Document:

Exhibit 10.5

 

GUARANTY

 

	
Orland   Park, Illinois
    	
March 4, 2011
    

 

To induce ALLY Financial to extend or continue credit to Supreme Indiana Operations, Inc. (hereinafter, “Manufacturer”), the undersigned entity does hereby unconditionally guarantee the payment of all indebtedness of Manufacturer to ALLY Financial, together with all costs, expenses and attorneys’ fees incurred by ALLY Financial in connection with any default of Manufacturer.

 

Any liability of the undersigned hereunder shall not be affected by, nor shall it be necessary to procure the consent of the undersigned or give any notice in reference to, any settlement, or variation of terms of any obligation of the Manufacturer, or of a guarantor or any other interested person, by operation of law or otherwise; nor by failure to file, record or register any security document.  The undersigned recognizes that ALLY Financial may utilize various means of attempting to verify Manufacturer’s compliance with its credit terms, including periodic collateral checks and examination of books and records, and hereby expressly agrees that such steps re for the sole benefit of ALLY Financial and the adequacy of such checks and examinations shall not be considered as a defense to mitigation of liability hereunder. The undersigned acknowledges and agrees that this guaranty is for a commercial obligation and not a consumer obligation which is primarily for personal, family or household purposes.  The undersigned further authorizes ALLY Financial, from time to time, to investigate any financial information provided and to examine or review the undersigned’s credit history (including obtaining credit reports) and agrees to provide ALLY Financial with financial statements in a form satisfactory to ALLY Financial along with all supporting documentation requested by ALLY Financial upon request.

 

The undersigned does hereby to the extent permitted by applicable law expressly waive and dispense with notice of acceptance of this guaranty, notices of non-payment or non-performance, notice of amount of indebtedness outstanding at any time, protests, demands and prosecution of collection, foreclosure and possessory remedies. The undersigned hereby waives any right to require ALLY Financial to (i) proceed against other persons or Manufacturer, (ii) advise the undersigned of the results of any collateral checks or examinations, (iii) require Manufacturer to comply with its agreement with ALLY Financial, or (iv) proceed against Manufacturer or proceed against or exhaust any security.

 

This is a continuing guaranty and shall remain in full force and effect until forty-eight (48) hours after receipt by ALLY Financial, at its office designated below, of written notice by the undersigned terminating or modifying same; provided, however, that such notice shall not operate to release the undersigned from liability hereunder with respect to any obligations incurred prior to the effective date of such notice.

 

Except as noted hereon, ALLY Financial has made no promises to Manufacturer or the undersigned to induce execution of this Guaranty and there are no other agreements or understandings, either oral or in writing, between ALLY Financial and the undersigned affecting this Guaranty.

 

The obligation of all parties signing this guaranty, where more than one, shall be joint and several.

 

This guaranty may not be changed orally and shall bind and inure to the benefit of the heirs, administrators, successors and assigns of the undersigned and ALLY Financial, respectively. If any part of this guaranty is not valid or enforceable according to applicable law, all other parts will remain enforceable.

 

THIS GUARANTY AND THE PERFORMANCE HEREUNDER SHALL BE CONSTRUED AND DETERMINED ACCORDING TO THE LAW OF THE STATE OF NEW YORK.

 

	
 
    	
 
    	
GUARANTOR
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Supreme   Industries, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:
    	
/s/   Thomas Beard
    	
 
    	
By:
    	
/s/   Kim Korth
    
	
Address:
    	
2581   E. Kercher Road
    	
 
    	
Print   Name:
    	
Kim   Korth
    
	
 
    	
 
    	
 
    	
Title:
    	
President   and CEO
    
	
 
    	
Goshen,   IN 46528
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness:
    	
/s/   Jeffrey Mowery
    	
 
    	
 
    
	
Address:
    	
2581   E. Kercher Road
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Goshen,   IN 46528
    	
 
    	
 
    
							

 

On this        day of March, 2011, before me personally came and appeared Kim Korth to me known and known by me to be (one of) the person(s) described in and who executed this instrument and acknowledged that (t)he(y) executed the same as guarantor(s).

