Document:

mis_8k0118ex105.htm

    Exhibit
      10.5

    

     

    COLLATERAL
      PLEDGE AGREEMENT

     

    Date:
      January 14, 2008

     

    
      	 DEBTOR:	 MISCOR
              GROUP, LTD.

      	 	 1125
              S. Walnut Street

      	 	 South
              Bend, Indiana  46619

      	 	 Telecopier
              No. 574/232-7648

      	 	 

      	 	 

      	
              SECURED
                PARTY:

            	
              Wells
                Fargo Bank, National Association, acting through its Wells Fargo
                Business
                Credit operating division

            

      	 	 111
              East Wayne Street, 2nd Floor

      	 	 MAC
              N8622-02A

      	 	 Fort
              Wayne, Indiana 46802

      	 	 Telecopier:  260/461-6037

    

    

     1.           Security
      Interest and Collateral. To secure the payment and performance of the
      Indebtedness which MISCOR GROUP, LTD., an Indiana corporation (“MISCOR”),
      MAGNETECH INDUSTRIAL SERVICES, INC., an Indiana corporation (“MIS”), MARTELL
      ELECTRIC, LLC, an Indiana limited liability company (“Martell”), HK ENGINE
      COMPONENTS, LLC, an Indiana limited liability company (“HK”), MAGNETECH POWER
      SERVICES, LLC, an Indiana limited liability company (“MPS”) and IDEAL
      CONSOLIDATED, INC., an Indiana corporation (“Ideal”), 3-D SERVICE, LTD., an Ohio
      limited liability company (“3D”), and AMERICAN MOTIVE POWER, INC., a Nevada
      corporation (“AMP” and together with MISCOR, MIS, Martell, HK, MPS, Ideal and
      3D, the “Borrowers” and each a “Borrower”) may now or at any time hereafter owe
      to the Secured Party, the Debtor hereby grants the Secured Party a security
      interest (herein called the “Security Interest”) in all property of any kind now
      or at any time hereafter owned by the Debtor, or in which the Debtor may now
      or
      hereafter have an interest, which may now be or may at any time hereafter
      (i) come into the possession or control of the Secured Party or into the
      possession or control of the Secured Party’s agents or correspondents, whether
      such possession or control is given for collateral purposes or for safekeeping;
      or (ii) be transferred or assigned to the Secured Party by any means
      permitted under Article 8 of the Uniform Commercial Code including, but not
      limited to, all of the stock and membership interests held by the Debtor in
      each
      of the other Borrowers, together with all rights in connection with such
      property (the “Collateral”).  "Indebtedness" is used herein in its
      most comprehensive sense and means any and all advances, debts, obligations
      and
      liabilities of the  Borrowers to the Secured
      Party, heretofore, now or hereafter made, incurred or created, whether voluntary
      or involuntary and however arising, whether due or not due, absolute or
      contingent, liquidated or unliquidated, determined or undetermined, including
      under any swap, derivative, foreign exchange, hedge, deposit, treasury
      management or other similar transaction or arrangement at any time entered
      into
      by the Borrowers, or any of them, with
      the Secured Party, and whether the Borrowers may be liable individually or
      jointly with others, or whether recovery upon such Indebtedness may be or
      hereafter becomes unenforceable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      2.           Representations,
        Warranties and Covenants. The Debtor represents, warrants and covenants
        that:

       

      (a)           The
        Debtor will duly endorse, in blank, each and every instrument constituting
        Collateral by signing on said instrument or by signing a separate document
        of
        assignment or transfer, if required by the Secured Party.

       

      (b)           The
        Debtor is the owner of the Collateral free and clear of all liens, encumbrances,
        security interests and restrictions, except the Security Interest and any
        restrictive legend appearing on any instrument constituting
        Collateral.

       

      (c)           The
        Debtor will keep the Collateral free and clear of all liens, encumbrances
        and
        security interests, except the Security Interest and any restrictive legend
        appearing on any instrument constituting Collateral.

       

      (d)           The
        Debtor will pay, when due, all taxes and other governmental charges levied
        or
        assessed upon or against any Collateral.

       

      (e)           At
        any time, upon request by the Secured Party, the Debtor will deliver to the
        Secured Party all notices, financial statements, reports or other communications
        received by the Debtor as an owner or holder of the Collateral.

