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  Exhibit 10.37    
    

 
    DOUGLAS DYNAMICS, INC.
  GRANT NOTICE FOR 2010 STOCK INCENTIVE PLAN
  PERFORMANCE SHARE UNITS    
    

        FOR GOOD AND VALUABLE CONSIDERATION, Douglas Dynamics, Inc. (the "Company"), hereby grants to Participant named below the number
of performance share units specified below (the "Award"), upon the terms and subject to the conditions set forth in this Grant Notice, the Douglas Dynamics, Inc. 2010 Stock Incentive Plan (the
"Plan") and the Standard Terms and Conditions (the "Standard Terms and Conditions") adopted under such Plan and provided to Participant, each as amended from time to time. Each performance share unit
subject to this Award ("Performance Share Unit") is a Restricted Stock Unit subject to performance conditions as contemplated by Section 8 of the Plan and represents the right to receive one
share of the Company's common stock, par value $0.01 (the "Common Stock"), subject to the conditions set forth in this Grant Notice, the Plan and the Standard Terms and Conditions. This Award is
granted pursuant to the Plan and is subject to and qualified in its entirety by the Standard Terms and Conditions. 

Name
of Participant:                                  

Grant
Date:                     , 20     

Number
of Performance Share Units Subject to the Award (Maximum):                      

Performance
Period:                      through
                     

        Performance-Based
Vesting: The number of Performance Share Units earned (the "Earned Units") will be determined based on the achievement of the performance-based vesting criteria over
the Performance Period as set forth on Attachment A hereto. 

        Time-Based
Vesting: The Earned Units will vest as follows, subject to Section 2 of the Standard Terms and Conditions:
                                . 

        By
accepting this Grant Notice, Participant acknowledges that he or she has received and read, and agrees that this Award shall be subject to, the terms of this Grant Notice, the Plan
and the Standard Terms and Conditions. 

 

			
	DOUGLAS DYNAMICS, INC.	 	                

  Participant Signature

 

 

					
	By:	 	                

 	 	 
	Title:	 	                

 	 	                  

  Address (please print)

 

 

 
 

  Attachment A    
    

        Performance-Based
Vesting Criteria:                                  

 

									
	 

 Threshold
	 	        	 	        	 	        	 	        
	 Target
	 	        	 	        	 	        	 	        
	 

 Maximum
	 	        	 	        	 	        	 	        

 

         Performance
Share Units Earned (subject to time-based vesting): 

 

							
	 

 Threshold
	 	[        ]	 	(      % of Target)	 	 
	 Target
	 	[        ]	 	 	 	 
	 

 Maximum
	 	[        ]	 	(      % of Target)	 	 

 

 

 
 

  DOUGLAS DYNAMICS, INC.
  STANDARD TERMS AND CONDITIONS FOR
  PERFORMANCE SHARE UNITS    
    

        These Standard Terms and Conditions apply to the Award of performance share units granted pursuant to the Douglas Dynamics, Inc.
2010 Stock Incentive Plan (the "Plan"), which are evidenced by a Grant Notice or an action of the Administrator that specifically refers to these Standard Terms and Conditions. In addition to these
Terms and Conditions, the performance share units shall be subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference. Capitalized terms not
otherwise defined herein shall have the meaning set forth in the Plan. 

1.     TERMS OF PERFORMANCE SHARE UNITS  

Douglas
Dynamics, Inc., a Delaware corporation (the "Company"), has granted to the Participant named in the Grant Notice provided to said Participant herewith (the "Grant Notice") an
opportunity to earn a number of performance share units (the "Award" or the "Performance Share Units") specified in the Grant Notice. Each Performance Share Unit is a Restricted Stock Unit subject to
performance conditions as contemplated by Section 8 of the Plan and represents the right to receive one share of the Company's common stock, $0.01 par value per share (the "Common Stock"), upon
the terms and subject to the conditions set forth in the Grant Notice, these Standard Terms and Conditions, and the Plan, each as amended from time to time. For purposes of these Standard Terms and
Conditions and the Grant Notice, any reference to the Company shall include a reference to any Subsidiary. 

