Document:

Exhibit 10.1

 

Employment Contract

(as Amended and Restated Effective January 1,
2006)

 

Supreme Corporation

 

(Robert W. Wilson)

 

This Contract
is entered into between Supreme Corporation,
a Texas corporation (hereafter called “Company”),
and Robert W. Wilson (hereafter
called “Employee”).

 

Company is
engaged in the business of manufacturing and selling specialized truck bodies. Company
desires to retain the services of Employee as one of its key executives, and
Employee is willing and able to perform in that capacity.

 

This Contract
was initially entered into to be effective May 1, 2005. As the result of
unexpected developments under the Internal Revenue Code of 1986, as amended
(the “Code”), the parties have received professional advise that it is
necessary and appropriate to amend the original Contract so as to bring it into
compliance with newly adopted Section 409A of the Code. As a result, this
(amended) Employment Contract amends and completely restates the Contract dated
to be effective May 1, 2005.

 

Accordingly,
in consideration of the mutual covenants herein contained, the parties to this
Contract agree as follows:

 

1.               Employment. Company
hereby continues the employment of Employee, and Employee hereby accepts such
employment from Company, pursuant to those provisions herein contained.

 

2.               Term of Employment.
Subject to the provisions for termination hereafter provided, the term of this
Contract shall be for a term of three (3) years beginning on May 1, 2005, and ending on April 30, 2008.

 

3.               Duties of Employee.
Employee is employed as President and Chief Executive Officer of Company. It is
understood and agreed that Employee is subject to the direction and control of
Company’s Board of Directors, as required by the Texas Business Corporation
Act, and as a result Employee shall, if required by Company’s Board of
Directors during the term of this Contract, serve in any other executive
capacity considering his experience and performance record to date with Company.
Employee shall devote substantially all of his time, attention, best efforts,
and energy to the business of Company, and may not, during the term of this
Contract, be engaged in any other material business activities which interfere
with his ability to carry out his obligations hereunder. However, such
restriction shall not be construed as preventing Employee from making
investments in (non-competitive) business enterprises so long as Employee

 

 

will not be
required to render personal services to any such business enterprises during
Employee’s normal business hours with Company.

 

4.               Compensation. To
the extent Employee continues to comply with all of the provisions of this
Contract (including the covenants referenced in paragraph 9 below and contained
in Exhibits “B” and “C” attached
hereto):

 

a.               Base Salary. Company
shall pay to Employee a minimum base salary of $200,000 per year payable in twenty-six (26) equal payments of
$7,692.31 (or in accordance with
such other sequence of payments as determined by Company’s then existing
payroll policies), from which federal withholding and social security taxes
will be deducted;

 

b.              Pre-Tax Bonus. It
is anticipated that at the end of each calendar year, approval of the Board of
Directors will be requested by the Chairman of the Board of Company for
distributions from Company’s Bonus Payment Plan, the amount of which will be
dependent upon the operating results of Company for that year. In such event
(and assuming approval by the Chairman of the Board of the portion of the bonus
recommended to be distributed to Employee), Employee shall be entitled to
receive, in addition to the base salary referred to above, a pre-tax bonus in
the amount so approved by the Board of Directors which amount will be paid to
Employee no later than March 15 following the calendar year to which such
pre-tax bonus relates;  and

 

c.               Increases. The
Board of Directors of Company may, at any time, elect to increase Employee’s
base salary above the amount referred to in subparagraph ”a” above.

 

5.               Fringe Benefits. During
the period that Employee continues to comply with all of the provisions of this
Contract, Employee shall receive the following fringe benefits:

 

a.               Medical Benefits.
Employee and his dependent family members shall be covered under the same group
hospitalization, accident and major medical plans as the Company shall provide
from time to time for other officers; provided, however, that Employee shall
pay the same portion of the cost thereof as may be required from the Company’s
officers generally. However, in the
event that, at any time during the Term of this Contract, Executive’s medical
expenses exceed any ceiling amounts provided for in any of Company’s medical
benefit plans, Company shall nevertheless be obligated (without any additional
expense to Executive) to pay all of such excess amounts (and may, if Company
elects to do so, obtain supplemental insurance to provide third party funding
of such excess amounts). But the payment obligation of Company, provided for in
the preceding sentence, following termination of employment will be limited to:
(1) amounts that otherwise would be deductible to Executive under IRS Code Sec.
213; and

 

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(2) excess
medical expenses incurred only within the period ending on the last day of the
second calendar year after the calendar year in which Executive separates from
service;

 

b.              Insurance. As
reimbursement for insurance owned by Employee (and/or his wife), Company shall
pay to Employee, each year, the lesser of $40,000 or the actual amount of
premiums paid on insurance of any kind covering Employee or “last to die”
insurance covering the lives of Employee and his wife (the “Reimbursement
Amount”).

 

In addition to the Reimbursement Amount, Company shall also pay to
Employee, each year, such amount which, after taking into consideration the
income tax effect of the “deemed income” (such “deemed income” in no event to
exceed $40,000) to Employee (for the Reimbursement Amount and the federal and
state tax offset payments) will offset such additional taxes (the “Gross-Up
Amount”). In making the determination of the Gross-Up Amount, the following
formula shall be used:  Reimbursement
Amount/(1 – Employee’s marginal tax bracket + .014 [Medicare] + Employee’s
marginal tax bracket for state income taxes, if any, + city taxes, if any)
minus the Reimbursement Amount. For example, assuming that:  (i) the annual premium is $40,000.00
(Reimbursement Amount = $40,000);  (ii)
Employee is in the 35% marginal tax bracket; 
(iii) the Reimbursement Amount is not subject to social security
taxes;  (iv) Employee is in the 10% state
income tax bracket;  and (v) the
Reimbursement Amount is not subject to city taxes;  the Gross-Up Amount would be:  $40,000/(1 – [.35 + .014 + .1]) minus $40,000
= $34,626.87;

 

c.               Dental Benefits. Company
shall pay or reimburse Employee for all family dental expenses up to a maximum
of $5,000 per year;

 

d.              Paid Vacation. Each
calendar year (or proportion thereof), Employee may take a vacation of four (4)
weeks during which time his compensation shall be paid in full;

 

e.               Automobile. Company
shall provide an automobile for Employee’s use in connection with the services
to be rendered by Employee to Company. Company shall pay or reimburse Employee
for maintenance and repair expenses of the automobile upon submission of
vouchers or itemized lists of such expenses prepared in compliance with Company’s
policy. For so long as Company owns (or leases) the automobile, Company shall
insure the automobile with the same automobile insurance company coverage that
is provided for executive officers of Company. Company agrees that Employee
shall be designated as an additional insured on any Company provided policy
providing liability insurance coverage. In the event the automobile is damaged
or destroyed by reason of accident, theft, vandalism, or otherwise, Employee
will not have any liability to Company for any such loss or damage (including
out-of-pocket deductibles); and

 

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f.                 Other Benefits. No
provision of this Contract shall preclude Employee from participating in any
fringe benefit plan now in effect or hereafter adopted by Company, but Company
shall be under no obligation to provide for his participation in, or to
institute, any such plan or to make any contribution under any such plan,
unless such opportunities are provided to all Company employees as a group, or
to all of Company’s senior officers as a group.

 

6.               Business Expenses.
Employee may incur reasonable expenses, as determined by Company’s Chairman of
the Board, in connection with the promotion of Company’s business including
expenses for entertainment, travel, and similar items. Company agrees to
reimburse Employee for all such reasonable expenses upon the presentation by
Employee, from time to time as required by Company, of an itemized account of
such expenditures; provided, however, Employee shall not expend any sums in
excess of those amounts permitted by the Internal Revenue Code of 1986, as
amended, without prior written approval from the Chairman of the Board of
Company.

 

7.               Key-Man Insurance.
Company may, at any time during the term of this Contract, apply for and
procure as owner, and for its sole benefit, life insurance on Employee’s life
in such amounts and in such forms as Company may select. Employee hereby
acknowledges the fact that he will have no interest whatsoever in any such
insurance policy. However, Employee agrees that he shall, at Company’s request,
submit to such medical examinations, supply such information, and execute such
documents as may be requested by the insuring companies.

 

8.               Termination of Employment.

 

a.               By Company.

 

(1)          Date of Termination.
Company may at any time terminate this Contract, in which event Employee shall
leave the premises on such date (the “Date
of Termination”) as is specified by Company in the notice of
termination (which date can be as early as the date of such notice).

 

(2)          For Cause. If
such termination is “for cause,”
Company will have no obligation to pay to Employee any compensation or fringe
benefits following the Date of Termination. For purposes of the preceding
sentence, the phrase “for cause”
will be deemed to mean:

 

(a)          absence from Company’s
offices, physical or mental illness, or any other reason, for any successive
period of forty-five (45) days, or for a total period of ninety (90) days in
any one of Company’s fiscal years (except that any vacation periods, travel on
Company business, or leaves of absence specifically granted by

 

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Company’s
Board of Directors shall not be considered as periods of absence from
employment);

 

(b)         Employee’s commission of
an act of gross negligence in the performance of his duties or obligations
hereunder;

 

(c)          Employee’s commission of
any act of fraud, malfeasance, disloyalty, or breach of trust against the
Company, or Employee fails to observe any covenant referenced in
paragraph 9 below or contained in Exhibits
“B” or “C” hereto;

 

(d)         Employee’s refusal, or
substantial inability, to perform the duties assigned in good faith to him
pursuant to paragraph 3 hereof;

 

(e)          Employee dies or gives
affirmative indication, in the opinion of a majority of Company’s Board of
Directors, that he no longer intends to abide by the terms of this Contract; or

 

(f)            Employee is guilty of
acts of moral turpitude or dishonesty in Company’s affairs, gross
insubordination or the equivalent, or Employee violates, or fails to comply
with, any of the provisions of this Contract.

 

(3)          Not For Cause. If
such termination is based on any reason other than “for cause,” Company shall be obligated to pay to Employee
his base salary during the remainder of the term of this Contract (on a monthly
basis at the same rate as payable immediately before the Date of Termination). In
addition, no later than March 15 following the calendar year during which
occurred the event triggering such Date of Termination, Company shall pay to
Employee his Proportionate Share of the pre-tax bonus referred to in
paragraph 4.b. above. For this purpose, Employee’s “Proportionate Share” will be a fraction
the numerator of which is the number of days in such calendar year ending with
such Date of Termination and the denominator of which is the total number of
days in such calendar year.