       

      (f)           The
        Debtor will upon receipt deliver to the Secured Party in pledge as additional
        Collateral all securities distributed on account of the Collateral such as
        stock
        dividends and securities resulting from stock splits, reorganizations and
        recapitalizations.

       

      3.           Rights
        of the Secured Party. The Debtor agrees that the Secured Party may at any
        time, whether before or after the occurrence of an Event of Default (as
        hereinafter defined) and without notice or demand of any kind, (i) notify
        the obligor on or issuer of any Collateral to make payment to the Secured
        Party
        of any amounts due or distributable thereon; (ii) in the Debtor’s name or
        the Secured Party’s name enforce collection of any Collateral by suit or
        otherwise, or surrender, release or exchange all or any part of it, or
        compromise, extend or renew for any period any obligation evidenced by the
        Collateral; (iii) receive all proceeds of the Collateral; and
        (iv) hold any increase or profits received from the Collateral as
        additional security for the Indebtedness, except that any money received
        from
        the Collateral shall, at the Secured Party’s option, be applied in reduction of
        the Indebtedness, in such order of application as the Secured Party may
        determine, or be remitted to the Debtor.

       

      4.           Events
        of Default. Each of the following occurrences shall constitute an event of
        default under this Agreement (herein called “Event of Default”): (i) the
        Borrowers shall fail to pay any or all of the Indebtedness when due, or the
        Debtor shall fail to observe or perform any covenant or agreement herein
        binding
        on it; (ii) any representation or warranty by the Debtor set forth in this
        Agreement or made to the Secured Party in any financial statements or reports
        submitted to the Secured Party by or on behalf of the Debtor shall prove
        materially false or misleading; (iii) an Event of Default, as defined in
        any
        credit agreement or

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      other
        instrument or agreement evidencing or governing any or all of the Indebtedness,
        shall occur.

       

      5.           Remedies
        upon Event of Default. Upon the occurrence of an Event of Default and at any
        time thereafter, the Secured Party may exercise any one or more of the following
        rights or remedies: (i) declare all unmatured Indebtedness to be immediately
        due
        and payable, and the same shall thereupon be immediately due and payable,
        without presentment or other notice or demand; (ii) exercise all voting and
        other rights as a holder of the Collateral; (iii) exercise and enforce any
        or
        all rights and remedies available upon default to a secured party under the
        Uniform Commercial Code as in effect from time to time in the state of
        Wisconsin, including the right to offer and sell the Collateral privately
        to
        purchasers who will agree to take the Collateral for investment and not with
        a
        view to distribution and who will agree to the imposition of restrictive
        legends
        on the certificates representing the Collateral, and the right to arrange
        for a
        sale which would otherwise qualify as exempt from registration under the
        Securities Act of 1933; and if notice to the Debtor of any intended disposition
        of the Collateral or any other intended action is required by law in a
        particular instance, such notice shall be deemed commercially reasonable
        if
        given at least 10 calendar days prior to the date of intended disposition
        or
        other action; (iv) exercise or enforce any or all other rights or remedies
        available to the Secured Party by law or agreement against the Collateral,
        against the Debtor or against any other person or property.

       

      6.           Miscellaneous.
        Any disposition of the Collateral in the manner provided in Section 5 shall
        be
        deemed commercially reasonable. This Agreement can be waived, modified, amended,
        terminated or discharged, and the Security Interest can be released, only
        explicitly in a writing signed by the Secured Party. A waiver signed by the
        Secured Party shall be effective only in the specific instance and for the
        specific purpose given. Mere delay or failure to act shall not preclude the
        exercise or enforcement of any of the Secured Party’s rights or remedies. All
        rights and remedies of the Secured Party shall be cumulative and may be
        exercised singularly or concurrently, at the Secured Party’s option, and the
        exercise or enforcement of any one such right or remedy shall neither be
        a
        condition to nor bar the exercise or enforcement of any other. All notices
        to be
        given to the Debtor shall be deemed sufficiently given if delivered or mailed
        by
        registered or certified mail, postage prepaid, or by telecopier to the Debtor
        at
        its address or telecopier number, as the case may be, set forth above or
        at the
        most recent address or telecopier number shown on the Secured Party’s records.
        All requests under Section 9-210 of the Uniform Commercial Code (i) shall
        be made in a writing signed by a person duly authorized by Debtor,
        (ii) shall be personally delivered, sent by registered or certified mail,
        return receipt requested, or by overnight courier of national reputation,
        (iii) shall be deemed to be sent when received by the Secured Party, and
        (iv) shall otherwise comply with the requirements of Section 9-210. The Debtor
        requests that the Secured Party respond to all such requests which on their
        face
        appear to come from an authorized individual and releases the Secured Party
        from
        any liability for so responding. The Debtor shall pay Secured Party the maximum
        amount allowed by law for responding to such requests. The Secured Party’s duty
        of care with respect to Collateral in its possession (as imposed by law)
        shall
        be deemed fulfilled if the Secured Party exercises reasonable care in physically
        safekeeping such Collateral or, in the

