Document:

mis_8k0207ex101.htm

    
Exhibit
10.1

      

      

      Amendment
to the

      MISCOR Group, Ltd. 2005
Restricted Stock Purchase Plan

      

      This Amendment to the MISCOR Group,
Ltd., 2005 Restricted Stock Purchase Plan, as amended (the “Amendment”) is made as of
February 7, 2008, by MISCOR Group, Ltd., an Indiana corporation (the “Corporation”).

      

      RECITALS

      

      WHEREAS, the Board of Directors of the
Corporation duly approved and adopted the MISCOR Group, Ltd., 2005 Restricted
Stock Purchase Plan on August 23, 2005, as amended (name change only) on May 1,
2007 (the “Plan”);

      

      WHEREAS, pursuant to Paragraph 3 of the
Plan, after giving effect to the 1-for-25 reverse stock split of the
Corporation’s common stock, without par value (“Common Stock”), that occurred
on January 14, 2008, there are currently reserved for issuance under the Plan
40,000 shares of Common Stock;

      

      WHEREAS, the Corporation desires to
increase the number of shares of Common Stock reserved for issuance under the
Plan; and

      

      WHEREAS, the Corporation desires to
amend Paragraph 7 of the Plan to modify the effect that termination of
employment by a Participant for Good Reason or as a result of Retirement would
have on the forfeiture restrictions set forth in the Plan and to make certain
other changes thereto.

      

      NOW, THEREFORE, the Plan is amended as
follows:

      

      1.           Reservation of
Shares.  Subject to Section 3 hereof, the
first sentence of Paragraph 3 of the Plan shall be amended and restated in its
entirety to read as follows:

      

      “There is hereby established a
Restricted Stock Purchase Plan reserve to which shall be allocated one hundred
thousand (100,000) (post-reverse-split) shares of the common stock of the
Corporation.”

      

      2.           Forfeiture
Restrictions.  Subject to Section 3
hereof:

      

      (a)           Paragraph
7(b) of the Plan shall be amended and restated in its entirety to read as set
forth in Exhibit
A attached hereto; and

      

      (b)           Paragraph
7(c) of the Plan shall be amended and restated in its entirety to read as set
forth in Exhibit
B attached hereto.

      

      3.           Effective Date of
Amendment.  This Amendment shall be effective as of the date on
which the Board of Directors of the Corporation shall have approved this
Amendment.  This Amendment, without the consent of the person affected
by this Amendment, shall not amend or in any way affect any right or obligation
created prior to the effective date of this Amendment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      4.           General.  Capitalized
terms used in this Amendment but not otherwise defined herein shall have the
meanings given to such terms under the Plan.  All other provisions
contained in the Plan and not otherwise amended pursuant hereto shall remain
unchanged and shall continue in full force and effect.  Except as
expressly provided herein, the Plan and this Amendment shall be construed,
wherever possible, in a manner consistent with one another, but in the event of
any irreconcilable inconsistencies, this Amendment shall control.

      

      

      The Corporation has caused this
Amendment to the MISCOR Group, Ltd., 2005 Restricted Stock Purchase Plan to be
executed as of the date first above written.

      
 

      
        

        
          	 
      	
                  MISCOR
      Group, Ltd.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      /s/ John A. Martell
	 
      	 
      	
                  Name:
      John A. Martell

                
	 
      	 
      	
                  Title:
      President and Chief Executive Officer

                
	 	 	 
	 	 
	 	 Adopted
      by the Board of Directors of
	 	 MISCOR
      Group, Ltd., as of February 7, 2008
	 	 	 

        

        
 

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      Paragraph
7(b) of the MISCOR Group, Ltd., 2005 Restricted Stock Purchase Plan shall be
amended and restated in its entirety to read as follows:

      

      (b)           Forfeiture During
Restriction Period.  If, during the three (3) year period after
the Acceptance Date (the “Restriction Period”), the Participant’s employment
with MISCOR is terminated by MISCOR for any or no reason, or the Participant
terminates his or her employment with MISCOR for any reason other than death or
Disability (as defined below), then the Participant or the Participant’s
successors in interest shall sell to the Corporation, and the Corporation shall
purchase from Participant, all of the shares purchased by, or awarded to, the
Participant under this Plan at the Purchase Price (as determined in accordance
with Paragraph 6 of this Plan).  If the Purchase Price is zero, the
Corporation shall not be required to make payment to the Participant for the
shares.

