Document:

Amended and Restated Subordination Agreement

     

    Exhibit
      10.6

     

    AMENDED
      AND RESTATED SUBORDINATION AGREEMENT

     

    This
      Amended and Restated Subordination Agreement (this “Agreement”) is entered into
      as of the 31st
      day of
      May, 2006, by and among John Martell, Strasbourger Pearson Tulcin Wolff, Inc.
      (“Strasbourger”), as agent for the holders of the Subordinated Secured
      Convertible Debenture holders listed on Schedule
      A
      (the
“Debenture Holder(s),” all of whom are collectively referred to herein as the
“Subordinated Lenders” and each, a “Subordinated Lender”), and Laurus Master
      Fund, Ltd. (the “Senior Lender”). Unless otherwise defined herein, capitalized
      terms used herein shall have the meaning provided such terms in the Security
      and
      Purchase Agreement referred to below.

    

     

    BACKGROUND

     

    WHEREAS,
      the Senior Lender has made loans to MISCOR Group, Ltd. f/k/a Magnetech
      Integrated Services Corp., an Indiana corporation (“MISCOR”), and to Magnetech
      Industrial Services of Alabama, LLC, an Indiana limited liability company
      (“MIS”, and collectively with MISCOR, the “Company”) pursuant to, and in
      accordance with, (i) that certain Security and Purchase Agreement dated as
      of
      August 24, 2005 by and between MISCOR, certain subsidiaries of MISCOR, and
      the
      Senior Lender (as amended, modified or supplemented from time to time, the
      "Security Agreement"), (ii) the Ancillary Agreements referred to in the Security
      and Purchase Agreement, (iii) that certain Security and Purchase Agreement
      dated
      as of the date hereof by and between MIS and Laurus (as amended, modified or
      supplemented from time to time, the “MIS Security Agreement”) and (iv) the
      Ancillary Agreements referred to in the MIS Security Agreement (the “MIS
      Ancillary Agreements”).

     

    WHEREAS,
      each Debenture Holder is the holder of a subordinated secured convertible
      debenture issued by the Company. Pursuant to Section 9.1 of each debenture,
      Strasbourger is authorized to make, take or give any consent, waiver or other
      action provided by the terms of the Debentures to be made, given or taken by
      the
      Debenture Holders. 

     

    WHEREAS,
      the Subordinated Lenders have made loans to the Company.

     

    NOW,
      THEREFORE, each Subordinated Lender and the Senior Lender agree as
      follows:

     

    TERMS

     

    1. Up
      All
      loans made by the Senior Lender to the Company and/or any of its Subsidiaries
      pursuant to, and all associated interest, fees and penalties owing by the
      Company and/or any of its Subsidiaries to the Senior Lender under, the Security
      Agreement, any Ancillary Agreement, the MIS Security Agreement, any MIS
      Ancillary Agreement or otherwise are referred to as “Senior Liabilities”. Any
      and all loans made by the Subordinated Lenders to the Company and/or any of
      its
      Subsidiaries, together with all other obligations of the Company and/or any
      of
      its Subsidiaries to any Subordinated Lender (in each case, including any
      interest, fees or penalties related thereto), howsoever created, arising or
      evidenced, whether direct or indirect, absolute or contingent or now or
      hereafter existing, or due or to become due are referred to as “Junior
      Liabilities”. It is expressly understood and agreed that the term “Senior

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Liabilities”,
      as used in this Agreement, shall include, without limitation, any and all
      interest, fees and penalties accruing on any of the Senior Liabilities after
      the
      commencement of any proceedings referred to in paragraph 4 of this Agreement,
      notwithstanding any provision or rule of law which might restrict the rights
      of
      the Senior Lender, as against the Company, its Subsidiaries or anyone else,
      to
      collect such interest, fees or penalties, as the case may be.

