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ASV Signs Five-Year Supply Agreement with Caterpillar

ASV, Inc., a manufacturer of rubber track loaders, undercarriages and related accessories, has signed a five-year supply agreement with Caterpillar Inc., effective November 1. The new supply agreement builds on the success the two companies have created in the rubber track loader market from their original alliance agreement, which expires October 31.

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GRAND RAPIDS, MN — ASV, Inc., a manufacturer of rubber track loaders, undercarriages and related accessories, has signed a five-year supply agreement with Caterpillar Inc., effective November 1. The new supply agreement builds on the success the two companies have created in the rubber track loader market from their original alliance agreement, which expires October 31.

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In keeping with their original alliance agreement, Caterpillar will purchase from ASV 100 percent of its undercarriage requirements for current and specified future Caterpillar Multi-Terrain Loaders (MTLs), as defined. If Caterpillar chooses to manufacture MTLs outside North America for non-North American markets, the company will purchase from ASV 100 percent of its undercarriage requirements for these MTLs, provided ASV meets the capacity requirements and the local requirements, as defined, for the applicable geographic area.

Should ASV choose not to supply undercarriages to Caterpillar for these non-North American sales, ASV would grant a royalty-bearing license to Caterpillar to use ASV’s intellectual property to manufacture undercarriages for use on MTLs manufactured outside North America for the non-North American markets. Caterpillar will also continue to purchase 100 percent of its requirements for proprietary OEM aftermarket service parts from ASV.

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Also as part of the agreement, ASV will continue to be allowed to sell its rubber track undercarriages to other equipment manufacturers for machines that do not compete with Caterpillar’s Multi-Terrain Loaders.

For more information, visit ASV’s Web site: asvi.com.

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