Document:

EX-10.7

 EXHIBIT 10.7 

NONQUALIFIED STOCK OPTION AGREEMENT 

ALLIED SPECIALTY VEHICLES, INC. 

2010 LONG-TERM INCENTIVE PLAN 

1. Grant of Option. Pursuant to the Allied Specialty Vehicles, Inc. 2010 Long-Term Incentive Plan, as amended (the
“Plan”) for key employees, key contractors, key consultants and outside directors of REV Group, Inc. (formerly known as Allied Specialty Vehicles, Inc), a Delaware corporation (the “Company”) and its
Subsidiaries, the Company grants to 
 [            ] 

(the “Participant”), 
 an
option to purchase shares of Class A Common Stock, par value $.001 per share (“Common Stock”), of the Company as follows: 

On the date hereof, the Company grants to the Participant an option (the “Option” or “Stock
Option”) to purchase up to [            ] shares (the “Optioned Shares”) of Common Stock at an Option Price equal to
[            ] per share. The Date of Grant of this Stock Option was [            ] as per your offer letter dated
[            ]. 
 The “Option Period” shall commence on the Date of
Grant and shall expire on the date immediately preceding the tenth anniversary of the Date of Grant. The Stock Option is a Nonqualified Stock Option. This Stock Option is intended to comply with the provisions governing nonqualified stock options
under Internal Revenue Service Notice 2005-1 in order to exempt this Stock Option from application of Section 409A of the Code. 
 2.
Subject to Plan. The Stock Option and its exercise are subject to the terms and conditions of the Plan, and the terms of the Plan shall control to the extent not otherwise inconsistent with the provisions of this Agreement. The capitalized
terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan. The Stock Option is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in
writing. In addition, if the Plan previously has not been approved by the Company’s stockholders, the Stock Option is granted subject to such stockholder approval. 
  

	3.	Vesting. 

 a.
[            ] Optioned Shares shall vest [            ]% per annum over
[            ] years. After the Date of Grant should a change in control or sale of the company or IPO occur, all options shall immediately vest. 

b. For purposes of this Agreement, (i) the terms “Public Sale” and “Sale of the
Company” shall have the meanings given them in the Amended and Restated Stockholders Agreement (the “Stockholders Agreement”) dated as of as of February 17, 2010, by and among the Company, E-One, Inc., a
Delaware corporation, and the Stockholders referred to therein, and (ii) “Triggering Event” means any of the events described in clauses (i) – (iii) in Section 3.c., above. 

  
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 4. Term; Forfeiture. Except as otherwise provided in this Agreement, to the extent the
unexercised portion of the Stock Option relates to Optioned Shares which are not vested on the date of the Participant’s Termination of Service, the Stock Option will be terminated on that date. The unexercised portion of the Stock Option that
relates to Optioned Shares which are vested will terminate at the first of the following to occur: 
 a. 5 p.m. on the date
the Option Period terminates; 
 b. 5 p.m. on the date which is twelve (12) months following the date of the
Participant’s Termination of Service due to death or Total and Permanent Disability; 
 c. 5 p.m. on the date which is
ninety (90) days following the date of the Participant’s Termination of Service for any reason not otherwise specified in this Section 4; 

d. 5 p.m. on the date the Company causes any portion of the Option to be forfeited pursuant to Section 7 hereof.

 Notwithstanding the foregoing provisions of this Section 4, if the Participant’s Termination of Service is for
“Cause” (as defined herein), then in such event and without notice to the Participant, the Company shall have the right to immediately terminate the unexercised portion of any Stock Option that relates to Optioned Shares
which are vested as of the date of such Termination of Service. 
 For purposes hereof, “Cause” shall have the meaning set forth in the
Participant’s employment agreement with the Company, or, if the employment agreement does not contain a definition of “cause” or the Participant has not entered into an employment agreement with the Company, shall mean: 

i. misappropriation of funds or property, fraud or dishonesty within the course of providing services to the Company which
evidences a want of integrity or breach of trust; 
 ii. indictment for a misdemeanor that has caused or may be reasonably
expected to cause material injury to the Company, any of its subsidiaries, any of its affiliates or any of their interests, or indictment for a felony; 

