Document:

Letter Agreement dated April 16, 2006

    Exhibit
      4.7b

      

      

      

      

      March
        30,
        2006

      

      Mr.
        Michael J. Schumacher

      Mr.
        Ron
        Moschetta

      Strasbourger
        Pearson Tulcin Wolff Inc.

      33
        Whitehall Street - 17th
        Floor

      New
        York,
        NY 10004

      

      
        	 	
                Re:

              	
                MISCOR
                  Group, Ltd.

              
	 	 	
                Subordinated
                  Convertible Debentures

              

      

      

      Gentlemen:

      

      We
        are
        writing to provide you with an update of our efforts to file a Registration
        Statement on Form S-1 and complete the other actions necessary for registration
        of MISCOR Common Stock with the Securities and Exchange Commission (“SEC”). We
        also would like to update you on our long-term refinancing efforts.

      

      Registration
        Statement on Form S-1

      

      On
        October 31, 2005 we submitted the Form S-1 to the SEC and received the SEC’s
        comment letter back on November 30, 2005. We responded to the SEC and submitted
        our amended Form S-1 on December 30, 2005. We subsequently received a second
        comment letter from the SEC on January 13, 2006 and responded to the SEC
        and
        submitted our second amendment to the Form S-1 on January 25, 2006. We received
        a third comment letter from the SEC on February 3, 2006 that we believe we
        can
        adequately address in a third amendment to the Form S-1. 

      

      However,
        because of the length of the SEC comment process, our third quarter unaudited
        and 2004 audited financial statements included in the Form S-1 went stale
        on
        February 7, 2006 and February 14, 2006, respectively. Accordingly, we have
        to
        update the Form S-1 to include our 2005 audited financial statements, which
        has
        delayed our response to the SEC’s third comment letter while we work to complete
        the 2005 audit. 

      

      We
        expect
        to complete the audit, amend the Form S-1 to include the updated financial
        statements and address the SEC’s other comments, and resubmit the Form S-1 to
        the SEC in April, 2006. We expect the Form S-1 to be effective in May, 2006
        and
        that our Common Stock will be quoted on the OTCBB in July, 2006. 

      

      Re-financing
        Efforts

      

      In
        recent
        months, we have had discussions with various financial institutions concerning
        our long term financing to support our working capital needs and growth plans.
        One issue that has been raised is the maturity date of the subordinated
        convertible debentures issued in 2005, for which you acted as placement agent.
        Based on our conversations with these financing institutions, we believe
        that to
        obtain any additional financing the maturity date will need to be extended
        for

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      one
        year
        from February 28, 2007 to February 28, 2008. We believe that this extension
        would benefit our debenture holders and MISCOR in the following
        ways: 

      

      	-  	
              assist
                the company in obtaining additional working capital which would allow
                it
                to support continued growth and better meet our vendors’ payment
                terms,

            

       

      	-  	
              assist
                the company in obtaining financing for business
                acquisitions,

            

       

      	-  	
              the
                debenture holders would have another year to realize appreciation
                on the
                conversion of their debentures into MISCOR Common Stock,
                and

            

       

      	-  	
              assist
                the company in obtaining financing that could possibly include the
                payoff
                of all outstanding convertible debt to Laurus Master Fund, which
                would
                eliminate up to 40 million underlying shares of MISCOR common stock
                and
                the related dilutive effects of the issuance of those
                shares.

            

       

      Approval

      

      We
        respectfully request that Strasbourger, Pearson, Tulcin Wolff, Inc., as agent
        for and on behalf of the holders of the subordinated convertible debentures,
        approve the extension of the maturity date of all subordinated convertible
        debentures from February 28, 2007 to February 28, 2008. By giving such approval,
        you confirm that you will notify the holders of the subordinated convertible
        debentures of the extension of the maturity date. 

      

      To
        indicate your approval, please sign a copy of this letter at the space below
        and
        return the signed copy to me.

      

      Should
        you have any questions, please contact Rich Mullin, Vice President & CFO, at
        574-234-8131 or rmullin@magnetech.com.

      

      

      Best
        Regards,

      

      MISCOR
        Group, Ltd.

      

      /s/
        John
        A. Martell

      

      John
        A.
        Martell

      President
        & CEO

      

      

      ACCEPTED
        AND AGREED ON BEHALF OF ALL

      HOLDERS
        OF CONVERTIBLE DEBENTURES:

      

      STRASBOURGER
        PEARSON TULCIN WOLFF INC.

      

      
        	
                By:
                  

              	/s/
                Ron Marchetta	 
	 	 	 
	
                Printed
                  Name: 

              	Ron
                Marchetta	 
	 	 	 
	
                Title:
                  

              	
              	 
	 	 	 
	
                Date:
                  

              	April
                16, 2006	 

      

      

        

        
          	 	
                  ACKNOWLEDGED
                    BY:

                  STRASBOURGER
                    PEARSON TULCIN WOLFF
                    INCORPORATED

                
	 	 	 
	 	
                  By:
                    

                	/s/
                  Michael J. Schumacher
	 	 	
                  Michael J. Schumacher

                  President

                
	 	 	 
	 	
                  Date:
                    

                	April
                  19, 2006Amendment dated October 17, 2005

    

      Exhibit
        10.9b

      

       

      
        

AGREEMENT
        

      

       

      This
        AGREEMENT (this “Agreement”),
        dated
        as of October 19, 2005, is entered into by and between MISCOR GROUP, LTD.
        (formally known as Magnetech Integrated Services Corp.), an Indiana corporation
        (the "Company"), each
        subsidiary of the Company set forth on Schedule A hereto (the Company and
        each
        such subsidiary of the Company, collectively, the “Credit
        Parties”
and
        each, a “Credit
        Party”)
        and
        LAURUS MASTER FUND, LTD., a Cayman Islands company ("Laurus"),
        for
        the purpose of amending the terms of (x) that certain Security and Purchase
        Agreement, dated as of August 24, 2005 (as amended, modified or supplemented
        from time to time, the “Security
        Agreement”)
        by and
        among the Credit Parties and Laurus and (y) the Ancillary Agreements referred
        to
        in, and defined in, the Security Agreement (as amended, modified or supplemented
        from time to time, the “Ancillary
        Agreements”
and
        each, an “Ancillary
        Agreement”).
        Capitalized terms used herein without definition shall have the meanings
        ascribed to such terms in the Security Agreement.