      

      Within thirty (30) days of the
termination of Participant’s employment either by MISCOR for any or no reason or
by Participant for any reason other than death or Disability, the Corporation,
by notice to the Participant, shall specify a date not less than five (5) and
not more than ten (10) days from the date of such notice to consummate the
purchase and sale of such shares at the principal office of the Corporation (the
“Forfeiture Closing”).  At the Forfeiture Closing, the Participant
shall deliver to the Corporation certificates representing the shares purchased
under this Plan which are to be forfeited pursuant to the terms of this Plan,
duly endorsed in a form sufficient to vest title in the Corporation and free
from all liens and encumbrances.  Upon receipt of the certificates,
the Corporation shall pay the Purchase Price as follows:

      

      (i)           Any
portion of the Purchase Price which has not been paid by the Participant shall
be forgiven and canceled; and

      

      (ii)           Any
portion of the Purchase Price for such shares which has been paid by the
Participant shall be paid in cash in full at the Forfeiture
Closing.

      

      If the Participant fails to deliver the
certificates to the Corporation at the Forfeiture Closing, the Corporation may
deposit the Purchase Price with the Secretary or Treasurer of the Corporation.  Thereafter, the shares shall be deemed to have been
transferred to the Corporation, and the Participant, despite the failure to
deliver the shares, shall have no further rights as a shareholder of the
Corporation with respect to such shares.  In such event, the Secretary
or Treasurer of the Corporation shall continue to hold the Purchase Price and
shall make payment of the Purchase Price to the Participant, without interest,
upon delivery of the certificates to the Corporation.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
 

      For purposes of this Plan, the term
“Disability” shall mean a mental or physical condition which, in the opinion of
a licensed physician selected by the Committee, prevents the Participant from
engaging in the principal duties of his or her employment with the Corporation
and is either:  (a) a permanent disability that is likely to result in
the death of the Participant, or (b) a disability that has continued for at
least 6 months and which is likely to continue for a lengthy or indefinite
period.

      

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      EXHIBIT
B

      

      Paragraph
7(c) of the MISCOR Group, Ltd., 2005 Restricted Stock Purchase Plan shall be
amended and restated in its entirety to read as follows:

      

      (c)           Transfers Not Subject to
Forfeiture.  If a Participant terminates employment with MISCOR
after the expiration of the Restriction Period and/or as a result of death or
Disability, the Participant or the Participant’s successors shall be obligated
to sell, and the Corporation shall be obligated to purchase, all of the shares
purchased by, or awarded to, the Participant under this Plan, in accordance with
this Paragraph 7(c).  The purchase price for the shares shall be equal
to the fair market value of such shares (the “Market Price”).  For
purposes of this Agreement, unless otherwise agreed by the Participant and the
Committee, the Market Price as of a particular date (the “Determination Date”)
shall mean:

      

      (i)           If
the common stock of the Corporation is traded on a national securities exchange
or is quoted on the The NASDAQ Stock Market (“NASDAQ”), then the average of the
closing or last sale price, respectively, reported for the five (5) trading days
immediately preceding the Determination Date;

      

      (ii)           If
the common stock of the Corporation is not traded on a national securities
exchange or on NASDAQ but is quoted on the NASD Over The Counter Bulletin Board,
then the average of the closing bid and asked prices reported for the five (5)
trading days immediately preceding the Determination Date; or

      

      (iii)           If
the common stock of the Corporation is not publicly traded, the price as
determined by the independent public accounting firm (the “Accountants”)
employed by the Corporation at such time with such discounts and adjustments as
the Accountants deem appropriate; the determination of the Market Price by the
Accountants shall be final and binding for all purposes.

      

      The
closing of the transaction (the “Post-Termination Closing”) shall take place at
the principal office of the Corporation within thirty (30) days following the
date of termination of the Participant’s employment with MISCOR.  At
the Post-Termination Closing, the Participant shall deliver the shares to the
Corporation, duly endorsed in a form sufficient to vest title in Corporation and
free and clear of all liens and encumbrances. 