iii. any willful or negligent action, inaction, or inattention to duties of the Participant within the course of providing
services to the Company that causes the Company material harm or damages (as determined in the sole and absolute discretion of the Company); 

iv. misappropriation of any corporate opportunity or otherwise obtaining personal profit from any transaction which is adverse
to the interests of the Company or to the benefits of which the Company is entitled; 
 v. inexcusable or repeated failure by
the Participant to follow applicable Company policies and procedures; 
 vi. conduct of the Participant which is materially
detrimental to the Company (as determined in the sole and absolute discretion of the Company); or 

  
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 vii. any material violation of the terms of the Participant’s employment
agreement (or, if Participant is a Consultant or Contractor, of the Participant’s consulting or contractor agreement), if any. 
 5.
Who May Exercise. Subject to the terms and conditions set forth in Sections 3 and 4 above, during the lifetime of the Participant, the Stock Option may be exercised only by the Participant, or by the Participant’s guardian
or personal or legal representative. If the Participant’s Termination of Service is due to his/her death prior to the date specified in Section 4.a. hereof, or Participant dies prior to the termination dates specified in Sections
4.a., b., c. or d. hereof, and the Participant has not exercised the Stock Option as to the maximum number of vested Optioned Shares as set forth in Section 3 hereof as of the date of death, the following persons
may exercise the exercisable portion of the Stock Option on behalf of the Participant at any time prior to the earliest of the dates specified in Section 4 hereof: the personal representative of his/her estate, or the person who acquired
the right to exercise the Stock Option by bequest or inheritance or by reason of the death of the Participant; provided that the Stock Option shall remain subject to the other terms of this Agreement, the Plan, and applicable laws, rules, and
regulations. 
 6. [Reserved] 

7. Manner of Exercise. The Stock Option may be exercised by the Participant in connection with or subsequent to a Triggering Event
occurring after the Date of Grant in accordance with Section 3. Upon the Participant’s Termination of Service, the Stock Option may be exercised in accordance with Section 4. Subject to the foregoing and to such
administrative regulations as the Committee may from time to time adopt, the Stock Option may be exercised by the delivery to the Committee of (i) written notice setting forth the number of shares of Common Stock with respect to which the Stock
Option is to be exercised, the date of exercise thereof (the “Exercise Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon, and (ii) the
Participant’s written agreement to become a party to and be bound by the Stockholders Agreement. On the Exercise Date, the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to be
purchased, payable as follows: (a) cash, check, bank draft, or money order payable to the order of the Company, (b) Common Stock owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which
the Participant has not acquired from the Company within six (6) months prior to the Exercise Date, (c) if the Fair Market Value of the Optioned Shares is determined pursuant to clause (a), (b) or (c) of the definition of
“Fair Market Value” set forth in the Plan, by delivery (including by facsimile transmission) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions from the Participant
to a broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount
of sale or loan proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is acceptable to the Committee in its sole discretion. 

Upon payment of all amounts due from the Participant, the Company shall cause certificates for the Optioned Shares then being purchased to be
delivered to the Participant (or the person exercising the Participant’s Stock Option in the event of his/her death) at its principal business office within ten (10) business days after the Exercise Date. The obligation of the Company to
deliver shares of Common Stock shall, however, be subject to the condition that if at any time the Company shall determine in its discretion that the listing, registration, or qualification of the Stock Option or the Optioned Shares upon any
securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of shares of Common Stock
thereunder, then the Stock Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee.

  
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 If the Participant fails to pay for any of the Optioned Shares specified in such notice, then the
Stock Option, and right to purchase such Optioned Shares may be forfeited by the Company. 
 8. Nonassignability. The Stock Option
cannot be transferred, sold, assigned, pledged, encumbered, charged, hypothecated or otherwise disposed of by the Participant except by will or by the laws of descent and distribution. 