     

    2. Except
      as
      expressly otherwise provided in this Agreement or as the Senior Lender may
      otherwise expressly consent in writing, the payment of the Junior Liabilities
      shall be postponed and subordinated to the payment in full of all Senior
      Liabilities. Furthermore, no payments or other distributions whatsoever in
      respect of any Junior Liabilities shall be made, nor shall any property or
      assets of the Company or any of its Subsidiaries be applied to the purchase
      or
      other acquisition or retirement of any Junior Liability. Notwithstanding
      anything to the contrary contained in this paragraph 2 or elsewhere in this
      Agreement, the Company and its Subsidiaries may make regularly scheduled
      principal and interest payments, as the case may be, to the Subordinated Lenders
      with respect to the Junior Liabilities, so long as (i) no Event of Default
      (as
      defined in any of the Security Agreement, the Ancillary Agreements, the MIS
      Security Agreement or the MIS Ancillary Agreements) has occurred and is
      continuing at the time of any such payment and (ii) the amount of such regularly
      scheduled principal payments and the rate of interest, in each case, with
      respect to the Junior Liabilities is not increased from that in effect on the
      date hereof.

     

    3. Each
      Subordinated Lender hereby subordinates all security interests that have been,
      or may be, granted by the Company and/or any of its Subsidiaries to such
      Subordinated Lender in respect of the Junior Liabilities, to the security
      interests granted by the Company and/or any of its Subsidiaries to the Senior
      Lender in respect of the Senior Liabilities. 

    

    4. In
      the
      event of any dissolution, winding up, liquidation, readjustment, reorganization
      or other similar proceedings relating to the Company and/or any of its
      Subsidiaries or to its creditors, as such, or to its property (whether voluntary
      or involuntary, partial or complete, and whether in bankruptcy, insolvency
      or
      receivership, or upon an assignment for the benefit of creditors, or any other
      marshalling of the assets and liabilities of the Company and/or any of its
      Subsidiaries, or any sale of all or substantially all of the assets of the
      Company and/or any of its Subsidiaries, or otherwise), the Senior Liabilities
      shall first be paid in full before any Subordinated Lender shall be entitled
      to
      receive and to retain any payment or distribution in respect of any Junior
      Liability.

     

    5. Each
      Subordinated Lender will mark his books and records so as to clearly indicate
      that their respective Junior Liabilities are subordinated in accordance with
      the
      terms of this Agreement. Each Subordinated Lender will execute such further
      documents or instruments and take such further action as the Senior Lender
      may
      reasonably request from time to time request to carry out the intent of this
      Agreement.

     

    6. Each
      Subordinated Lender hereby waives all diligence in collection or protection
      of
      or realization upon the Senior Liabilities or any security for the Senior
      Liabilities.

     

    7. No
      Subordinated Lender will without the prior written consent of the Senior Lender:
      (a) attempt to enforce or collect any Junior Liability or any rights in respect
      of any 

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    Junior
      Liability; or (b) commence, or join with any other creditor in commencing,
      any bankruptcy, reorganization or insolvency proceedings with respect to the
      Company and/or any of its Subsidiaries.

     

    8. The
      Senior Lender may, from time to time, at its sole discretion and without notice
      to any Subordinated Lender, take any or all of the following actions: (a) retain
      or obtain a security interest in any property to secure any of the Senior
      Liabilities; (b) retain or obtain the primary or secondary obligation of any
      other obligor or obligors with respect to any of the Senior Liabilities; (c)
      extend or renew for one or more periods (whether or not longer than the original
      period), alter or exchange any of the Senior Liabilities, or release or
      compromise any obligation of any nature of any obligor with respect to any
      of
      the Senior Liabilities; and (d) release their security interest in, or
      surrender, release or permit any substitution or exchange for, all or any part
      of any property securing any of the Senior Liabilities, or extend or renew
      for
      one or more periods (whether or not longer than the original period) or release,
      compromise, alter or exchange any obligations of any nature of any obligor
      with
      respect to any such property.

     

    9. The
      Senior Lender may, from time to time, whether before or after any discontinuance
      of this Agreement, without notice to any Subordinated Lender, assign or transfer
      any or all of the Senior Liabilities or any interest in the Senior Liabilities;
      and, notwithstanding any such assignment or transfer or any subsequent
      assignment or transfer of the Senior Liabilities, such Senior Liabilities shall
      be and remain Senior Liabilities for the purposes of this Agreement, and every
      immediate and successive assignee or transferee of any of the Senior Liabilities
      or of any interest in the Senior Liabilities shall, to the extent of the
      interest of such assignee or transferee in the Senior Liabilities, be entitled
      to the benefits of this Agreement to the same extent as if such assignee or
      transferee were the Senior Lender, as applicable; provided, however, that,
      unless the Senior Lender shall otherwise consent in writing, the Senior Lender
      shall have an unimpaired right, prior and superior to that of any such assignee
      or transferee, to enforce this Agreement, for the benefit of the Senior Lender,
      as to those of the Senior Liabilities which the Senior Lender has not assigned
      or transferred.