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      case
        of
        Collateral in the custody or possession of a bailee or other third person,
        exercises reasonable care in the selection of the bailee or other third person,
        and the Secured Party need not otherwise preserve, protect, insure or care
        for
        any Collateral. The Secured Party shall not be obligated to preserve any
        rights
        the Debtor may have against prior parties, to exercise at all or in any
        particular manner any voting rights which may be available with respect to
        any
        Collateral, to realize on the Collateral at all or in any particular manner
        or
        order, or to apply any cash proceeds of Collateral in any particular order
        of
        application. The Debtor will reimburse the Secured Party for all expenses
        (including reasonable attorneys’ fees and legal expenses) incurred by the
        Secured Party in the protection, defense or enforcement of the Security
        Interest, including expenses incurred in any litigation or bankruptcy or
        insolvency proceedings. This Agreement shall be binding upon and inure to
        the
        benefit of the Debtor and the Secured Party and their respective heirs,
        representatives, successors and assigns and shall take effect when signed
        by the
        Debtor and delivered to the Secured Party, and the Debtor waives notice of
        the
        Secured Party’s acceptance hereof. If any provision or application of this
        Agreement is held unlawful or unenforceable in any respect, such illegality
        or
        unenforceability shall not affect other provisions or applications which
        can be
        given effect, and this Agreement shall be construed as if the unlawful or
        unenforceable provision or application had never been contained herein or
        prescribed hereby. All representations and warranties contained in this
        Agreement shall survive the execution, delivery and performance of this
        Agreement and the creation and payment of the Indebtedness. If this Agreement
        is
        signed by more than one person as the Debtor, the term “Debtor” shall refer to
        each of them separately and to both or all of them jointly; all such persons
        shall be bound both severally and jointly with the other(s); and the
        Indebtedness shall include all debts, liabilities and obligations owed to
        the
        Secured Party by any Debtor solely or by both or several or all Debtors jointly
        or jointly and severally, and all property described in Section 1 shall be
        included as part Collateral, whether it is owned jointly by both or all Debtors
        or is owned in whole or in part by one (or more) of them.  This
        Agreement shall be governed by the internal laws (other than conflict laws)
        of
        the state of Wisconsin and, unless the context otherwise requires, all terms
        used herein which are defined in Articles 1 and 9 of the Uniform Commercial
        Code, as in effect in Wisconsin, shall have the meanings therein stated.
        Each
        party consents to the personal jurisdiction of the state and federal courts
        located in the State of Wisconsin in connection with any controversy related
        to
        this Agreement, waives any argument that venue in any such forum is not
        convenient, and agrees that any litigation initiated by any of them in
        connection with this Agreement may be venued in either the state and federal
        courts located in Milwaukee County, Wisconsin. THE PARTIES WAIVE ANY
        RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING
        TO
        THIS AGREEMENT.

       

      
        
          	 	
                  MISCOR
                    GROUP, LTD.

                
	 	 	 	 
	 	
                  By

                	 /s/
                  John A. Martell
	 	 	
                  John
                    A. Martell, President

                

        

        

      

    

     

    4mis_8k0118ex106.htm

    
      
        Exhibit
          10.6

        

         

        PATENT
          AND TRADEMARK SECURITY AGREEMENT

         

         

        This
          Agreement, dated as of January 14, 2008, is made by and between 3-D SERVICE,
          LTD., an Ohio limited liability company having a business location at the
          address set forth below under its signature (the “Debtor”), and Wells Fargo
          Bank, National Association (the “Secured Party”), acting through its Wells Fargo
          Business Credit operating division, having a business location at the address
          set forth below under its signature.