9. Rights as Stockholder. The Participant will have no rights as a stockholder with respect to any shares covered by the Stock Option
until the issuance of a certificate or certificates to the Participant for the Optioned Shares. The Optioned Shares shall be subject to the terms and conditions of this Agreement regarding such Shares. No adjustment shall be made for dividends or
other rights for which the record date is prior to the issuance of such certificate or certificates. 
 10. Nonqualified Stock Option.
The Stock Option shall not be treated as an Incentive Stock Option. 
 11. Voting. The Participant, as record holder of some or all of
the Optioned Shares following exercise of this Stock Option, has the exclusive right to vote, or consent with respect to, such Optioned Shares until such time as the Optioned Shares are transferred in accordance with this Agreement; provided,
however, that this Section shall not create any voting right where the holders of such Optioned Shares otherwise have no such right. 

12. Community Property. Each spouse individually is bound by, and such spouse’s interest, if any, in any Optioned Shares is subject
to, the terms of this Agreement. Nothing in this Agreement shall create a community property interest where none otherwise exists. 
 13.
Dispute Resolution. 
 a. Arbitration. All disputes and controversies of every kind and nature between any
parties hereto arising out of or in connection with this Agreement or the transactions described herein as to the construction, validity, interpretation or meaning, performance, non-performance, enforcement, operation or breach, shall be submitted
to arbitration pursuant to the following procedures: 
 i. After a dispute or controversy arises, any party may, in a written
notice delivered to the other parties to the dispute, demand such arbitration. Such notice shall designate the name of the arbitrator (who shall be an impartial person) appointed by such party demanding arbitration, together with a statement of the
matter in controversy. 
 ii. Within thirty (30) days after receipt of such demand, the other parties shall, in a
written notice delivered to the first party, name such parties’ arbitrator (who shall be an impartial person). If such parties fail to name an arbitrator, then the second arbitrator shall be named by the American Arbitration Association (the
“AAA”). The two (2) arbitrators so selected shall name a third arbitrator (who shall be an impartial person) within thirty (30) days, or in lieu of such agreement on a third arbitrator by the two
(2) arbitrators so appointed, the third arbitrator shall be appointed by the AAA. If any arbitrator appointed hereunder shall die, resign, refuse or become unable to act before an arbitration decision is rendered, then the vacancy shall be
filled by the method set forth in this Section for the original appointment of such arbitrator. 

  
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 iii. Each party shall bear its own arbitration costs and expenses. The
arbitration hearing shall be held in New York, New York at a location designated by a majority of the arbitrators. The Commercial Arbitration Rules of the American Arbitration Association shall be incorporated by reference at such hearing and the
substantive laws of the State of Delaware (excluding conflict of laws provisions) shall apply. 
 iv. The arbitration hearing
shall be concluded within ten (10) days unless otherwise ordered by the arbitrators and the written award thereon shall be made within fifteen (15) days after the close of submission of evidence. An award rendered by a majority of the
arbitrators appointed pursuant to this Agreement shall be final and binding on all parties to the proceeding, shall resolve the question of costs of the arbitrators and all related matters, and judgment on such award may be entered and enforced by
either party in any court of competent jurisdiction. 
 v. Except as set forth in Section 13.b., the parties stipulate
that the provisions of this Section shall be a complete defense to any suit, action or proceeding instituted in any federal, state or local court or before any administrative tribunal with respect to any controversy or dispute arising out of this
Agreement or the transactions described herein. The arbitration provisions hereof shall, with respect to such controversy or dispute, survive the termination or expiration of this Agreement. 

No party to an arbitration may disclose the existence or results of any arbitration hereunder without the prior written consent of the other
parties; nor will any party to an arbitration disclose to any third party any confidential information disclosed by any other party to an arbitration in the course of an arbitration hereunder without the prior written consent of such other party.

 b. Emergency Relief. Notwithstanding anything in this Section 13 to the contrary, any party may seek
from a court any provisional remedy that may be necessary to protect any rights or property of such party pending the establishment of the arbitral tribunal or its determination of the merits of the controversy or to enforce a party’s rights
under Section 13. 
 14. Participant’s Representations. Notwithstanding any of the provisions hereof, the Participant
hereby agrees that he/she will not exercise the Stock Option granted hereby, and that the Company will not be obligated to issue any shares to the Participant hereunder, if the exercise thereof or the issuance of such shares shall constitute a
violation by the Participant or the Company of any provision of any law or regulation of any governmental authority that would reasonably be expected to have a material adverse effect on the Company. Any determination in this connection by the
Company shall be final, binding, and conclusive. The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules, and regulations. 