     

    10. The
      Senior Lender shall not be prejudiced in its rights under this Agreement by
      any
      act or failure to act of any Subordinated Lender, or any noncompliance of any
      Subordinated Lender with any agreement or obligation, regardless of any
      knowledge thereof which the Senior Lender may have or with which the Senior
      Lender may be charged; and no action of the Senior Lender permitted under this
      Agreement shall in any way affect or impair the rights of the Senior Lender
      and
      the obligations of any Subordinated Lender under this Agreement.

     

    11. No
      delay
      on the part of the Senior Lender in the exercise of any right or remedy shall
      operate as a waiver of such right or remedy, and no single or partial exercise
      by the Senior Lender of any right or remedy shall preclude other or further
      exercise of such right or remedy or the exercise of any other right or remedy;
      nor shall any modification or waiver of any of the provisions of this Agreement
      be binding upon the Senior Lender except as expressly set forth in a writing
      duly signed and delivered on behalf of the Senior Lender. For the purposes
      of
      this Agreement, Senior Liabilities shall have the meaning set forth in Section
      1
      above, notwithstanding any right or power of any Subordinated Lender or anyone
      else to assert any claim or defense as to the invalidity or unenforceability
      of
      any such obligation, and no such 

     

    
      
        
        

      

      
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          3
          -

        
          

        

      

      
        
        

      

    

    claim
      or
      defense shall affect or impair the agreements and obligations of any
      Subordinated Lender under this Agreement.

     

    12. This
      Agreement shall be binding upon each Subordinated Lender and upon the heirs,
      legal representatives, successors and assigns of each Subordinated Lender and
      the successors and assigns of any Subordinated Lender.

     

    13. This
      Agreement shall be construed in accordance with and governed by the laws of
      New
      York without regard to conflict of laws provisions. Wherever possible each
      provision of this Agreement shall be interpreted in such manner as to be
      effective and valid under applicable law, but if any provision of this Agreement
      shall be prohibited by or invalid under such law, such provision shall be
      ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions of
      this
      Agreement.

     

    [signature
      page follows]

    

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been made and delivered this __ day of
      ______________, 2006.

     

    

    
      	 	 	
              By:

            	/s/
John
              A. Martell
	 	 	
              Name:
                

            	
              John
                A. Martell

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
              STRASBOURGER
                PEARSON TULCIN WOLFF, INC. as agent for the Debenture
                Holders

            
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                

            	/s/
              Michael J. Schumacher
	 	 	
              Name:

            	Michael
              J. Schumacher
	 	 	
              Title:
                

            	 
	 	 	 	 
	 	 	
              LAURUS
                MASTER FUND, LTD.

            
	 	 	 	 
	 	 	
              By:

            	/s/
              David Grin
	 	 	
              Name:

            	David
              Grin
	 	 	
              Title:

            	Partner
	
              Acknowledged
                and Agreed to by:

               

            	 	 
	
              MISCOR
                GROUP, LTD.

               

            	 	 
	
              By:

            	/s/
John
              A. Martell	 	 
	
              Name:

            	
              John
                A. Martell

            	 	 
	
              Title:

            	President	 	 

    

    

    

    

    

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    Debenture
      Holders

    

    Magnetech
      Integrated Services Corp

    Outstanding
      Debentures

    As
      of
      5/31/05

    

    
      	
              Warrant
                #

            	
              Holder

            	
              Debenture
                $

            
	
              1

            	
              David
                L. Cohen

            	
              100,000
                

            
	
              2

            	
              Michael
                Poujol & Angela Poujol JTWROS

            	
              250,000
                

            
	
              3

            	
              Gregg
                M. Gaylord & Linda S. Covillon Gaylord LV TR 1/18/99

            	
              50,000
                

            
	
