Document:

exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) is made effective as of July 12, 2004 (“Effective
Date”), by and between Mark Glasnapp (“Executive”), an individual resident of the State of
Minnesota, and A.S.V, Inc., (“ASV”), a corporation organized under the laws of the State of
Minnesota.

     WHEREAS, ASV and Executive desire to enter into this Agreement to set forth the terms and
conditions of Executive’s employment in the position of President; and

     WHEREAS, ASV and Executive agree that, solely due to Executive’s position with ASV, Executive
will have access to confidential and proprietary information of ASV; and

     WHEREAS, Both ASV and Executive recognize the critical importance to ASV of preserving the
confidentiality of this confidential and proprietary information and protecting ASV against
immediate competition from former key employees of ASV following their separation from ASV.

     NOW, THEREFORE, In consideration of the mutual obligations incurred and benefits obtained
hereunder, the sufficiency of which is admitted, ASV and Executive agree as follows:

     1. Employment. ASV hereby employs Executive to initially serve ASV as President and
to perform such duties as may be assigned to him from time to time by ASV.

     2. Term. The term of this Agreement shall begin on the Effective Date and shall
continue until terminated as set forth in Section 5 (“Term”); however, any provision in this
Agreement which by its terms survives expiration of this Agreement, shall so survive and ASV and
Executive shall comply with the terms of each such provision.

     3. Duties. Executive agrees to serve ASV faithfully and to the best of Executive’s
ability and to devote Executive’s full professional and business time, attention and efforts to the
business and affairs of ASV during the Term. Executive hereby confirms that Executive is under no
contractual commitments inconsistent with Executive’s obligations set forth in this Agreement and
that, during the Term, Executive will not render or perform any services for any other corporation,
firm, entity or person which are inconsistent with the provisions of this Agreement or which would
otherwise impair Executive’s ability to perform Executive’s duties hereunder.

     4. Compensation.

    4.01 Salary. Executive shall be paid a base annual salary in the amount of one
hundred ninety thousand dollars ($190,000), less all applicable withholdings and deductions and
paid in accordance with ASV’s normal payroll procedures and policies, as such procedures and
policies may be modified from time to time. Nothing in this Agreement shall prevent ASV from, at
any time, increasing the compensation to be paid to Executive, if it elects to do so.

 

 

    4.02 Participation in Benefits. Except as otherwise provided herein, during the Term,
Executive shall be entitled to participate in the executive benefit plans offered generally by ASV
to its executives, to the extent that Executive’s position, tenure, salary, health and other
qualifications make Executive eligible to participate. ASV does not guarantee the adoption or
continuance of any particular benefit during the Term, and nothing in this Agreement is intended to
or shall in any way restrict the right of ASV to amend, modify or terminate any of its benefits
during the Term.

    4.03 Life Insurance. ASV shall provide Executive with life insurance in the amount of
$350,000 payable to such beneficiary as Executive may designate.

    4.04 Disability Insurance. ASV will provide Executive with a disability insurance
policy with a disability benefit equal to 60% of Executive’s base salary (at the time of
Executive’s disability) after 90 days of continual disability payable to a maximum of age 65.

    4.05 Deferred Compensation. ASV will establish a nonqualified deferred compensation
plan in which Executive will participate. A copy of the plan is attached hereto as Exhibit A.

    4.06 Post-Retirement Medical. The nonqualified deferred compensation plan described
in Section 4.06 will provide a cash benefit to Executive and his spouse with the intention that
Executive and spouse use that benefit to purchase post-retirement medical insurance.

    4.07 Expenses. In accordance with ASV’s normal policies for expense reimbursement,
ASV will reimburse Executive for all reasonable and necessary expenses incurred by Executive in the
performance of Executive’s duties under this Agreement, subject to the presentment of receipts or
other documentation acceptable to ASV.

     5. Termination.

    5.01 At-Will Employment. Executive and ASV acknowledge that Executive’s employment
with ASV is “at-will employment” and that the employment relationship may be terminated at any
time, upon written notice to the other party, for any or no reason at all, at the option of either
party. Executive’s employment pursuant to this Agreement shall terminate automatically in the
event of Executive’s death or Executive’s total disability which results in Executive’s inability
to perform the essential functions of Executive’s position, with or without reasonable
accommodation, provided Executive has exhausted Executive’s entitlement to any applicable leave, if
Executive desires to take and satisfies all eligibility requirements for such leave.

    5.02 Effect of Termination. Notwithstanding any termination of Executive’s employment
with ASV, Executive, in consideration of Executive’s employment hereunder to the date of such
termination, shall remain bound by the provisions of this Agreement which specifically relate to
periods, activities or obligations upon or subsequent to the termination of Executive’s employment,
including, but not limited to, the covenants contained in Section 6.

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Executive shall not be eligible to earn any further compensation under the provisions of this
Agreement following termination.

    5.03 Surrender of Records and Property. Upon termination of Executive’s employment
with ASV, Executive shall deliver promptly to ASV all property, records, documents and other
tangible items which are the property of ASV or which relate in any way to the business, products,
practices or techniques of ASV, including data incorporated in work processing, computer and other
data and electronic storage media and all copies of such records, documents and information,
including all Confidential Information, as defined below.