15. Investment Representation. Unless the Common Stock is issued to him/her in a transaction registered under applicable federal and
state securities laws, by his/her execution hereof, the Participant represents and warrants to the Company that all Common Stock which may be purchased hereunder will be acquired by the Participant for investment purposes for his/her own account and
not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Common Stock is issued to him in a transaction registered under the applicable federal and state securities laws, all certificates issued
with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an
opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required. 

  
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 16. Legend. The following legends shall be placed on all certificates representing
Optioned Shares: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE CONSTITUTE “EMPLOYEE SECURITIES” UNDER THAT CERTAIN
AMENDED AND RESTATED STOCKHOLDERS AGREEMENT DATED AS OF FEBRUARY 17, 2010 AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S STOCKHOLDERS AND, AS SUCH, ARE SUBJECT TO CERTAIN VOTING PROVISIONS,
PURCHASE RIGHTS AND RESTRICTIONS ON TRANSFER SET FORTH IN SUCH STOCKHOLDERS AGREEMENT. A COPY OF SUCH STOCKHOLDERS AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.” 

“Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or
distribution, have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such
laws, or in transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.” 

All Optioned Shares and shares into which Optioned Shares may be converted owned by the Participant shall be subject to the terms of this
Agreement and shall be represented by a certificate or certificates bearing the foregoing legend. 
 17. Participant’s
Acknowledgments. The Participant acknowledges receipt of a copy of the Plan, which is annexed hereto, and represents that he/she or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all the terms
and provisions thereof. 
 18. Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws
of the State of Delaware (excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state). 

19. No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right to continue
in the employ or to provide services to the Company or any Subsidiary, whether as an employee or as a Contractor, Consultant or Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the
Participant as an employee, Contractor, Consultant or Outside Director at any time. 
 20. Legal Construction. In the event that any
one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by an arbitrator to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term, provision,
or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never been
contained herein. 
 21. Covenants and Agreements as Independent Agreements. Each of the covenants and agreements that is set forth in
this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement. 

  
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 22. Entire Agreement. This Agreement together with the Plan supersede any and all other
prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties with respect to the said subject matter. All prior
negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise,
have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or
binding or of any force or effect. 
 23. Parties Bound. The terms, provisions, and agreements that are contained in this Agreement
shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth
herein. 
 24. Modification. No change or modification of this Agreement shall be valid or binding upon the parties unless the change
or modification is in writing and signed by the parties; provided, however, that the Company may change or modify this Agreement without the Participant’s consent or signature if the Company determines, in its sole discretion,
that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. 

25. Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute
substantive matters to be considered in construing the terms and provisions of this Agreement. 
 26. Gender and Number. Words of any
gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 

27. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by
the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith: 

a. Notice to the Company shall be addressed and delivered as follows: 

REV Group, Inc. 

111 E. Kilbourn Avenue, Suite 2600 

Milwaukee, WI 53202 

Attn: Dean Nolden, Chief Financial Officer 

b. Notice to the Participant shall be addressed and delivered as set forth on the signature page. 

  
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 28. Tax Requirements. The Company or, if applicable, any Subsidiary (for purposes of this
Section 28, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts hereunder paid in cash or other form, any Federal, state, local, or other taxes
required by law to be withheld in connection with this Award. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the Company the amount of any taxes that the Company is
required to withhold in connection with the Participant’s income arising with respect to this Award. Such payments shall be required to be made when requested by the Company and may be required to be made prior to the delivery of any
certificate representing shares of Common Stock. Such payment may be made (i) by the delivery of cash to the Company in an amount that equals the required tax withholding obligations of the Company; (ii) if the Company, in its sole
discretion, so consents in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock other than Common Stock that the Participant has not acquired from the Company within six (6) months prior to the
date of exercise, which shares so delivered have an aggregate Fair Market Value that equals the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number
of shares to be delivered upon the exercise of the Stock Option other than shares that will constitute Restricted Stock, which shares so withheld have an aggregate fair market value that equals (but does not exceed) the required tax withholding
payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. 