 

(a)          Included within the definition
of a termination of Employee other than “for
cause” will be a “Change in
Control of Company.”  For purposes of this Contract, the term “Change in Ownership or Control of Company”
is defined in Exhibit “A” attached
hereto.

 

(b)         If, at the time of termination,
Company was providing an automobile to Employee under paragraph 5.e. above,
then, for a

 

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consideration
of Ten Dollars ($10.00) cash paid by Employee to Company, the following shall
apply:  (i) if Company owned the
automobile, Company shall transfer the title (free and clear of any liens or
other encumbrances) to Employee (along with any insurance coverage [if
assignable]); and (ii) if Company was leasing such automobile, Company shall
assign to employee all of its right, title, and interest in and to such lease. Such
transfer or assignment shall be completed by the Company not later than two and
one-half (2 1⁄2 ) months after the end of the calendar year in which the Date of
Termination occurs. EMPLOYEE ACKNOWLEDGES THAT THE DIFFERENCE IN THE FAIR
MARKET VALUE OF THE AUTOMOBILE ON THE DATE OF TRANSFER OVER THE CONSIDERATION
PAID BY THE EMPLOYEE SHALL BE TAXABLE TO EMPLOYEE AS COMPENSATION INCOME AND BE
SUBJECT TO EMPLOYMENT TAX WITHHOLDING REQUIREMENTS.

 

(c)          Sec. 416(i) of the Code
defines “key employee” as meaning an employee who, at any time during the year,
is:  (i) an officer having an annual
compensation greater than $130,000; (ii) a five percent owner of the employer;
or (iii) a one percent owner of the employer having an annual compensation from
the employer of more than $150,000. Sec. 409A of the Code provides that
deferred compensation benefits payable as a result of termination of employment
cannot be made to “key employees” of publicly-traded corporations or their
subsidiaries prior to the date that is six (6) months after the employee’s
separation from service. Accordingly, notwithstanding what is stated in this
subparagraph (3), in the event any of such payments are to be made as a result of
Employee’s termination of employment at a time when Employee is a “key employee”
(as defined above) of Company, then the amount so owing shall accrue but shall
not be physically paid until at least six (6) months following Employee’s
separation from service, but only to the extent required under Sec. 409A of the
Code and authoritative guidance thereunder.

 

(d)         Notwithstanding what is
stated in this subparagraph (3), in the event any of such payments under this
subparagraph (3) are subject to Sec. 409A of the Code, the payment of such
amounts will be modified in order to be exempt from Sec. 409A to the extent
possible, otherwise to be in compliance with Sec. 409A, and that the parties
understand and agree that the Contract will be amended as needed in order to
specify the particular payment’s requirements and limitations as modified. For
example, in the event that, at the time of Employee’s termination of
employment,

 

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he is deemed
to be a “key employee” (see subparagraph “(3)(c)” above), then the full amounts
of deferred compensation which could not be paid during the first six (6)
months following the Date of Termination shall be paid in the seventh (7th)
month following the Date of Termination. However, in the event of any such
modification and/or amendment which has the effect of reducing the economic
benefit receivable by Employee under this Contract, Company shall pay to
Employee a reimbursement amount which will have the effect of offsetting (on an
after-tax basis) the amount of such economic benefit lost.

 

(e)          Employee shall not be
required to mitigate the amount of any payment provided for in this
subparagraph (3) by seeking other employment or otherwise, nor shall the
amount of any payment provided for in this subparagraph (3) be reduced by
any compensation earned by Employee as the result of self-employment or
employment by another employer.

 

b.              By Employee. If
such termination is caused by Employee for any reason, Company will have no
obligation to pay to Employee any compensation or fringe benefits following the
Date of Termination.

 

9.               Disclosure of Confidential
Information; Covenant Not To Compete. Company possesses
secret and confidential equipment, techniques, processes, procedures, technical
data and information, and customer lists used or intended for utilization in
its operations of which Employee has obtained or may obtain knowledge, and
Company would suffer serious harm if this confidential information were
disclosed or if Employee used this information to compete against Company. Further,
Employee in the performance of services hereunder may develop or conceive new
and additional inventions and improvements with respect to such matters. Accordingly,
Employee hereby agrees that simultaneously with the execution of this Contract
he shall execute and deliver to Company and thereafter abide by the terms of a “Confidentiality Agreement and Covenant Not to Compete”
and “Disclosure and Invention Agreement,”
copies of each of which are attached hereto respectively as Exhibits “B” and “C” and incorporated herein by reference.

 

10.         Remedies. Employee
agrees that in the event of his breach of his covenants and agreements
contained or referenced in this Contract, Company shall be entitled to obtain
injunctive or similar relief from a court of competent jurisdiction. The
covenants contained in Exhibits “B” and “C”
hereof shall be construed as agreements independent of any other agreements
between Company and Employee, and the existence of any claim or cause of action
of Employee against Company, whether predicated on this Contract or otherwise,
shall not constitute a defense to the enforcement by Company of those
conveyances. Company shall be entitled to reasonable attorneys’ fees and
related legal costs in the event of a breach, or attempted breach, of such
covenants by the Employee.

 

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The remedies
of Company and Employee under this Contract are cumulative and will not exclude
any other remedies to which any party may be entitled hereunder, including a
right of offset, whether at law or in equity.

 

11.         Notices. All
notices allowed or required to be given hereunder must be in writing and
dispatched by United States certified mail, return receipt requested, to the
address of the party entitled to such notice shown at the end of this Contract.
Either party hereto may change the address to which any such notice is to be
addressed by giving notice in writing to the other party of such change. Any
time limitation provided for in this Contract shall commence with the date that
the party actually receives such written notice, and the date or postmark of
any return receipt indicating the date of delivery of such notice to the
addressee shall be conclusive evidence of such receipt. In addition to the
parties hereto, copies of all notices should be sent to:

 

Mr. Herbert M.
Gardner

Chairman of
the Board and Chief Executive Officer

Supreme
Corporation

c/o
Barrett-Gardner Associates, Inc.

4 Darley Road

Great Neck, NY
11201

 

Haynes and
Boone, LLP

201 Main
Street, Suite 201

Fort Worth,
Texas 76102

Attn:   Rice M. Tilley, Jr., Esq.

 

12.         Assignment. Neither
Employee nor anyone claiming under him may commute, encumber, or dispose of the
right to receive benefits hereunder. Such right to receive benefits hereunder
is expressly declared to be non-assignable and non-transferable by Employee,
and in the event of any attempted assignment or transfer, Company shall have no
further liability hereunder; provided, however, the foregoing shall not apply
to assignments by operation of law, such as to a guardian or to an executor of
Employee’s estate.

 

13.         Waiver. The
waiver by Company of Employee’s breach of any provision hereof shall not
operate or be construed as a waiver of any subsequent breach by Employee.

 

14.         Binding Effect. This
Contract shall be binding upon the parties hereto and their heirs, successors,
executors, administrators, personal representatives, and except as provided in
paragraph 12, assigns.

 

15.         Survival of Provisions.
All provisions of this Contract, including all representations, warranties,
covenants, and agreements contained or referenced herein, will survive the
execution and delivery hereof and any investigation of the parties with

 

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respect
thereto. The provisions of paragraphs 9 and 10, and Exhibits ”B” and “C,” will survive the
termination or amendment of this Contract.

 

16.         Validity. If any
provision of this Contract is held by a court of law to be illegal or unenforceable,
the remaining provisions of the Contract will remain in full force and effect. In
lieu of such illegal or unenforceable provision, there shall be added
automatically as a part of this Contract a provision as similar in terms to
such illegal or unenforceable provision as may be possible and be legal and
enforceable.

 

17.         Amendments. This
Contract may be amended at any time and from time to time in whole or in part
by an instrument in writing setting forth the particulars of such amendment and
duly executed by Company and the Employee.

 

18.         Duplicate Originals.
This Contract has been executed in duplicate originals, each of which for all
purposes is to be deemed an original, and all of which constitute,
collectively, one agreement; but in making proof of this Contract, it will not
be necessary to produce or account for more than one such duplicate.

 

19.         Captions. The
captions or section headings of this Contract are provided for convenience and
shall not limit or affect the interpretation of this Contract.

 

20.         Governing Law. This
Agreement has been made in, and its validity, interpretation, construction, and
performance shall be governed by and be in accordance with, the laws of the
State of Indiana, without reference to its laws governing conflicts of law. Each
party hereby irrevocably agrees that any legal action or proceedings with
respect to this Agreement may be brought in the courts of the State of Indiana,
or in any United States District Court of Indiana, and, by its execution and
delivery of this Agreement, each party hereby irrevocably submits to each such
jurisdiction and hereby irrevocably waives any and all objections which it may
have as to venue in any of the above courts. Each party further consents and
agrees that any process or notice of motion or other application to either of
said Courts or any judge thereof, or any notice in connection with any
proceedings hereunder, may be served inside or outside the State of Indiana by
registered or certified mail, return receipt requested, postage prepaid, and be
effective as of the receipt thereof, or in such other manner as may be
permissible under the rules of said Courts.

 

21.         Complete Understanding.
This Contract constitutes the complete understanding between the parties
hereto, except as otherwise expressly provided or referenced herein, with
respect to the employment of Employee. This Contract supersedes all prior
agreements and understandings between the parties with respect to the subject
matter hereof.

 

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IN WITNESS WHEREOF,
the parties have executed this Contract to be effective January 1, 2006.

