Document:

LETTER OF AGREEMENT

Date: August 29, 2014

 

Section 1. Services to be Rendered.
The purpose of this agreement (the “Agreement”) is to set forth the terms and conditions on which Chord Advisors,
LLC (“Chord”) agrees to provide WPCS International Incorporated (the “Company”) comprehensive
outsourced CFO solutions. These services may include, but are not limited to, all items listed in “Addendum A.” The
Company represents and warrants that it will provide on a timely basis any information requested by Chord which is necessary to
perform such services and further represents and warrants that such information shall be accurate.

 

Section 2. Engagement Period. Unless
sooner terminated as provided herein, the term of this Agreement (the “Engagement Period”) shall commence on
September 1, 2014 and shall continue until terminated by either party. The Company represents that it is duly organized,
validly existing and in good standing under the laws of its jurisdiction of organization and is duly qualified as a foreign corporation
and in good standing in all jurisdictions in which the nature of its activities requires such qualification. The Company further
represents to Chord: (1) that it has full power and authority to carry on its business as presently or proposed to be conducted
and to enter into and perform its obligations under this Agreement; (2) that this Agreement has been duly authorized by all necessary
corporate actions; and (3) that this Agreement constitutes the valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms (except as such enforcement may be limited by bankruptcy, creditors’ rights laws
or general principles of equity).

 

Section 3. Fees. (a) The Company
shall pay to Chord for its services hereunder an advisory fee (the “Advisory Fee”) as detailed in Addendum
A. Advisory Fees shall be payable on or before the 15th day of each calendar month which occurs during the Engagement Period.
Chord shall provide the Company with an executed Form W-9 upon execution of this Agreement and shall not be entitled to receive
any Advisory Fee hereunder unless and until such Form W-9 is provided to the Company.

 

Section 4. Expenses. In addition
to all other fees payable to Chord hereunder, the Company hereby agrees to reimburse Chord for all reasonable out-of-pocket expenses
incurred in connection with the performance of services hereunder. No individual expense over $50 or aggregate expenses over $100
per month will be expended without the prior written approval of the president or chief executive officer of the Company.

 

Section 5. Indemnification. Each
of the Company and Chord agrees to defend, indemnify and hold the other and its respective affiliates, stockholders, directors
officers, agents, employees, successors and assigns (each an "Indemnified Person") harmless from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind whatsoever (including, without limitation, reasonable attorneys' fees) which arise from the Company's or Chord's (as the case
may be) breach of its obligations hereunder or any representation or warranty made by it herein. It is further agreed that the
foregoing indemnity shall be in addition to any rights that either party may have at common law or otherwise, including, but not
limited to, any right to contribution.

  

 

 

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Section 6. Termination of Agreement.
(a) Subject to paragraph (b) below, either party may terminate this Agreement and Chord’s engagement hereunder, with or without
cause, immediately upon written notice given to the other party at any time during the Engagement Period hereunder. In such event,
all compensation accrued to Chord prior to such cancellation, whether in the form of Advisory Fees, reimbursement for expenses
or otherwise, will become due and payable promptly upon such termination and Chord shall be relieved of any and all further obligation
to provide any services hereunder.

(b) Notwithstanding
anything to the contrary herein contained, Sections 4 – 18 shall survive any termination or breach of this Agreement by either
party.

 

Section 7. Confidential Information.
Chord acknowledges that, pursuant to this Agreement, it will be given access to or may become acquainted with certain information,
trade secrets or both, of the Company (collectively, the “Confidential Information”) and the exclusive property
of the Company.

 

Section 8. Nondisclosure of Confidential
Information. During and following the Engagement Period, Chord will hold in confidence the Confidential Information and shall
not in any manner, either directly or indirectly, divulge, disclose or communicate to any person or entity, any of the Confidential
Information except with the specific prior written consent of the Company or except as otherwise expressly permitted by the terms
of this Agreement. Chord expressly agrees that the Confidential Information affects the successful and effective conduct of Company’s
business and its good will, and that any breach of the terms of this Section by Chord is a breach of this Agreement.

 

Chord recognizes that, as between the Company
and Chord, any document, record, notebook, plan, model, component, device, or computer software or code, whether embodied in a
disk or in any other form (collectively, the "Proprietary Items"), whether or not developed by Chord, are the
exclusive property of the Company. Upon termination of this Agreement by either party, or upon the request of the Company during
the Engagement Period, Chord shall return to the Company, or destroy (and certify to such destruction in writing to the Company),
all of the Proprietary Items in Chord’s possession or subject to Chord’s control, and Chord shall not retain any copies,
abstracts, sketches, or other physical embodiment of any of the Proprietary Items.