* * * * * * * * 

  
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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
officer, and the Participant, to evidence his/her consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof. 

 

			
	REV GROUP, INC.
		
	By:	 	 
	 Name:
	 	
	 Title:
	 	
	
	PARTICIPANT:
	
	  

	 Signature

	
	 Name:

	
	 Address:

  
 9EX-10.8

 Exhibit 10.8 
  

 
 July 9, 2014 

Mr. Timothy W. Sullivan 
 Address on file with the
Company 
 VIA EMAIL 
 Dear Tim: 

It was great to catch up with you yesterday in Milwaukee and remember some of our history together at Bucyrus as well as learn about your remarkable
achievements in the time frame after American Industrial Partners sold its shares in 2004. The magnitude of your Bucyrus accomplishments is astounding – there are very few comparable successes anywhere in corporate America. 

As discussed, American Industrial Partners has established another portfolio company, Allied Specialty Vehicles, Inc. (“ASV” or the
“Company”), where we are confident your abilities can create $800 million to $1.0 billion of shareholder value over a 36 month period by successfully deploying the same strategic thinking, hands on commercial decision making, and
best-in-class organization building that delivered such remarkable performance at Bucyrus. Dino, John and I, along with the entire American Industrial Partners team,
understand and appreciate your unique skills, perseverance, and strength of character and believe that you also view us as helpful and supportive past partners in both good times and bad. Life is short and we want to spend our time achieving
extraordinary success with people we very much like. You are ideal to lead ASV as its end markets accelerate with the recovery of municipal and discretionary consumer spending and as we prepare for a public exit of a rapidly improving business. 

For these reasons, American Industrial Partners is pleased to offer you the position of Chief Executive Officer (CEO) of our largest portfolio company, ASV, a
$1.7 billion revenue business with market leading positions in each of the North American ambulance, specialty bus, terminal truck, fire truck, and recreational vehicle (“RV”) markets. ASV operates 14 manufacturing facilities
throughout the United States and currently employs approximately 4,500 people. A number of investment banks including: Goldman Sachs, Morgan Stanley, and R.W. Baird have informed us that they believe that ASV will be a highly attractive public
offering with a strong natural base of institutional investors at any time we are prepared to begin valuing our shares. Comparable public companies such as: Winnebago (WGO), Thor Industries (THO), New Flyer (NFI.TO), Oshkosh (OSK), and Rosenbauer
(ROS.VI) earn high single digit EBITDA margins and are publicly traded at enterprise values around 10x EBITDA. American Industrial Partners assembled ASV in a time series of nine distinct transactions, many of which were accomplished during the
Great Recession at distressed valuations. While we have built earnings to an estimated $80 million in fiscal year ending October 31, 2014, we believe earnings can double with the Company achieving 8% to 10% EBITDA margins as municipal and
consumer discretionary end markets continue to build momentum and the Company further strengthens its cost leadership position and accomplishes the next stage of its integration and rationalization of its channels, products, and pricing policies.
Based on the valuation of public comparables, a doubling of Company margins to 8% to 10% would create $800 million to $1.0 billion of additional shareholder value. 