      

      WHEREAS,
        each Credit Party and Laurus have agreed to make certain modifications to
        the
        Security Agreement and the Ancillary Agreements as set forth
        herein;

      

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

       

      1. Notwithstanding
        anything to the contrary contained in the Security Agreement or in any Ancillary
        Agreement, (x) no Minimum Borrowing Notes shall be issued under the Security
        Agreement or any Ancillary Agreement other than the Minimum Borrowing Note
        issued on the Closing Date and (y) no principal amounts or other amounts
        shall
        be transferred from the Revolving Note to any additional Minimum Borrowing
        Note.
        The foregoing shall not limit or otherwise affect the aggregate principal
        amount
        that may be borrowed under the Revolving Note pursuant to the terms of the
        Security Agreement and Ancillary Agreements. 

      

      2. The
        following amendments are hereby made to the Registration Rights Agreement
        (as
        defined in the Security Agreement):

      

      (a) In
        the
        definition of “Effectiveness”
in
        Section 1 of the Registration Rights Agreement, the reference to “one hundred
        fifty (150) days” in clause (i) thereof shall be amended to read “one hundred
        sixty (160)” days, and the reference to “sixty (60) days” in clause (ii) thereof
        shall be amended to read “seventy (70) days”; and

      

      (b) In
        the
        definition of “Filing
        Date”
in
        Section 1 of the Registration Rights Agreement, each reference to “sixty (60)
        days” therein shall be amended to read “seventy (70) days.” 

      

      3. Each
        reference to the par value of a share of Common Stock of the Company set
        forth
        in the Security Agreement and the Ancillary Agreements shall be amended to
        mean
“no par value”, rather than a par value of $0.01.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4. Each
        agreement set forth herein shall be effective as of the date hereof following
        the execution and delivery of same by each Credit Party and Laurus.

      

      5. Except
        as
        specifically set forth in this Agreement, there are no other amendments,
        modifications or supplementations to the Security Agreement or any Ancillary
        Agreement, and all of the other forms, terms and provisions of the Security
        Agreement and the Ancillary Agreements remain in full force and
        effect.

      

      6. Each
        Credit Party hereby represents and warrants to Laurus that as of the date
        of the
        Security Agreement all representations and warranties made by such Credit
        Party
        in connection with the Security Agreement and the Ancillary Agreements were
        true, correct and complete as of that date (except that the Common Stock
        of the
        Company was no par value rather than $0.01 per share), and all of such Credit
        Parties’ covenant requirements under the Security Agreement and Ancillary
        Agreements that are required to have been met on or before the date of this
        Agreement have been met or waived in writing by Laurus. 

      

      7. This
        Agreement shall be binding upon the parties hereto and their respective
        successors and permitted assigns and shall inure to the benefit of and be
        enforceable by each of the parties hereto and its successors and permitted
        assigns. THIS
        AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED
        BY THE
        LAW OF THE STATE OF NEW YORK.
        This
        Agreement may be executed in any number of counterparts, each of which shall
        be
        an original, but all of which shall constitute one instrument. 

       

      [Remainder
        of page intentionally left blank]

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Credit Party and Laurus has caused this Agreement to be signed in its name
        effective as of this 19th day of October, 2005.

       

      
        	 	
                MISCOR
                  GROUP, LTD. (formally known as MAGNETECH INTEGRATED SERVICES
                  CORP.)

              
	 	 	 
	 	
                By:

              	/s/
                John A. Martell
	 	
                Name:

              	John
                A. Martell
	 	
                Title:

              	President
	 	 	 
	 	
                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:

              	President
	 	 	 
	 	
                HK
                  MACHINED PARTS, LLC

              
	 	 	 
	 	
                By:

              	/s/
                John A. Martell
	 	
                Name:

              	John
                A. Martell
	 	
                Title:

              	President
	 	 	 

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      
        	 	
                HK
                  WESTON PROPERTIES, LLC

              
	 	 	 
	 	
                By:

              	/s/
                John A. Martell
	 	
                Name:

              	John
                A. Martell
	 	
                Title:

              	President
	 	 	 
	 	
                HK
                  CAST PRODUCTS, LLC

              
	 	 	 
	 	
                By:

              	/s/
                John A. Martell
	 	
                Name:

              	John
                A. Martell
	 	
                Title:

              	President
	 	 	 
	 	
                LAURUS
                  MASTER FUND, LTD.

              
	 	 	 
	 	
                By:

              	/s/
                David Grin
	 	
                Name:

              	David
                Grin
	 	
                Title:

              	Director

      

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Schedule
        A

       

      Subsidiaries
        of Company

       

      

      Magnetech
        Industrial Services, Inc., an Indiana corporation

      Martell
        Electric, LLC, an Indiana limited liability company

      HK
        Engine
        Components, LLC, an Indiana limited liability company

      HK
        Machined Parts, LLC, an Indiana limited liability company

      HK
        Weston
        Properties, LLC, an Indiana limited liability company

      HK
        Cast
        Products, LLC, an Indiana limited liability company

      

      

      

      

      

      5

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