         

        RECITALS:

         

        The
          Debtor, together with certain affiliates of the Debtor, and the Secured
          Party
          are parties to a Credit and Security Agreement of even date herewith (as
          the
          same may hereafter be amended, supplemented or restated from time to time,
          the
“Credit Agreement”) setting forth the terms on which the Secured Party may now
          or hereafter extend credit to or for the account of the Debtor.

         

        As
          a
          condition to extending credit to or for the account of the Debtor, the
          Secured
          Party has required the execution and delivery of this Agreement by the
          Debtor.

         

        ACCORDINGLY,
          in consideration of the mutual covenants contained in the Loan Documents
          and
          herein, the parties hereby agree as follows:

         

        1.           Definitions  All
          terms defined in the Recitals hereto or in the Credit Agreement that are
          not
          otherwise defined herein shall have the meanings given to them
          therein.  In addition, the following terms have the meanings set forth
          below:

         

        “Obligations”
          means each and every debt, liability and obligation of every type and
          description arising under or in connection with any Loan Document (as defined
          in
          the Credit Agreement) which the Debtor may now or at any time hereafter
          owe to
          the Secured Party, whether such debt, liability or obligation now exists
          or is
          hereafter created or incurred and whether it is or may be direct or indirect,
          due or to become due, absolute or contingent, primary or secondary, liquidated
          or unliquidated, independent, joint, several or joint and several, and
          including
          specifically, but not limited to, the Indebtedness (as defined in the Credit
          Agreement).

         

        “Patents”
          means all of the Debtor’s right, title and interest in and to patents or
          applications for patents, fees or royalties with respect to each, and including
          without limitation the right to sue for past infringement and damages therefor,
          and licenses thereunder, all as presently existing or hereafter arising
          or
          acquired, including without limitation the patents listed on Exhibit
          A.

         

        “Security
          Interest” has the meaning given in Section 2.

         

        “Trademarks”
          means all of the Debtor’s right, title and interest in and to:
          (i) trademarks, service marks, collective membership marks, registrations
          and

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

         

        applications
          for registration for each, and the respective goodwill associated with
          each,
          (ii) licenses, fees or royalties with respect to each, (iii) the right
          to sue for past, present and future infringement, dilution and damages
          therefor,
          (iv) and licenses thereunder, all as presently existing or hereafter
          arising or acquired, including, without limitation, the marks listed on
          Exhibit B.

         

        2.           Security
          Interest.  The Debtor hereby irrevocably pledges and assigns to,
          and grants the Secured Party a security interest (the “Security Interest”), with
          power of sale to the extent permitted by law, in the Patents and in the
          Trademarks to secure payment of the Obligations.  As set forth in the
          Credit Agreement, the Security Interest is coupled with a security interest
          in
          substantially all of the personal property of the Debtor.  This
          Agreement grants only the Security Interest herein described, is not intended
          to
          and does not affect any present transfer of title of any trademark registration
          or application and makes no assignment and grants no right to assign or
          perform
          any other action with respect to any intent to use trademark application,
          unless
          such action is permitted under 15 U.S.C. §1060.

         

        3.           Representations,
          Warranties and Agreements.  The Debtor represents, warrants and
          agrees as follows:

         

        (a)           Existence;
          Authority.  The Debtor is a corporation
          duly organized, validly existing and in good standing under the laws of
          its
          state of incorporation, and this Agreement has been duly and validly authorized
          by all necessary corporate action on the part of the Debtor.

         

        (b)           Patents.  Exhibit
          A accurately lists all Patents owned or controlled by the Debtor
          as of
          the date hereof, or to which the Debtor has a right as of the date hereof
          to
          have assigned to it, and accurately reflects the existence and status of
          applications and letters patent pertaining to the Patents as of the date
          hereof.  If after the date hereof, the Debtor owns, controls or has a
          right to have assigned to it any Patents not listed on Exhibit
          A, or if Exhibit A ceases to accurately reflect the
          existence and status of applications and letters patent pertaining to the
          Patents, then the Debtor shall within sixty (60) days provide written notice
          to
          the Secured Party with a replacement Exhibit A, which upon acceptance by
          the
          Secured Party shall become part of this Agreement.