 

	
  COMPANY:

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
  SUPREME
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert
  M. Gardner

  	
   

  	
   

  	
  /s/ Robert
  W. Wilson

  	
   

  
	
   

  	
   

  	
  Herbert M. Gardner,

  	
   

  	
  Robert W. Wilson

  
	
   

  	
   

  	
  Chairman of the Board

  	
   

  	
  518 Carter Road

  
	
   

  	
   

  	
   

  	
   

  	
  Goshen, Indiana 46526

  
							

 

10

 

Exhibit “A”

to

Employment Contract

 

I.                                         Change in the ownership of a corporation

 

(A)                              In general. A change in the ownership of a
corporation occurs on the date that any one person, or more than one person
acting as a group, acquires ownership of stock of the corporation that,
together with stock held by such person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of
such corporation. However, if any one person, or more than one person acting as
a group, is considered to own more than 50 percent of the total fair market
value or total voting power of the stock of a corporation, the acquisition of
additional stock by the same person or persons is not considered to cause a
change in the ownership of the corporation (or to cause a change in the
effective control of the corporation). An increase in the percentage of stock
owned by any one person, or persons acting as a group, as a result of a
transaction in which the corporation acquires its stock in exchange for
property will be treated as an acquisition of stock. This applies only when
there is a transfer of stock of a corporation (or issuance of stock of a
corporation) and stock in such corporation remains outstanding after the
transaction.

 

(B)                                Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase or own stock
of the same corporation at the same time, or as a result of the same public
offering. However, persons will be considered to be acting as a group if they
are owners of a corporation that enters into a merger, consolidation, purchase,
or acquisition of stock, or similar business transaction with the corporation. If
a person, including an entity, owns stock in both corporations that enter into
a merger, consolidation, purchase, or acquisition of stock,  or similar transaction, such shareholder is
considered to be acting as a group with other shareholders in a corporation
prior to the transaction giving rise to the change and not with respect to the
ownership interest in the other corporation.

 

II.                                     Change in the effective control of a
corporation.

 

(A)                              In general. Notwithstanding that a
corporation has not undergone a change in ownership, (see above), a change in
the effective control of a corporation occurs only on the date that either –

 

(1)                                  Any one person, or more than one person
acting as a group, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) ownership
of stock of the

 

1

 

corporation
possessing 35 percent or more of the total voting power of the stock of such
corporation; or

 

(2)                                  A majority of members of the corporation’s
board of directors is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the
corporation’s board of directors prior to the election, provided that for
purposes of this paragraph  the term
corporation refers solely to the relevant corporation for which no other
corporation is a majority shareholder for purposes of that paragraph (for
example, if Corporation A is a publicly held corporation with no majority
shareholder, and Corporation A is the majority shareholder of Corporation B,
which is the majority shareholder of Corporation C, the term corporation for
purposes of this paragraph would refer solely to Corporation A).

 

(B)                                Multiple change in control events. A change
in effective control also may occur in any transaction in which either of the
two corporations involved in the transaction has a change in control event. Thus,
for example, assume Corporation P transfers more than 40 percent of the total
gross fair market value of its assets to Corporation O in exchange for 35
percent of O’s stock. P has undergone a change in ownership of a substantial
portion of its asset, and O has a change in effective control.

 

(C)                                Acquisition of additional control. If any one
person, or more than one person acting as a group, is considered to effectively
control a corporation, the acquisition of additional control of the corporation
by the same person or persons is not considered to cause a change in the
effective control of the corporation (or to cause a change in the ownership of
the corporation).

 

(D)                               Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase or own stock
of the same corporation at the same time, or as a result of the same public
offering. However, persons will be considered to be acting as a group if they
are owners of a corporation that enters into a merger, consolidation, purchase,
or acquisition of stock, or similar business transaction with the corporation. If
a person, including an entity, owns stock in both corporations that enter into
a merger, consolidation, purchase, or acquisition of stock, or similar
transaction, such shareholder is considered to be acting as a group with other
shareholders in a corporation only with respect to the ownership in that
corporation prior to the transaction giving rise to the change and not with
respect to the ownership interest in the other corporation.

 

III.                                 Change in the ownership of a substantial
portion of a corporation’s assets.

 

(A)                              In general. Change in the ownership of a
substantial portion of a corporation’s assets. A change in the ownership of a
substantial portion of a corporation’s assets occurs on the date that any one
person, or more than one person acting as a group, acquires (or has acquired
during the 12-month period ending on the

 

2

 

date of the
most recent acquisition by such person or person) assets from the corporation
that have a total gross fair market value equal to or more than 40 percent of
the total gross fair market value of all of the assets of the corporation
immediately prior to such acquisition or acquisitions. For this purpose, gross
fair market value means the value of the assets of the corporation, or the
value of the assets being disposed of, determined without regard to any
liabilities associated with such assets.

 

(B)                                Transfers to a related person.

 

(1)                                  There is no change in control event when
there is a transfer to an entity that is controlled by the shareholders of the
transferring corporation immediately after the transfer. A transfer of assets
by a corporation is not treated as a change in the ownership of such assets if
the assets are transferred to –

 

(i)  A shareholder of the corporation (immediately
before the asset transfer) in exchange for or with respect to its stock;

 

(ii)  An entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the
corporation;

 

(iii)  A person, or more than one person acting as a
group, that owns, directly or indirectly, 50 percent or more of the total value
or voting power of all the outstanding stock of the corporation; or

 

(iv)  An entity, at least 50 percent of the total
value or voting power of which is owned, directly or indirectly, by a person
described in “(iii)” immediately preceding.

 

(2)                                  A person’s status is determined immediately
after the transfer of the assets. For example, a transfer to a corporation in
which the transferor corporation has no ownership interest before the
transaction, but which is a majority-owned subsidiary of the transferor
corporation after the transaction is not treated as a change in the ownership
of the assets of the transferor corporation.

 

(C)                                Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase assets of
the same corporation at the same time. However, persons will be considered to
be acting as a group if they are owners of a corporation that enters into a
merger, consolidation, purchase, or acquisition of assets, or similar business
transaction with the corporation. If a person, including an entity shareholder,
owns stock in both corporations that enter into a merger, consolidation,
purchase, or acquisition of assets, or similar transaction, such shareholder is
considered to be acting as a group with other shareholders in a corporation
only to the extent of the ownership in that corporation prior to the transaction
giving rise to the change and not with respect to the ownership interest in the
other corporation.

 

3

 

Exhibit “B”

to

Employment Contract

 

Confidentiality Agreement and

Covenant Not To Compete

 

Robert W. Wilson
(hereafter called “Employee”) has
entered into an Employment Contract with Supreme
Corporation, a Texas corporation (hereafter called “Company”), which is in the business of
manufacturing and selling specialized truck bodies.

 

By signing
this Agreement, Employee acknowledges his understanding of the following:

 

A.                                   All
companies have information, generally not known outside the company, called “confidential information.” All companies
must conduct their businesses through their employees, and consequently many
employees must have access to confidential information. At times the employee
himself may generate confidential information as a part of his job;

 

B.                                     The
phrase “confidential information”
as used in this Agreement includes information known as, referred to, or
considered to be, trade secrets, and comprises, without limitation, any
technical, economic, financial marketing, computer program, computer software,
computer data (regardless of the medium on which they are stored), computer
source and object programs or codes,  job
operating control language procedures, data entry utility programs, sorts, and
miscellaneous utilities, disk record layouts, flow charts, data entry input
forms, operations and installation instructions, report samples, data files,
printouts, or other information about the Company or its business which is not
common knowledge among competitors or other companies who might like to possess
such confidential information or might find it useful. Some examples of
confidential information include customer lists, price lists, items in research
or development, methods of manufacture, scientific studies or analyses, details
of training methods, new products or new uses for old products, refining
technology, merchandising and selling techniques, contracts, and licenses,
purchasing, accounting, long-range planning, financial plans and results,
computer programs and operating manuals, computer source codes, and any other
information affecting or relating to the business of the Company, its manner of
operation, its plans or processes. This list is merely illustrative and the
confidential information covered by this Agreement is not limited to such
illustrations; and

 

C.                                     Company’s
confidential information, including information referred to as, known as, or
considered to be, trade secrets, represents the most important, valuable, and

 

1

 

unique aspect
of Company’s business, and it would be seriously damaged if Employee breached
the position of confidential trust in which Company has placed him by
disclosing such confidential information to others or by departing and taking
with him the aforesaid unique information compiled over a period of time for
the purpose of himself competing against Company or disclosing such information
to Company’s competitors, now existing or hereafter formed.

 

Accordingly,
in consideration of TEN DOLLARS ($10.00) paid to Employee by Company, the
receipt and sufficiency of which are hereby acknowledged, and Company’s agreement
to employ him, Employee agrees as follows (which will constitute an agreement
ancillary to Employee’s Employment Contract with Company):

 

1.                                       Confidential
information, including information referred to as, known as, or considered to
be, trade secrets, is proprietary to Company. Employee agrees to hold such
information in strictest confidence, and not to make use thereof except in
performance of duties under the Employment Contract. Whether during or after
his employment with Company, Employee may not disclose to others (excepting
Company officers or employees having a need to know who have also signed a
written agreement expressly binding themselves not to use or disclose it) any
confidential information originated, known to, or acquired by Employee while
employed by Company. Employee further agrees during such period not to remove
from the premises any of Company’s records or other written or tangible
materials, including without limitation computer programs and floppy disks
(whether prepared by Employee or others) containing any confidential
information, except as required for Employee to properly perform his duties as
an employee of the Company. Exceptions to these restrictions may be made only
by means of Company’s permission given in writing signed by the Chairman of the
Board of Directors of Company’s parent, Supreme Industries, Inc., pursuant to
an affirmative approval by a majority of Supreme Industries, Inc.’s Board of
Directors granting permission to disclose.