     6. Restrictive Covenants.

    6.01 Confidential Information. During the course of employment with ASV, Executive
will develop, become aware of and accumulate expertise, knowledge and information regarding ASV’s
organization, strategies, business, operations, products, manufacturing, marketing, trade secrets,
current or proposed products and technologies and ASV’s past, current or potential customers and
suppliers. ASV considers such expertise, knowledge and information to be valuable, confidential
and proprietary, and it shall be considered “Confidential Information” for purposes of this
Agreement. During Executive’s employment with ASV and for a period of two years after such
employment ends, Executive agrees that he will (1) not use such Confidential Information or
disclose it to other persons or entities except as is necessary for the performance of Executive’s
duties for ASV or as has been expressly permitted in writing by ASV, (2) keep in strictest
confidence and trust all Confidential Information that is disclosed to Executive or to which
Executive has access, (3) comply with all applicable policies and standard procedures established
by ASV to maintain the secrecy and confidentiality of Confidential Information, (4) other than in
the proper performance of Executive’s duties, remove any tangible Confidential Information from the
premises where such information is kept, and (5) not use the Confidential Information to ASV’s
disadvantage. Executive will provide all necessary assistance that ASV requests to maintain the
secrecy and confidentiality of Confidential Information. This Section 6.01 shall survive the
termination of this Agreement as specified in this Section.

    6.02 Non-Disparagement. During Executive’s employment with ASV and for a period of
two years after such employment ends, Executive agrees not to criticize, make any negative comments
or otherwise disparage or put in disrepute ASV, or those associated with ASV, in any way, whether
orally, in writing, in electronic form or otherwise, directly or by implication in communication
with any person, including but not limited to employees, suppliers and customers of ASV. This
Section 6.02 shall survive the termination of this Agreement as specified in this Section.

    6.03 Non-Solicitation. During Executive’s employment with ASV and for a period of one
year after such employment ends, Executive will not (1) directly or indirectly attempt to hire,
solicit, employ, or attempt to employ, any employee, director, independent contractor or consultant
of ASV, or otherwise directly or indirectly interfere with or disrupt relationships, contractual or
otherwise, between ASV and any of its employees, directors, independent contractors or consultants,
(2) directly or indirectly solicit, divert or take away, or attempt to solicit, divert or take
away, the business of any person, entity or company with whom

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ASV has established or seeking to establish a business or customer relationship, and (3)
directly or indirectly, in any way interfere, or attempt to interfere, with ASV’s relationships
with any of its actual or potential vendors or suppliers. This Section 6.03 shall survive the
termination of this Agreement as specified in this Section.

    6.04 Non Competition. During Executive’s employment with ASV and for a period of one
year after such employment ends, Executive will not, without ASV’s prior written consent, directly
or indirectly, in any manner (e.g., as an executive, employee, consultant, principal, partner,
agent, trustee, member, manager, shareholder, officer, director or otherwise), render services,
advice or assistance to any division, group or part of any corporation, person, organization or
other entity which engages in the marketing, selling, production, design or development of any
product, good, service or procedure which is or may be used as an alternative to, or which is or
may be sold in competition with any product, good, service or procedure marketed, sold, produced,
designed or developed by ASV (including products, goods, services, or procedures currently being
researched or under development by ASV) (the “Competitive Business”), in any geographic location,
domestic or foreign, in which Executive performed services or had responsibility on behalf of ASV.
It is understood that Executive may render services, advice or assistance to any separate division,
group or part of any corporation, person, organization or other entity which is not engaged in a
Competitive Business regardless of whether another separate division, group or part of such
corporation, person, organization or other entity is engaged in a Competitive Business. This
Section 6.04 shall survive the termination of this Agreement as specified in this Section.

    6.05 Acknowledgment. Executive agrees that the restrictions and agreements contained
in this Agreement are reasonable and necessary to protect the legitimate interests of ASV, and that
any violation of this Agreement will cause substantial and irreparable harm to ASV that would not
be quantifiable and for which no adequate remedy would exist at law. Executive further
acknowledges that Executive has requested, or has had the opportunity to request, that legal
counsel review this Agreement, and having exhausted such right, agrees to the terms herein without
reservation. Accordingly, Executive authorizes the issuance of injunctive relief by any court of
appropriate jurisdiction, without the requirement of posting bond, for any violation of this
Agreement.

    6.06. Notification of Employment. If at any time covered by the covenants contained
in Section 6.03 and Section 6.04, Executive accepts new employment or becomes affiliated with a
third party, Executive shall immediately notify ASV of the identity and business of the new
employer or affiliation. Without limiting the foregoing, Executive’s obligation to give notice
under this Section 6.06 shall apply to any business ventures in which Executive proposes to engage,
even if not with a third-party employer (such as, without limitation, a joint venture, partnership
or sole proprietorship). Executive hereby consents to ASV notifying any such new employer or
business venture of the terms of the covenants in this Section 6.

     7. Disclosure and Assignment of Inventions. Executive agrees that he will promptly
disclose to ASV all Inventions, as defined below, and Confidential Information generated, conceived
or reduced to practice by him alone or in conjunction with others, during or after working hours,
while Executive has been employed by ASV or within twenty-four (24)

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months thereafter; and all such Inventions and Confidential Information shall be the exclusive
property of ASV and are hereby assigned to ASV. Further, Executive agrees, at ASV’s expense, to
give ASV all assistance it reasonably requires to perfect, protect and use its right to Executive’s
Inventions and Confidential Information. “Invention” means any discovery, improvement, idea,
process, development, design, know-how, data and formula, whether patentable or unpatentable, or
protectable by copyright or other intellectual property law. Pursuant to Minnesota Statutes §
181.78, the provisions of this Section do not apply to any Invention of Executive if it (1) was
developed entirely on his own time; (2) was not made with the use of Confidential Information or
any equipment, supplies, or facilities of ASV; (3) is unrelated, directly or indirectly, to the
business of ASV or to ASV’s actual or demonstrably anticipated research or development; and (4) did
not result from any work performed by him for ASV. Attached as Exhibit B is a list of Inventions
Executive believes falls under this provision.