   

 

 

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Section 9. Exceptions to Nondisclosure.
Notwithstanding anything to the contrary contained in this Agreement, Chord shall not be prohibited from disclosing to third parties,
or using without the prior written consent of Company, information that (a) was, on the date of this Agreement, generally known
to the public, (b) is as of the date of this Agreement known to Chord, as evidenced by written records in the possession of Chord,
(c) is subsequently disclosed to Chord by a third party who is in lawful possession of such information and is not under an obligation
of confidence, (d) is disclosed by Company to third parties generally without restriction on use and disclosure, or (e) is required
to be disclosed by law or a final order of a court or other governmental agency or authority of competent jurisdiction, provided,
however, reasonable notice prior to any disclosure as required by applicable law or court process shall be given to Company which
would allow Company sufficient time to attempt to obtain injunctive relief in respect to such disclosure.

 

Section 10. Representations and Warranties
of Chord. Chord represents and warrants to the Company that:

 

		(a)	It has the power, authority, and legal capacity to enter into and to perform this Agreement;

 

		(b)	this Agreement when executed and delivered by Chord will be a legal, valid and binding obligation
enforceable against Chord in accordance with its terms; and

 

		(c)	neither the execution and delivery by Chord of this Agreement, nor the performance by Chord of
the services contemplated hereby, will conflict with, result in a breach of, constitute (with or without due notice or lapse of
time or both) a default under, result in the acceleration of obligations under, create in any party the right to terminate, modify
or cancel, or require any notice, consent or waiver under, any contract or instrument to which Chord is a party or by which Chord
is bound (including any agreements relating to the confidential or proprietary information of a third party).

 

Section 11. Assignability. This
Agreement shall not be assignable by either party.

 

Section 12. Severability. In case
any provision of this Agreement shall be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not be affected or impaired thereby.

 

Section 13. Consent to Jurisdiction.
This agreement shall be governed and construed in accordance with the laws of the State of New York without regard to conflicts
of laws principles. The parties further consent to the exclusive jurisdiction of the State and Federal courts located within the
City, County and State of New York to resolve any dispute arising under this Agreement, and waive any defense to such jurisdiction
based upon inconvenient forum.

  

 

 

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Section 14. Injunctive Relief and Damages.
Chord acknowledges and agrees that the covenants and obligations of Chord set forth in Section 8 with respect to confidentiality
relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations
will cause the Company irreparable injury for which adequate remedies are not available at law. Therefore, Chord agrees that the
Company shall be entitled to seek an injunction, restraining order or such other equitable relief (without the requirement to post
bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Chord from committing any violation of
the covenants and obligations referred to in this Section 14. These injunctive remedies are cumulative and in addition to any other
rights and remedies the Company may have at law or in equity. Nothing contained in this Section 14 shall be construed as prohibiting
the Company from pursuing any other remedies available to any of it for any such breach or threatened breach, including recovery
of damages and an equitable accounting of all earnings, profits and other benefits arising from such violation.

 

Section 15. Other Services. If the
Company desires additional services not provided for in this Agreement, any such additional services shall be covered by a separate
agreement in writing between the parties hereto.

 

Section 16. Entire Agreement. This
Agreement constitutes the entire agreement and final understanding of the parties with respect to the subject matter of this Agreement
and supersedes and terminates all prior and/or contemporaneous understandings and/or discussions between the parties, whether written
or verbal, express or implied, relating in any way to the subject matter of this Agreement.

 

Section 17. Amendment. This Agreement
may only be amended or modified in a writing signed by both of the parties and referring to this Agreement.

 

Section 18. Counterparts. This Agreement
may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is
delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such signature page were an original thereof.

 

Please evidence your
acceptance of the provisions of this Agreement by signing below and returning a copy to Chord Advisors, LLC.