         

        (c)           Trademarks.
          Exhibit B accurately lists all Trademarks owned or
          controlled by the Debtor as of the date hereof and accurately reflects
          the
          existence and status of Trademarks and all applications and registrations
          pertaining thereto as of the date hereof; provided, however, that
Exhibit B need not list common law marks (i.e., Trademarks for
          which there are no applications or registrations) which are not material
          to the
          Debtor’s or any Affiliate’s business(es).  If after the date hereof,
          the Debtor owns or controls any Trademarks not listed on Exhibit B
(other than common law marks which are not material to
          the Debtor’s or
          any Affiliate’s business(es)), or if Exhibit B ceases to
          accurately reflect the existence and status of applications and

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        registrations
          pertaining to the Trademarks, then the Debtor shall promptly provide written
          notice to the Secured Party with a replacement Exhibit B, which
          upon acceptance by the Secured Party shall become part of this
          Agreement.

         

        (d)           Affiliates.  As
          of the date hereof, no Affiliate owns, controls, or has a right to have
          assigned
          to it any items that would, if such item were owned by the Debtor, constitute
          Patents or Trademarks.  If after the date hereof any Affiliate owns,
          controls, or has a right to have assigned to it any such items, then the
          Debtor
          shall promptly either: (i) cause such Affiliate to assign all of its rights
          in such item(s) to the Debtor; or (ii) notify the Secured Party of such
          item(s) and cause such Affiliate to execute and deliver to the Secured
          Party a
          patent and trademark security agreement substantially in the form of this
          Agreement.

         

        (e)           Title.  The
          Debtor has absolute title to each Patent and each Trademark listed on Exhibits
          A
          and B, free and clear of all Liens except Permitted Liens.  The Debtor
          (i) will have, at the time the Debtor acquires any rights in Patents or
          Trademarks hereafter arising, absolute title to each such Patent or Trademark
          free and clear of all Liens except Permitted Liens, and (ii) will keep all
          Patents and Trademarks free and clear of all Liens except Permitted
          Liens.

         

        (f)           No
          Sale.  Except as permitted in the
          Credit Agreement, the Debtor will not assign, transfer, encumber or otherwise
          dispose of the Patents or Trademarks, or any interest therein, without
          the
          Secured Party’s prior written consent.

         

        (g)           Defense.  The
          Debtor will at its own expense and using commercially reasonable efforts,
          protect and defend the Patents and Trademarks against all claims or demands
          of
          all Persons other than those holding Permitted Liens.

         

        (h)           Maintenance.  The
          Debtor will at its own expense maintain the Patents and the Trademarks
          to the
          extent reasonably advisable in its business including, but not limited
          to,
          filing all applications to obtain letters patent or trademark registrations
          and
          all affidavits, maintenance fees, annuities, and renewals possible with
          respect
          to letters patent, trademark registrations and applications
          therefor.  The Debtor covenants that it will not abandon nor fail to
          pay any maintenance fee or annuity due and payable on any Patent or Trademark,
          nor fail to file any required affidavit or renewal in support thereof,
          without
          first providing the Secured Party:  (i) sufficient written
          notice, of at least thirty (30) days, to allow the Secured Party to timely
          pay
          any such maintenance fees or annuities which may become due on any Patents
          or
          Trademarks, or to file any affidavit or renewal with respect thereto, and
          (ii) a separate written power of attorney or other authorization to pay
          such maintenance fees or annuities, or to file such affidavit or renewal,
          should
          such be necessary or desirable.

         

        (i)           Secured
          Party’s Right to Take Action.  If the Debtor fails to
          perform or observe any of its covenants or agreements set forth in this
          Section
          3, and if such

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        failure
          continues for a period of ten (10) calendar days after the Secured Party
          gives
          the Debtor written notice thereof (or, in the case of the agreements contained
          in subsection (h), immediately upon the occurrence of such failure, without
          notice or lapse of time), or if the Debtor notifies the Secured Party that
          it
          intends to abandon a Patent or Trademark, the Secured Party may (but need
          not)
          perform or observe such covenant or agreement or take steps to prevent
          such
          intended abandonment on behalf and in the name, place and stead of the
          Debtor
          (or, at the Secured Party’s option, in the Secured Party’s own name) and may
          (but need not) take any and all other actions which the Secured Party may
          reasonably deem necessary to cure or correct such failure or prevent such
          intended abandonment.