     8. Miscellaneous.

    8.01 Governing Law. This Agreement is made under and shall be governed by and
construed in accordance with the laws of the State of Minnesota, without regard to its conflicts of
laws principles or those of any other State.

    8.02 Entire Agreement. This Agreement contains the entire agreement of the parties
relating to the employment of Executive by ASV and the other matters discussed herein and
supersedes, terminates and replaces all prior promises, contracts, agreements and understandings of
any kind, whether express or implied, oral or written, with respect to such subject matter
(including, but not limited to, any promise, contract or understanding, whether express or implied,
oral or written, by and between ASV and Executive), and the parties hereto have made no agreements,
representations or warranties relating to the subject matter of this Agreement which are not set
forth herein or in the other agreements mentioned herein.

    8.03 Withholding Taxes. ASV may take such action as it deems appropriate to insure
that all applicable federal, state, city and other payroll, withholding, income or other taxes
arising from any compensation, benefits or any other payments made pursuant to this Agreement, or
any other contract, agreement or understanding which relates, in whole or in part, to Executive’s
employment with ASV, are withheld or collected from Executive.

    8.04 Amendments. No amendment or modification of this Agreement shall be deemed
effective unless made in writing and signed by Executive and ASV.

    8.05 No Waiver. No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel to enforce any provisions of this Agreement, except by a
statement in writing signed by the party against whom enforcement of the waiver or estoppel is
sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived, and shall not constitute a waiver
of such term or condition for the future or as to any act other than as specifically set forth in
the waiver.

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    8.06 Assignment. This Agreement shall not be assignable, in whole or in part, by any
party without the written consent of the other party, except that ASV may, without the consent of
Executive, assign its rights and obligations under this Agreement to any ASV affiliate or in
connection with a change in control of ASV.

    8.07 Injunctive Relief. Executive acknowledges and agrees that the services to be
rendered by Executive hereunder are of a special, unique and extraordinary character, that it would
be difficult to replace such services and that any violation of Sections 6 or 7 hereof would be
highly injurious to ASV, and that it would be extremely difficult to compensate ASV fully for
damages for any such violation. Accordingly, Executive specifically agrees that ASV shall be
entitled to temporary and permanent injunctive relief to enforce the provisions of Sections 6 or 7
hereof, and that such relief may be granted without the necessity of proving actual damages and
without necessity of posting any bond. This provision with respect to injunctive relief shall not,
however, diminish the right of ASV to claim and recover damages, or to seek and obtain any other
relief available to it at law or in equity, in addition to injunctive relief.

    8.08 Severability. To the extent any provision of this Agreement shall be determined
to be invalid or unenforceable in any jurisdiction, such provision shall be deemed to be deleted
from this Agreement as to that jurisdiction only, and the validity and enforceability of the
remainder of such provision and of this Agreement shall be unaffected. In furtherance of and not
in limitation of the foregoing, Executive expressly agrees that should the duration of,
geographical extent of or business activities covered by, any provision of this Agreement be in
excess of that which is valid or enforceable under applicable law in a given jurisdiction, then
such provision, as to such jurisdiction only, shall be construed to cover only that duration,
extent or activities that may validly or enforceably be covered. Executive acknowledges the
uncertainty of the law in this respect and expressly stipulates that this Agreement shall be
construed in a manner that renders its provisions valid and enforceable to the maximum extent (not
exceeding its express terms) possible under applicable law in each applicable jurisdiction.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth in the
first paragraph.

	 	 	 	 	 
	 	A.S.V, INC.

 	 
	 	By:  	/s/ Gary Lemke
 	 
	 	 	Name:  	Gary Lemke 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Mark Glasnapp
 	 
	 	Mark Glasnapp 	 
	 	 	 
	 

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EXHIBIT A

AGREEMENT

FOR

SUPPLEMENTAL EXECUTIVE RETIREMENT PAY

     This Agreement, effective July 12, 2004, is made by and between Mark Glasnapp
(“Executive”) and A.S.V., Inc., a Minnesota corporation (“ASV”).

WITNESSETH:

     WHEREAS, Executive is employed as ASV’s President; and

     WHEREAS, the Employment Agreement, dated July 12, 2004, between Executive and ASV
(“Agreement”) provides that ASV will establish and provide Executive a supplemental retirement
benefit plan; and

     WHEREAS, ASV and Executive desire to enter into this Agreement for supplemental employee
retirement benefits; and

     WHEREAS, ASV and Executive agree that this Agreement satisfies the requirement in Executive’s
Employment Agreement for ASV to provide Executive a supplemental retirement benefit plan.

     NOW, THEREFORE, based on the foregoing and the mutual promises which follow, the parties
hereto agree as follows:

     1. Supplemental Retirement Benefit.

     1.1. Form of Benefit. If Executive has attained age fifty-five (55) while employed by
ASV or an affiliate, ASV shall provide Executive a supplemental retirement benefit in the form of a
series of annual cash payments. Each annual cash payment shall equal fifty-five thousand dollars
($55,000), less applicable tax withholding. Except as provided for in Section 1.2, the benefit
shall commence within sixty (60) days following the later of (a) the date Executive attains age
fifty-five (55), or (b) the earliest date that such payment would be fully deductible by ASV for
federal income tax purposes. The benefit shall end, and the last payment shall be paid, on the
date Executive attains age eighty (80). Other than the first payment, which shall be paid on the
date specified above, each annual cash payment shall be made on the first business day following
Executive’s birthday (or as soon as administratively feasible after such date).

