MANAGEMENT CHANGES

6 Months Ended

Jun. 30, 2012

MANAGEMENT CHANGES

MANAGEMENT CHANGES

NOTE 11 — MANAGEMENT CHANGES

On March 30, 2012, Kim Korth resigned as a director and the President and Chief Executive Officer of the Company to return to the vehicle and transportation consulting firm which she owns and of which she is the president.  On May 3, 2012, the Company and its wholly-owned subsidiary Supreme Indiana Operations, Inc., and Ms. Korth entered into a Separation Agreement and Release (the “Separation Agreement”) in connection with Ms. Korth’s resignation. Pursuant to the Separation Agreement, assuming Ms. Korth complies with the terms of the Separation Agreement and the portions of her employment agreement dated September 23, 2011 that will remain in effect as set forth in the Separation Agreement, she will be paid (i) nine months’ salary ($285,000) over a nine-month period and (ii) an annual bonus for 2011 of $75,000.  The unpaid amounts have been accrued for and are included in other accrued liabilities in the accompanying balance sheet as of June 30, 2012.  In addition, she remains eligible for (i) a pro rata portion of her annual bonus for 2012 based on the annual bonus terms set forth in her employment agreement dated September 23, 2011 and (ii) the benefits upon a “change in control” pursuant to the Company’s ownership transaction incentive plan until March 30, 2013.  Ms. Korth and the Company have provided mutual releases to each other and Ms. Korth has agreed to certain confidentiality obligations.

On March 30, 2012, Matthew W. Long, the Company’s Chief Financial Officer, Treasurer and Assistant Secretary, assumed the position of interim Chief Executive Officer.  The Company is conducting a formal search for a permanent Chief Executive Officer.