 

2.                                       During
a period of two (2) years following the cessation of Employee’s employment with
Company, Employee covenants that Employee, either individually or in any
capacity, including without limitation, as an agent, consultant, officer,
shareholder, or employee of any business enterprises or person with which he
may become associated or in which Employee may have a direct or indirect
interest, shall not, directly or indirectly for himself or on behalf of any
other person or business entity, engage in any business venture or other
undertaking which is directly or indirectly competitive with the business or
operations of Company (and/or any of its subsidiaries) as generally conducted
at, or prior to, the cessation of Employee’s employment with Company. Without
limiting the generality of the foregoing, Employee shall not (i) so compete
with the Company or its subsidiaries, (ii) be employed by, (iii) be an
affiliate (as defined by Securities and Exchange Commission Rule 405 under the
Securities Act of 1933), (iv) perform any services for, or (v) have an equity
or ownership interest in, any person, firm, partnership, joint venture, or
corporation that so competes, directly or indirectly, with the Company or any
of its subsidiaries. Further, Employee will not solicit for employment or
advise or

 

2

 

recommend to
any other person that such person employ, or solicit for employment, any
employee of the Company or any of its subsidiaries who was an employee at, or
prior to, the cessation of Employee’s employment with Company. The foregoing
covenant not to compete shall be limited to a territory consisting of those
states in which the Company had manufacturing facilities as of the time of
cessation of Employee’s employment with Company. If for any reason any court of
competent jurisdiction finds these covenants to be unreasonable in duration or
geographic scope, the prohibitions herein contained shall be restricted to such
time and geographic areas as such court determines to be reasonable and
enforceable. However, the restrictions stated above will not apply if Company
liquidates or if Employee becomes employed by a company (or its affiliate)
which acquires (in a voluntary transaction) the stock or business assets of
Company.

 

3.                                       Employee
understands and agrees that his violation of any of the provisions of this
Agreement will constitute irreparable injury to Company immediately authorizing
it to enjoin Employee or the business enterprise with which he may have become
associated from further violations, in addition to all other rights and
remedies which Company may have under law and equity, including recovery of
damages from Employee and a right of offset.

 

4.                                       Each
party shall be entitled to receive from the other party reimbursement of
attorney’s fees and related legal costs to the extent incurred in connection
with the successful enforcement or defense, as the case may be, of the terms
and conditions hereof.

 

5.                                       The
waiver by Company of Employee’s breach of any provision hereof shall not
operate or be construed as a waiver of any subsequent breach by Employee. This
Agreement shall be binding upon the parties hereto and their heirs, successors,
executors, administrators, personal representatives, and assigns. Employee may
not assign to any person his covenants, obligations and duties hereunder. All
provisions of this Agreement shall survive the termination or amendment of
Employee’s Employment Contract.

 

6.                                       If
any provision of this Agreement is held by a court of law to be illegal or
unenforceable, the remaining provisions of the Agreement shall remain in full
force and effect. In lieu of such illegal or unenforceable provision, there
shall be added automatically as a part of this Agreement a provision as similar
in terms to such illegal or unenforceable provision as may be possible and be
legal and enforceable.

 

7.                                       This
Agreement has been made in, and its validity, interpretation, construction, and
performance shall be governed by and be in accordance with, the laws of the
State of Indiana, without reference to its laws governing conflicts of law. Each
party hereby irrevocably agrees that any legal action or proceedings with
respect to this Agreement may be brought in the courts of the State of Indiana,
or in any United States District Court of Indiana, and, by its execution and
delivery of this Agreement, each party hereby irrevocably submits to each such
jurisdiction and hereby irrevocably waives any

 

3

 

and all
objections which it may have as to venue in any of the above courts. Each party
further consents and agrees that any process or notice of motion or other
application to either of said Courts or any judge thereof, or any notice in
connection with any proceedings hereunder, may be served inside or outside the
State of Indiana by registered or certified mail, return receipt requested,
postage prepaid, and be effective as of the receipt thereof, or in such other
manner as may be permissible under the rules of said Courts.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement to be effective January 1,
2006.

 

 

	
   

  	
  /s/ Robert W. Wilson

  	
   

  
	
   

  	
  Robert W. Wilson

  
	
   

  	
  518 Carter Road

  
	
   

  	
  Goshen, Indiana 46526

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
  SUPREME
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert M. Gardner

  	
   

  	
   

  
	
   

  	
   

  	
  Herbert M. Gardner,

  	
   

  	
   

  
	
   

  	
   

  	
  Chairman of the Board

  	
   

  	
   

  

 

4

 

Exhibit “C”

to

Employment Contract

 

Disclosure and Invention Agreement

 

Robert W. Wilson
(hereafter called “Employee”) has
entered into an Employment Contract with Supreme
Corporation, a Texas corporation (hereafter called “Company”), which is in the business of
manufacturing and selling specialized truck bodies.

 

In
consideration of TEN DOLLARS ($10.00) paid to Employee by Company, the receipt
and sufficiency of which are hereby acknowledged, and Company’s agreement to
employ him pursuant to an Employment Contract (to which this Exhibit “C” is attached) between Company
and Employee the provisions of which are herein fully incorporated by reference
for all purposes, Employee agrees as follows:

 

1.                                       Employee
shall communicate to Company promptly and fully all ideas and the expressions
thereof, conceptions, improvements, discoveries, methods, techniques,
processes, adaptations, creations, and inventions (whether patentable or
copyrightable or not) conceived or made by Employee (whether solely by Employee
or jointly with others) (“Ideas”)
from the time of entering Company’s employment until one year after Employee’s
employment is terminated for any reason, or Employee resigns or retires for any
reason, (a) which involve or pertain to, directly or indirectly, the business,
assets, activities, computers or computer programs, or investigations of
Company as existed at or prior to the cessation of Employee’s employment by
Company, or (b) which result from or are suggested by any work which Employee
or other employees or independent contractors perform for or on behalf of
Company, in whole or in part, as existed at or prior to the cessation of
Employee’s employment by Company.

 

2.                                       Employee
shall assist Company during and subsequent to Employee’s employment in every
proper way (solely at Company’s expense) to obtain patents and/or copyrights
for its own benefit in any or all countries of the world, and to sign all
proper papers, patent applications, assignments, and other documents necessary
for this purpose, it being understood that such Ideas will remain the sole and
exclusive property of Company, and shall not be disclosed to any person, nor
used by Employee, except as expressly permitted herein.

 

3.                                       Written
records of Employee’s Ideas in the form of notebook records, sketches, drawings
or reports, will remain the property of and be available to Company at all
times.

 

1

 

4.                                       Employee
represents that Employee has no agreements with or obligations to others in
conflict with the foregoing.

 

5.                                       Employee
understands that this Agreement may not be modified or released except in
writing signed by all members of the Company’s Board of Directors.

 

6.                                       Employee
understands and agrees that his violation of any of the provisions of this
Agreement will constitute irreparable injury to Company immediately authorizing
it to enjoin Employee or the business enterprise with which he may have become
associated from further violations, in addition to all other rights and
remedies which Company may have at law and equity, including recovery of
damages from Employee and a right of offset. Each party shall be entitled to
recover from the other party reimbursement of attorney’s fees and related legal
costs to the extent incurred in connection with the successful enforcement or
defense, as the case may be, of the terms of conditions hereof.

 

7.                                       This
Agreement shall be binding upon the parties hereto and their respective heirs,
successors, executors, administrators, personal representatives, and assigns. Employee
may not assign his covenants, duties, or obligations hereunder to any other
person. The waiver by Company of Employee’s breach of any provision hereof
shall not operate or be construed as a waiver of any subsequent breach by
Employee.

 

8.                                       If
any provision of this Agreement is held by a court of law to be illegal or
unenforceable, the remaining provisions of the Agreement shall remain in full
force and effect. In lieu of such illegal or unenforceable provision, there
shall be added automatically as a part of this Agreement a provision as similar
in terms to such illegal or unenforceable provision as may be possible and be
legal and enforceable.

 

9.                                       This
Agreement has been made in, and its validity, interpretation, construction, and
performance shall be governed by and be in accordance with, the laws of the
State of Indiana, without reference to its laws governing conflicts of law. Each
party hereby irrevocably agrees that any legal action or proceedings with
respect to this Agreement may be brought in the courts of the State of Indiana,
or in any United States District Court of Indiana, and, by its execution and
delivery of this Agreement, each party hereby irrevocably waives any and all
objections which it may have as to venue in any of the above courts. Each party
further consents and agrees that any process or notice of motion or other
application to either of said Courts or any judge thereof or any notice in
connection with any proceedings hereunder, may be served inside or outside the
State of Indiana by registered or certified mail, return receipt requested,
postage prepaid, and be effective as of the receipt thereof, or in such other
manner as may be permissible under the rules of said Courts.

 

2

 

IN WITNESS
WHEREOF, the parties have executed this Agreement to be effective January 1,
2006.

 

 

	
   

  	
  /s/ Robert W. Wilson

  	
   

  
	
   

  	
  Robert W. Wilson

  
	
   

  	
  518 Carter Road

  
	
   

  	
  Goshen, Indiana 46526

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
  SUPREME
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herbert M. Gardner

  	
   

  	
   

  
	
   

  	
   

  	
  Herbert M. Gardner,

  	
   

  	
   

  
	
   

  	
   

  	
  Chairman of the Board

  	
   

  	
   

  

 

3Exhibit 10.2

 

Employment Contract

(as Amended and Restated Effective January 1, 2005)

 

Supreme Industries, Inc.

 

(Herbert M. Gardner)

 

This Contract is entered
into between Supreme Industries, Inc.,
a Delaware corporation (hereafter called “Company”),
and Herbert M. Gardner (hereafter
called “Executive”).

 

Company is engaged (through
a wholly-owned subsidiary, Supreme Corporation) in the business of
manufacturing and selling specialized truck bodies. Company desires to obtain
the services of Executive as one of its key executives, and Executive is
willing and able to perform in that capacity.

 

This Contract
was initially entered into to be effective May 1, 2003. As the result of
unexpected developments under the Internal Revenue Code of 1986, as amended
(the “Code”), the parties have received professional advise that it is
necessary and appropriate to amend the original Contract so as to bring it into
compliance with newly adopted Section 409A of the Code. As a result, this
(amended) Employment Contract amends and completely restates the Contract dated
to be effective May 1, 2003.

 

Accordingly, in
consideration of the mutual covenants herein contained, the parties to this
Contract agree as follows:

 

1.               Employment. Company hereby employs Executive, and
Executive hereby accepts such employment from Company, pursuant to those
provisions herein contained.

 

2.               Term of
Contract.

 

a.                                       Beginning
Date. The beginning
date of this Contract will be May 1, 2003.

 

b.                                      Evergreen
Provision. Commencing
on the first day after the date of this Contract, and on each day thereafter,
the term of this Contract (the “Term of this Contract”) shall automatically be
extended for one additional day so that a constant three (3) year term will
always be in effect (unless Executive elects not to extend the Term of this
Contract by giving written notice to Company, in which case the Term of this
Contract will become fixed and will end on the third anniversary date of such
written notice). In the event of the death or Disability (as hereafter defined)
of Executive, the termination of this Contract by Company without Cause (as
hereafter defined), or the termination of this Contract by Executive for Good
Reason (as hereafter defined), the Term of this Contract will become fixed and
will end on the fifth anniversary date of such event.