     1.2. Delay of Payment. If Executive is working for ASV or an affiliate at the time an
annual cash payment becomes payable under Section 1.1, such payment shall be delayed until the date
his employment ends. If a payment is delayed under this Section 1.2, it shall be deemed to have
been invested in a 10-year United States Treasury Note for the period beginning with the date it
became payable under Section 1.1 and ending on the date the payment is actually paid under this
Section 1.2. Upon Executive’s termination of employment, all delayed payments and any deemed
earnings shall be paid to Executive in a lump sum within sixty (60) days

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following the later of (a) the date Executive’s employment with ASV or an affiliate ends, or
(b) the earliest date that such payment would be fully deductible by ASV for federal income tax
purposes. The use of 10-year United States Treasury Notes in this Section 1.2 is solely as a
device for computing the amount of benefits to be paid under the Agreement, and ASV is not required
to purchase such investments.

     1.3. Early Termination by ASV. Subject to Section 3, if ASV terminates Executive’s
employment with ASV or an affiliate prior to the date Executive has attained age fifty-five (55),
Executive shall not be entitled to the benefit set forth in Section 1.1, but shall instead be
entitled to a supplemental retirement benefit described in this Section 1.3. The benefit shall be
in the form of a series of annual cash payments. The amount of each cash payment shall be
determined in accordance with the schedule set forth below and based on the age of the Executive at
the time of his termination of employment. The benefit shall commence within sixty (60) days
following the later of (a) the date of Executive’s termination of employment, or (b) the earliest
date that such payment would be fully deductible by ASV for federal income tax purposes. The
benefit shall end, and the last payment shall be paid, on the date Executive attains the age in the
schedule set forth below and based on the age of the Executive at the time of his termination of
employment. Other than the first payment, which shall be paid on the date specified above, each
annual cash payment shall be made on the first business day following Executive’s birthday (or as
soon as administratively feasible after such date).

Benefit Schedule

	 	 	 	 	 	 	 	 	 
	Age at time of	 	 	 	 	 	Benefit Payable	 
	Termination	 	Yearly Benefit	 	 	to Age	 
	48
	 	$	0	 	 	 	N/A	 
	49
	 	$	6,221	 	 	 	74	 
	50
	 	$	12,926	 	 	 	75	 
	51
	 	$	20,152	 	 	 	76	 
	52
	 	$	27,938	 	 	 	77	 
	53
	 	$	36,329	 	 	 	78	 
	54
	 	$	45,371	 	 	 	79	 

     1.4. Early Termination by Executive. Subject to Section 3, if Executive terminates
his employment with ASV or an affiliate prior to the date that Executive has attained age
fifty-five (55), Executive shall not be entitled to the benefit set forth in Section 1.1, but shall
instead be entitled to a supplemental retirement benefit described in this Section 1.4. The
benefit shall be in the form of a series of annual cash payments. The amount of the benefit shall
be the product of (a) a benefit amount based on the age of the Executive at the time of his
termination

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of employment in accordance with the schedule set forth in Section 1.3, multiplied by (b) a
vesting percentage determined in accordance with the schedule set forth below. The first payment
shall be made within sixty (60) days following the later of (a) the date of Executive’s termination
of employment, or (b) the earliest date that such payment would be fully deductible by ASV for
federal income tax purposes. The benefit shall end, and the last payment shall be made, on the
date Executive attains the age in the schedule set forth in Section 1.3 and based on the age of the
Executive at the time of his termination of employment. Other than the first payment, which shall
be paid on the date specified above, each annual cash payment shall be made on the first business
day following Executive’s birthday (or as soon as administratively feasible after such date).

Vesting Schedule

	 	 	 	 	 
	Age at time of	 	Vesting
	Termination	 	Percentage
	48	 	0%
	49	 	15%
	50	 	30%
	51	 	45%
	52	 	60%
	53	 	75%
	54	 

     1.5. Death Benefit. Upon Executive’s death, any remaining payments payable under
Section 1 shall be payable to Executive’s beneficiary (as determined in accordance with Section 7).
Each remaining payment shall be paid on the date the payment would have become due if Executive
would have survived.

     1.6 Vesting. Except as otherwise provided in Section 1.4, Executive shall be fully
(100%) vested in the benefit provided under this Section 1.

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     2. Post-Retirement Medical Benefit.

     2.1. Executive. Subject to Section 3, if Executive is employed with ASV or an
affiliate on June 12, 2007, upon Executive’s termination of employment with ASV and all affiliates
(except in the case of Executive’s death), ASV shall annually pay Executive an amount equal to ten
thousand dollars ($10,000), less tax withholding, for twenty (20) years. Except for the first
payment, which shall be paid within thirty (30) days following Executive’s termination of
employment, each payment shall be payable on the first business day on or after January 1 of each
year. ASV’s obligation to pay this benefit shall cease upon Executive’s death.

     2.2. Spouse. Subject to Section 3, if Executive is employed with ASV or an affiliate
on June 12, 2007, upon Executive’s termination of employment with ASV and all affiliates (including
if Executive’s termination of employment is due to Executive’s death), ASV shall annually pay
Executive’s then current spouse an amount equal to ten thousand dollars ($10,000) less tax
withholding, for twenty (20) years. Except for the first payment, which shall be paid within
thirty (30) days following Executive’s termination of employment, each payment shall be payable on
the first business day on or after January 1 of each year. ASV’s obligation to pay this benefit
shall cease upon either (a) Spouse’s death or (b) Spouse and Executive’s divorce.

     2.3. Taxation. While the amounts paid under this Section 2 are intended to replace
amounts that Executive and Executive’s spouse would have received under a post-retirement medical
plan, it is at the discretion of Executive and Executive’s spouse as to how to use the amounts and
the amounts shall be taxable income to Executive and Executive’s spouse upon payment.

