COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jul. 03, 2011

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE K — COMMITMENTS AND CONTINGENCIES

Collective bargaining agreements

At July 3, 2011 and December 31, 2010, approximately 11% of the Company’s employees were covered by collective bargaining agreements.

Warranty reserves

The Company warrants workmanship after the sale of its products and services, generally for a period of one year. An accrual for warranty costs is recorded based upon the historical level of warrantyclaims and management’s estimates of future costs.

Product warranty activity for the three and six months endedJuly 3, 2011 and July 4, 2010 is as follows:

	Three Months Ended July 3,2011			Three Months Ended July 4,2010			Six Months Ended July 3, 2011			Six Months Ended July 4, 2010
Balance at beginning of period	$	177		$	254		$	217		$	244
Warranty claims paid		(11	)		(29	)		(11	)		(37	)
Warranty expense		54			54			14			72
Balance at end of period	$	220		$	279		$	220		$	279

Employment Agreement

On June 18, 2010, the Company entered into an employment agreement with its newly appointed President and CEO, Michael P. Moore. Theagreement was for an initial one-year term, subject to earlier termination as provided in the agreement. At each year-end, the agreement will automatically renew for successive one-year periods unless either party, at least three months before theend of the initial term or any renewal term, requests termination or renegotiation of the agreement. The employment agreement provides for certain benefits to the executive if employment is terminated by the Company for cause, by the executive withgood reason, or due to death or disability. The benefits include continuation of the executive’s base salary for six months, any earned but unpaid profit-sharing or incentive bonus, stock option and company-paid health insurance for six months.

Construction and Engineering Services Working Capital Adjustment

Subsequent to agreement of the working capital adjustment related to the sale of our Construction and Engineering Services businesses, thepurchasers initiated discussions with the Company’s disinterested director about restructuring payment of the working capital adjustment. Specifically, the purchasers are requesting that all or part of the working capital adjustment be paid incash, which would require the consent of the Company’s senior lender, Wells Fargo Bank. MISCOR had elected, as permitted under the purchase agreement, to apply the full amount of the working capital adjustment to the Martell Note. Thepurchaser, Wells Fargo and the Company’s disinterested director have not yet reached an agreement on restructuring payment of the working capital adjustment.