      

      The Market Price may be paid in cash in
full at the Closing, or, at the option of the Corporation, in three (3) equal
annual installments, with the first installment due on the first anniversary of
the Participant’s termination of employment with MISCOR. The unpaid balance of
the Market Price shall bear interest at the rate necessary to avoid imputation
of interest under applicable provisions of the Internal Revenue Code of 1986, as
amended.  In the event of default by the Corporation, the entire
unpaid principal balance plus interest owed shall immediately become due and
payable at the Participant’s option. The Corporation may prepay the balance of
the unpaid Market Price at any time, and in any amount without penalty, although
interest due to the date of payment must be paid.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      If the Participant fails to deliver the
certificates to the Corporation at the Post-Termination Closing, the Corporation
may deposit the Market Price with the Secretary or Treasurer of the
Corporation.  Thereafter, the shares shall be deemed to have been
transferred to the Corporation, and the Participant, despite the failure to
deliver the certificates, shall have no further rights as a shareholder of the
Corporation with respect to such shares.  In such event, the Secretary
or Treasurer of the Corporation shall continue to hold the Market Price and
shall make payment of the Market Price to the Participant, without interest,
upon delivery of the certificates to the Corporation.

      
 

       

      6SUBSCRIPTION AGENT AGREEMENT

                      February 11, 2008

      National City Bank

      c/o Pamela J. Fisher

      Vice President

      Shareholder Services Administration

      629 Euclid Ave  Ste 635  Locator 01-3116 

      Cleveland, Ohio  44114

       

      Ladies and Gentlemen:

      In connection with your appointment as Subscription Agent in the transaction described herein, Patrick Industries, Inc. (the “Company”) hereby confirms its arrangements with you as follows:

      

      	
                  1.
 	
                  Rights Offering — The Company is offering (the “Rights Offering”) to the holders of shares of its Common Stock, without par value (the “Common Stock”), as of February 14, 2008 (the “Record Date”), the right (the “Right(s)”) to subscribe for additional shares of Common Stock.  Except as set forth below, Rights shall cease to be exercisable at 5:00 p.m., New York City time, on March 13, 2008 or such later date of which the Company notifies you orally and confirms in writing (the “Expiration Date”).  Each Right entitles the Company’s shareholders to purchase 0.222131 of a share of Common Stock at the subscription price of $11.25 per whole share (the “Subscription Price”).  Rights are evidenced by non-transferable rights
      certificates in registered form (the “Rights Certificate(s)”).  The Rights Offering will be conducted in the manner and upon the terms set forth in the Company’s preliminary prospectus dated on or about February 7, 2008 (the “Prospectus”), which is incorporated herein by reference and made a part hereof as if set forth in full herein.  The Rights are exercisable beginning on the date the Prospectus is filed in final form with the Securities and Exchange Commission (the “Final Prospectus”) and will expire if they are not exercised by 5:00 p.m., New York City time, on the Expiration Date.  We may extend the period for exercising Rights in our sole discretion.
 

      

      

      	
                  2.
 	
                  Appointment of Subscription Agent — You are hereby appointed as Subscription Agent to effect the Rights Offering in accordance with the Final Prospectus.  Each reference to you in this letter is to you in your capacity as Subscription Agent unless the context indicates otherwise.
 

      

      

      	
                  3.
 	
                  Delivery of Documents — Enclosed herewith are the following, the receipt of which you acknowledge by your execution hereof:
 

      

      

      	
                   
 	
                  (a)
 	
                  a copy of the Prospectus (the Final Prospectus to be provided when available);
 

      

       

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                  (b)
 	
                  the form of Rights Certificate;
 

      

      

      	
                   
 	
                  (c)
 	
                  Instructions as to Use of Patrick Industries’ Rights Certificates;
 

      

      

      	
                   
 	
                  (d)
 	
                  Notice of Guaranteed Delivery;
 

      

      

      	
                   
 	
                  (e)
 	
                  Notice of Important Tax Information;
 

      

      

      	
                   
 	
                  (f)
 	
                  Letter to Record Holders; and
 

      

      

      	
                   
 	
                  (g)
 	
                  Letter to Nominee Holders.
 

      

      As soon as is reasonably practical, you shall mail or cause to be mailed to each holder of Common Stock on the Record Date, the Final Prospectus, a Rights Certificate evidencing the Rights to which such holder is entitled, the Instructions as to Use of Patrick Industries’ Rights Certificates, the Notice of Guaranteed Delivery, the Notice of Important Tax Information, and such of the documents listed in (f) or (g) above as is appropriate, and an envelope addressed for return delivery.  Prior to mailing, you shall prepare and issue, or shall cause to be prepared and issued, Rights Certificates in the names of holders of Common Stock of record at the close of business on the Record Date and for the number of Rights to which they are entitled (in the form provided to you by the Company).

      

      	
                  4.
 	