 

	
Accepted:
    	
 
    	
/s/ Angela K. Wilson
    
	
ALLY   FINANCIAL
    	
 
    	
Notary Public in and for
    
	
15303   94th Ave, Orland   Park, IL 60462
    	
 
    	
Kosciusko
    
	
By:
    	
 
    	
County
    
	
/s/   Michael Kinter
    	
 
    	
 
    
	
Michael   Kinter, Assistant Secretary
    	
 
    	
 
    

 

SIGN IN INKExhibit 10.6

 

CREDIT BALANCE AGREEMENT

 

This Credit Balance Agreement (“Agreement”) is between Ally Financial (“Ally”), an entity organized under the laws of Delaware, and Supreme Indiana Operations, Inc. whose address is 2581 Kercher Rd., Goshen, IN 46528 (“Obligor”) and is effective March 16, 2011.

 

Recitals

 

Ally has entered or may enter into one or more commercial finance agreement(s) to provide loans, financing, or other credit accommodations to Obligor under which interest accrues and is payable to Ally from time to time (all such agreements by Obligors, including agreements subsequently assigned to Ally by its affiliates, but excluding the Wholesale Agreement, as defined below being the “Finance Agreements”).

 

Obligor has a substantial interest in the satisfactory performance of the Wholesale Agreement and the Finance Agreements because, among other reasons, Obligor has an obligation (direct or contingent) for repayment of the amounts due.

 

Obligor wishes to deliver money to Ally to secure indebtedness owed to Ally (including indebtedness subsequently assigned to Ally by an affiliate of Ally)  and, pursuant to the terms of this Agreement, to provide a basis for reducing the interest payable to Ally under the Inventory Loan and Security Agreement executed by the Obligor, as may be amended from time to time (the “Wholesale Agreement”) or under any other of the Finance Agreements as more fully set forth in paragraph 5 of this Agreement, but without reducing the principal obligations owed to Ally under any of these agreements, except as outlined in this Agreement.  Ally is willing to accommodate that request on the terms and conditions set forth in this Agreement.

 

Ally and Obligor agree as follows:

 

Agreement

 

1.                           Obligor may, at its election, deliver cash, drafts, checks, electronic monetary credits, or other good funds to Ally to be held as collateral security for Obligor’s obligations under the Wholesale Agreement and Finance Agreements and Ally will hold and account to Obligor for the total of these funds (the “Credit Balance”).

 

2.                           Obligor agrees to maintain a Credit Balance of at least $500,000.00 at all times so long as Obligor owes any debt to Ally or until Ally otherwise agrees in writing (the “Minimum Required Balance”).

 

3.                           The Credit Balance must be no less than the Minimum Required Balance and that portion of the Credit Balance used to determine the Applicable Interest Credit (as defined below) will be no greater than 25% of the total principal amount (excluding principal amounts owed by Obligor to Ally for financing accommodations provided in connection with vehicles ordered, sold or leased under the delayed payment privilege and/or as fleet vehicles (“Fleet Vehicles”) owed to Ally from time to time for new and used vehicle inventory financed by Ally under the Wholesale Agreement (the “Wholesale Financing”).  Although, Fleet Vehicles do not generally qualify for purposes of credit calculations, Ally may, in its sole discretion, permit it in certain limited instances where, for example, the Fleet Vehicles do not represent significant volume or are not readily identifiable.

 

4.                           Subject to numbered paragraphs 1 through 3 above, unless otherwise agreed by Ally, Obligor may, on any business day, increase the Credit Balance by any amount of not less than $1,000.  Ally will use its best efforts to add increases received by Ally in immediately available funds to the Credit Balance on the same business day or as soon thereafter as practicable.  Increases received in other than immediately available funds will be added to the Credit Balance when good funds become available for use by Ally.

