Document:

EX-10.8

 Exhibit 10.8 
 Execution Copy 
 AMENDED PROMISSORY NOTE 

(SECURED) 
  

			
	 $1,680,094.60
	  	November 30, 2011
		  	South Bend, Indiana

 THIS INSTRUMENT REPLACES A $425,149 FEBRUARY 3, 2010 SECURED PROMISSORY NOTE. 

THIS INSTRUMENT IS SUBJECT TO THE TERMS OF AN AMENDED AND RESTATED SUBORDINATION AGREEMENT BY JOHN A. MARTELL IN FAVOR OF WELLS FARGO
BANK, NATIONAL ASSOCIATION, ACTING THROUGH ITS WELLS FARGO BUSINESS CREDIT OPERATING DIVISION, DATED AS OF NOVEMBER 30, 2011. 
 FOR VALUE RECEIVED, the undersigned, MISCOR GROUP, LTD., an Indiana corporation (the “Borrower”), hereby promises to pay to the order of JOHN A. MARTELL, a resident of
Michigan (the “Lender”), at his residence of 61249 Howell Drive, Cassopolis, Michigan 49031 or at such other place as the holder hereof may designate in writing, in lawful money of the United States of America, the principal sum of
One Million, Six Hundred Eighty Thousand, Ninety-Four and 60/100 Dollars ($1,680,094.60), or such lesser principal sum as may then be owed by the Borrower to the Lender under this Amended Promissory Note (Secured) (the “Note”), and
any remaining accrued interest (as set forth below), on or before the earlier of the following dates: 
 The entire unpaid
principal of the Note, and any unpaid and accrued interest thereon, shall be due in full on October 31, 2013 (the “Stated Maturity Date”). 
 THE UNPAID INDEBTEDNESS EVIDENCED HEREBY SHALL BECOME IMMEDIATELY DUE AND PAYABLE UPON THE STATED MATURITY DATE, TOGETHER WITH ANY REMAINING ACCRUED INTEREST THEREON (AS SET FORTH BELOW). 

This Note shall bear interest as follows: 
  

	 	(a)	From today through February 28, 2013, interest on the unpaid principal amount shall be the greater of 7.5% or 2% plus Prime (as defined below);

  

	 	(b)	From March 1, 2013 until the Stated Maturity Date, interest on the unpaid principal amount shall be the greater of 9.5% or 2% plus Prime; 

 

	 	(c)	The rate of interest on the unpaid principal balance, for any of the time periods set forth in subparagraphs (a) and (b) above, shall be fixed at the
beginning date of each time period. 

  

	 	(d)	 As used in this Note, “Prime” shall mean the prime rate of interest published in the “Money Rates” section of The Wall Street
Journal. In the event The Wall Street Journal ceases to be published on a current basis or ceases to include publication of the “Prime Rate,” then the Lender or his assignee will select an alternative measure of the cost of
money which, in the 

	 	
Lender’s judgment, is reasonably equivalent to the “Prime Rate” as previously published in The Wall Street Journal, which alternative cost of money shall be
“Prime.” 

 The first special payment of principal shall be made on the date upon which the Borrower
refinances its primary financing facilities with Well Fargo Bank National Association. The first special payment of principal shall be in the amount of Three Hundred Sixteen Thousand Six Hundred Sixty-six Dollars ($316, 666.00). 