         

        (j)           Costs
          and Expenses.  Except to the extent
          that the effect of such payment would be to render any loan or forbearance
          of
          money usurious or otherwise illegal under any applicable law, the Debtor
          shall
          pay the Secured Party on demand the amount of all moneys expended and all
          costs
          and expenses (including reasonable attorneys’ fees and disbursements) incurred
          by the Secured Party in connection with or as a result of the Secured Party’s
          taking action under subsection (i) or exercising its rights under Section
          6,
          together with interest thereon from the date expended or incurred by the
          Secured
          Party at the Default Rate.

         

        (k)           Power
          of Attorney.  To facilitate the Secured
          Party’s taking action under subsection (i) and exercising its rights under
          Section 6, the Debtor hereby irrevocably appoints (which appointment is
          coupled
          with an interest) the Secured Party, or its delegate, as the attorney-in-fact
          of
          the Debtor with the right (but not the duty) from time to time to create,
          prepare, complete, execute, deliver, endorse or file, in the name and on
          behalf
          of the Debtor, any and all instruments, documents, applications, financing
          statements, and other agreements and writings required to be obtained,
          executed,
          delivered or endorsed by the Debtor under this Section 3, or, necessary
          for the
          Secured Party, after an Event of Default, to enforce or use the Patents
          or
          Trademarks or to grant or issue any exclusive or non-exclusive license
          under the
          Patents or Trademarks to any third party, or to sell, assign, transfer,
          pledge,
          encumber or otherwise transfer title in or dispose of the Patents or Trademarks
          to any third party.  The Debtor hereby ratifies all that such attorney
          shall lawfully do or cause to be done by virtue hereof.  The power of
          attorney granted herein shall terminate upon the termination of the Credit
          Agreement as provided therein and the payment and performance of all
          Obligations.

         

        4.           Debtor’s
          Use of the Patents and Trademarks.  The Debtor shall be permitted
          to control and manage the Patents and Trademarks, including the right to
          exclude
          others from making, using or selling items covered by the Patents and Trademarks
          and any licenses thereunder, in the same manner and with the same effect
          as if
          this Agreement had not been entered into, so long as no Event of Default
          occurs
          and remains uncured.

         

        5.           Events
          of Default.  Each of the following occurrences shall constitute an
          event of default under this Agreement (herein called “Event of
          Default”):  (a) an Event of Default, as defined in the Credit
          Agreement, shall occur; or (b) the Debtor shall fail promptly to observe or
          perform any covenant or agreement herein binding on it; or (c) any of the
          representations or warranties contained in Section 3 shall prove to have
          been
          incorrect in any material respect when made.

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        6.           Remedies.  Upon
          the occurrence of an Event of Default and at any time thereafter, the Secured
          Party may, at its option, take any or all of the following actions:

         

        (a)           The
          Secured Party may exercise any or all remedies available under the Credit
          Agreement.

         

        (b)           The
          Secured Party may sell, assign, transfer, pledge, encumber or otherwise
          dispose
          of the Patents and Trademarks.

         

        (c)           The
          Secured Party may enforce the Patents and Trademarks and any licenses
          thereunder, and if Secured Party shall commence any suit for such enforcement,
          the Debtor shall, at the request of Secured Party, do any and all lawful
          acts
          and execute any and all proper documents required by Secured Party in aid
          of
          such enforcement.

         

        7.           Miscellaneous.  This
          Agreement can be waived, modified, amended, terminated or discharged, and
          the
          Security Interest can be released, only explicitly in a writing signed
          by the
          Secured Party.  A waiver signed by the Secured Party shall be
          effective only in the specific instance and for the specific purpose
          given.  Mere delay or failure to act shall not preclude the exercise
          or enforcement of any of the Secured Party’s rights or remedies.  All
          rights and remedies of the Secured Party shall be cumulative and may be
          exercised singularly or concurrently, at the Secured Party’s option, and the
          exercise or enforcement of any one such right or remedy shall neither be
          a
          condition to nor bar the exercise or enforcement of any other.  All
          notices to be given to Debtor under this Agreement shall be given in the
          manner
          and with the effect provided in the Credit Agreement.  The Secured
          Party shall not be obligated to preserve any rights the Debtor may have
          against
          prior parties, to realize on the Patents and Trademarks at all or in any
          particular manner or order, or to apply any cash proceeds of Patents and
          Trademarks in any particular order of application.  This Agreement
          shall be binding upon and inure to the benefit of the Debtor and the Secured
          Party and their respective participants, successors and assigns and shall
          take
          effect when signed by the Debtor and delivered to the Secured Party, and
          the
          Debtor waives notice of the Secured Party’s acceptance hereof.  The
          Secured Party may execute this Agreement if appropriate for the purpose
          of
          filing, but the failure of the Secured Party to execute this Agreement
          shall not
          affect or impair the validity or effectiveness of this Agreement.  A
          carbon, photographic or other reproduction of this Agreement or of any
          financing
          statement signed by the Debtor shall have the same force and effect as
          the
          original for all purposes of a financing statement.  This Agreement
          shall be governed by the internal