 

c.                                       Change in Ownership or
Control. Further, in the
event of a “Change in Ownership or Control
of Company,” the Term of this Contract will be automatically
extended so as to remain in effect until the fifth anniversary date of such
Change in Control of Company. For purposes of this Contract, the term “Change in Ownership or Control of Company”
is defined in Exhibit “A” attached
hereto.

 

d.                                      Calendar Year. Company’s financial reports are currently
maintained on a calendar year basis. If, at any time in the future, Company
switches to a fiscal year, then (during such period of time) all references in
this Contract to “calendar year” shall be deemed to refer to such fiscal year.

 

3.               Duties of
Executive. Executive
is initially employed  as Chairman of the
Board and Chief Executive Officer of Company pursuant to the terms and
conditions of this Contract. Executive may also

 

1

 

serve in other
capacities reasonably requested by the Board of Directors so long as such other
office or offices are not demeaning in nature. In no event may any such change
or changes in officer positions have the effect of reducing the amount of
compensation payable to Executive under this Contract (or otherwise diminishing
any of the rights and benefits provided to Executive under this Contract). It
is expressly agreed to and acknowledged by the parties that Executive’s
employment with Company hereunder shall not be on a full-time or exclusive
basis. However, Executive agrees to provide services to Company on a reasonable
basis consistent with past practice, and shall conduct himself at all times so
as to advance the best interests of Company. Executive may also serve as
Chairman of the Board of Supreme Corporation and one or more of the other
subsidiaries and affiliates of Company whether now existing or hereafter formed.
Notwithstanding anything contained herein (or in the exhibits attached hereto)
to the contrary, it is understood and agreed that Executive may, from time to
time, make investments in, and even obtain control of, other business entities
so long as no such business entities are competitive with the business
operations of Company.

 

4.               Compensation. During the Term of this Contract (except as
otherwise provided herein), the following shall apply:

 

a.               Base
Salary. Company
shall pay to Executive a minimum base salary of $108,000 per year payable in twenty-six (26) equal payments
per year of $4,153.85 (or in
accordance with such other sequence of payments as determined by Company’s then
existing payroll policies) from which federal withholding and social security
taxes will be deducted. However, such payments shall be offset by all other
fees actually received by Executive for serving as a member of the Board of
Directors and any committee of Company and its subsidiaries; and

 

b.              Pre-Tax
Bonus. In addition
to the above, if the pre-tax earnings of Company for a calendar year exceed
$2,000,000, Company shall pay to Executive not later than by March 15 following
the end of the calendar year to which it relates:  (i) $36,000; plus (ii) six-tenths of one
percent  (0.6%) of the amount by which
such pre-tax earnings of Company exceed $2,000,000. In making such
determination, there shall be excluded all items of an extraordinary and
non-recurring nature. For this purpose, Company’s pre-tax earnings will be
determined by Company’s independent accountants (which determination shall be
binding and conclusive).

 

5.               Fringe
Benefits. During the
Term of this Contract (except as otherwise provided herein), Executive shall
receive the following fringe benefits:

 

a.               Business
Expenses. Company
shall pay or reimburse Executive for all expenses reasonably incurred by him in
the performance of services hereunder including, without limitation, expenses
for entertainment, traveling, meals, hotel accommodations, and similar items
upon submission of vouchers or itemized lists of such expenses prepared in
compliance with Company’s policy;

 

b.              Medical
Benefits. Executive
shall receive the same rights as have been given to Company’s executives of
like stature and status as to group hospitalization, accident, and major
medical benefits for himself and the members of his family (except that
Executive shall be under the same obligation to pay his pro-rata portion of
such benefits as all other of Company’s executives in the event he desires to
receive such benefits). However, in the event that, at any time during the Term
of this Contract, Executive’s medical expenses exceed any ceiling amounts
provided for in any of Company’s medical benefit plans, Company shall
nevertheless be obligated (without any additional expense to Executive) to pay
all of such excess amounts (and may, if Company elects to do so, obtain
supplemental insurance to provide third party funding of such excess amounts). But
the payment obligation of Company, provided for in the preceding sentence,
following termination of employment will be limited to: (1) amounts
that otherwise would be deductible to Executive under IRS Code Sec. 213; and
(2) excess medical expenses incurred only within  the period ending on the
last day of the second calendar year after the calendar year in which Executive
separates from service;

 

2

 

c.               Insurance. Company shall pay, not later than December
31 of each calendar year, the lesser of $30,000 or the actual amount of
premiums owing on insurance of any kind owned by Executive (and/or his wife)
covering Executive or “last to die” insurance covering the lives of Executive
and his wife (the “Coverage Amount”) paid during such year.

 

In addition to the Coverage Amount, Company shall also
pay to Executive, each year, such amount which, after taking into consideration
the income tax effect of the “deemed income” to Executive (for the Coverage
Amount and the federal and state tax offset payments) will offset such
additional taxes (the “Gross-Up Amount”). In making the determination of the
Gross-Up Amount, the following formula shall be used: Coverage Amount/(1 –
(Executive’s marginal tax bracket + .014 [Medicare] + Executive’s marginal tax
bracket for state income taxes, if any, + city taxes, if any) minus the
Coverage Amount. For example, assuming that: (i) the annual premium is
$30,000.00 (Coverage Amount = $30,000); (ii) Executive is in the 35% marginal
tax bracket; (iii) the Coverage Amount is not subject to social security taxes;
(iv) Executive is in the 10% state income tax bracket; and (v) the Coverage
Amount is not subject to city taxes; the Gross-Up Amount would be: $25,970.15
($30,000/(1 – (.35 + .014 + .1) minus $30,000;

 

d.              Dental
Benefits. Company
shall pay or reimburse Executive for all family dental expenses up to a maximum
of $5,000 per year;

 

e.               Automobile. Company shall provide an automobile (of like
kind to that currently leased) for Executive’s use in connection with the
services to be rendered by Executive to Company. Company shall pay or reimburse
Executive for maintenance, repair, and other expenses of the automobile upon
submission of vouchers or itemized lists of such expenses prepared in
compliance with Company’s policy. For so long as Company owns (or leases) the
automobile, Company shall insure the automobile with the same automobile
insurance company coverage that is provided for other executive officers of
Company. Company agrees that Executive shall be designated as an additional
insured on any Company-provided policy providing liability insurance coverage,
and that such policy shall also provide coverage for such family members of
Executive and other persons who may be authorized by Executive to drive the
automobile. In the event the automobile is damaged or destroyed by reason of
accident, theft, vandalism, or otherwise, Executive will not have any liability
to Company for any such loss or damage (including out-of-pocket deductibles);

 

f.                 Other
Benefits. No
provision of this Contract will preclude Executive from participating in any
fringe benefit plan now in effect or hereafter adopted by Company; and

 

g.              Attorneys’
Fees. Company shall
reimburse Executive for reasonable attorneys’ fees and expenses incurred in the
negotiation and review of this Contract and any issues arising hereunder.

 

6.               Key-Man
Insurance. Company
may, at any time during the Term of this Contract, apply for and procure as
owner, and for its sole benefit, life insurance on Executive’s life in such
amounts and in such forms as Company may select. Executive hereby acknowledges
the fact that he will have no interest whatsoever in any such insurance policy.
However, Executive agrees that he shall, at Company’s request, submit to such
medical examinations, supply such information, and execute such documents as
may be reasonably requested by the insuring companies.

 

7.               Termination
of Employment. Executive’s
obligations to perform the duties and services specified in paragraph 3 hereof
will be terminated as follows (entitling Executive to receive the payments and
benefits provided for in paragraph “9.” to follow):

 

a.               Upon the
Death of Executive. Within
thirty (30) days after the death of Executive, any sums then owing to Executive
pursuant to paragraph “4.a.” of this Contract shall be paid to the estate or
assigns of Executive.

 

3

 

b.              Upon the
Disability of Executive.
For purposes of this Contract, the term “Disability” will mean: 
(i) if Executive is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months; or (ii) if Executive, is, by reason
of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than twelve (12) months, receiving income replacement benefits for
a period of not less than three (3) months under an accident and health plan
covering employees of Company.

 

c.               Upon
Election by Company (but only for “Cause”). For purposes of this Contract, the term “Cause” will mean (only) the willful
engagement by Executive in gross misconduct materially injurious to Company
which shall have been determined by the final award of the arbitrator. For
purposes of this definition, any act or failure to act on Executive’s part
shall not be considered willful unless done or omitted to be done by him in bad
faith and without reasonable belief that his action or omission was in the best
interest of Company. In the event that Company elects to terminate this
Contract for Cause:  (1) there shall be
no change in the obligation of Company to pay compensation to Executive under
this Contract prior to a final determination of “Cause;” and (2) Company shall
pay all of the expenses of Executive in defending against the allegation of
“Cause” but, in the event there is a final determination that Company was
justified in electing to terminate Executive for Cause, Executive shall, within
thirty (30) days thereafter, reimburse Company for all such expenses paid on Executive’s
behalf by Company.

 

d.              Upon
Election by Executive for Good Reason. For purposes of this Contract, the term “Good Reason” will mean: 
(1) a Change in Control of Company (as that term is defined in paragraph
“2.c.” above); (2) any assignment to Executive by Company of any significant
undesirable or demeaning duties (other than those duties contemplated by
paragraph “3.” hereof); (3) any failure of Company to comply with paragraph
“4.” hereof; or (4) failure of Company to obtain from any successor of Company
(as specifically provided in paragraph 15 hereof) an agreement to assume all of
Company’s liabilities and obligations created by or arising from this Contract.

 

8.               Notice of
Termination. Any
termination of Executive’s obligations to perform the duties and services
designated in paragraph “3.” hereof by Company, or by Executive pursuant to the
provisions of paragraph “7.” hereof, shall be communicated by written notice to
the other party which shall indicate the specific termination provision in this
Contract relied upon by the terminating party and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such
termination.