2.     VESTING OF PERFORMANCE SHARE UNITS  

The
Award shall not be earned or vested as of the Grant Date set forth in the Grant Notice and shall be forfeitable unless and until it becomes earned and vested pursuant to the terms of the Grant
Notice and these Standard Terms and Conditions. The number of Performance Share Units earned (the "Earned Units") will be determined based on the achievement of the performance-based vesting criteria
over the performance period (the "Performance Period") as set forth on Attachment A to the Grant Notice. Performance Share Units become Earned Units on the date that Administrator certifies the
achievement of the performance-based vesting criteria. Any Performance Share Units that are not earned on such date shall be forfeited. Thereafter, subject to termination or acceleration as provided
in these Standard Terms and Conditions and the Plan, the Award shall become vested as described in the Grant Notice with respect to the Earned Units as set forth in the Grant Notice. 

Notwithstanding
anything contained in these Standard Terms and Conditions to the contrary: 

	A.
	If
the Participant has a Termination of Employment prior to the first anniversary of the Grant Date:

	(i)
	Subject
to Section 9, if such Termination of Employment is due to the Participant's Retirement (as defined below), and occurs six months or more
after the Grant Date, the Performance Share Units shall become earned and vested on the same schedule as if such Termination of Employment had not occurred, based on actual performance, but the number
of Performance Share Units so earned and vested shall be pro rated based on the number of whole months of the period from the Grant Date until the final vesting date that have elapsed prior to such
Termination of Employment.

	(ii)
	If
such Termination of Employment is by reason of death or Disability, and occurs six months or more after the Grant Date, the Performance Share Units
shall become earned and vested upon such Termination of Employment, based on actual performance for the first and second years of the Performance Period and target performance for the third year of
the Performance Period, but the number of Performance Share Units so earned and vested shall be pro rated based on the number of whole months of the period from 

 

the
Grant Date until the final vesting date that have elapsed prior to such Termination of Employment.  

	(iii)
	If
such Termination of Employment is not due to the Participant's Retirement or by reason of death or Disability, or occurs less than six months after the
Grant Date for any reason, all Performance Share Units shall be forfeited and canceled as of the date of such Termination of Employment.

	B.
	If
the Participant has a Termination of Employment on or after the first anniversary of the Grant Date:

	(i)
	Subject
to Section 9, if the Termination of Employment is due to the Participant's Retirement, the Earned Units shall continue to vest under the
schedule described in the Grant Notice, and any unearned Performance Share Units shall be forfeited and cancelled.

	(ii)
	If
the Termination of Employment is by reason of death or Disability and occurs before the Earned Units have fully vested, the Earned Units shall fully
vest upon such Termination of Employment.

	(iii)
	If
the Termination of Employment is for any reason other than death, Disability or Retirement, any then unvested Performance Share Units, including any
Earned Units, held by the Participant shall be forfeited and canceled as of the date of such Termination of Employment. 

3.     SETTLEMENT OF EARNED UNITS  

Vested
Earned Units shall be settled by the delivery to the Participant or a designated brokerage firm of one share of Common Stock per vested Earned Unit as soon as reasonably practicable following
the vesting of such Earned Units, and in all events no later than March 15 of the year following the year of vesting (unless delivery is deferred pursuant to a nonqualified deferred
compensation plan in accordance with the requirements of Section 409A of the Code, and subject to applicable withholding). 

4.     RIGHTS AS STOCKHOLDER; DIVIDEND EQUIVALENTS  

	A.
	The
Participant shall not have voting rights with respect to shares of Common Stock underlying Performance Share Units unless and until such shares of Common
Stock are reflected as issued and outstanding shares on the Company's stock ledger.

	B.
	The
Participant shall receive dividend equivalents as follows:

	(i)
	For
any dividends paid with respect to the shares of Common Stock underlying the Performance Share Units for which the record date occurs prior to the first
anniversary of the Grant Date, the Participant shall receive a cash payment equal to the product of the per share amount of such dividends multiplied by the number of Earned Units. Such cash payment
shall be made to the Participant on the 30th day after the number of Earned Units is determined.

	(ii)
	For
any dividends paid with respect to the shares of Common Stock underlying the Earned Units for which the record date occurs after the first anniversary
of the Grant Date and prior to the forfeiture of such Earned Units, the Participant shall receive a cash payment equal to the product of the per share amount of such dividends multiplied by the number
of Earned Units. Any amounts due to the Participant under this provision shall be paid to the Participant, in cash, no later than the end of the calendar year in which the dividend or other
distribution is paid to stockholders of the Company or, if 

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later,
the 15th day of the third month following the date the dividends are paid to stockholders.  

