the risk of the undersigned and (ii) presentment
        to or
        demand of payment from anyone whomsoever liable upon any of the Obligations,
        protest, notices of presentment, non-payment or protest and notice of any
        sale
        of collateral security or any default of any sort.

       

      (c) Notwithstanding
        any payment or payments made by the undersigned hereunder, or any setoff
        or
        application of funds of the undersigned by Laurus, the undersigned shall
        not be
        entitled to be subrogated to any of the rights of Laurus against any Company
        or
        against any collateral or guarantee or right of offset held by Laurus for
        the
        payment of the Obligations, nor shall the undersigned seek or be entitled
        to
        seek any contribution or reimbursement from any Company in respect of payments
        made by the undersigned hereunder, until all amounts owing to Laurus by each
        Company on account of the Obligations are indefeasibly paid in full and Laurus’
        obligation to extend credit pursuant to the Documents has been irrevocably
        terminated. If, notwithstanding the 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      foregoing,
        any amount shall be paid to the undersigned on account of such subrogation
        rights at any time when all of the Obligations shall not have been paid in
        full
        and Laurus’ obligation to extend credit pursuant to the Documents shall not have
        been terminated, such amount shall be held by the undersigned in trust for
        Laurus, segregated from other funds of the undersigned, and shall forthwith
        upon, and in any event within two (2) business days of, receipt by the
        undersigned, be turned over to Laurus in the exact form received by the
        undersigned (duly endorsed by the undersigned to Laurus, if required), to
        be
        applied against the Obligations, whether matured or unmatured, in such order
        as
        Laurus may determine, subject to the provisions of the Documents. Any and
        all
        present and future obligations and liabilities of each Company to any of
        the
        undersigned are hereby waived and postponed in favor of, and subordinated
        to the
        full payment and performance of, all Obligations of each Company to
        Laurus.

       

      4. Security.
        All
        sums at any time to the credit of the undersigned and any property of the
        undersigned in Laurus’ possession or in the possession of any bank, financial
        institution or other entity that directly or indirectly, through one or more
        intermediaries, controls or is controlled by, or is under common control
        with,
        Laurus (each such entity, an “Affiliate”) shall be deemed held by Laurus or such
        Affiliate, as the case may be, as security for any and all of the undersigned’s
        obligations and liabilities to Laurus and to any Affiliate of Laurus, no
        matter
        how or when arising and whether under this or any other instrument, agreement
        or
        otherwise. 

       

      5. Representations
        and Warranties.
        Each of
        the undersigned hereby jointly and severally represents and warrants (all
        of
        which representations and warranties shall survive until all Obligations
        are
        indefeasibly satisfied in full and the Documents have been irrevocably
        terminated), that:

       

      (a) Corporate
        Status.
        It is a
        corporation, partnership or limited liability company, as the case may be,
        duly
        formed, validly existing and in good standing under the laws of its jurisdiction
        of formation indicated on the signature page hereof and has full power,
        authority and legal right to own its property and assets and to transact
        the
        business in which it is engaged.

       

      (b) Authority
        and Execution.
        It has
        full power, authority and legal right to execute and deliver, and to perform
        its
        obligations under, this Guaranty and has taken all necessary corporate,
        partnership or limited liability company, as the case may be, action to
        authorize the execution, delivery and performance of this Guaranty.

       

      (c) Legal,
        Valid and Binding Character.
        This
        Guaranty constitutes its legal, valid and binding obligation enforceable
        in
        accordance with its terms, except as enforceability may be limited by applicable
        bankruptcy, insolvency, reorganization, moratorium or other laws of general
        application affecting the enforcement of creditor’s rights and general
        principles of equity that restrict the availability of equitable or legal
        remedies. 

       

      (d) Violations.
        The
        execution, delivery and performance of this Guaranty will not violate any
        requirement of law applicable to it or any contract, agreement or instrument
        to
        which it is a party or by which it or any of its property is bound or result
        in

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      the
        creation or imposition of any mortgage, lien or other encumbrance other than
        in
        favor of Laurus on any of its property or assets pursuant to the provisions
        of
        any of the foregoing, which, in any of the foregoing cases, could reasonably
        be
        expected to have, either individually or in the aggregate, a Material Adverse
        Effect.

       

      (e) Consents
        or Approvals.
        No
        consent of any other person or entity (including, without limitation, any
        creditor of the undersigned) and no consent, license, permit, approval or
        authorization of, exemption by, notice or report to, or registration, filing
        or
        declaration with, any governmental authority is required in connection with
        the
        execution, delivery, performance, validity or enforceability of this Guaranty
        by
        it, except to the extent that the failure to obtain any of the foregoing
        could
        not reasonably be expected to have, either individually or in the aggregate,
        a
        Material Adverse Effect.

