You need to upgrade to the next level of MIC.

If you have a L5 Camilian MIC you can upgrade it to a L5 Polybian MIC without any trouble.

You need to upgrade MICs to go from Camilian to Polybian and Marian to Imperial. The Polybian to Marian reform will continually damage your existing Polybian MICs and place the same level of Marian MICs. At this point, tear down you old damaged MICs for the cash.