The second special payment of principal, in the amount of One Hundred, Twenty Thousand Dollars ($120,000.00) shall be made on or before
December 29, 2011. 
 The third special payment of principal, in the amount of Two Hundred, Fifty Thousand Dollars
($250,000), shall be made on or before June 30, 2012. 
 Regular installment payments on the principal sum shall begin
January 1, 2012, and shall be made on the first day of each consecutive month thereafter in amounts of not less than Seven Thousand Five Hundred Dollars ($7,500). Effective January 1, 2013, and on the first day of each consecutive calendar
month until the Stated Maturity Date, installment payments on the principal sum shall be not less than Twelve Thousand Five Hundred Dollars ($12,500), with the final payment of the entire unpaid principal, and all unpaid accrued interest thereon,
due on the Stated Maturity Date. All payments of principal shall be accompanied by a payment of all then-accrued but unpaid interest, including unpaid interest which may have accrued prior to the date of this Note. Payments of both principal and
interest hereunder are to be made in immediately available funds. 
 At any time there is a Change in Control (as defined in
this paragraph) of Borrower as a result of or contemporaneously with an exchange or issuance of securities to one or more persons, Borrower will be required to pay the then-remaining principal balance (plus all then accrued but unpaid interest)
under this Note. For purposes of this Agreement, the term “Change in Control” shall mean a situation (whether occasioned by issuance, sales, or transfers of a Borrower’s securities or by any merger, consolidation, recapitalization,
reorganization, or other transaction involving a Borrower) in which any person, company or organization, not a five percent (5%) or more shareholder as of the date of this Agreement, acquires record beneficial ownership of more than fifty
percent (50%) of MISCOR’s outstanding capital stock 
 If Wells Fargo Bank, National Association lawfully prevents the
Borrower from making payments of principal, then Borrower shall, nonetheless, make payments of any then-accrued but unpaid interest which would otherwise be payable on the principal payment date. 

If the Borrower fails, refuses, or is prevented from paying any principal, interest, charges, costs, expenses and/or fees in accordance
with the terms of this Note (“Event of Default”), then Lender shall be entitled, at his sole option, to accelerate the then outstanding indebtedness hereunder and to take all other action permissible by law. Upon an Event of
Default, the Lender at his option may, if permitted under applicable law, increase the rate of interest on this Note to Five (5) percentage points (“Default Rate of Interest”) over the then applicable interest rate. The Default Rate
of Interest will not exceed the maximum rate permitted by applicable law. 
 The remedies of the Lender as provided in this Note
shall be cumulative and concurrent, and may be pursued singly, successively, or together against the Borrower, and/or against any collateral or guarantor, at the sole discretion of the Lender. 

The Borrower hereby waives presentment for payment, demand, notice of nonpayment, notice of dishonor, protest of any dishonor, notice of
protest, and protest of this Note and all other notices in 

  
 2 

 
connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall not in any manner be affected by any indulgence,
extension of time, renewal, waiver or modification granted or consented to by the Lender; and the Borrower agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to the Borrower or affecting the
Borrower’s liability hereunder. 
 It is the intent of the Lender and the Borrower that the rate of interest and all other
charges to the Borrower be lawful. If for any reason the payment of a portion of the interest or other charges otherwise required to be paid under this Note would exceed the limit which the Lender may lawfully charge the Borrower, then the
obligation to pay interest or other charges shall automatically be reduced to such limit. 
 The Lender shall not by any act of
omission or commission be deemed to waive any of its rights or remedies hereunder unless such waiver be in writing and signed by the Lender (and then only to the extent specifically set forth therein). A waiver of any one event shall not be
construed as continuing or as a bar to or waiver of such right or remedy on a subsequent event. 
 Whenever possible, each
provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under such law, such provision shall be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of such provisions of this Note. 
 This Note shall not be
amended, supplemented or modified except pursuant to a writing signed by both the Lender and the Borrower. 
 If at any time or
times, the Lender: (a) employs counsel in good faith for advice or other representation (i) with respect to this Note or any collateral securing this Note, (ii) to represent Lender in any restructuring, workout, litigation, contest,
dispute, suit or proceeding or to commence, defend or intervene or to take any other action in or with respect to any litigation, contest, dispute or proceeding (whether instituted by the Lender, the Borrower or any other person or entity) in any
way or respect relating to this Note or any collateral securing this Note, or (iii) to enforce any rights of the Lender against the Borrower; (b) takes any action to protect, collect, sell, liquidate or otherwise dispose of any collateral
securing this Note; and/or (c) attempts to or enforces any of the Lender’s rights and remedies against the Borrower; then the costs and expenses incurred by the Lender shall be part of the indebtedness evidenced by this Note,
payable by the Borrower to the Lender on demand. Without limiting the generality of the foregoing, such expenses and costs include any and all court costs, reasonable attorneys’ fees and expenses, and accountants’ fees and expenses.

 Payment of this Note is secured pursuant to that certain Security Agreement dated as of February 10, 2010 (the
“Security Agreement”), and other related documents dealing with the grant of security for the indebtedness represented by this Note. 
 This Note may be prepaid in advance of the installments above or the stated Maturity Date, without penalty and at the election of Borrower at any time. 