       

      (f) Litigation.
        No
        litigation, arbitration, investigation or administrative proceeding of or
        before
        any court, arbitrator or governmental authority, bureau or agency is currently
        pending or, to the best of its knowledge, threatened (i) with respect to
        this
        Guaranty or any of the transactions contemplated by this Guaranty or (ii)
        against or affecting it, or any of its property or assets, which, in each
        of the
        foregoing cases, if adversely determined, could reasonably be expected to
        have a
        Material Adverse Effect.

       

      (g) Financial
        Benefit.
        It has
        derived or expects to derive a financial or other advantage from each and
        every
        loan, advance or extension of credit made under the Documents or other
        Obligation incurred by the Companies to Laurus.

       

      (h) Solvency.
        As of
        the date of this Guaranty, (a) the fair saleable value of its assets exceeds
        its
        liabilities and (b) it is meeting its current liabilities as they
        mature.

       

      6. Acceleration.

       

      (a) If
        any
        breach of any covenant or condition or other event of default shall occur
        and be
        continuing under any agreement made by any Company or any of the undersigned
        to
        Laurus, or either any Company or any of the undersigned should at any time
        become insolvent, or make a general assignment, or if a proceeding in or
        under
        any Insolvency Law shall be filed or commenced by, or in respect of, any
        of the
        undersigned, or if a notice of any lien, levy, or assessment is filed of
        record
        with respect to any assets of any of the undersigned by the United States
        of
        America or any department, agency, or instrumentality thereof, or if any
        taxes
        or debts owing at any time or times hereafter to any one of them becomes
        a lien
        or encumbrance upon any assets of the undersigned in Laurus’ possession, or
        otherwise, any and all Obligations shall for purposes hereof, at Laurus’ option,
        be deemed due and payable without notice notwithstanding that any such
        Obligation is not then due and payable by the Companies.

       

      (b) Each
        of
        the undersigned will promptly notify Laurus of any default by such undersigned
        in its respective performance or observance of any term or condition of any
        agreement to which the undersigned is a party if the effect of such default
        is
        to cause, or permit the holder of any obligation under such agreement to
        cause,
        such obligation to 

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      become
        due prior to its stated maturity and, if such an event occurs, Laurus shall
        have
        the right to accelerate such undersigned’s obligations hereunder.

       

      7. Payments
        from Guarantors.
        Laurus,
        in its sole and absolute discretion, with or without notice to the undersigned,
        may apply on account of the Obligations any payment from the undersigned
        or any
        other guarantors, or amounts realized from any security for the Obligations,
        or
        may deposit any and all such amounts realized in a non-interest bearing cash
        collateral deposit account to be maintained as security for the
        Obligations.

       

      8. Costs.
        The
        undersigned shall pay on demand, all costs, fees and expenses (including
        expenses for legal services of every kind) directly related to Laurus’
        enforcement or protection of its rights of Laurus hereunder or with respect
        to
        any of the Obligations.

       

      9. No
        Termination.
        This is
        a continuing irrevocable guaranty and shall remain in full force and effect
        and
        be binding upon the undersigned, and each of the undersigned’s successors and
        assigns, until all of the Obligations have been indefeasibly paid in full
        and
        Laurus’ obligation to extend credit pursuant to the Documents has been
        irrevocably terminated. If any of the present or future Obligations are
        guarantied by persons, partnerships, corporations or other entities in addition
        to the undersigned, the death, release or discharge in whole or in part or
        the
        bankruptcy, merger, consolidation, incorporation, liquidation or dissolution
        of
        one or more of them shall not discharge or affect the liabilities of any
        undersigned under this Guaranty.

       

      10. Recapture.
        Anything in this Guaranty to the contrary notwithstanding, if Laurus receives
        any payment or payments on account of the liabilities guaranteed hereby,
        which
        payment or payments or any part thereof are subsequently invalidated, declared
        to be fraudulent or preferential, set aside and/or required to be repaid
        to a
        trustee, receiver, or any other party under any Insolvency Law, common law
        or
        equitable doctrine, then to the extent of any sum not finally retained by
        Laurus, the undersigned’s obligations to Laurus shall be reinstated and this
        Guaranty shall remain in full force and effect (or be reinstated) until payment
        shall have been made to Laurus, which payment shall be due on
        demand.