                  Subscription Procedure —
 

      

      

      	
                   
 	
                  (a)
 	
                  Upon your receipt prior to 5:00 p.m., New York City time, on the Expiration Date (by mail or delivery), as Subscription Agent, of (i) any Rights Certificate completed and endorsed for exercise, as provided on the Rights Certificate, and (ii) payment in full of the Subscription Price multiplied by the number of shares of Common Stock subscribed for in U.S. funds by check, wire transfer, bank draft or money order payable at par (without deduction for bank service charges or otherwise) to the order of National City Bank, you shall, as soon as practicable after the Expiration Date, mail to the applicable subscriber’s registered address on the books of the Company, a stock certificate(s) representing the shares of Common Stock subscribed for and furnish a list of all such information to the Company.
 

      

      

      	
                   
 	
                  (b)
 	
                  Funds received by you pursuant to the Rights Offering shall be held by you in a segregated interest-bearing account for which the Company shall be entitled to all accrued interest. Upon mailing a stock certificate(s) representing the shares of Common Stock subscribed for, you shall promptly remit to the Company all funds received in payment of the Subscription Price for shares sold in the Rights Offering.  
 

      

      

      	
                   
 	
                  (c)
 	
                  You acknowledge that two of the Company’s shareholders, Tontine Capital Partners, L.P. and its affiliate, Tontine Capital Overseas Master Fund, L.P. (collectively, “Tontine Capital”), are participating in the Rights 
 

      

       

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      Offering pursuant to a Standby Purchase Agreement, dated September 17, 2007 (the “Standby Purchase Agreement”), through a private placement, pursuant to which Tontine Capital has agreed to purchase an aggregate of 509,366 shares of the Company’s Common Stock, representing Tontine Capital’s pro rata portion of the total 1,333,333 shares to be offered in the Rights Offering, at the same $11.25 Subscription Price per share.  Furthermore, if any Rights remain unexercised after the close of the Rights Offering, Tontine Capital has agreed, pursuant to the Standby Purchase Agreement and subject to certain conditions and limitations, to purchase all of the shares of the Company’s Common Stock not subscribed for in the Rights Offering by the Company’s other shareholders at a price per share equal to the Subscription Price.  All payments for shares purchased by Tontine
      Capital will be made directly to the Company.  You agree to deliver stock certificate(s) representing the total number of shares of Common Stock subscribed for by Tontine Capital in the manner and at the time directed by the Company.

      

      	
                  5.
 	
                  Defective Exercise of Rights; Lost Rights Certificates — The Company shall have the absolute right to reject any defective exercise of Rights or to waive any defect in exercise. Unless requested to do so by the Company, you shall not be under any duty to give notification to holders of Rights Certificates of any defects or irregularities in subscriptions. Subscriptions will not be deemed to have been made until any such defects or irregularities have been cured or waived within such time as the Company shall determine.  You shall as soon as practicable return Rights Certificates with the defects or irregularities which have not been cured or waived to the holder of the Rights.  If any Rights Certificate is alleged to have been lost, stolen or destroyed, you should follow the same
      procedures followed for lost stock certificates representing Common Stock you use in your capacity as transfer agent for the Company’s Common Stock.
 

      

      

      	
                  6.
 	
                  Late Delivery — If prior to 5:00 p.m., New York City time, on the Expiration Date you receive a guarantee notice substantially in the form of the Notice of Guaranteed Delivery delivered with the Rights Certificate, from a financial institution having an office or correspondent in the United States, or a member firm of any registered United States national securities exchange or of the Financial Industry Regulatory Authority stating the certificate number of the Rights Certificate relating to the Rights, the name and address of the exercising subscriber, the number of Rights represented by the Rights Certificate held by such exercising subscriber, the number of shares of Common Stock being subscribed for pursuant to the Rights and guaranteeing the delivery to you within three business days
      following the Expiration Date of (i) the Rights Certificate evidencing such Rights, and (ii) payment in full of the Subscription Price multiplied by the number of shares of Common Stock subscribed for, then the Rights may be exercised even though the Rights Certificate was not delivered to you prior to 5:00 p.m., New York City time, on the Expiration Date, provided that within three business days following the Expiration Date you receive the properly 
 

      

       

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      completed Rights Certificate evidencing the Rights being exercised, with signatures guaranteed if required, and full payment for the shares subscribed for.

      

      	
                  7.
 	
                  Delivery — You shall deliver to the Company the exercised Rights Certificates in accordance with written or oral directions received from the Company and shall deliver to the subscribers who have duly exercised Rights at their registered addresses a stock certificate(s) representing the shares of Common Stock subscribed for as instructed on the Rights Certificate.
 

      

      

      	
                  8.
 	