     2.4 Vesting. If Executive is employed with ASV or an affiliate on June 12, 2007,
Executive and Executive’s spouse shall be fully (100%) vested in the benefit provided under this
Section 2. Subject to Section 3, if Executive’s employment with ASV and all affiliates ends for
any reason prior to June 12, 2007, Executive and Executive’s spouse shall not be entitled to any
benefit under this Section 2.

     2.5. Disability. For the purpose of this Section 2, Executive will be treated as
employed by ASV or an affiliate during any period Executive is receiving disability benefits from
ASV or is on an approved disability leave of absence regardless of whether Executive’s employment
is terminated as a result of such disability.

     3. Termination Following a Change of Control.

     3.1. Benefit. In the event that (a) a Change of Control occurs, and (b) within
eighteen (18) months following the Change of Control, ASV terminates Executive’s employment with
ASV or an affiliate other than for Cause or Executive terminates his employment with ASV or an
affiliate for Good Reason, prior to Executive attaining age fifty-five (55), then Executive will be
entitled to the benefit described in Section 1.1 and not the benefit described in Section 1.3 or
1.4. In addition, in the event that (a) a Change of Control occurs, and (b) within eighteen (18)
months following the Change of Control, ASV terminates Executive’s employment with ASV or an
affiliate other than for Cause or Executive terminates his employment with ASV or an affiliate for
Good Reason, Executive and Executive’s spouse will be entitled to the benefit

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described in Section 2 regardless of whether Executive was employed with ASV or an affiliate
until June 12, 2007.

     3.2. Definitions. For the purpose of this Agreement, the following terms shall have
the following meanings.

     3.2.1. “Cause” shall mean:

	 	(a)	 	the gross neglect or willful failure or refusal of Executive to
perform Executive’s duties (other than as a result of Employee’s disability);
	 
	 	(b)	 	the engaging by Executive in misconduct which is injurious to
ASV, monetarily or otherwise;
	 
	 	(c)	 	conviction (including conviction on a nolo contendere plea) of
a felony or any crime involving fraud, dishonesty or moral turpitude; or
	 
	 	(d)	 	the breach by Executive of any covenant set forth in his
Employment Agreement with ASV.

     3.2.2. “Change of Control” shall mean:

	 	(a)	 	any “Person” or “Persons” (as such terms are used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (other than ASV, any employee benefit plan of ASV or any
entity which reports beneficial ownership of ASV’s outstanding securities on
Schedule l3G pursuant to Regulation Section 240.l3d-l promulgated under the
Exchange Act ) becomes a “Beneficial Owner (as defined in Rule 13d-3 and Rule
13d-5 under the Exchange Act), directly or indirectly, of securities of ASV
representing more than 50% of the voting power of all of ASV’s then outstanding
securities;
	 
	 	(b)	 	the sale, transfer, conveyance or other disposition (pursuant
to a sale of assets, a merger or consolidation or similar transaction), in one
or a series of related transactions, of all or substantially all of the assets
of ASV to any Person or Persons (as defined above);
	 
	 	(c)	 	a merger, consolidation or similar transaction to which ASV is
a party, if the individuals and entities who were shareholders of ASV, as
applicable, immediately prior to the effective date of such merger,
consolidation or similar transaction have Beneficial Ownership of less than 50%
of the combined voting power of the surviving corporation following the
effective date of such merger, consolidation or similar transaction;
	 
	 	(d)	 	the adoption by ASV of a plan providing for its liquidation or
dissolution; or

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	 	(e)	 	the majority of ASV’s Board of Directors determine in their
sole and absolute discretion that there has been a change of control of the
ASV.

     3.2.3. “Good Reason” shall mean:

	 	(a)	 	ASV, or its successor, effects a material diminution of
Executive’s title or duties as in effect immediately prior to the Change of
Control;
	 
	 	(b)	 	any requirement that Executive move his regular office to a
location more than 50 miles from the location of Executive’s office immediately
prior to the Change of Control;
	 
	 	(c)	 	ASV, or its successor, has materially reduced Executive’s
salary or total compensation;
	 
	 	(d)	 	ASV, or its successor, has materially breached the terms of
this Agreement or any other written agreement between Executive and ASV
(including without limitation Executive’s Employment Agreement); or
	 
	 	(e)	 	Failure of the ASV to obtain the assumption of this agreement
by successor in accordance with Section 3.3 prior to the effectiveness of any
such Change of Control.

     3.3. Assumption of Agreement. ASV will 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 ASV to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that ASV would be required to perform it if no such succession had
taken place. As used in this Agreement, “ASV” shall mean ASV and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law,
or otherwise.

     4. Funding.

     4.1. Source of Payment. Benefits under this Agreement will be paid out of the general
assets of ASV, and Executive, Executive’s spouse and Executive’s beneficiary will not have any
preferred interest by way of trust, escrow, lien or otherwise in any specific assets. The rights
to payments to Executive, Executive’s spouse and Executive’s beneficiary under this Agreement will
be solely those of an unsecured creditor of ASV. ASV shall have no obligation to establish or
maintain any fund, trust or account (other than a bookkeeping account or reserve) for the purpose
of funding or paying the benefits promised under this Agreement. If such a fund, trust or account
is established, the property therein shall remain the sole and exclusive property of ASV.

     4.2. Hedging Investments. If ASV elects to finance all or a portion of the costs in
connection with this Agreement through the purchase of life insurance or other investments,
Executive agrees, as a condition of payment under this Agreement, to cooperate with ASV in the
purchase of such investment to any extent reasonably required by ASV and relinquishes any

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claim Executive, Executive’s spouse or Executive’s beneficiary might have to the proceeds of
any such investment or any other rights or interests in such investment.