 

9.               Termination
Payments. If:  (a) Executive dies; (b) Executive suffers a
Disability; (c) Company terminates Executive without Cause; or (d) Executive
terminates this Contract for Good Reason, then the following shall apply:

 

a.               During the remainder of the Term of this
Contract, Company shall continue to pay Executive (or, in the event of Executive’s
death, to Executive’s wife or his estate, whichever is applicable) his base
salary under paragraph “4.a.” above on a periodic basis at the same rate as
payable immediately prior to the date of termination;

 

b.              During the remainder of the Term of this
Contract, Company shall continue to pay Executive (or, in the event of
Executive’s death, to Executive’s wife or his estate, whichever is applicable)
his Pre-Tax Bonus under paragraph “4.b.” 
However, in the event that the Term of this Contract ends on a date
other than December 31, then, for the calendar year during which the Term of
this Contract terminates, Company shall pay to Executive or his estate his “Proportionate Share” of such Pre-Tax Bonus.
For this purpose, his “Proportionate Share”
will be a fraction the numerator of which is the number of days in such
calendar year ending with the end of the Term of this Contract and the
denominator of which is the total number of days in such calendar year. The
final payment of such Proportionate Share shall be paid to Executive (or, in
the event of death, to Executive’s spouse or his estate, whichever is
applicable) no later than twenty (20) days after receipt of Company’s audit. Notwithstanding
the foregoing, in the event payments are being

 

4

 

made to
Executive on account of a Change in Control based upon a hostile takeover of
Company, the Pre-Tax Bonus under paragraph “4.b.” shall be determined based
upon the highest pre-tax earnings of Company in the three calendar years
immediately preceding the calendar year in which termination occurs;

 

c.               During the remainder of the Term of this
Contract, Company shall keep in full force and effect all of those fringe
benefits referred to above in paragraph “5.b.” (“Medical Benefits”), “5.c.”
(“Insurance”), and 5.d.” (“Dental Benefits”). With regard to Key-man insurance
policies of any kind on the life of Executive under paragraph “6.” of this Contract, Executive may, at any time during the remainder of the Term of this Contract,
elect (by written notice given to Company) to have Company transfer to
Executive whatever ownership rights Company may have in any such policy or
policies for a consideration of Ten Dollars ($10) plus any cash value that may
exist under such policies. If, at the time of Executive’s cessation of his
performance of his duties as provided under paragraph “3.” above (other than
termination by Company for Cause), Company was providing an automobile to
Executive under paragraph “5.e.” above, Company will, not later than by March
15 following the end of the calendar year in which Executive’s employment
terminates, for a consideration of Ten Dollars ($10) cash paid to Company: (i)
if Company owned the automobile, Company shall transfer the title (free and clear
of any liens or other encumbrances) to Executive along with any insurance
coverage (if assignable), Executive 
understanding that such “bargain” transaction may generate taxable
income; and (ii) if Company was leasing such automobile, Company shall assign
to Executive all of its right, title, and interest in and to such lease (and,
upon termination of such lease, purchase the leased auto pursuant to the lease
agreement and convey ownership thereof free and clear of all security
interests, liens, or other encumbrances to Executive or his beneficiary or
estate);

 

d.              Sec. 416(i) of the Code defines “key
employee” as meaning an employee who, at any time during the year, is:  (i) an officer having an annual compensation
greater than $130,000; (ii) a five percent owner of the employer; or (iii) a
one percent owner of the employer having an annual compensation from the
employer of more than $150,000. Sec. 409A of the Code provides that deferred
compensation benefits payable as a result of termination of employment cannot
be made to “key employees” of publicly-traded corporations or their
subsidiaries prior to the date that is six (6) months after the employee’s
separation from service. Accordingly, notwithstanding what is stated in
subparagraphs “a.” through “c.” above, in the event any of such payments are to
be made as a result of Executive’s termination of employment at a time when
Executive is a “key employee” (as defined above) of Company, then the amount so
owing shall accrue but shall not be physically paid until at least six (6)
months following Executive’s separation from service, but only to the extent
required under Sec. 409A of the Code and authoritative guidance thereunder.

 

e.               Notwithstanding what is stated in
subparagraphs “a.” through “c.” above, in the event any of such payments are
subject to Sec. 409A of the Code, the payment of such amounts will be modified
in order to be exempt from Sec. 409A to the extent possible, otherwise to be in
compliance with Sec. 409A, and that the parties understand and agree that the
Contract will be amended as needed in order to specify the particular payment’s
requirements and limitations as modified. For example, in the event that, at
the time of Executive’s termination of employment, he is deemed to be a “key
employee” (see subparagraph “d.” above), then the full amounts of deferred
compensation which could not be paid during the first six months following the
date of termination shall be paid in the seventh month following the date of
termination. However, in the event of any such modification and/or amendment
which has the effect of reducing the economic benefit receivable by Executive
under this Contract, Company shall pay to Executive a reimbursement amount
which will have the effect of offsetting (on an after-tax basis) the amount of
such economic benefit lost.

 

f.                 Upon failure to make any payment as above
provided, which failure continues uncorrected for ten (10) days after receipt
of written demand by Executive (or Executive’s legal representative), Executive
(or Executive’s legal representative) may by notice in writing declare all
future payments under this Contract to be immediately due and payable, and such
amounts

 

5

 

shall bear
interest from the date of receipt of such written declaration at the maximum
legal rate then in effect until such amount is paid in full; and

 

g.              Executive shall not be required to mitigate
the amount of any payment provided for in this paragraph “9” by seeking other
employment or otherwise, nor shall the amount of any payment provided for in
this paragraph be reduced by any compensation earned by Executive as the result
of self-employment or employment by another employer.

 

10.         Disclosure
of Confidential Information; Covenant Not To Compete. Company and its affiliates possess secret
and confidential equipment, techniques, processes, procedures, technical data
and information, and customer lists used or intended for utilization in its
operations of which Executive has obtained or may obtain knowledge, and Company
and its affiliates would suffer serious harm if this confidential information
were disclosed or if Executive used this information to compete against Company
or its affiliates. Further, Executive in the performance of services hereunder
may develop or conceive new and additional inventions and improvements with
respect to such matters. Accordingly, Executive hereby agrees that
simultaneously with the execution of this Contract he shall execute and deliver
to Company and thereafter abide by the terms of a “Confidentiality Agreement and Covenant Not to Compete” and “Disclosure and Invention Agreement,”
copies of which are attached hereto respectively as Exhibits “B” and “C”
and incorporated herein by reference.

 

11.         Remedies. Executive agrees that in the event of his
breach of his covenants and agreements contained or referenced in this
Contract, the sole remedy of Company shall be to obtain injunctive or similar
relief from an arbitrator or a court of competent jurisdiction in aid of
arbitration.

 

12.         Notices. All notices allowed or required to be given
hereunder must be in writing and dispatched by United States certified mail,
return receipt requested, to the address of the party entitled to such notice
shown at the end of this Contract. Either party hereto may change the address
to which any such notice is to be addressed by giving notice in writing to the
other party of such change. Any time limitation provided for in this Contract
shall commence with the date that the party actually receives such written
notice, and the date or postmark of any return receipt indicating the date of
delivery of such notice to the addressee shall be conclusive evidence of such
receipt.

 

13.         Assignment. Neither Executive nor anyone claiming under
him may commute, encumber, or dispose of the right to receive benefits
hereunder. Such right to receive benefits hereunder is expressly declared to be
non-assignable and non-transferable by Executive, and in the event of any
attempted assignment or transfer, Company shall have no further liability
hereunder; provided, however, the foregoing shall not apply to assignments by
operation of law, such as to a guardian, or to an executor of Executive’s
estate or pursuant to the agent’s attorney-in-fact under a valid power of
attorney.

 

14.         Waiver. The waiver by Company of Executive’s breach
of any provision hereof shall not operate or be construed as a waiver of any
subsequent breach by Executive.

 

15.         Binding
Effect. This
Contract will be binding upon the parties hereto and their heirs, successors,
executors, administrators, personal representatives, and assigns. Company shall
require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business and/or
assets of Company, by agreement in form and substance satisfactory to
Executive, to expressly assume all of the obligations and liabilities of
Company set forth in this Contract. Failure of any to obtain such agreement
prior to the effectiveness of any such succession shall be a breach of this
Contract and shall entitle Executive to compensation from Company in the same
amount and on the same terms as he would be entitled to hereunder if he
terminated his employment for Good Reason. As used in this Contract, the term “Company” will mean Supreme Industries,
Inc, its subsidiaries and affiliates, and any successor or successors thereto
of its or their business and/or assets as provided in this paragraph “15.” or
which otherwise becomes bound by all the terms and provisions of this Contract
by operation of law.

 

16.         Indemnification. Company shall indemnify, defend, and hold
harmless Executive from any damages, losses, costs, or expenses, including
reasonable attorneys’ fees and expenses, incurred or suffered

 

6

 

by Executive
as an officer or director of Company to the fullest extent that Company is
permitted by law. This indemnification shall be in addition to that
indemnification protection already provided to Executive under one certain
Indemnification Agreement dated October 15, 1997. Without the prior written
consent of Executive in each instance (which Executive agrees not to
unreasonably withhold), Company shall not, during the Term of this Contract and
for a period of five years thereafter, further modify provisions of its
Articles of Incorporation or Bylaws which deal with the indemnification of
officers and directors or the purchase and maintenance of directors and
officers liability insurance. Company agrees to advance all expenses, including
but not limited to, reasonable attorneys’ fees, as and when such expenses are
incurred by Executive. In addition, Company agrees to continue to maintain at
its sole cost and expense for so long as Executive is an officer or director of
Company and for a period of six years thereafter, Directors and Officers
liability insurance in amount and with coverage not less than currently
provided as of the date of this Contract.

 

17.         Survival
of Provisions. All
provisions of this Contract, including all representations, warranties,
covenants, and agreements contained or referenced herein, will survive the
execution and delivery hereof and any investigation of the parties with respect
thereto. The provisions of paragraphs “10.” and “11.”, and Exhibits ”B” and “C,” will survive the
termination or amendment of this Contract.