       

      11. Books
        and Records.
        The
        books and records of Laurus showing the account between Laurus and each Company
        shall be admissible in evidence in any action or proceeding, shall be binding
        upon the undersigned for the purpose of establishing the items therein set
        forth
        and shall constitute prima facie proof thereof.

       

      12. No
        Waiver.
        No
        failure on the part of Laurus to exercise, and no delay in exercising, any
        right, remedy or power hereunder shall operate as a waiver thereof, nor shall
        any single or partial exercise by Laurus of any right, remedy or power hereunder
        preclude any other or future exercise of any other legal right, remedy or
        power.
        Each and every right, remedy and power hereby granted to Laurus or allowed
        it by
        law or other agreement shall be cumulative and not exclusive of any other,
        and
        may be exercised by Laurus at any time and from time to time.

       

      13. Waiver
        of Jury Trial.
        EACH OF
        THE UNDERSIGNED DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING
        SUCH
        APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
        OF
        THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH OF THE UNDERSIGNED HERETO

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      WAIVES
        ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO
        RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
        LAURUS, AND/OR ANY OF THE UNDERSIGNED ARISING OUT OF, CONNECTED WITH, RELATED
        OR
        INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH
        THIS
        GUARANTY, ANY DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

       

      14. Governing
        Law; Jurisdiction.
        THIS
        GUARANTY CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED BY
        AND
        CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
        APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD
        TO
        PRINCIPLES OF CONFLICTS OF LAWS. EACH OF THE UNDERSIGNED HEREBY CONSENTS
        AND
        AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK,
        STATE
        OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS
        OR DISPUTES BETWEEN ANY OF THE UNDERSIGNED, ON THE ONE HAND, AND LAURUS,
        ON THE
        OTHER HAND, PERTAINING TO THIS GUARANTY OR ANY OF THE DOCUMENTS OR TO ANY
        MATTER
        ARISING OUT OF OR RELATED TO THIS GUARANTY OR ANY OF THE DOCUMENTS; PROVIDED,
        THAT
        EACH OF THE UNDERSIGNED ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY
        HAVE
        TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF
        NEW
        YORK; AND FURTHER PROVIDED,
        THAT
        NOTHING IN THIS GUARANTY SHALL BE DEEMED OR OPERATE TO PRECLUDE LAURUS FROM
        BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
        THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
        OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF LAURUS.
        EACH OF THE UNDERSIGNED EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
        JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
        UNDERSIGNED HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK
        OF
        PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM
        NON CONVENIENS.
        EACH OF
        THE UNDERSIGNED HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT
        AND
        OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF
        SUCH
        SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
        MAIL
        ADDRESSED TO SUCH UNDERSIGNED IN ACCORDANCE WITH SECTION 18 AND THAT SERVICE
        SO
        MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH UNDERSIGNED’S ACTUAL
        RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
        POSTAGE PREPAID.

       

      15. Understanding
        With Respect to Waivers and Consents.
        Each
        Guarantor warrants and agrees that each of the waivers and consents set forth
        in
        this Guaranty is made voluntarily and unconditionally after consultation
        with
        outside legal counsel and with full knowledge of its significance and
        consequences, with the understanding that events giving rise to any defense
        or
        right waived may diminish, destroy or otherwise adversely affect rights which
        such Guarantor otherwise may have against any Company, Laurus or any other
        person or entity or against any 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      collateral.
        If, notwithstanding the intent of the parties that the terms of this Guaranty
        shall control in any and all circumstances, any such waivers or consents
        are
        determined to be unenforceable under applicable law, such waivers and consents
        shall be effective to the maximum extent permitted by law.

       

      16. Severability.
        To the
        extent permitted by applicable law, any provision of this Guaranty which
        is
        prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
        be ineffective to the extent of such prohibition or unenforceability without
        invalidating the remaining provisions hereof, and any such prohibition or
        unenforceability in any jurisdiction shall not invalidate or render
        unenforceable such provision in any other jurisdiction.

       

      17. Amendments,
        Waivers.
        No
        amendment or waiver of any provision of this Guaranty nor consent to any
        departure by the undersigned therefrom shall in any event be effective unless
        the same shall be in writing executed by each of the undersigned directly
        affected by such amendment and/or waiver and Laurus.

       

      18. Notice.
        All
        notices, requests and demands to or upon the undersigned, shall be in writing
        and shall be deemed to have been duly given or made (a) when delivered, if
        by
        hand, (b) three (3) days after being sent, postage prepaid, if by
        registered or certified mail, (c) when confirmed electronically, if by
        facsimile, or (d) when delivered, if by a recognized overnight delivery service
        in each event, to the numbers and/or address set forth beneath the signature
        of
        the undersigned.

