
<PAGE>
                                [POLARIS LETTERHEAD]
                                          
                                          
                                          
                                                                 Exhibit 10(s)
                                          











                                   April 1, 1998



Mr. Thomas C. Tiller
19 Bear Brook Court
Clifton Park,  NY  12065



Dear Tom:

     On behalf of the Board of Directors of Polaris Industries Inc. ("Polaris"),
I am pleased to offer you the position of President and Chief Operating Officer
of Polaris.  This letter will confirm the terms of your employment with Polaris.

     I.    TITLE AND POSITION.

     President and Chief Operating Officer of Polaris reporting to W. Hall
Wendel, Jr., Chairman of the Board of Directors and Chief Executive Officer of
Polaris.  It is expected that you will be elected to the Board of Directors of
Polaris as soon as practicable after you begin employment with Polaris.  It is
currently anticipated that you will become Chief Executive Officer of Polaris on
the date of Polaris' 1999 Annual Meeting of Shareholders or, at the discretion
of the Board of Directors of Polaris, at such earlier or later date as mutually
acceptable to the Board and you.

     II.   DATE OF EMPLOYMENT.

     July 8, 1998.

     III.  BASE SALARY.

     $375,000 per year; reviewed annually by the Compensation Committee of the
Board of Directors and Mr. Wendel.  When you become Chief Executive Officer of
Polaris, your annual base salary would be increased to $450,000 per year.


<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 2


     IV.   CASH INCENTIVE COMPENSATION.

     You will be a "A" level executive under Polaris' bonus/profit sharing
arrangements.  The Compensation Committee of the Board of Directors of Polaris
determines the actual amount of bonus/profit sharing awards to "A" level
executives.  However, the target payout for you as the President and Chief
Operating Officer and/or Chief Executive Officer will be 200% of your base
salary for the years ending December 31, 1998 and 1999.  The minimum payment to
you under the bonus/profit sharing arrangements will be 100% of your base salary
(the "Guaranteed Bonus Amount") for the years ending December 31, 1998 and 1999.

     Bonus/profit sharing awards for any year are paid in cash during the first
quarter of the following year.

     V.    STOCK-BASED INCENTIVE COMPENSATION.

     You will be an eligible participant under the Polaris Industries Inc. 1995
Stock Option Plan (as the same may be amended from time to time, the "Stock
Option Plan") and the Polaris Industries Inc. Restricted Stock Plan (as the same
may be amended from time to time, the "Restricted Stock Plan").  The Stock
Option Plan and the Restricted Stock Plan are administered by the Stock Award
Compensation Committee of the Board of Directors.

           A.  STOCK OPTIONS.

     On the date upon which you begin employment with Polaris, you will be
granted a stock option to purchase up to 175,000 shares of Polaris' common stock
at an exercise price per share equal to the fair market value (as defined in the
Stock Option Plan) of a share of Polaris common stock on the date of grant.

     Polaris annually makes grants of stock options to its employees.  As a
Polaris employee, you will receive an additional stock option to purchase 50,000
shares of Polaris' common stock at an exercise price equal to the fair market
value (as defined in the Stock Option Plan) of such shares on the date of grant
at the same time that Polaris makes it annual awards of stock options to
employees in each of 1999, 2000, 2001 and 2002.

     The stock options referred to above will be issued under the Stock Option
Plan and will be subject to the provisions, terms and conditions of the Stock
Option Plan and Polaris' standard form of stock option agreement as the same may
be amended from time to time.  A copy of Polaris' current form of stock option
agreement is enclosed for your reference as Annex A.

     Additionally,  you will receive a stock option to purchase up to 250,000
shares of Polaris common stock at an exercise price equal to 135% of the fair
market value of such shares on the date you begin employment with Polaris (the
"Target Price"). This stock option will be granted under the Stock Option Plan
and subject to the provisions, terms and conditions of the Stock Option Plan and
Polaris' standard form of stock option agreement, except that (i) it will become
exercisable ("vest") on the date upon which the fair market value of Polaris
shares meets or exceeds the Target Price, and (ii) if not then vested, it will
terminate on the fifth anniversary of 

<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 3

your date of employment.  Once vested, this stock option will expire on the 
tenth anniversary of the date of its grant, absent earlier expiration due to 
termination of your employment in accordance with the terms of Polaris' 
standard form of stock option agreement.