     4.3. Corporate Obligation. Neither ASV nor any of its directors, officers, agents or
employees in any way secure or guarantee the payment of any benefit or amount which may become due
and payable hereunder. Executive, Executive’s spouse and Executive’s beneficiary shall look solely
to the assets of ASV for such payments as unsecured general creditors.

     5. Nontransferability. Executive, Executive’s spouse and Executive’s beneficiary
shall not have the right to assign, encumber or otherwise anticipate the payments to be made under
this Agreement. The payments provided hereunder shall not be subject to seizure for payment of any
debts or judgments against Executive, Executive’s spouse and Executive’s beneficiary.

     6. Tax Withholding. ASV may deduct from any benefit payment (and transmit to the
proper taxing authority) such amounts as it may be required to withhold under any applicable
federal, state or other law.

     7. Beneficiary Designation.

     7.1. Right to Designate. Executive may designate, upon forms to be furnished by and
filed with ASV, one or more primary beneficiaries or alternative beneficiaries to receive all of
Executive’s benefit described in Section 1 in the event of such Executive’s death. The Executive
may change or revoke any such designation from time to time without notice to or consent from any
beneficiary. No such designation, change or revocation shall be effective unless executed by the
Executive and received by ASV during the Executive’s lifetime.

     7.2. Failure of Designation. If Executive (a) fails to designate a beneficiary, (b)
designates a beneficiary and thereafter revokes such designation without naming another
beneficiary, or (c) designates one or more beneficiaries and all such beneficiaries so designated
fail to survive Executive, then Executive’s benefit described in Section 1 shall be paid to
Executive’s surviving spouse and, if no surviving spouse exists, then to Executive’s estate.

     8. Claims Procedure.

     8.1. When a Claim Should be Filed. Payments will be paid to Executive (and, if
applicable, to Executive’s beneficiary) and Executive’s Spouse automatically without the
requirement of an application for benefits. If Executive or any other person is in disagreement
with any determination that has been made, a claim may be presented.

     8.2. Making a Claim. The claim must be written and must be delivered to ASV’s Board
of Directors. Within ninety (90) days after the claim is delivered, the claimant will receive
either: (a) a decision; or (b) a notice describing special circumstances requiring a specified
amount of additional time (but no more than one hundred eighty (180) days from the day the claim
was delivered) and the date by which a decision is expected to be reached.

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     If the claim is wholly or partially denied, the claimant will receive a written or electronic
notice specifying: (a) the reasons for denial; (b) the provisions of this Agreement on which the
denial is based; and (c) any additional information needed in connection with the claim and the
reason such information is needed. Information concerning the claimant’s right to request a review
and right to file a civil action under section 502(a) of ERISA if a claim is denied upon review
will also be given to the claimant.

     8.3. Requesting Review of a Denied Claim. If a claimant’s claim is denied, the
claimant must file a request to have the denial reviewed. The request for review must be written
and must be delivered to ASV’s Board of Directors within sixty (60) days after claimant’s receipt
of written notice that the claim was denied. A request for review may (but is not required to)
include issues and comments the claimant wants considered in the review. Upon request, a claimant
is entitled to receive free of charge reasonable access to and copies of the documents, records and
information relevant to the claim. Within sixty (60) days after delivery of a request for review,
the claimant will receive either: (a) a decision; or (b) a notice describing special circumstances
requiring a specified amount of additional time (but no more than one hundred twenty (120) days
from the day the request for review was delivered) and the date by which a decision is expected to
be reached.

     If the claim is wholly or partially denied, the claimant will receive a written or electronic
notice specifying: (a) the reasons for denial; (b) the provisions of this Agreement on which the
denial is based; and (c) notice that upon request the claimant is entitled to receive free of
charge reasonable access to and copies of the relevant documents, records and information used in
the claim process. Information concerning the claimant’s right to file a civil action under
section 502(a) of ERISA will also be given to the claimant.

     8.4. In General. All decisions on claims and on reviews of denied claims will be made
by ASV’s Board of Directors. The Board of Directors may, in its discretion, hold one or more
hearings. The claimant may, at the claimant’s own expense, have an attorney or other
representative act on behalf of the claimant, but the Board of Directors reserves the right to
require a written authorization.

     9. Effect of Agreement. This Agreement embodies the entire understanding between the
parties with respect to the subject matter of this Agreement and supersedes any and all prior
understandings and agreements, oral or written, relating thereto. Any amendment of this Agreement
must be in writing and signed by both parties.

     11. Severability. Should any provision of this Agreement be held to be void, invalid,
unenforceable or illegal, the validity and enforceability of the other provisions shall not be
affected thereby.

     12. Non-Waiver. Failure of either party to enforce any provision of this Agreement
shall not constitute or be construed as a waiver of such provision nor of the right to enforce such
provision.

     13. Regulatory and Tax Status of Agreement. For purposes of ERISA, this Agreement is
intended to be an unfunded pension plan maintained by ASV for a select group of

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management or highly compensated employees, and ASV will file with the Department of Labor the
statement described in 29 C.F.R. §2520.104-23. For purposes of income and social security taxes,
the benefits provided under this Agreement are intended to provide unfunded nonqualified deferred
compensation.

     14. Determinations. For purposes of ERISA, ASV is the Plan Administrator and Plan
Sponsor of the plan and will make determinations that may be required from time to time in the
administration of the plan and benefits provided under it. ASV has sole authority, discretion and
responsibility to interpret and apply the terms of the plan and to determine all factual and legal
questions under the plan. ASV has discretionary authority to grant or deny benefits under the
plan.

     15. Governing Law. To the extent not governed by federal law, this Agreement shall be
governed by and construed under the laws of the State of Minnesota.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 12th day of
July, 2004.

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	By    /s/ Mark Glasnapp
 	 
	 	Mark Glasnapp 	 
	 	 	 
	 

	 	 	 	 	 
	 	A.S.V., INC.

