Contract
Exhibit
10.1
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MISCOR
GROUP, LTD., HK ENGINE COMPONENTS, LLC,
MAGNETECH
INDUSTRIAL SERVICES, INC., MAGNETECH
POWER
SERVICES, LLC, XXXXXXX ELECTRIC, LLC
0000
X. XXXXXX XXXXXX
XXXXX
XXXX, XX 00000
.
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MFB
FINANCIAL
0000
Xxxxxx Xxxxx Xxxxxxx, Xxxxx 000
XXXXXXXXX,
XX 00000
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XXXXXXXX’S
NAME AND ADDRESS
“I”
includes each borrower above, jointly and severally
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XXXXXX’S
NAME AND ADDRESS
“You”
means the lender, its successors and assigns.
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Line
of Credit No. 70-0028852
Date:
3-9-07
Max.
Credit Amt. $
5,000,000.00
Loan
Ref. No.
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You
have
extended to me a line of credit in the AMOUNT of FIVE MILLION AND NO/100
__________________________$5,000,000.
You
will
make loans to me from time to time until 4:00 P.M. on DEMAND. Although the
line
of credit expires on that date, I will remain obligated to perform all my duties
under this agreement so long as I owe you any money advanced according to the
terms of this agreement, as evidenced by any note or notes I have signed
promising to repay those amounts.
This
line
of credit is an agreement between you and me. It is not intended that any third
party receive any benefit from this agreement, whether by direct payment,
reliance for future payment or in any other manner. This agreement is not a
letter of credit.
1.
AMOUNT: This line of credit is:
x
OBLIGATORY: You may not refuse to make a loan to me under this line of credit
unless one of the following occurs:
a.
I have
borrowed the maximum amount available to me;
b.
This
line of credit has expired;
c.
I have
defaulted on the note (or notes) which show my indebtedness under this line
of
credit;
d.
I have
violated any term of this line of credit or any note or other agreement entered
into in connection with this line of credit;
e.
____________________________________
¨
DISCRETIONARY: You may refuse to make a loan to me under this line of credit
once the aggregate outstanding advances equal or exceed
___________________________________________________________________
$ ___________________________.
Subject
to the obligatory or discretionary limitations above, this line of credit
is:
x
OPEN-END
(Business or Agricultural only): I may borrow up to the maximum amount of
principal more than one time.
¨ CLOSED-END:
I may borrow up to the maximum only one time.
2.
PROMISSORY NOTE: I will repay any advances made according to this line of credit
agreement as set out in the promissory note, I signed on 02-28-2007, or any
note(s) I sign at a later time which represent advances under this agreement.
The note(s) set(s) out the terms relating to maturity, interest rate, repayment
and advances. If indicated on the promissory note, the advances will be made
as
follows:
TELEPHONE
ADVANCES MAY BE MADE WITH THE OFFICER'S APPROVAL, FUNDS WILL BE DEPOSITED INTO
THE BORROWER'S OPERATING ACCOUNT
3.
RELATED DOCUMENTS: I have signed the following documents in connection with
this
line of credit and note(s) entered into in accordance with this line of
credit:
x
security
agreement dated 02-28-2007 Given by each borrower
¨ mortgage
dated
x
guaranty
dated 02-28-2007 Given by each borrower
______________________________________________
x
LOAN
AGREEMENT OF EVEN DATE HEREWITH
xBORROWING
BASE ADDENDUM OF EVEN DATE
HEREWITH
4.
REMEDIES: If I am in default on the note(s) you may:
a.
take
any action as provided in the related documents;
b.
without notice to me, terminate this line of credit.
By
selecting any of these remedies you do not give up your right to later use
any
other remedy. By deciding not to use any remedy should I default, you do not
waive your right to later consider the event a default, if it happens
again.
5.
COSTS
AND FEES: If you hire an attorney to enforce this agreement I will pay your
reasonable attorney's fees, where permitted by law. I will also pay your court
costs and costs of collection, where permitted by law.
6.
COVENANTS: For as long as this line of credit is in effect or I owe you money
for advances made in accordance with the line of credit, I will do the
following:
a.
maintain books and records of my operations relating to the need for this line
of credit;
b.
permit
you or any of your representatives to Inspect and/or copy these
records;
c.
provide to you any documentation requested by you which support the reason
for
making any advance under this line of credit;
d.
[DELETED]
7.
NOTICES: All notices or other correspondence with me should be sent to my
address stated above. The notice or correspondence shall be effective when
deposited in the mail, first class, or delivered to me in person.
8.
MISCELLANEOUS: This line of credit may not be changed except by a written
agreement signed by you and me. The law of the state in which you are located
will govern this agreement. Any term of this agreement which is contrary to
applicable law will not be effective, unless the law permits you and me to
agree
to such a variation.
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SIGNATURES:
I
AGREE TO THE TERMS OF THIS LINE OF CREDIT. I HAVE RECEIVED A COPY
ON
TODAY'S DATE.
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FOR
THE LENDER
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/s/
Xxxxxx X. Xxxx
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SEE
ATTACHED SIGNATURE PAGE
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Title:
Executive Vice President/COO
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SIGNATURE
PAGE
Note
#70-0028852, Dated 2/28/07
IN
WITNESS WHEREOF, the undersigned have executed and delivered this Agreement
on
the date and year first above written.
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“Borrowers”
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By:
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/s/
Xxxx X. Xxxxxxx
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Xxxx
Xxxxxxx, President
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HK
ENGINE COMPONENTS, LLC
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By:
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/s/
Xxxx X. Xxxxxxx
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Xxxx
Xxxxxxx, Managing Member
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MAGNETECH
INDUSTRIAL SERVICES, INC.
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By:
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/s/
Xxxx X. Xxxxxxx
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Xxxx
Xxxxxxx, President
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MAGNETECH
POWER SERVICES, LLC
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By:
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/s/
Xxxx X. Xxxxxxx
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Xxxx
Xxxxxxx, Managing Member
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XXXXXXX
ELECTRIC, LLC
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By:
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/s/
Xxxx X. Xxxxxxx
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Xxxx
Xxxxxxx, Managing Member
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