              4

            	
              Pershing
                as Custodian, IRA FBO Thomas D'Avanzo

            	
              50,000
                

            
	
              5

            	
              Dr.
                Frank Lake III

            	
              30,000
                

            
	
              6

            	
              Dr.
                Leo Mazzocchi & Nancy T. Mazzocchi

            	
              25,000
                

            
	
              7

            	
              William
                Sybesma & Martina Jane Sybesma JTWROS

            	
              75,000
                

            
	
              8

            	
              Gary
                M. Glasscock

            	
              100,000
                

            
	
              9

            	
              Dr.
                Domenic Strazzulla

            	
              50,000
                

            
	
              10

            	
              RS
                & VS Ltd., SJDE LLC Gen. Partner

            	
              25,000
                

            
	
              11

            	
              Stephen
                T. Skoly, Jr.

            	
              50,000
                

            
	
              12

            	
              Robert
                C. Ingram, III

            	
              50,000
                

            
	
              13

            	
              Thomas
                J. Keeney

            	
              25,000
                

            
	
              14

            	
              Joseph
                Quattrocchi

            	
              25,000
                

            
	
              15

            	
              Paul
                Quattrocchi & Danielle Quattrocchi JTWROS

            	
              25,000
                

            
	
              16

            	
              Dr.
                Barry G. Landry

            	
              50,000
                

            
	
              17

            	
              Robert
                L Thompson MD TR ISERP Profit Sharing Plan 

            	
              25,000
                

            
	
              18

            	
              Dr.
                Michail O. Bernstein

            	
              50,000
                

            
	
              19

            	
              Steven
                A. Lamb

            	
              50,000
                

            
	
              20

            	
              Norman
                Dudey TR The Normn Dudey Trust UA dated 6/10/1991

            	
              50,000
                

            
	
              21

            	
              Frank
                R. Cserpes J. & Sharon M Cserpes TRS Frank R Cserpes
                Trust

            	
              50,000
                

            
	
              22

            	
              Edward
                Lagomarsino

            	
              250,000
                

            
	
              23

            	
              Pershing
                as Custodian, SEP FBO Rodney Schorlemmer

            	
              50,000
                

            
	
              24

            	
              Mollie
                Ann Peters

            	
              20,000
                

            
	
              25

            	
              Paul
                V. Nugent, Jr. &eanne Mentus Nugent JTWROS

            	
              25,000
                

            
	
              26

            	
              Dr.
                Albert Jim Barboni

            	
              30,000
                

            
	
              27

            	
              StarInvest
                Group, Inc

            	
              400,000
                

            
	
              28

            	
              SwissFinanz
                Partner AG

            	
              130,000
                

            
	
              29

            	
              Marcel
                Riedel

            	
              20,000
                

            
	
              30

            	
              Alfred
                Schneider

            	
              20,000
                

            
	
              31

            	
              Maya
                Salzmann

            	
              50,000
                

            
	
              32

            	
              Daniel
                Stahl

            	
              80,000
                

            
	
              33

            	
              Elizabeth
                Kuhn

            	
              50,000
                

            
	
              34

            	
              Paul
                Remensberger

            	
              20,000
                

            
	
              35

            	
              Heinz
                Wattenhofer

            	
              25,000
                

            
	
              36

            	
              Rolph
                R. Berg-Jaquet

            	
              10,000
                

            
	
              37

            	
              Marie
                Luise Fuchs

            	
              10,000
                

            
	
              38

            	
              Josephine
                Hausammann

            	
              10,000
                

            
	
              39

            	
              Hans
                Hausammann

            	
              15,000
                

            
	
              40

            	
              Roger
                Buerki

            	
              10,000
                

            
	
              41

            	
              Hans
                Nef-Maag

            	
              60,000
                

            
	
              42

            	
              James
                Ladner

            	
              50,000
                

            
	
              43

            	
              Max
                Gertsch

            	
              15,000
                

            
	
              44

            	
              Roland
                Bertschy

            	
              5,000
                

            
	
              45

            	
              Christian
                Baumberger

            	
              10,000
                

            
	
              46

            	
              Fred
                Kin

            	
              20,000
                

            
	
              47

            	
              StarInvest
                Group, Inc

            	
              400,000
                

            
	
              48

            	
              Kilmore
                Worldwide, Inc.