 	 
	 	By  /s/ Gary Lemke
 	 
	 	Gary Lemke 	 
	 	Chief Executive Officer 	 
	 

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EXHIBIT B

Noneexv10w1

 

Exhibit 10.1

 

CONSULTING SERVICES AGREEMENT

 

     This Agreement is made as of the 14th day of April 2006 by and between Marshall M.
Sloane (hereinafter the “Consultant”) and Century Bancorp, Inc. (the “Company”) and its subsidiary,
Century Bank and Trust Company (the “Bank”) (hereinafter collectively referred to as “Century”).

     WHEREAS, Century desires to engage Consultant as an independent contractor to provide services
to Century based on Consultant’s long and extensive experience and knowledge of Century and the
banking industry;

     WHEREAS, Consultant desires in connection with retirement from his position as Chief Executive
Officer of the Company to accept such engagement on the terms and conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and other valuable consideration and of the
mutual covenants and agreement contained herein the parties hereby agree as follows:

     1.      CONSULTING SERVICES. Consultant agrees to provide services as an independent contractor.
Services as an independent consultant shall be comprised of general consulting services as
requested by the board of directors of the Company and its Co-Chief Executive Officers, which
services would involve providing the Co-Chief Executive Officers with advice on strategic planning
and operational management, assisting Century in connection with business development efforts and
clients, participation in public relations and community outreach efforts and such other duties as
may be requested by the Board of Directors of the Company and agreed to by the Consultant.

     2.      ADDITIONAL SERVICES. Consultant also agrees to act in the capacities of Chairman of the
Board of the Company and the Bank and serve as a director of the Company and the Bank

     Consultant’s role and responsibilities as Chairman of the Company and the Bank and as a
director shall be governed by the Company’s and the Bank’s respective Articles of Organization,
by-laws, policies and resolutions relating thereto. Remuneration for serving in these positions
shall be determined by the applicable Board of Directors. Service in these capacities and
positions shall be at the option of the Consultant and not a requirement of this Agreement.

     3.      TERM. Consultant shall commence services on May 1, 2006 and shall continue until April 30,
2007, provided on April 30, 2007 and each successive one-year anniversary of

     4.      this Agreement, its term will automatically renew for an additional one-year term, unless
this Agreement is terminated by mutual agreement of the Company and the Consultant or as otherwise
provided in paragraph 10 hereof or as otherwise provided in paragraph 10 hereof.

-1-

 

     5.      COMPENSATION; EXPENSES. The Company shall pay the Consultant an annual contract fee of
$275,000 per year beginning on the date hereof, such fee to be payable monthly throughout the year
on the last day of each month. In addition, the Company shall reimburse Consultant for all related
business expenses, including Consultant’s dues in such organizations as the Consultant shall
reasonably determine would be in the best interests of Century. Additionally, the Consultant shall
be reimbursed for the expense of obtaining health insurance comparable to that Century provided to
the Consultant while Consultant was Chief Executive Officer of the Company.

     6.      MAINTENANCE OF OFFICE. During the term of this Agreement, the Company shall continue to
provide and make available to the Consultant his present office facilities, together with the
services of an executive secretary.

     7.      PRIOR AGREEMENT. The Company acknowledges the Agreement between the Bank and the
Consultant dated as of December 28, 2001 (the “Insurance Agreement”) providing for freezing of the
Consultant’s supplemental executive retirement benefit in consideration for certain undertakings by
the Bank. The Company agrees that if it enters into a transaction involving a change in the
control of the Company requiring the approval of the Class A stockholders of the Company, the
Company as a condition of entering into such a transaction will require its counterparty to
specifically agree to honor and perform the Insurance Agreement.

     8.      OTHER ACTIVITIES. Because Consultant will have access to certain confidential information
of Century during the term of this consulting engagement, Consultant agrees that he will not engage
in any competing business activities without specific prior written consent of the Company.
Consultant may conduct other business that does not directly or indirectly compete with that of
Century.

     9.      CONFIDENTIALITY. Consultant shall treat as confidential and shall not divulge, furnish or
make known to or accessible to, or use for his own benefit or for the benefit of anyone other than
Century, any: customer list, customer names, customer financial information, marketing data and
information, pricing information, sales policies, commission structures or any other business
information (hereinafter “Proprietary Information”). Consultant agrees that upon termination of
this Agreement, he will not take with him or copy, damage or destroy any Proprietary Information,
including but not limited to any book, customer list or information, supplier list or information,
record, document, file, data or object relating in any way to the work done or to be done by
Century or its affiliates without prior written consent from the Company. (For the purposes of
this Agreement, “Proprietary Information” shall not include information known to Consultant prior
to any disclosure by Century pursuant hereto, information that becomes available to the Consultant
on a non-confidential basis from a third party unrelated to Century not under a confidentiality
constraint to Century and information which is publicly available, other than as a result of
disclosure by Consultant.)

     10.      SPECIFIC PERFORMANCE. The Consultant acknowledges that the harm to Century will be
irreparable in the event of a violation of the provisions of paragraphs 7 and 8

-2-

 

hereof and that in
such event the damages Century would sustain would be impossible to ascertain in advance.
Therefore, it is agreed that if Consultant should breach the obligations of referenced paragraphs
then the Company shall be entitled to seek injunctive relief and monetary damages including an
award of reasonable attorney’s fees.

     11.      CERTAIN TERMINATION EVENTS. The Agreement may be terminated by the mutual agreement of
the Company and the Consultant. If Consultant is unable to continue to fully perform the services
contemplated under this Agreement due to his illness, death, disability or other incapacity, the
Company shall be entitled to cease making payments under this Agreement.