           B.  RESTRICTED SHARE AWARDS.

     On the date upon which you begin employment with Polaris you will receive a
Performance Restricted Share Award of 25,000 shares of Polaris common stock. 
Such restricted shares will be issued under the Restricted Stock Plan and will
be subject to the provisions, terms and conditions of the Restricted Stock Plan
and Polaris' standard form of performance restricted share agreement.  A copy of
Polaris' current form of performance restricted share agreement is enclosed for
your reference as Annex B.

     As a Polaris employee, you will receive an additional Performance
Restricted Share Award of 25,000 shares of Polaris common stock at the same time
that Polaris makes its annual restricted share awards to employees in each of
1999, 2000, 2001 and 2002.

     VI.   SUPPLEMENTAL BENEFITS AND PERQUISITES.

     At Polaris, you will participate in Polaris' benefit programs and receive
the perquisites made available by Polaris to its executives including medical,
dental, disability and life insurance coverage, financial planning and tax
preparation services, 401(k) retirement savings plan and Supplemental Executive
Retirement Plan participation and a country club membership.  Additionally, you
will have the use of Polaris' products in accordance with Polaris' guidelines. 
A summary of your benefits is enclosed herewith as Annex C.

     VII.  CHANGE IN CONTROL AGREEMENT.

     When you begin employment with Polaris, Polaris will enter into a Change in
Control Agreement with you substantially in the form enclosed herewith as Annex
D.

     VIII. RELOCATION EXPENSES; TRANSFER ALLOWANCE.

     Polaris will pay or reimburse you for the costs of relocating you and your
family to the Minneapolis-St. Paul metropolitan area.  Relocation costs are
intended to include the costs of packing and shipping of household goods, the
payment of real estate commissions and legal fees associated with the sale of
your current home and the purchase of a home in the Minneapolis- St. Paul
metropolitan area and travel expenses for you and your immediate family.

     Additionally, upon beginning your employment with Polaris, you will receive
a one-time relocation amount of $100,000.

<PAGE>

Mr. Thomas C. Tiller
April 1, 1994
Page 4

     IX.   TERMINATION PROVISIONS AND PAYMENTS.

           A.  Your employment with Polaris may be terminated by Polaris with or
without "Cause" (as defined below) at any time.  You may terminate your
employment with Polaris for "Good Reason" (as defined below) on or before
December 31, 2000 or for any reason thereafter.  For purposes of this agreement,
"Cause" means any of (i) repeated violations of your employment obligations
(other than as a result of incapacity due to physical or mental illness) which
are demonstrably willful and deliberate on your part and which are not remedied
within thirty (30) days after written notice from Polaris specifying such
violations; or (ii) conviction for (or plea of nolo contendere to) a felony
involving moral turpitude, or dishonesty with respect to Polaris.  For purposes
of this agreement, "Good Reason" means any of (i) a material reduction in the
scope of your authority and responsibility as an executive of Polaris (other
than isolated, insubstantial actions not taken in bad faith and which are
remedied by Polaris upon notice to Polaris, or as temporarily required due to
your illness or injury), (ii) a reduction in your base compensation; (iii)
Polaris requires your principal place of employment to be other than at its
principal executive offices; or (iv) Polaris otherwise fails to perform any of
its material obligations to you.