            	
              25,000
                

            
	
              49

            	
              Highgate
                House Funds Limited

            	
              500,000
                

            
	
              50

            	
              Nasrollah
                Jahdi

            	
              25,000
                

            
	
              51

            	
              Pershing
                LLC as Custodian, IRA FBO Richard J. Mullin

            	
              100,000
                

            
	
              52

            	
              SwissFinanz
                Partner AG

            	
              60,000
                

            
	
              53

            	
              Daniel
                Stahl

            	
              50,000
                

            
	
              54

            	
              Paul
                Remensberger

            	
              20,000
                

            
	
              55

            	
              Hans
                Hausammann

            	
              20,000
                

            
	
              56

            	
              Hans-Peter
                Knecht

            	
              20,000
                

            
	
              57

            	
              Henry
                Fortier III

            	
              25,000
                

            
	
              58

            	
              Frederick
                B. Epstein

            	
              50,000
                

            
	
              59

            	
              William
                Sybesma 

            	
              75,000
                

            
	
              60

            	
              Gary
                M. Glasscock

            	
              40,000
                

            
	
              61

            	
              Joseph
                Gazzola & Josephine Gazzola JTWROS

            	
              25,000
                

            
	 	 	
              4,025,000Overadvance Side Letter Agreement

    

      Exhibit
        10.7

      

      

      May
        31,
        2006

      

      

      Magnetech
        Industrial Services of Alabama LLC

      1125
        South Walnut Street

      South
        Bend, Indiana 46619

      Attention:
        President

      

      

      
        	 	
                Re:

              	
                Overadvance
                  Side Letter

              

      

      

      Dear
        Sir
        or Madame:

      

      Reference
        is hereby made to that certain Security and Purchase Agreement dated as of
        May
        31, 2006 by and among Magnetech Industrial Services of Alabama LLC, an Indiana
        limited liability company (“Parent”
or
        the
“Company”)
        and
        Laurus Master Fund, Ltd. (“Laurus”)
        (as
        amended, modified and/or supplemented from time to time, the “Security
        Agreement”).
        Capitalized terms used but not defined herein shall have the meanings ascribed
        them in the Security Agreement. Subject to satisfaction of the Overadvance
        Conditions (as defined below), Laurus is hereby notifying you of its decision
        to
        exercise the discretion granted to it pursuant to Section 2(a)(ii) of the
        Security Agreement to make Loans to the Company during the Period (as defined
        below) in excess of the Formula Amount on the date hereof (the “Overadvance”).
        Subject to satisfaction of the Overadvance Conditions, the aggregate principal
        amount of the Overadvance as of the date hereof shall be $300,000 (the
“Initial
        Overadvance Amount”).

      