This Note shall inure to the benefit of the Lender and its successors and assigns and shall be binding upon the Borrower and its
successors and permitted assigns. As used herein the term “Lender” shall mean and include the successors and assigns of the identified payee and the holder or holders of this Note from time to time. 

  
 3 

 THIS NOTE SHALL BE CONSTRUED IN ALL RESPECTS IN ACCORDANCE WITH, AND ENFORCED AND GOVERNED
BY THE INTERNAL LAWS OF INDIANA, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. 
 THE BORROWER AND THE LENDER HEREBY
IRREVOCABLY AND KNOWINGLY WAIVE (TO THE FULLEST EXTENT PERMITTED BY LAW) ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING (INCLUDING, WITHOUT LIMITATION, ANY COUNTERCLAIM) ARISING OUT OF THIS NOTE OR ANY COLLATERAL SECURING THIS NOTE,
INCLUDING, WITHOUT LIMITATION, ANY ACTION OR PROCEEDING (A) TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR IN CONNECTION WITH THIS NOTE OR THE SECURITY AGREEMENT, OR (B) ARISING FROM ANY DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO
THIS NOTE OR THE SECURITY AGREEMENT. THE LENDER AND THE BORROWER AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT A JURY. 
 IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed by its authorized officer as of the date first above written. 

 

			
	MISCOR GROUP, LTD
		
	By:	 	 
		 	Michael P. Moore, President and
Chief Executive Officer

  
 4EX-10.9

 Exhibit 10.9 
 MUTUAL RELEASE 
 This Mutual Release (the “Release”) is made by
and among MISCOR GROUP, LTD., an Indiana corporation (“MISCOR”), John A. Martell and Bonnie Martell (the “Martells”), Martell Electric, LLC, an Indiana liability company (“Martell Electric”), and Ideal Consolidated,
Inc., an Indiana corporation (“Ideal Consolidated”). The Martells, Martell Electric and Ideal Consolidated are called the “Martell Parties.” 
 Recitals 
 A. The Martell Parties entered into a February 3, 2010
Purchase Agreement with MISCOR (the “Agreement”). Among other things, the Agreement provided for the sale from MISCOR to the Martells of Ideal Consolidated and Martell Electric. 

B. A dispute arose between the Martell Parties and MISCOR concerning certain terms and obligations under the Agreement. The primary
disputed issue, from which most of the other disputes flowed, was whether the amount of working capital left by MISCOR in Martell Electric and Ideal Consolidated was too low. 
 C. The parties to this Agreement desire that all disputes presently existing among them, including, without limitation, all disputes arising out of the Agreement, be settled and that the parties be spared
the trouble and expense of litigation. They also mutually desire that all of the terms and conditions of their compromise and settlement be and remain strictly confidential. 
 D. Simultaneous with the execution of this Release: 
 (1) MISCOR
shall give the Martells the Amended Promissory Note, a copy of which is attached as Exhibit A. 

 (2) The Martells shall deliver to MISCOR an executed subordination agreement
relating to MISCOR’s indebtedness to Wells Fargo Bank and BDeWees, Inc. and XGen III, Ltd. The subordination agreements are attached as Exhibit B (Wells Fargo Bank) and Exhibit C (BDeWees, Inc. and XGen III, Ltd.). 

(3) MISCOR shall execute extensions of the leases for the facilities it leases in Hammond, Indiana and Boardman, Ohio, as
described in the Letter Agreement. 
 Agreement 
 In consideration of the matters set forth in the Recitals, the conditions and terms of this Release, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 
 1. Release by the Martell Parties. Upon payment of (a) the $316,666
principal payment due under the Amended Promissory Note at MISCOR’S closing of its refinancing with Wells Fargo Bank and, (b) the corrected interest payment due for the period of time in 2010 when the amount of subdebt to the Martells was
being determined, the Martell Parties release and discharge MISCOR and its former, present and future subsidiaries, divisions, affiliates, shareholders, agents, officers, directors, employees, successors, assigns, insurers, and any and all other
persons or entities acting by, through or under any of them, both individually and in their representative capacities (collectively, the “Martell Releasees”) from any and all obligations, claims, demands, damages, actions, causes of action
or liabilities of whatsoever nature, whether known or unknown, disclosed or undisclosed, accrued or contingent, that the 