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        law
          of
          Wisconsin without regard to conflicts of law provisions.  If any
          provision or application of this Agreement is held unlawful or unenforceable
          in
          any respect, such illegality or unenforceability shall not affect other
          provisions or applications which can be given effect and this Agreement
          shall be
          construed as if the unlawful or unenforceable provision or application
          had never
          been contained herein or prescribed hereby.  All representations and
          warranties contained in this Agreement shall survive the execution, delivery
          and
          performance of this Agreement and the creation and payment of the
          Obligations.

         

        THE
          PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED
          ON OR
          PERTAINING TO THIS AGREEMENT.

         

        IN
          WITNESS WHEREOF, the parties have executed this Patent and Trademark Security
          Agreement as of the date written above.

         

         

        
          
            	
                    WELLS
                      FARGO BANK, NATIONAL ASSOCIATION

                  	 	
                    3-D
                      SERVICE, LTD.

                  	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                    By:

                  	 	 	
                    By:

                  	/s/
                    John A. Martell
	
                    Its:

                  	
                    Vice
                      President

                  	 	
                    Its:

                  	 CEO
	 	 	 	 	 	 
	 	 	 	 
	
                    Wells
                      Fargo Bank, National Association

                  	 	
                    3-D
                      Service, Ltd.

                  	 
	
                    100
                      East Wisconsin Avenue

                  	 	
                    800
                      Nave Road

                  	 
	
                    MAC
                      N9811-143

                  	 	
                    Massillon,
                      Ohio  45246

                  	 
	
                    Milwaukee,
                      Wisconsin  53202

                  	 	 	 	 

          

        

         

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          

           

          

          
            	
                    STATE
                      OF

                  	 Indiana	
                    )

                  	 	 	 
	 	 	
                    )

                  	 	 	 
	
                    COUNTY
                      OF

                  	 St.
                    Joseph	
                    )

                  	 	 	 

          

           

          The
            foregoing instrument was acknowledged before me this ___ day of January,
            2008,
            by John A. Martell, the President of 3-D Service, Ltd., an Ohio limited
            liability company, on behalf of the company.

           

          

          
            	 	 /s/
                    James M. Lewis
	 	
                        Notary
                      Public

                  
	 	 	 
	 	
                    My
                      commission:

                  	 expires
                    2/9/2008
	 	 	 

          

        

         

        
           

          

          
            	
                    STATE
                      OF

                  	 	
                    )

                  	 	 	 
	 	 	
                    )

                  	 	 	 
	
                    COUNTY
                      OF

                  	 	
                    )

                  	 	 	 

          

           

          
            The
              foregoing instrument was
              acknowledged before me this ___ day of January, 2008, by Lynn A. Gruber,
              a Vice
              President of Wells Fargo Bank, National Association, on behalf of the
              association.

          
            	 	 
	 	
                        Notary
                      Public

                  
	 	 	 
	 	
                    My
                      commission:

                  	 
	 	 	 

          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      

       

      EXHIBIT
        A

       

      UNITED
        STATES ISSUED PATENTS

       

      

       

      NONE

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      

       

      EXHIBIT
        B

       

      UNITED
        STATES ISSUED TRADEMARKS

       

      

      
        	
                MARK

              	
                COUNTRY

              	
                SERIAL
                  NO./REG. NO.

              	
                FILING
                  DATE/REG. DATE

              	
                STATUS

              
	
                3-D
                  SERVICE

              	
                US

              	
                2,993,788

              	
                09/13/2005

              	
                Registered

              
	
                TOTAL
                  MOTOR MANAGEMENT

                 

              	
                US

              	
                3,061,583

              	
                02/28/2006

              	
                Registered

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]