      In
        connection with making the Overadvance, for a period of thirty-six (36) months
        from the date hereof (the “Period”),
        Laurus hereby waives compliance with Section 3 of the Security Agreement,
        but
        solely as such provision relates to the immediate repayment requirement for
        Overadvances; provided,
        however,
        that
        the Company shall at all times be required to repay to Laurus all amounts
        in
        excess of the then-applicable Overadvance Amount (as defined below) immediately
        upon the occurrence of such excess. Laurus further agrees that solely for
        such
        Period (but not thereafter), (i) the Overadvance shall not trigger an Event
        of
        Default under Section 19(a) of the Security Agreement
        and (ii)
        notwithstanding anything to the contrary set forth in Section 5(b)(iii) of
        the
        Security Agreement, during the Period, the rate of interest applicable to
        such
        Overadvance shall be the “prime rate” published in The
        Wall Street Journal
        from
        time to time (the “Prime
        Rate”),
        plus
        two and one-half percent (2.5%) (collectively, the “Overadvance
        Rate”).
        Interest shall be (i) calculated on the basis of a 360 day year, and (ii)
        payable monthly, in arrears, commencing on July 1, 2006 on the first business
        day of each consecutive calendar month thereafter through and including the
        expiration of the Period, whether by acceleration or otherwise. All other
        terms
        and provisions of the Security Agreement and the Ancillary Agreements shall
        remain in full force and effect. For the avoidance of doubt, all
        proceeds
        applied by any Company in repayment of its obligations to Laurus hereunder
        and
        under the Security Agreement and the Ancillary Agreements shall be first
        applied
        as a repayment of the Overadvance unless otherwise agreed by Laurus. Once
        repaid, the Overadvance may not be reborrowed.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      During
        the Period commencing on December 1, 2006 (the “First
        Overadvance Reduction Date”)
        and continuing through June 1, 2009 (the “Overadvance
        Reduction Period”),
        on the first business day of each month falling within the Overadvance Reduction
        Period (each, an “Overadvance
        Reduction Date”),
        commencing on the First Overadvance Reduction Date, the Overadvances otherwise
        permitted hereunder shall be reduced to such aggregate principal amount as
        is
        set forth on Annex A opposite such Overadvance Reduction Date (each, a
“Reduced
        Overadvance Amount”
        and, together with the Initial Overadvance Amount (as shall be in effect
        on the
        date hereof until giving effect to the First Overadvance Reduction Date),
        each
        an “Overadvance
        Amount”),
        and the Company shall pay to Laurus on each such Overadvance Reduction Date
        all
        amounts outstanding and in excess of the then applicable Reduced Overadvance
        Amount. During the Period, so long as no Event of Default has occurred and
        is
        continuing, the Company shall be permitted to request borrowings of Loans
        in
        excess of the Formula Amount to the extent that the aggregate principal amount
        of such Loans, when added to the aggregate principal amount of all other
        Loans,
        fees and accrued interest then outstanding and in excess of the Formula Amount,
        shall not exceed the Reduced Overadvance Amount applicable as of the date
        of
        such proposed borrowing. The foregoing payment obligations of the Company
        shall
        be in addition to, and not in substitution of, all other payment obligations
        of
        the Company to Laurus as may be required under the terms of the Security
        Agreement and the Ancillary Agreements referred to therein. For the avoidance
        of
        doubt, all proceeds applied by the Company in repayment of its obligations
        to
        Laurus hereunder and under the Security Agreement and the Ancillary Agreements
        shall be first applied as a repayment of the Overadvances unless otherwise
        agreed by Laurus.

       

      The
        Companies hereby each acknowledge and agree that Laurus’ obligation to fund the
        Initial Overadvance Amount on the date hereof and each permitted reborrowing
        thereof after the date hereof up to the then-applicable Overadvance Amount
        shall, at the time of such making of such Overadvance or reborrowing, and
        immediately after giving effect thereto, be subject to the satisfaction of
        the
        following conditions (the “Overadvance
        Conditions”):
        (i)
        no Event of Default shall exist and be continuing as of such date; (ii) all
        representations, warranties and covenants made by the Companies in connection
        with the Security Agreement and the Ancillary Agreements shall be true, correct
        and complete as of such date; (iii) the
        Companies and their respective Subsidiaries shall have taken all action
        necessary to grant Laurus “control” over all of the Companies’ and their
        respective Subsidiaries’ Deposit Accounts (the “Control
        Accounts”),
        with
        any agreements establishing “control” to be in form and substance satisfactory
        to Laurus.
        “Control” over such Control Accounts shall be released upon the indefeasible
        repayment in full and termination of the Overadvance (together with all accrued
        interest and fees which remain unpaid in respect thereof).

       

      The
        Company hereby acknowledges that they are in receipt of the Initial Overadvance
        Amount on the date hereof and are otherwise obligated, jointly and severally,
        to
        repay the outstanding amount of the Overadvance in full (together
        with accrued interest and fees which remain unpaid in respect
        thereof) as
        set forth herein and/or as set forth in the Security Agreement; provided
        that,
        all amounts outstanding under the Overadvance (together
        with accrued interest and fees which remain unpaid in respect thereof) on
        the
        date of expiration of the Period shall be repaid in full in such date of
        expiration.
        The failure to make any required repayment of an Overadvance shall give rise
        to
        an immediate Event of Default.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      This
        letter may not be amended or waived except by an instrument in writing signed
        by
        each of the Companies and Laurus. This letter may be executed in any number
        of
        counterparts, each of which shall be an original and all of which, when taken
        together, shall constitute one agreement. Delivery of an executed signature
        page
        of this letter by facsimile transmission shall be effective as delivery of
        a
        manually executed counterpart hereof or thereof, as the case may be. THIS
        LETTER
        SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
        OF
        NEW YORK. This letter sets forth the entire agreement between the parties
        hereto
        as to the matters set forth herein and supersede all prior communications,
        written or oral, with respect to the matters herein.