 

18.         Validity. If any provision of this Contract is held
by a court of law to be illegal or unenforceable, the remaining provisions of
the Contract will remain in full force and effect. In lieu of such illegal or
unenforceable provision, there shall be added automatically as a part of this
Contract a provision as similar in terms to such illegal or unenforceable
provision as may be possible and be legal and enforceable.

 

19.         Amendments. This Contract may be amended at any time
and from time to time in whole or in part by an instrument in writing setting
forth the particulars of such amendment and duly executed by Company and
Executive.

 

20.         Duplicate
Originals. This
Contract has been executed in duplicate originals, each of which for all
purposes is to be deemed an original, and all of which constitute,
collectively, one agreement; but in making proof of this Contract, it will not
be necessary to produce or account for more than one such duplicate.

 

21.         Captions. The captions or section headings of this
Contract are provided for convenience and shall not limit or affect the
interpretation of this Contract.

 

22.         Arbitration. Any dispute or controversy arising under or
in connection with this Contract, or the breach thereof, shall be settled
exclusively by arbitration before a single arbitrator administered by the
American Arbitration Association in New York, New York, in accordance with its
rules applicable to employment disputes then in effect as supplemented by its
large, complex case procedures. If Executive is the prevailing party, the
arbitrator shall add to the award the reasonable attorneys’ fees and expenses
incurred by Executive.

 

23.         Governing
Law. This Contract
has been made in, and its validity, interpretation, construction, and
performance shall be governed by and be in accordance with, the laws of the
State of Delaware, without reference to its laws governing conflicts of law.

 

7

 

24.         Complete
Understanding. This
Contract constitutes the complete understanding between the parties hereto,
except as otherwise expressly provided or referenced herein, with respect to
the employment of Executive. This Contract supersedes all prior agreements and
understandings between the parties with respect to the subject matter hereof.

 

Signed to be effective
January 1, 2005.

 

	
  COMPANY:

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  SUPREME
  INDUSTRIES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Wilson

  	
   

  	
  /s/ Herbert M. Gardner

  	
   

  
	
   

  	
   

  	
  Robert W. Wilson

  	
  Herbert M. Gardner

  
	
   

  	
   

  	
  Executive Vice President

  	
  4 Darley Road

  
	
   

  	
   

  	
  P. O. Box 237

  	
  Great Neck, NY 11021

  
	
   

  	
   

  	
  2581 E. Kercher Road

  	
   

  
	
   

  	
   

  	
  Goshen, IN 46527-0237

  	
   

  
						

 

8

 

Exhibit “A”

to

Employment Contract

 

I.                                         Change in the ownership of a corporation

 

(A)  In general. A change in the ownership of a
corporation occurs on the date that any one person, or more than one person
acting as a group, acquires ownership of stock of the corporation that,
together with stock held by such person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of
such corporation. However, if any one person, or more than one person acting as
a group, is considered to own more than 50 percent of the total fair market
value or total voting power of the stock of a corporation, the acquisition of
additional stock by the same person or persons is not considered to cause a
change in the ownership of the corporation (or to cause a change in the
effective control of the corporation). An increase in the percentage of stock
owned by any one person, or persons acting as a group, as a result of a
transaction in which the corporation acquires its stock in exchange for
property will be treated as an acquisition of stock. This applies only when
there is a transfer of stock of a corporation (or issuance of stock of a
corporation) and stock in such corporation remains outstanding after the
transaction.

 

(B)                                Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase or own stock
of the same corporation at the same time, or as a result of the same public
offering. However, persons will be considered to be acting as a group if they
are owners of a corporation that enters into a merger, consolidation, purchase,
or acquisition of stock, or similar business transaction with the corporation. If
a person, including an entity, owns stock in both corporations that enter into
a merger, consolidation, purchase, or acquisition of stock,  or similar transaction, such shareholder is
considered to be acting as a group with other shareholders in a corporation
prior to the transaction giving rise to the change and not with respect to the
ownership interest in the other corporation.

 

II.                                     Change in the effective control of a
corporation.

 

(A)                              In general. Notwithstanding that a
corporation has not undergone a change in ownership, (see above), a change in
the effective control of a corporation occurs only on the date that either –

 

(1)                                  Any one person, or more than one person
acting as a group, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) ownership
of stock of the corporation possessing 35 percent or more of the total voting
power of the stock of such corporation; or

 

(2)                                  A majority of members of the corporation’s
board of directors is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the
corporation’s board of directors prior to the election, provided that for
purposes of this paragraph  the term
corporation refers solely to the relevant corporation for which no other
corporation is a majority shareholder for purposes of that paragraph (for
example, if Corporation A is a publicly held corporation with no majority
shareholder, and Corporation A is the majority shareholder of Corporation B,
which is the majority shareholder of Corporation C, the term corporation for
purposes of this paragraph would refer solely to Corporation A).

 

(B)                                Multiple change in control events. A change
in effective control also may occur in any transaction in which either of the
two corporations involved in the transaction has a change in control event. Thus,
for example, assume Corporation P transfers more than 40 percent of the total
gross fair market value of its assets to Corporation O in exchange for 35
percent of O’s stock. P has undergone a change in ownership of a substantial
portion of its asset, and O has a change in effective control.

 

1

 

(C)                                Acquisition of additional control. If any one
person, or more than one person acting as a group, is considered to effectively
control a corporation, the acquisition of additional control of the corporation
by the same person or persons is not considered to cause a change in the
effective control of the corporation (or to cause a change in the ownership of
the corporation).

 

(D)                               Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase or own stock
of the same corporation at the same time, or as a result of the same public
offering. However, persons will be considered to be acting as a group if they
are owners of a corporation that enters into a merger, consolidation, purchase,
or acquisition of stock, or similar business transaction with the corporation. If
a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase, or acquisition of stock, or similar
transaction, such shareholder is considered to be acting as a group with other
shareholders in a corporation only with respect to the ownership in that
corporation prior to the transaction giving rise to the change and not with
respect to the ownership interest in the other corporation.

 

III.                                 Change in the ownership of a substantial
portion of a corporation’s assets.

 

(A)                              In general. Change in the ownership of a
substantial portion of a corporation’s assets. A change in the ownership of a
substantial portion of a corporation’s assets occurs on the date that any one
person, or more than one person acting as a group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by
such person or person) assets from the corporation that have a total gross fair
market value equal to or more than 40 percent of the total gross fair market
value of all of the assets of the corporation immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value means
the value of the assets of the corporation, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such
assets.

 

(B)                                Transfers to a related person.

 

(1)                                  There is no change in control event when
there is a transfer to an entity that is controlled by the shareholders of the
transferring corporation immediately after the transfer. A transfer of assets
by a corporation is not treated as a change in the ownership of such assets if
the assets are transferred to –

 

(i)  A shareholder of the corporation (immediately
before the asset transfer) in exchange for or with respect to its stock;

 

(ii)  An entity, 50 percent or more of the total
value or voting power of which is owned, directly or indirectly, by the
corporation;

 

(iii)  A person, or more than one person acting as a
group, that owns, directly or indirectly, 50 percent or more of the total value
or voting power of all the outstanding stock of the corporation; or

 

(iv)  An entity, at least 50 percent of the total
value or voting power of which is owned, directly or indirectly, by a person
described in “(iii)” immediately preceding.

 

(2)                                  A person’s status is determined immediately after
the transfer of the assets. For example, a transfer to a corporation in which
the transferor corporation has no ownership interest before the transaction,
but which is a majority-owned subsidiary of the transferor corporation after
the transaction is not treated as a change in the ownership of the assets of
the transferor corporation.

 

(C)                                Persons acting as a group. Persons will not
be considered to be acting as a group solely because they purchase assets of
the same corporation at the same time. However, persons will be considered to
be acting as a group if they are owners of a corporation that enters into a
merger,

 

2

 

consolidation,
purchase, or acquisition of assets, or similar business transaction with the
corporation. If a person, including an entity shareholder, owns stock in both
corporations that enter into a merger, consolidation, purchase, or acquisition
of assets, or similar transaction, such shareholder is considered to be acting
as a group with other shareholders in a corporation only to the extent of the
ownership in that corporation prior to the transaction giving rise to the
change and not with respect to the ownership interest in the other corporation.

 

3

 

Exhibit “B”

to

Employment Contract

 

Confidentiality Agreement and

Covenant Not To Compete

 

Herbert M. Gardner (hereafter called “Executive”)
has entered into an Employment Contract with Supreme
Industries, Inc., a Delaware corporation (hereafter called “Company”), which is in the business
(through a wholly-owned subsidiary, Supreme Corporation) of manufacturing and
selling specialized truck bodies. Whenever used herein the word “Company” shall
be deemed to include Supreme Corporation and the other affiliates of Supreme
Industries, Inc.

 

By signing this Agreement,
Executive acknowledges his understanding of the following:

 

A.                                   All companies have information, generally not
known outside the company, called “confidential
information.” All companies must conduct their businesses through
their executives, and consequently many executives must have access to
confidential information. At times Executive himself may generate confidential
information as a part of his job;

 

B.                                     The phrase “confidential
information” as used in this Agreement includes information known
as, referred to, or considered to be, trade secrets, and comprises, without
limitation, any technical, economic, financial marketing, computer program,
computer software, computer data (regardless of the medium on which they are
stored), computer source and object programs or codes, job operating control
language procedures, data entry utility programs, sorts, and miscellaneous
utilities, disk record layouts, flow charts, data entry input forms, operations
and installation instructions, report samples, data files, printouts, or other
information about Company or its business which is not common knowledge among
competitors or other companies who might like to possess such confidential
information or might find it useful. Some examples of confidential information
include customer lists, price lists, items in research or development, methods
of manufacture, scientific studies or analyses, details of training methods,
new products or new uses for old products, merchandising and selling
techniques, contracts and licenses, purchasing, accounting, long-range
planning, financial plans and results, computer programs and operating manuals,
computer source codes, and any other information affecting or relating to the
business of Company, its manner of operation, its plans or processes. This list
is merely illustrative and the confidential information covered by this
Agreement is not limited to such illustrations; and

 

C.                                     Company’s confidential information, including
information referred to as, known as, or considered to be, trade secrets,
represents the most important, valuable, and unique aspect of Company’s
business, and it would be seriously damaged if Executive breached the position
of confidential trust in which Company has placed him by disclosing such
confidential information to others or by departing and taking with him the
aforesaid unique information compiled over a period of time for the purpose of
himself competing against Company or disclosing such information to Company’s
competitors, now existing or hereafter formed.

