Courtesy of Benzinga
Supreme Industries, Inc. (NYSE: STS) today announced that on May 25, 2011, Supreme settled its long-standing litigation with The Armored Group. On Jan. 21, 2009, The Armored Group 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% commission on all sales of armored vehicles to the United States Department of State under a contract with the United States Department of State providing for up to $98 million in sales.
On May 25, 2011, the Company 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, 2011, 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% simple interest); and (ii) issue and deliver to TAG on or about May 25, 2011, 350,000 shares of Supreme’s Class A Common Stock and an additional 350,000 shares on Jan. 15, 2012.
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