GOSHEN, IN - Supreme Industries, Inc., a manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses, and armored vehicles settled its long-standing litigation with The Armored Group.
On Jan. 21, 2009, The Armored Group ("TAG") filed a complaint against affiliates of Supreme Industries, Inc., alleging breach of oral contract, unjust enrichment and other claims, including that the Company had an obligation to pay TAG a 10-percent commission on all sales of armored vehicles to the United States Department of State under a contract providing for up to $98 million in sales.
On May 25, Supreme and TAG signed a Civil Settlement Agreement, under the terms of which this lawsuit will be dismissed and the Company will: (i) pay to TAG the cash sum of $1.1 million ($400,000 payable on or about May 25, and the balance of $700,000 payable over the next 12 months in the principal amount of $58,333 per month plus accrued interest at 5.75 percent simple interest); and (ii) issue and deliver to TAG on or about May 25,, 350,000 shares of Supreme's Class A Common Stock and an additional 350,000 shares on Jan. 15, 2012.
Kim Korth, President and CEO of Supreme, commented: "Knowing that there were no guarantees of the outcome of the suit, the Board of Directors concluded it was in the best interest of Supreme to get this issue behind us."
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