   

 

 

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Very truly yours,

/s/ David Horin

David Horin

Managing Partner

Chord Advisors, LLC

 

 

ACCEPTED AND AGREED

AS OF THE DATE FIRST ABOVE WRITTEN:

 

 

	By:	/s/ Sebastian Giordano
	    	Name:	Sebastian Giordano
	     	Title:	Interim Chief Executive Officer

  

 

  

 

 

    	Confidential	Page 5

    	 

    

 

 

 

 

  

ADDENDUM
“A”

 

 

Chord will provide senior financial leadership
and perform the following functions:

 

CFO Services - $10,000
per month

 

		·	David Horin to sign as Principal Accounting Officer

		·	Mergers & acquisitions

		·	Stock based compensation structuring

		·	Debt & equity transaction support

		·	Assistance with earnings releases 

		·	Financial process improvement

		·	Budgeting and cash management

		·	Audit committee support

		·	Respond to SEC Comment Letters 

		·	Perform derivative valuations, if necessary

 

Controller and Financial
Reporting - $3,000 per month

 

		·	Drafting 10-Q's and 10K’s 

		·	Preparation of supporting financial documentation and workbook

		·	Interact with outside auditors 

		·	Draft accounting policies and position papers

		·	Review income tax provisions

		·	Review monthly general ledger and consolidation workpapers

   

 

 

    	Confidential	Page 6Exhibit 10.1

 

AMENDMENT NO. 2 
 TO CREDIT AGREEMENT

 

This Amendment No. 2 to Credit Agreement (this “Amendment”) is executed as of August 27, 2014 among the Lenders party hereto (which Lenders constitute all of the Lenders as of the date of this Amendment), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders (in that capacity, “Administrative Agent”), and SUPREME INDUSTRIES, INC., a Delaware corporation (“Borrower”); and is acknowledged by the Subsidiary Guarantors.

 

The Lenders, Administrative Agent, and Borrower entered into an Amended and Restated Credit Agreement dated as of April 29, 2013 (as amended, restated, supplemented, or otherwise modified before the date of this Amendment, the “Credit Agreement”).  The Lenders, Administrative Agent, and Borrower now desire to amend certain terms and provisions of the Credit Agreement as set forth in this Amendment.

 

Accordingly, the parties agree as follows:

 

1.                                      Definitions. Defined terms used but not defined in this Amendment are as defined in the Credit Agreement.

 

2.                                      Amendment.

 

Effective as of the date of this Amendment but subject to satisfaction of the conditions precedent in Section 4 hereof, Section 9.6(e) of the Credit Agreement is hereby amended to read in its entirety as follows:

 

“(e) the Borrower may pay cash dividends to the holders of shares of its Capital Stock, so long as (i) no Default or Event of Default has occurred and is continuing or would result therefrom, (ii) the Borrower is in compliance on a Pro Forma Basis (as of the date of such payment of cash dividends and after giving effect thereto) with each covenant contained in Section 9.15, and (iii) the aggregate amount of all such cash dividend paid in any Fiscal Quarter does not exceed an amount equal to $0.03 per share of Capital Stock then issued and outstanding.”

 

3.                                      Representations. To induce Administrative Agent and the Lenders to enter into this Amendment, Borrower hereby represents to Administrative Agent and the Lenders as follows:

 

(1)                                 that Borrower is duly authorized to execute and deliver this Amendment, that Borrower is duly authorized to borrow monies under the Credit Agreement, and that each Credit Party is duly authorized to perform its obligations under the Loan Documents;

 

(2)                                 that the execution and delivery of this Amendment by Borrower and the performance by each Credit Party of its obligations under the Loan Documents do not and will not violate any material provision of law or of their respective articles of incorporation or bylaws, limited partnership agreement, or certificate of formation or operating agreement, as applicable, or of any order, judgment, or decree of any court or other Governmental Authority binding on them;

 

1

 

(3)                                 that the Loan Documents (including this Amendment) are a legal, valid, and binding obligation of each Credit Party party thereto, enforceable against such Credit Party in accordance with its terms, except as enforcement is limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally;

 

(4)                                 that, after giving effect to this Amendment, the representation and warranties set forth in Section 7 of the Credit Agreement are true and correct in all material respects (but if any representation or warranty is by its terms qualified by concepts of materiality, that representation or warranty is true and correct in all respects), in each case with the same effect as if such representations and warranties had been made on the Amendment Effective Date, except to the extent that any such representation or warranty expressly relates to an earlier date;

 

(5)                                 that, after giving effect to this Amendment, Borrower has complied with and is in compliance with all of the covenants set forth in the Credit Agreement, including those set forth in Section 8 and Section 9 of the Credit Agreement; and

 

(6)                                 that, as of date hereof and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

4.                                      Conditions. This Amendment will become effective as of the date of this Amendment, when Administrative Agent, the Lenders, Borrower and the Subsidiary Guarantors have delivered a fully executed copy of this Amendment to the Administrative Agent.  Administrative Agent’s delivery to Borrower of a copy of this Amendment executed by all necessary parties described in this Section 4 will be deemed evidence that the conditions to the effectiveness of this Amendment have been met.  The Lenders hereby authorize and direct Administrative Agent to execute this Amendment.