           B.  If on or before December 31, 2000, Polaris terminates your
employment without Cause or you terminate your employment with Polaris for Good
Reason, Polaris will pay you:

     1.    Your base salary pro rata through the date of termination at the
           time such salary would customarily be paid;

     2.    An amount equal to (a) the Guaranteed Bonus Amount, if such
           termination is effective on or before December 31, 1999, or (b) the
           average cash bonus award paid to you calculated for the two previous
           fiscal years of Polaris if such termination is effective after
           December 31, 1999, in either case, pro rata through the date of
           termination at the time bonuses for the year of termination are
           customarily paid;

     3.    Your base salary as then in effect for a two year period beginning
           on the date of such termination, payable in monthly installments at
           the time such base salary is customarily payable; and

     4.    An amount equal to (a) twice the Guaranteed Bonus Amount, if such
           termination is effective on or before December 31, 1999, or (b)
           twice the average cash bonus award paid to you calculated for the
           two previous fiscal years of Polaris if such termination is
           effective after December 31, 1999, in either case, payable in two
           equal annual installments at the next two times that bonuses are
           customarily paid by Polaris.

Additionally, if on or before December 31, 2000, Polaris terminates your
employment without Cause or you terminate your employment with Polaris for Good
Reason, Polaris will provide you with medical and dental insurance coverage
substantially the same as provided to other 


<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 5

executives of Polaris for a period ending on the earlier of (a) two years 
from the date of the termination of your employment or (b) the date upon 
which you become employed by another employer.

     C.    If at any time Polaris terminates your employment for Cause or you
terminate your employment without Good Reason, Polaris will pay you your base
salary pro rata through the date of termination.  Additionally, if after
December 31, 2000, Polaris terminates your employment with or without cause or
for any reason or you terminate your employment with Polaris with or without
Good Reason, Polaris will pay you your base salary pro rata through the date of
termination.  Additionally, if your employment is terminated pursuant to the
preceding two sentences you may purchase health insurance under the then
existing applicable health insurance plans of Polaris in accordance with the
applicable government requirements, including COBRA.

     D.    In the event that you have not been elected Chief Executive Officer
of Polaris by the Board of Directors of Polaris on or before the date of
Polaris' 1999 Annual Shareholders Meeting and, on or before August 31, 1999, you
have not reached a mutually satisfactory agreement with the Board of Directors
of Polaris regarding the terms and conditions under which you will become Chief
Executive Officer of Polaris you may, on or before September 30, 1999 provide
Polaris with thirty days' advance written notice of your termination of your
employment and in the event of such termination Polaris will pay you:

     1.    Your base salary pro rata through the date of termination;

     2.    An amount equal to the Guaranteed Bonus Amount pro rata through the
           date of termination at the time bonuses for the year of termination
           are customarily paid;

     3.    Your base salary as then in effect for a three year period beginning
           on the date of such termination, payable in monthly installments at
           the time such base salary is customarily payable; and

     4.    An amount equal to three times the Guaranteed Bonus Amount, payable
           in three equal annual installments at the next three times bonuses
           are customarily paid by Polaris.

Additionally, Polaris will provide you with medical and dental insurance
coverage substantially the same as provided to other executives of Polaris for a
period ending on the earlier of (a) two years from the date of termination of
your employment or (b) the date upon which you become employed by another
employer.

     E.    In the event your employment is terminated under this Article IX
before a cash bonus for any preceding fiscal year has been paid, Polaris will
pay you your cash bonus for such preceding fiscal year at the time such bonuses
are paid to other executives of Polaris.

<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 6

All amounts payable under this Agreement will be net of any applicable 
requisite tax withholding and in lieu of any other rights or claims you may 
have against Polaris including under the Change in Control Agreement referred 
to in Article VII above, all of which such rights or claims you hereby waive.