       

      19. Successors.
        Laurus
        may, from time to time, without notice to the undersigned, sell, assign,
        transfer or otherwise dispose of all or any part of the Obligations and/or
        rights under this Guaranty. Without limiting the generality of the foregoing,
        Laurus may assign, or grant participations to, one or more banks, financial
        institutions or other entities all or any part of any of the Obligations.
        In
        each such event, Laurus, its Affiliates and each and every immediate and
        successive purchaser, assignee, transferee or holder of all or any part of
        the
        Obligations shall have the right to enforce this Guaranty, by legal action
        or
        otherwise, for its own benefit as fully as if such purchaser, assignee,
        transferee or holder were herein by name specifically given such right. Laurus
        shall have an unimpaired right to enforce this Guaranty for its benefit with
        respect to that portion of the Obligations which Laurus has not disposed
        of,
        sold, assigned, or otherwise transferred.

       

      20. Joinder.
        It is
        understood and agreed that any person or entity that desires to become a
        Guarantor hereunder, or is required to execute a counterpart of this Guaranty
        after the date hereof pursuant to the requirements of any Document, shall
        become
        a Guarantor hereunder by (x) executing a joinder agreement in form and substance
        satisfactory to Laurus, (y) delivering supplements to such exhibits
        and
        annexes to such Documents as Laurus shall reasonably request and/or as may
        be
        required by such joinder agreement and (z) taking all actions as specified
        in
        this Guaranty as would have been taken by such such Guarantor had it been
        an
        original party to this Guaranty, in each case with all documents required
        above
        to be delivered to Laurus and with all documents and actions required above
        to
        be taken to the reasonable satisfaction of Laurus.

       

      21. Release.
        Nothing
        except indefeasible payment in full of the Obligations shall release any
        of the
        undersigned from liability under this Guaranty.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      22. Remedies
        Not Exclusive.
        The
        remedies conferred upon Laurus in this Guaranty are intended to be in addition
        to, and not in limitation of any other remedy or remedies available to Laurus
        under applicable law or otherwise.

       

      23. Limitation
        of Obligations under this Guaranty.
        Each
        Guarantor and Laurus (by its acceptance of the benefits of this Guaranty)
        hereby
        confirms that it is its intention that this Guaranty not constitute a fraudulent
        transfer or conveyance for purposes of the Bankruptcy Code, the Uniform
        Fraudulent Conveyance Act of any similar Federal or state law. To effectuate
        the
        foregoing intention, each Guarantor and Laurus (by its acceptance of the
        benefits of this Guaranty) hereby irrevocably agrees that the Obligations
        guaranteed by such Guarantor shall be limited to such amount as will, after
        giving effect to such maximum amount and all other (contingent or otherwise)
        liabilities of such Guarantor that are relevant under such laws and after
        giving
        effect to any rights to contribution pursuant to any agreement providing
        for an
        equitable contribution among such Guarantor and the other Guarantors (including
        this Guaranty), result in the Obligations of such Guarantor under this Guaranty
        in respect of such maximum amount not constituting a fraudulent transfer
        or
        conveyance. 

       

      [REMAINDER
        OF THIS PAGE IS BLANK.

       

      SIGNATURE
        PAGE IMMEDIATELY FOLLOWS] 

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, this Guaranty has been executed by the undersigned as of
        the
        date and year here above written.

       

      

      
        	 	
                MAGNETECH
                  INTEGRATED SERVICES CORP.

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 President
&
                CEO
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              
	 	 	 
	 	 	 
	 	
                MAGNETECH
                  INDUSTRIAL SERVICES, INC.

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 President
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              
	 	 	 
	 	 	 
	 	
                MARTELL
                  ELECTRIC, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 President
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      
        	 	
                HK
                  ENGINE COMPONENTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              
	 	 	 
	 	 
	 	
                HK
                  MACHINED PARTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              
	 	 	 
	 	 	 
	 	
                HK
                  WESTON PRODUCTS, LLC

              
	 	 
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      
        	 	
                HK
                  CAST PRODUCTS, LLC

              
	 	
                By:

              	 /s/
                John A. Martell
	 	
                Name:

              	 John
                A. Martell
	 	
                Title:

              	 Manager
	 	 	 
	 	
                Address:
                  1125 S. Walnut Street, South Bend, Indiana 46619

              
	 	
                Telephone:
                  574-234-8131

              
	 	
                Facsimile:
                  574-232-7648

              
	 	
                State
                  of Formation: Indiana

              

      

       

      

       

      

       

      

       

      12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]