       

      This
        Overadvance Side Letter shall for all purposes be deemed to be an Ancillary
        Agreement.

       

      If
        the foregoing meets with your approval please signify your acceptance of
        the
        terms hereof by signing below. 

      

      

      
        	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 	 
	 	 	 
	 	
                By:

              	/s/
                David Grin
	 	
                Name:

              	David
                Grin
	 	
                Title:

              	Partner

      

      

      

      AGREED
        AND ACCEPTED ON THE DATE HEREOF:

      

      
        	
                MAGNETECH
                  INDUSTRIAL SERVICES OF ALABAMA LLC

              
	 	 	 
	
                By:

              	/s/
John
                A. Martell	 
	
                Name:

              	
                John
                  A. Martell

              	 
	
                Title:

              	President	 

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      ANNEX
        A

      

      
        	
                Overadvance
                  Reduction Date

              	 	
                Reduced
                  Overadvance Amount

              
	 	 	 
	
                 

                December
                  1, 2006

              	 	
                 

                $
                  290,000 

              
	
                 

                January
                  1, 2007

              	 	
                 

                $
                  280,000

              
	
                 

                February
                  1, 2007

              	 	
                 

                $
                  270,000 

              
	
                 

                March
                  1, 2007

              	 	
                 

                $
                  260,000

              
	
                 

                April
                  2, 2007

              	 	
                 

                $
                  250,000

              
	
                 

                May
                  1, 2007

              	 	
                 

                $
                  240,000 

              
	
                 

                June
                  1, 2007

              	 	
                 

                $
                  230,000 

              
	
                 

                July
                  2, 2007

              	 	
                 

                $
                  220,000 

              
	
                 

                August
                  1, 2007

              	 	
                 

                $
                  210,000 

              
	
                 

                September
                  1, 2007

              	 	
                 

                $
                  200,000 

              
	
                 

                October
                  2, 2007

              	 	
                 

                $
                  190,000 

              
	
                 

                November
                  1, 2007

              	 	
                 

                $
                  180,000

              
	
                 

                December
                  3, 2007

              	 	
                 

                $
                  170,000

              
	
                 

                January
                  1, 2008

              	 	
                 

                $
                  160,000 

              
	
                 

                February
                  1, 2008

              	 	
                 

                $
                  150,000 

              
	
                 

                March
                  1, 2008

              	 	
                 

                $
                  140,000 

              
	
                 

                April
                  1, 2008

              	 	
                 

                $
                  130,000 

              
	
                 

                May
                  1, 2008

              	 	
                 

                $
                  120,000

              
	
                 

                June
                  1, 2008

              	 	
                 

                $
                  110,000 

              
	
                 

                July
                  2, 2008

              	 	
                 

                $
                  100,000 

              
	
                 

                August
                  1, 2008

              	 	
                 

                $
                  90,000 

              
	
                 

                September
                  1, 2008

              	 	
                 

                $
                  80,000 

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 

                October
                  1, 2008

              	 	
                 

                $
                  70,000 

              
	
                 

                November
                  1, 2008

              	 	
                 

                $
                  60,000

              
	
                 

                December
                  1, 2008

              	 	
                 

                $
                  50,000 

              
	
                 

                January
                  1, 2009

              	 	
                 

                $
                  40,000 

              
	
                 

                February
                  1, 2009

              	 	
                 

                $
                  30,000 

              
	
                 

                March
                  1, 2009

              	 	
                 

                $
                  20,000 

              
	
                 

                April
                  1, 2009

              	 	
                 

                $
                  10,000 

              
	
                 

                May
                  1, 2009

              	 	
                 

                $
                  0

              
	 	 	 

      

      
 

       

       

      5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]