     X.    PROPRIETARY INFORMATION; NONCOMPETITION.

     PROPRIETARY INFORMATION

     Except with the prior written permission of Polaris, you agree that you
will not, through the actual date of any termination of your employment with
Polaris and for a period of 60 months thereafter, disclose or use any
Proprietary Information (as defined below) of Polaris or any of its subsidiaries
of which you become informed during your employment with Polaris, whether or not
developed by you, except as required by your duties to Polaris or any of its
subsidiaries.  Proprietary Information means, as to Polaris or any of its
subsidiaries, business plans, operating plans, procedures or manuals, financial
statements, projections or reports, or other confidential information of the
Company, excluding, however, (i) such information which is then or later becomes
generally available to the public other than through you; (ii) such information
which is received by you from a third party owing no obligation of
confidentiality to Polaris; and (iii) such information which has been or is
later disclosed by Polaris to an unrelated third party on a nonconfidential
basis.  Information does not lose its Proprietary Information status merely
because it was known by other persons or entities or because it did not entirely
originate with Polaris.  Upon termination of your employment with Polaris for
any reason, you agree to deliver to Polaris all materials (in whatever form or
format) that include Proprietary Information.  You agree and understand that the
Proprietary Information and all information contained therein shall be at all
times the property of Polaris.  Further, upon termination of your employment for
any reason, you agree to make available to any person designated by Polaris or
any of its subsidiaries all information concerning pending or preceding
transactions which may affect the operation of Polaris or any of its
subsidiaries about which you have knowledge.

     NONCOMPETITION.

     It is mutually acknowledged that by virtue of your employment hereunder,
Polaris and its subsidiaries will divulge and make accessible to you, and you
will become possessed of, certain valuable and confidential information
concerning the business and operations of Polaris and its subsidiaries.  Without
limitation it is also specifically acknowledged that great trust on the part of
Polaris and its subsidiaries will reside in you because your duties will include
involvement in the management, promotion and development of Polaris' operations
and business.  Accordingly, it is necessary to enter into the following
protective agreements:

     (a)   You agree with Polaris and for the benefit of Polaris and its
           subsidiaries through the actual date of termination of your
           employment, and for a period of two years thereafter, you will not
           own or have any interest in and will not, on your behalf or on the
           behalf of any third party, perform any services for, directly or
           indirectly, any person or entity (a "Polaris Competitor") which
           engages in a business that Polaris or any of its subsidiaries
           conducts or contemplates conducting in the near 

<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 7

           future at the time of the termination of your employment (each, a 
           "Competitive Activity"), except that you may own up to 1% of the 
           outstanding securities of any corporation if such securities are 
           registered under the Securities Exchange Act of 1934, as amended 
           and you may provide services for businesses of Polaris Competitor 
           that are not engaged in or provide goods or services to a 
           Competitive Activity.

     (b)   You agree that during your employment with Polaris and for a period
           of two years following the termination of such employment that you
           will not, either directly or indirectly, on your own behalf or in
           the service or on behalf of others solicit, divert or hire away, or
           in any manner attempt to solicit, divert or hire away any full-time
           employee of Polaris or any of its subsidiaries, and whether or not
           such employment was pursuant to a written or oral contract of
           employment and whether or not such employment was for a determined
           period or was at-will.

You understand and agree that a breach by you of any of the provisions of this
Agreement may cause Polaris or its subsidiaries irreparable injury and damage
which cannot be compensible by receipt of money damages.  You, therefore,
expressly agree that Polaris and its subsidiaries shall be entitled, in addition
to any other remedies legally available to it, to injunctive and/or other
equitable relief to prevent a breach of this Agreement or any part hereof.

     Neither this Agreement nor anything contained herein shall be construed as
conferring upon you or Polaris the right to your continued employment by Polaris
after December 31, 2001.

     This Agreement is entered into in the State of Minnesota and shall be
construed, interpreted and enforced according to the statutes, rules of law and
court decisions of the State of Minnesota.


     This Agreement constitutes the entire understanding of the parties hereto
and supercedes all prior understandings, whether written or oral, between the
parties with respect to your employment with Polaris.


<PAGE>

Mr. Thomas C. Tiller
April 1, 1998
Page 8

     Please sign and return a copy of this letter indicating that you accept our
offer and confirming the terms of your employment.  The Board of Directors join
me in welcoming you to Polaris.


                                   Very truly yours,

                                   /s/ W. Hall Wendel, Jr.

                                   W. Hall Wendel, Jr.
                                   Chairman and Chief Executive Officer



Accepted and Confirmed:

April 1, 1998



/s/ Thomas C. Tiller
-------------------------------
Thomas C. Tiller