 
Martell Parties now have against any of the Martell Releasees, including, without limitation, any claims arising on or before the date hereof out of the Agreement, but specifically excluding any
and all obligations of future payment or performance pursuant to the (e) Amended Promissory Note, (f) any real estate leases, (g) the agreements under which security interests are granted to secure the indebtedness represented by the
Amended Promissory Note, (h) the obligation of MISCOR or its subsidiaries to pay John Martell for services or reimburse John Martell for expenses he incurred in performing services for MISCOR or its subsidiaries; and (i) any instruments or
rights relating to the ownership or equity in MISCOR. 
 2. Release by MISCOR. MISCOR, for itself, its successors and
assigns, hereby releases and discharges each of the Martell Parties from any and all obligations, claims, demands, damages, actions, causes of action or liabilities of whatsoever nature, whether known or unknown, disclosed or undisclosed, accrued or
contingent, that MISCOR now has or may have against any of the Martell Parties, including, without limitation, any claims arising on or before the date hereof out of the Agreement, but specifically excluding any and all obligations of future payment
or performance pursuant to the (a) Amended Promissory Note, and (b) any security agreements which presently secure MISCOR’s obligations to the Martell Parties, Martell Electronic and Ideal Consolidated, and (c) any leases between
the Martell Parties and MISCOR. 
 3. Confidentiality. The parties agree to keep completely confidential and not disclose
the terms and conditions of this Release except to the extent required by law. 
 4. No Admission. The parties
acknowledge that this Release constitutes a compromise and settlement of disputed claims, that the parties deny and continue denying liability for any and all claims, and that this Release and the actions taken pursuant to this

  
 -3-

 
Release do not constitute any acknowledgment or admission on the part of any party of any liability or a precedent upon which any liability may be asserted. 

5. Binding On Successors and Assigns. The terms and conditions of this Release shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns. 
 6. Governing Law. This Release and the
parties’ obligations hereunder shall be construed under and governed by the internal laws of Indiana, without regard to principles of choice of law. 
 7. Entire Agreement. This Release, the Amended Promissory Note, the documents and instruments providing security for the Amended Promissory Note, and the related subordination agreements given by
the Martells to Wells Fargo and BDeWees, Inc. and XGen III, Ltd. (“Subordination Agreements”) contain the entire agreement of the parties with respect to the settlement of the disputed claims and all other claims the parties have or could
have asserted as of the date of execution of this Release. In executing this Release, no party has relied on representations or promises of any other party other than the representations and promises contained in this Release, the Letter Agreement,
the Amended Promissory Note, the Subordination Agreements, and the lease extensions. 
 8. Captions. The captions in this
Release are for convenience only, are not integral parts of this Release, and are not to be construed in the interpretation of any part of this Release. 
 9. Negotiated Release; Construction. This Release is the result of negotiations among the parties, and no party shall be deemed to be the drafter of this Release.

  
 -4-

 
The language and all parts of this Release shall in all cases be construed as a whole, according to their fair meanings, and not strictly for or against any party. 

10. Advice of Counsel. Each party to this Release has been represented by legal counsel of his or its own choice in the
negotiation of the compromise and settlement provided for in this Release, and each party has freely decided to enter into this Release after receiving advice from its own legal counsel about the legal effect of this Release. 

  
 -5-

 IN WITNESS WHEREOF, the parties have executed this Release on the dates provided below.

  

							
		 		 	MISCOR GROUP, INC.
				
	Date: November 30, 2011	 		 	By:	 	 
		 		 	Printed: Michael P. Moore
		 		 	Title: President
			
		 		 	MARTELL ELECTRIC, LLC
				
	Date: November 30, 2011	 		 	By:	 	 
		 		 	Printed: John A. Martell
		 		 	Title: President
			
		 		 	IDEAL CONSOLIDATED, INC.
				
		 		 	By:	 	 
		 		 	Printed: John A. Martell
		 		 	Title: President
			
	Date: November 30, 2011	 		 	
			
		 		 	 
		 		 	John A. Martell
			
		 		 	 
		 		 	Bonnie Martell

  
 -6-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00197-of-00352.parquet"}]]