 

5.                                      Miscellaneous. (a) This Amendment is governed by, and is to be construed in accordance with, the laws of the State of New York.  Each provision of this Amendment is severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any specific provision.

 

(b)                                 This Amendment binds Administrative Agent, the Lenders, and Borrower and their respective successors and assigns, and will inure to the benefit of Administrative Agent, the Lenders, Borrower and the successors and assigns of Administrative Agent and each Lender.

 

(c)                                  Except as specifically modified by the terms of this Amendment, all other terms and provisions of the Credit Agreement and the other Loan Documents are incorporated by reference in this Amendment and in all respects continue in full force and effect.  Borrower, by execution of this Amendment, and each Subsidiary Guarantor, by acknowledgement of this Amendment, hereby reaffirm, assume, and bind themselves to all of the obligations, duties, rights, covenants, terms, and conditions that are contained in the Credit Agreement and the other Loan Documents, as applicable.

 

(d)                                 This Amendment is a Loan Document. Borrower acknowledges that Administrative Agent’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred in drafting this Amendment shall be paid by Borrower and the other Credit Parties in accordance with Section 12.3(a) of the Credit Agreement.

 

2

 

(e)                                  The parties may sign this Amendment in several counterparts, each of which will be deemed to be an original but all of which together will constitute one instrument.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment.

 

[Signature pages and acknowledgment to follow]

 

3

 

The parties are signing this Amendment No. 2 to Credit Agreement as of the date stated in the introductory clause.

 

	
 
    	
SUPREME   INDUSTRIES, INC.,
    
	
 
    	
as   Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
 
    	
Name:
    	
Matthew   W. Long
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   Administrative Agent and a Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   David W. O’Neal
    
	
 
    	
 
    	
Name:
    	
David   W. O’Neal
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    

 

 

	
 
    	
BMO HARRIS   BANK N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Scott Dvornik
    
	
 
    	
Name:
    	
Scott   Dvornik
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

 

Acknowledged by the undersigned,
 each of which is a Subsidiary Guarantor:

 

	
SUPREME CORPORATION,
    	
 
    	
SUPREME   INDIANA OPERATIONS, INC.,
    
	
a Texas corporation
    	
 
    	
a   Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPREME CORPORATION OF GEORGIA,
    	
 
    	
SUPREME   CORPORATION OF TEXAS,
    
	
a Texas corporation
    	
 
    	
a   Texas corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPREME TRUCK BODIES OF CALIFORNIA,
    	
 
    	
SUPREME   MID-ATLANTIC CORPORATION,
    
	
a California corporation
    	
 
    	
a   Texas corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SC TOWER   STRUCTURAL LAMINATING, INC., a Texas corporation
    	
 
    	
SUPREME\MURPHY   TRUCK BODIES, INC.,
   a North Carolina corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPREME NORTHWEST, L.L.C.,
    	
 
    	
 
    
	
a Texas limited liability company
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
 
    	
 
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
 
    	
 
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPREME MIDWEST PROPERTIES, INC.,
    	
 
    	
SUPREME   SOUTHEAST PROPERTIES, INC.,
    
	
a Texas corporation
    	
 
    	
a   Texas corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    

 

 

	
SUPREME SOUTHWEST PROPERTIES, INC.,
    	
 
    	
SUPREME   ARMORED, INC.,
    
	
a Texas corporation
    	
 
    	
a   Texas corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Matthew W. Long
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Matthew   W. Long
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUPREME WEST PROPERTIES, INC.,
    	
 
    	
SUPREME   STB, LLC,
    
	
a Texas corporation
    	
 
    	
a   California limited liability company
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew W. Long
    	
 
    	
By:
    	
/s/   Herbert M. Gardner
    
	
Name:
    	
Matthew   W. Long
    	
 
    	
Name:
    	
Herbert   M. Gardner
    
	
Title:
    	
Chief   Financial Officer
    	
 
    	
Title:
    	
Managing   Member

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