 

Accordingly, in
consideration of ONE DOLLAR paid to Executive by Company, the receipt and
sufficiency of which are hereby acknowledged, and Company’s agreement to employ
him, Executive agrees as follows (which will constitute an agreement ancillary
to Executive’s Employment Contract with Company):

 

1.                                       Confidential information, including
information referred to as, known as, or considered to be, trade secrets, is
proprietary to Company. Executive agrees to hold such information in strictest
confidence, and not to make use thereof except in performance of duties under
the Employment Contract. Whether during or after his employment with Company,
Executive may not disclose to others (excepting

 

1

 

Company
officers or executives having a need to know who have also signed a written
agreement expressly binding themselves not to use or disclose it) any
confidential information originated, known to, or acquired by Executive while
employed by Company. Executive further agrees during such period not to remove
from the premises any of Company’s records or other written or tangible
materials, including without limitation computer programs and floppy disks
(whether prepared by Executive or others) containing any confidential
information, except as required for Executive to properly perform his duties as
an Executive of Company. Exceptions to these restrictions may be made only by
means of Company’s permission given in writing signed by the Chairman of the
Board of Directors of Company pursuant to an affirmative approval by a majority
of Supreme Industries, Inc.’s Board of Directors granting permission to
disclose.

 

2.                                       During a period of three (3) years following
the cessation of Executive’s employment with Company, Executive covenants that
Executive, either individually or in any capacity, including without
limitation, as an agent, consultant, officer, shareholder, or Executive of any
business enterprises or person with which he may become associated or in which
Executive may have a direct or indirect interest, shall not, directly or
indirectly for himself or on behalf of any other person or business entity,
engage in any business venture or other undertaking which is directly or
indirectly competitive with the business or operations of Company (and/or any
of its subsidiaries) as generally conducted at, or prior to, the cessation of
Executive’s employment with Company. Without limiting the generality of the foregoing,
Executive shall not (i) so compete with Company or its subsidiaries, (ii) be
employed by, (iii) be an affiliate (as defined by Securities and Exchange
Commission Rule 405 under the Securities Act of 1933), (iv) perform any
services for, or (v) have an equity or ownership interest in, any person, firm,
partnership, joint venture, or corporation that so competes, directly or
indirectly, with Company or any of its subsidiaries. Further, Executive will
not solicit for employment or advise or recommend to any other person that such
person employ, or solicit for employment, any executive of Company or any of
its subsidiaries who was an executive at, or prior to, the cessation of
Executive’s employment with Company. The foregoing covenant not to compete shall
be limited to a territory consisting of those states in which Company had
manufacturing facilities as of the time of cessation of Executive’s employment
with Company. If for any reason any court of competent jurisdiction finds these
covenants to be unreasonable in duration or geographic scope, the prohibitions
herein contained shall be restricted to such time and geographic areas as such
court determines to be reasonable and enforceable. However, the restrictions
stated above will not apply if Company liquidates or if Executive becomes
employed by a company (or its affiliate) which acquires (in a voluntary
transaction) the stock or business assets of Company, or if Executive is
terminated without Cause or terminates for Good Reason.

 

3.                                       Executive understands and agrees that his
violation of any of the provisions of this Agreement will constitute
irreparable injury to Company immediately authorizing it to enjoin Executive or
the business enterprise with which he may have become associated from further violations,
in addition to all other rights and remedies which Company may have under law
and equity, including recovery of damages from Executive and a right of offset.

 

4.                                       Each party shall be entitled to receive from
the other party reimbursement of attorney’s fees and related legal costs to the
extent incurred in connection with the successful enforcement or defense, as
the case may be, of the terms and conditions hereof.

 

5.                                       The waiver by Company of Executive’s breach
of any provision hereof shall not operate or be construed as a waiver of any
subsequent breach by Executive. This Agreement shall be binding upon the
parties hereto and their heirs, successors, executors, administrators, personal
representatives, and assigns. Executive may not assign to any person his
covenants, obligations and duties hereunder. All provisions of this Agreement
shall survive the termination or amendment of Executive’s Employment Contract.

 

6.                                       If any provision of this Agreement is held by
a court of law to be illegal or unenforceable, the remaining provisions of the
Agreement shall remain in full force and effect. In lieu of such illegal or
unenforceable provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal or unenforceable
provision as may be possible and be legal and enforceable.

 

2

 

7.                                       This Agreement has been made in, and its
validity, interpretation, construction, and performance shall be governed by
and be in accordance with, the laws of the State of Delaware, without reference
to its laws governing conflicts of law. Any dispute or controversy arising
under or in connection with this Agreement, or the breach thereof, shall be
settled in accordance with the arbitration provision in the Employment
Contract.

 

Signed to be effective
January 1,  2005.

 

	
   

  	
  /s/ Herbert M. Gardner

  	
   

  
	
   

  	
  Herbert M. Gardner

  
	
   

  	
  4 Darley Road

  
	
   

  	
  Great Neck, NY 11021

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SUPREME INDUSTRIES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Wilson

  	
   

  	
   

  
	
   

  	
   

  	
  Robert W. Wilson

  	
   

  
	
   

  	
   

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
  P. O. Box 237

  	
   

  
	
   

  	
   

  	
  2581 E. Kercher Road

  	
   

  
	
   

  	
   

  	
  Goshen, IN 46527-0237

  	
   

  
							

 

3

 

Exhibit “C”

to

Employment Contract

 

Disclosure and Invention Agreement

 

Herbert M. Gardner (hereafter called “Executive”)
has entered into an Employment Contract with Supreme
Industries, Inc., a Delaware corporation (hereafter called “Company”), which is in the business
(through a wholly-owned subsidiary, Supreme Corporation) of manufacturing and
selling specialized truck bodies. Whenever used herein the word “Company” shall
be deemed to include Supreme Corporation and the other affiliates of Supreme
Industries, Inc.

 

In consideration of TEN
DOLLARS ($10.00) paid to Executive by Company, the receipt and sufficiency of
which are hereby acknowledged, and Company’s agreement to employ him pursuant
to an Employment Contract (to which this Exhibit
“C” is attached) between Company and Executive the provisions of
which are herein fully incorporated by reference for all purposes, Executive
agrees as follows:

 

1.                                       Executive shall communicate to Company
promptly and fully all ideas and the expressions thereof, conceptions,
improvements, discoveries, methods, techniques, processes, adaptations, creations,
and inventions (whether patentable or copyrightable or not) conceived or made
by Executive (whether solely by Executive or jointly with others) (“Ideas”) from the time of entering
Company’s employment until one year after Executive’s employment is terminated
for any reason, or Executive resigns or retires for any reason, (a) which
involve or pertain to, directly or indirectly, the business, assets,
activities, computers or computer programs, or investigations of Company as
existed at or prior to the cessation of Executive’s employment by Company, or
(b) which result from or are suggested by any work which Executive or other
executives or independent contractors perform for or on behalf of Company, in
whole or in part, as existed at or prior to the cessation of Executive’s
employment by Company.

 

2.                                       Executive shall assist Company during and
subsequent to Executive’s employment in every proper way (solely at Company’s
expense) to obtain patents and/or copyrights for its own benefit in any or all
countries of the world, and to sign all proper papers, patent applications,
assignments, and other documents necessary for this purpose, it being
understood that such Ideas will remain the sole and exclusive property of
Company, and shall not be disclosed to any person, nor used by Executive,
except as expressly permitted herein.

 

3.                                       Written records of Executive’s Ideas in the
form of notebook records, sketches, drawings or reports, will remain the
property of and be available to Company at all times.

 

4.                                       Executive represents that Executive has no
agreements with or obligations to others in conflict with the foregoing.

 

5.                                       Executive understands that this Agreement may
not be modified or released except in writing signed by all members of
Company’s Board of Directors.

 

6.                                       Executive understands and agrees that his
violation of any of the provisions of this Agreement will constitute
irreparable injury to Company immediately authorizing it to enjoin Executive or
the business enterprise with which he may have become associated from further
violations, in addition to all other rights and remedies which Company may have
at law and equity, including recovery of damages from Executive and a right of
offset. Each party shall be entitled to recover from the other party reimbursement
of attorney’s fees and related legal costs to the extent incurred in connection
with the successful enforcement or defense, as the case may be, of the terms of
conditions hereof.

 

7.                                       This Agreement shall be binding upon the
parties hereto and their respective heirs, successors, executors,
administrators, personal representatives, and assigns. Executive may not assign
his

 

1

 

covenants,
duties, or obligations hereunder to any other person. The waiver by Company of
Executive’s breach of any provision hereof shall not operate or be construed as
a waiver of any subsequent breach by Executive.

 

8.                                           If any provision of this Agreement is held by
a court of law to be illegal or unenforceable, the remaining provisions of the
Agreement shall remain in full force and effect. In lieu of such illegal or
unenforceable provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal or unenforceable
provision as may be possible and be legal and enforceable.

 

9.                                           This Agreement has been made in, and its
validity, interpretation, construction, and performance shall be governed by
and be in accordance with, the laws of the State of Delaware, without reference
to its laws governing conflicts of law. Any dispute or controversy arising
under or in connection with this Agreement, or the breach thereof, shall be
settled in accordance with the arbitration provision in the Employment
Contract.

 

Signed to be effective
January 1, 2005.

 

	
   

  	
  /s/ Herbert M. Gardner

  	
   

  
	
   

  	
  Herbert M. Gardner

  
	
   

  	
  4 Darley Road

  
	
   

  	
  Great Neck, NY 11021

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SUPREME INDUSTRIES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert W. Wilson

  	
   

  	
   

  
	
   

  	
   

  	
  Robert W. Wilson

  	
   

  
	
   

  	
   

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
  P. O. Box 237

  	
   

  
	
   

  	
   

  	
  2581 E. Kercher Road

  	
   

  
	
   

  	
   

  	
  Goshen, IN 46527-0237

  	
   

  
							

 

2

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