     12.      TERMINATION PAYMENT. In the event Consultant’s services are terminated due to
Consultant’s illness, death, disability or other incapacity, the Company will make a one-time lump
sum termination payment of $275,000 to Consultant or his estate, as the case may be.

     13.      OUTSTANDING STOCK OPTIONS. For as long as Consultant remains as a director of the
Company, options to purchase Company Class A common stock previously granted to the Consultant
shall remain exercisable for their full respective option periods.

     14.      INDEPENDENT CONTRACTOR STATUS. Notwithstanding Consultant’s roles as a director and as
Chairman of the Board of Directors of the Company and the Bank, Consultant’s relationship to the
Company under this Agreement shall be that of an independent contractor and not an employee for any
purpose whatsoever of Century. As an independent contractor, Consultant shall have the sole
authority to control and direct the performance of his services, subject to the performance
criteria outlined by the Company. All services shall be subject to the Company’s general rights of
review to assure their satisfactory completion. Consultant agrees that no income, Social Security
or other tax or amount will be withheld or accrued by Century for Consultant. Consultant shall be
fully responsible for Consultant’s own taxes, including self-employment taxes.

     15.      MEDIATION AND ARBITRATION. If any dispute arises under this Agreement, the Consultant and
the Company shall negotiate in good faith to settle such dispute. If the parties cannot resolve
such dispute themselves, then either party may submit the dispute to mediation by a mediator
approved by both parties. If the parties cannot agree to any mediator, or if either party does not
wish to abide by any decision of the mediator, they shall submit the dispute to arbitration by any
mutually acceptable arbitrator, or the American Arbitration Association (AAA). If the AAA is
selected, the arbitration shall take place under the auspices of the Boston, Massachusetts branch.
The costs of arbitration proceeding shall be borne according to the decision of the arbitrator, who
may apportion costs equally, or in accordance with any finding of fault or lack of good faith of
either party. The arbitrator’s award shall be non-appealable and enforceable in any court of
competent jurisdiction.

     16.      INDEMNIFICATION. The Consultant agrees to indemnify and hold harmless Century and their
respective directors, officers, employees and agents from and against any

-3-

 

losses, claims, damages,
expenses and liabilities, joint or several, (including reasonable attorney’s fees), due to actions,
inactions or claims arising out of, or directly or indirectly related to, the Consultant’s
performance of the Services, the breach of the confidentiality provisions of this Agreement or
Consultant’s failure to comply with any applicable law or regulation.

     17.      INDEMNIFICATION BY CENTURY. The Company will indemnify and hold harmless Consultant
against any and all losses, claims, damages, liabilities, actions, costs or expenses, joint or
several, to which he may become subject (including any legal or other expenses reasonably incurred
by or in connection with investigating any claim against him and defending any action and any
amounts paid in settlement or compromise, provided the Company shall have given its prior written
approval of such expenses, settlement or compromise), insofar as such losses, claims, damages,
liability actions, costs or expenses arise out of or are based upon; (i) the failure of Century or
its employees to comply with applicable laws, rules and regulations in connection with this
Agreement; (ii) personal injury death or property damage occurring on the premises of Century,
including any space used by Consultant; or (iii) the negligence or intentional conduct of Century
or its employees.

     The foregoing indemnification is in addition to indemnification from Century, to which
Consultant is entitled (i) in his prior capacities at Century and (ii) in his capacities as a
director and as Chairman of the Company and the Bank and (iii) to which Consultant may be entitled
in connection with Consultant’s acting on behalf of Century under the respective Articles of
Organization and by-laws of the Company and the Bank.

     18.      NOTICES. All notices, requests, demands, and other communications shall be deemed to have
been given if the same shall be in writing and shall be delivered personally or sent by registered
or certified mail, postage prepaid, and addressed as set forth below:

	 	 	 	 	 	 	 	 	 
	 

	 	A.
	 	If to Consultant:
	 	B.
	 	If to Century:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Marshall M. Sloane
	 	 	 	Barry R. Sloane and Jonathan G. Sloane
	 

	 	 	 	Chairman of the Board
	 	 	 	Co-Chief Executive Officer
	 

	 	 	 	Century Bancorp, Inc.
	 	 	 	Century Bancorp, Inc.
	 

	 	 	 	400 Mystic Avenue
	 	 	 	400 Mystic Avenue
	 

	 	 	 	Medford, Massachusetts 02155
	 	 	 	Medford, Massachusetts 02155

     19.      MISCELLANEOUS. This Agreement shall be governed by and interpreted under and according to
the laws of the Commonwealth of Massachusetts. This Agreement may not be amended or changed, unless
such amendment or change is made in writing and approved by both the Consultant and the Company.
This Agreement superseded any and all prior oral agreements or understandings relating to this
matter between the Company and the Consultant.

-4-

 

     IN WITNESS WHEREOF, the parties hereto have executed this Consulting Services Agreement as of
the day and year first above written and in duplicate counterparts each of which shall be deemed to
be an original, but both of which together shall constitute one and the same instrument.

	 	 	 	 	 
	 	MARSHALL M. SLOANE

 	 
	 	By:  	/s/ Marshall M. Sloane
 	 
	 	 	Name:  	Marshall M. Sloane 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	CENTURY BANCORP, INC.

 	 
	 	By:  	/s/ Barry R. Sloane
 	 
	 	 	Name:  	Barry R. Sloane 	 
	 	 	Title:  	Co-CEO and Co-President 	 
	 
	 	 	 
	 	By:  	/s/ Jonathan G. Sloane
 	 
	 	 	Name:  	Jonathan G. Sloane 	 
	 	 	Title:  	Co-CEO and Co-President 	 
	 

-5-

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