 

1

 

5.                           Subject to numbered paragraphs 1 through 3 above, absent a default under any of the Finance Agreements or Wholesale Agreement, Obligor may, upon written request, require Ally to repay all or a portion of the Credit Balance.  Except upon termination of this Agreement or unless otherwise agreed by Ally, the minimum repayment is $1,000.  Ally will honor such requests as soon as practicable; however, funds delivered to Ally via check will not be available for repayment for at least ten business days after receipt by Ally of such check and funds delivered to Ally via ACH will not be available for repayment for at least three business days after receipt by Ally of such ACH.  Upon any default by Obligor under the Wholesale Agreement or the Finance Agreements, Ally may, in its sole discretion, place all funds in the Credit Balance on administrative hold for up to 3 business days pending Ally’s determination to apply the funds, or any portion thereof, to cure any default or to otherwise reduce any obligations to Ally under the Wholesale Agreement or Finance Agreements. In addition, Ally will have all rights and remedies under the Wholesale Agreement and Finance Agreements and/or applicable law including, without limitation, the right to immediately apply the Credit Balance against any outstanding interest or principal under the Wholesale Agreement or Finance Agreements.

 

6.                           Subject to the limitations of paragraph 3 of this Agreement, once each month, Ally will setoff against interest due under the Wholesale Agreement the applicable amount described in the remainder of this paragraph 5 (the “Applicable Interest Credit”).  Additionally, at the request of Obligor and at the election of Ally, Ally may apply the Applicable Interest Credit to interest obligations due and owing under Finance Agreements other than the Wholesale Agreement.  The Applicable Interest Credit will be determined by multiplying each daily Credit Balance by the then current Wholesale Financing new vehicle rate of interest (less any applicable incentives) less 200 basis points (2.00%), as modified from time to time by Ally in its sole discretion.

 

If the Applicable Interest Credit exceeds the interest due Ally under the Wholesale Agreement for a particular monthly billing period, the excess will be either carried forward as a credit against interest due Ally under the Wholesale Agreement in subsequent billing periods or applied to interest owed under other Finance Agreements, as determined by Ally in its sole discretion.  Unless otherwise agreed by Ally, no Applicable Interest Credit will be applied or will accrue during the pendency of any default under the Wholesale Agreement or any of the Finance Agreements.  Upon the termination of the Wholesale Agreement, Applicable Interest Credits will cease to accrue and will cease to be applied, except as may be agreed by Ally in writing.

 

7.                           Ally may commingle any Credit Balance with other funds of Ally and use them in the ordinary course of its business.

 

8.                           Upon written request of Obligor, Ally may, but is not required to, draw against the Credit Balance to settle any outstanding indebtedness under the Wholesale Agreement or Finance Agreements at any time.  This provision does not alter any obligation to pay Ally when and in the amounts required under the Wholesale Agreement or Finance Agreements.

 

9.                           Obligor grants Ally a security interest in the Credit Balance and acknowledges and agrees that the Credit Balance constitutes collateral to secure payment and performance of the Wholesale Agreement and Finance Agreements.  Ally has rights to the Credit Balance as may be afforded by the Wholesale Agreement and Finance Agreements and/or applicable law.  The security interest in the Credit Balance is in addition to any other rights of Ally against the Obligor, including the right of setoff.

 

10.                     Ally and Obligor may implement this Agreement by conducting business with the (non-exclusive) use of electronic, computer, digital, or other paperless means, including the good faith reliance on electronic mail, facsimile transmittal, telephonic, or other usual and regular forms of communication (by Ally or other commercial parties) with or without confirmation or authentication of the communication by receipt of an original signature, document, paper, or otherwise.

 

2

 

11.                     This Agreement must not be assigned by either party without the prior written consent of the other; provided, however, that Ally may assign this Agreement to any affiliate of Ally.

 

12.                     Any provision of this Agreement that is prohibited by law is ineffective to the extent of those prohibitions, but does not invalidate the remaining provisions of this Agreement.

 

13.                     Subject to numbered paragraphs 1 through 3 above, either party may terminate this Agreement after giving ten days advance written notice to the other.  The execution of this Agreement by Ally and Obligor replaces all previously executed agreements between them of substantially similar nature and type, effective the date first above written.

 

Signed March 21, 2011.

 

	
Ally Financial
    	
 
    	
Supreme Indiana Operations, Inc.
    
	
 
    	
 
    	
 
    	
(Obligor)
    
	
By:
    	
/s/   Michael Kinter
    	
 
    	
By:
    	
/s/   Jeffrey Mowery
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Michael   Kinter
    	
 
    	
Name:
    	
Jeffrey   Mowery
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Assistant   Secretary
    	
 
    	
Title:
    	
VP   - Finance
    

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]