330 MADISON AVENUE | 28TH FLOOR |
NEW YORK, NY 10017 | (212) 627-2360 | WWW.AMERICANINDUSTRIAL.COM 

 While the judgments will be yours to make as CEO, in the near term, we believe the top priorities of ASV would
likely be: 
  

	 	1.	Establishing the vision, metrics, proper organizational structure, priorities, and compensation plans across all functional areas of the Company 

 

	 	2.	Recruiting additional top talent to fill out a best-in-class management team at the business segment level (e.g. Fire & Emergency,
Commercial, and RV) 

  

	 	3.	Driving both product rationalization and new product innovation to enable the most profitable portfolio offering 

  

	 	4.	Analyzing and optimizing sales channels and pricing policies to support continued share gains while at the same time avoiding dilutive intercompany competition that currently exists among ASV’s channel partners
within its product offerings 

  

	 	5.	Driving commercial and administrative efficiencies by centralizing functions where appropriate (e.g., product management, engineering, procurement, finance...) and creating a “one Company” business model that
competes with scale rather than a confederation of independent market actors 

  

	 	6.	Accelerating the realization of procurement synergies across the Company’s $1 billion annual buy 

  

	 	7.	Fostering an environment that stimulates open communication and engenders a team spirit in solving problems and identifying and capturing new business opportunities 

 

	 	8.	Identifying and assisting with the purchase and integration of targeted acquisitions and preparing the Company for a highly successful public exit 

 

	 	9.	Laying the groundwork for international expansions in the many global markets with similar chassis specifications to those that prevail in the United States 

We have constructed our proposed offer as a true partnership with you as CEO in the targeted investment outcome of ASV. More specifically, we have constructed
a CEO equity option package that can be worth up to $25 million in an operating scenario where ASV attains 10% EBITDA margins on current revenue only and we are able to value our ownership interests at the EBITDA multiple currently prevailing
in public markets. While no co-investment is required, you would be free to invest up to $5 million in ASV common equity alongside American Industrial Partners. We believe we and you can make more than 5x
our money on the ASV investment – a result that is in fact conservative in the context of all other American Industrial Partners portfolio company exits in the American Industrial Partners fund that owns ASV where our multiples of invested
capital have ranged from 5.4x to 9.1x our money (see Annex A). Finally, we have established a traditional salary and bonus structure that should provide for $1.5 million of current annual cash compensation assuming budget attainment. 

 

	 	•	 	Start Date: August 5, 2014 

  

	 	•	 	Base Salary: $800,000, payable based on normal Company payroll practices during the terms of your employment 

  

	 	•	 	Target Annual Bonus: Actual annual bonus payable will be based on Company performance with a target bonus percentage of 100% of base salary based on full attainment of annual goals, but with uncapped upside upon
outperformance of annual goals 

  

			
	AMERICAN INDUSTRIAL PARTNERS	  	Page 2

	 	•	 	Primary Locations: You will be self-directed in determining your working location with primary focus being 1) Company sales offices 2) Company’s key customers 3) the Company’s 14 manufacturing
facilities across the United States. Given the Company’s broadly distributed markets, significant domestic travel will be involved and we would expect that you would determine an optimal approach to managing your operating locations over time.
Given that the Company is a buildup of a time series of acquisitions, there is not a lot of permanent corporate infrastructure and we believe that the Company’s headquarters, such as it is, could be easily relocated from Orlando, FL to
Milwaukee, WI without meaningful disruption to any key constituencies if you determined that to be advisable. 

  

	 	•	 	Equity: Participation in ASV’s management option pool with 15,500 management options (worth $25 million at AIP’s targeted investment outcome), which represents approximately 25% of the total
management option pool. Equity participation will be subject to the more specific terms of our standard Management Option Agreement and Shareholder Agreement – the same we used in Bucyrus. 

 

	 	•	 	Co-invest: Ability but not the necessity to co-invest alongside American Industrial Partners up to $5 million in the same
securities owned by American Industrial Partners based on FMV as of your start date. 