                  Reports — You shall notify the Company by email or telephone on and before the close of business on each business day during the period commencing 5 business days after the mailing of the Rights and ending at the Expiration Date (and in the case of guaranteed deliveries ending three business days after the Expiration Date) (a “daily notice”), which notice shall thereafter be confirmed in writing, of (i) the number of shares of Common Stock subscribed for on the day covered by such daily notice, (ii) the dollar amount of funds collected; (iii) the number of Rights subject to guaranteed delivery procedures on the day covered by such daily notice, and (iv) the cumulative total of the information set forth in clauses (i) through (iii) above.  At or before 5:00 p.m., New York City
      time, on the first business day following the Expiration Date, you shall certify in writing to the Company the cumulative total through the Expiration Date of all the information set forth in clauses (i) through (iii) above.  At or before noon, New York City time, on the fourth business day following the Expiration Date, you will execute and deliver to the Company a certificate setting forth the number of shares of Common Stock subscribed for pursuant to any Notices of Guaranteed Delivery and as to which Rights Certificates and full payment have been timely received.  You shall also maintain and update a listing of holders who have fully or partially exercised their Rights, and holders who have not exercised their Rights.  You shall provide the Company or its designees with such information compiled by you pursuant to this paragraph 8 as any of them shall request.
 

      

      

      	
                  9.
 	
                  Future Instructions — With respect to notices or instructions to be provided to the Company hereunder, you may rely and act on any written instruction signed by any one or more of the following authorized officers or employees of the Company:
 

      

      Andy L. Nemeth – Executive Vice President of Finance, Secretary-Treasurer, and Chief Financial Officer

      Paul E. Hassler – President and Chief Executive Officer

      

      	
                  10.
 	
                  Payment of Expenses — The Company will pay you compensation for acting in your capacity as Subscription Agent hereunder in the amount of $15,000 plus your reasonable out-of-pocket expenses.
 

      

      

      	
                  11.
 	
                  Counsel — You may consult with counsel satisfactory to you.  Except with regard to the provision of paragraph 12 herein, the Company shall only be 
 

      

       

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      responsible for the payment of legal fees for McDermott, Will & Emery LLP, the Company’s counsel.

      

      	
                  12.
 	
                  Indemnification — The Company covenants and agrees to indemnify and hold you harmless against any costs, expenses (including reasonable fees of legal counsel), losses or damages, which may be paid, incurred or suffered by or to which you may become subject arising from or out of, directly or indirectly, any claim or liability resulting from your actions as Subscription Agent pursuant hereto; provided that such covenant and agreement does not extend to such costs, expenses, losses and damages incurred or suffered by you as a result of, or arising out of, your own gross negligence, misconduct or bad faith or that of any employees, agents or independent contractors used by you in connection with performance of your duties as Subscription Agent hereunder.
 

      

      

      	
                  13.
 	
                  Notices — Unless otherwise provided herein, all reports, notices and other communications required or permitted to be given hereunder shall be in writing and delivered by hand or confirmed telecopy or by first class U.S. mail, postage prepaid, and shall be addressed as follows:
 

      

      

      	
                   
 	
                  (a)
 	
                  If to the Company, to:
 

      

      Patrick Industries, Inc.

      107 West Franklin Street

      P.O. Box 638

      Elkhart, Indiana 46515-0638

      Attention: Andy L. Nemeth

      Telephone: (574) 294-7511

      Facsimile: (574) 522-5213

       

      

      	
                   
 	
                  (b)
 	
                  If to you, to:
 

      

      

      	
                   
 	
                  National City Bank
 

      

      

      	
                   
 	
                  c/o Pamela J. Fisher
 

      

      

      	
                   
 	
                  Vice President
 

      

      

      	
                   
 	
                  Shareholder Services Administration
 

      

      

      	
                   
 	
                  629 Euclid Ave., Suite 635,  Locator 01-3116
 

      

      

      	
                   
 	
                  Cleveland, Ohio  44114
 

      

      Telephone: (216) 222-2492

      Facsimile: (216) 222-2649

       

       

       

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                  Yours truly,

      PATRICK INDUSTRIES, INC.
 
	
                   
 	
                  By:  /s/ Andy L. Nemeth
 
	
                   
 	
                  Name:  Andy L. Nemeth
 
	
                   
 	
                  Title:  Executive Vice President of Finance, Secretary-Treasurer, and Chief Financial Officer
 

      

       

      
      

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      Agreed & Accepted:

      NATIONAL CITY BANK

      By: ___________________

      Name:  Pamela J. Fisher

      Title:  Vice President

       

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