  

	 	•	 	Employment arrangement would be “at will” 

 A summary description of the value of your equity options
in various EBITDA scenarios at exit is described in the table below: 
  

													
	 	  	$125M M	 	  	$150M M	 	  	$170M M	 
	 	  	EBITDA	 	  	EBITDA	 	  	EBITDA	 
	 EBITDA Multiple
	  	 	10.0	 x 	  	 	10.0 	x 	  	 	10.0 	x 
	 Implied Enterprise Value
	  	$	1,250.0	  	  	$	1,500.0	  	  	$	1,700.0	  
	 Less: Net Debt
	  	 	(262.5	) 	  	 	(255.0	) 	  	 	(249.0	) 
	 Less: Sale Expenses
	  	 	(15.0	) 	  	 	(15.0	) 	  	 	(15.0	) 
	 Plus Option Proceeds
	  	 	17.6	  	  	 	17.6	  	  	 	17.6	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Implied Equity Value
	  	$	990.1	  	  	$	1,247.6	  	  	$	1,453.6	  
	 Common Shares (in thousands)
	  	 	721.0	  	  	 	721.0	  	  	 	721.0	  
	 Price Per Common Share
	  	$	1,373.1	  	  	$	1,730.2	  	  	$	2,015.9	  
	 Tim Sullivan Options
	  	 	15,500	  	  	 	15,500	  	  	 	15,500	  
	 Strike price per Options
	  	$	405.0	  	  	$	405.0	  	  	$	405.0	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Value of Sullivan Options (in millions)
	  	$	15.0	  	  	$	20.5	  	  	$	25.0	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 By accepting this offer of employment, you acknowledge and agree that, in the course of your employment with ASV, you shall
become familiar with ASV’s trade secrets and with other proprietary and/or confidential information (as defined below) concerning ASV and that your services shall be of special, unique, and extraordinary value to ASV. Accordingly, you
acknowledge and agree that any information obtained by you while affiliated with ASV concerning the business or affairs of ASV are the 
  

			
	AMERICAN INDUSTRIAL PARTNERS	  	Page 3

 property of ASV. You further recognize and acknowledge that the business matters and affairs of ASV, including,
but not limited to, its client data, formulae, processes, research and development, marketing or promotional information and the methods thereof, trade secrets including any intellectual property, trademarks, copyrights and patents, whether
registered or unregistered, software, work product, the methods of business operation of ASV, and the names and contact information of its clients and customers (collectively “Confidential Information”) are valuable and confidential, and
that the unauthorized disclosure of such Confidential Information may irreparably damage ASV. Therefore, you agree that you shall not disclose to any unauthorized person or use for your own account any Confidential Information, unless and to the
extent that such Confidential Information is authorized by ASV for disclosure in writing or becomes generally known to and available for use by the public other than as a result of your unauthorized acts or omissions to act. You further agree that
you shall deliver to ASV at any time it may request, or in the event of employment separation, all memoranda, notes, plans, records, reports, computer discs and software, and other documents, data (and copies thereof) or physical items relating to
the Confidential Information, or the business or property of ASV, which you may then possess or have under your control. 
 We are absolutely delighted at
the prospect of renewing an extraordinary, tried and true partnership between you and American Industrial Partners – the most valuable affiliation with a CEO that American Industrial Partners has had in the 25 year history of our firm
notwithstanding our consistently achieving best-in-class investment performance within the broader private equity industry across our entire portfolio for the past
decade (see Annex A). While the American Industrial Partners fund that owns ASV (Fund IV) will achieve extraordinary investment performance even with an ordinary outcome at ASV, we believe that ASV has the potential to be the largest dollar gain of
any investment in the 25 year history of American Industrial Partners. If you agree to the terms of this offer, please indicate by signing below and then returning to me by email over the course of this month of July. 

Kim Marvin 
 Allied Specialty Vehicles, Inc. – Director 

kim@americanindustrial.com  
 (212) 627-2360 ext 209 
 By signing below, you acknowledge that this document contains a complete list of material terms of
your employment. You also acknowledge that ASV may, within its reasonable discretion, modify specific terms and conditions of your employment as necessary. 

Sincerely, 
 /s/ Kim Marvin 

Kim Marvin 
 Partner 

American Industrial Partners 
 I hereby accept employment on the
conditions set forth in this letter. 
  

			
	 /s/ Timothy W. Sullivan

	Timothy W. Sullivan
	
	 8/6/14

	Date	 	

  

			
	AMERICAN INDUSTRIAL PARTNERS	  	Page 4

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