	(iii)
	Notwithstanding
anything to the contrary in the foregoing, if any dividends or distributions with respect to the Common Stock underlying the Performance
Share Units are paid in Shares rather than cash, the Participant shall be credited with additional Performance Share Units equal to the number of Shares that the Participant would have received had
the Performance Share Units been actual Shares, and such Performance Share Units shall be subject to the same risk of forfeiture and other terms of the Grant Notice, these Standard Terms and
Conditions and the Plan as are the other Performance Share Units granted under this Award. In the case of any distribution with respect to which the Participant is credited with additional Performance
Share Units, distribution shall be made at the same time as payment is made in respect of the other Performance Share Units granted under this Award. 

5.     CHANGE OF CONTROL  

The
Performance Share Units shall be treated as follows if there is a Change of Control: 

	A.
	If
the Change of Control occurs prior to the first anniversary of the Grant Date, then:

	(i)
	If
the Performance Share Units are not continued, assumed or substituted by the Participant's employer (or an affiliate of such employer) that employs the
Participant immediately following the Change of Control, the Performance Share Units shall become fully earned and vested upon the occurrence of the Change of Control. For each Performance Share Unit,
the Participant shall receive (a) the consideration (whether stock, cash, or other securities or property) received in the Change of Control by holders of Common Stock for each share held on
the effective date of the Change of Control, (b) common stock of the successor to the Company with a value equal to the price at which a share of Common Stock is valued in the Change of
Control, or (c) cash equal to the price at which a share of Common Stock is valued in the Change of Control, as determined by the Administrator in its discretion.

	(ii)
	If
the Performance Share Units are continued, assumed or substituted by the Participant's employer (or an affiliate of such employer) that employs the
Participant immediately following the Change of Control, the Performance Share Units shall be converted into a number of Earned Units (or equivalent securities), based on actual performance for the
first and second years of the Performance Period and target performance for the third year of the Performance Period, and such Earned Units (or equivalent securities) shall remain subject to the
time-based vesting requirements set forth in the Grant Notice; provided, however, that if the Participant's employment is terminated other than for Serious Misconduct (as defined below),
or the Participant resigns for Good Reason (as defined below), in either case within twenty-four (24) months following the Change of Control, the Earned Units shall fully vest upon
such termination or resignation. Any Performance Share Units not converted into Earned Units (or equivalent securities) in accordance with this paragraph shall be cancelled as of the date of the
Change of Control.

	B.
	If
the Change of Control occurs on or after the first anniversary of the Grant Date, then:

	(i)
	If
the Earned Units are not continued, assumed or substituted by the Participant's employer (or an affiliate of such employer) that employs the Participant
immediately following the Change of Control, the Earned Units shall become fully vested upon the occurrence of the Change of Control. For each Earned Unit, the Participant shall receive 

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(a) the
consideration (whether stock, cash, or other securities or property) received in the Change of Control by holders of Common Stock for each share held on the effective date of the Change
of Control, (b) common stock of the successor to the Company with a value equal to the Change of Control Price, or (c) cash equal to the Change of Control Price, as determined by the
Administrator in its discretion.  

	(ii)
	If
the Earned Units are continued, assumed or substituted by the Participant's employer (or an affiliate of such employer) that employs the Participant
immediately following the Change of Control, the Earned Units (or equivalent securities) shall remain subject to the time-based vesting requirements set forth in the Grant Notice;
provided, however, that if the Participant's employment is terminated other than for Serious Misconduct, or the Participant resigns for Good Reason, in either case within twelve months following the
Change of Control, the Earned Units shall fully vest upon such termination or resignation. 

For
purposes hereof, the Performance Share Units, including the Earned Units, shall be considered "assumed" if, following the Change of Control, the Performance Share Units confer the right to
receive, for each share of Common Stock subject to the Performance Share Units immediately prior to the Change of Control, (i) the consideration (whether stock, cash, or other securities or
property) received in the Change of Control by holders of Common Stock for each share held on the effective date of the Change of Control, or (ii) common stock of the successor to the Company
of substantially equivalent economic value to the consideration received in the Change of Control by holders of Common Stock for each share held on the effective date of the Change of Control (as
determined by the Administrator in its discretion). The Performance Share Units will be considered "substituted for" if the successor or acquiror replaces the Units with equity awards of substantially
equivalent economic value measured as of the date the Change of Control occurs (as determined by the Administrator in its discretion). 

Notwithstanding
the foregoing, to the extent that Section 409A of the Code applies to the Award, any such action shall be consistent with the requirements of Section 409A of the Code. 

6.     RESTRICTIONS ON RESALES OF SHARES  

The
Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the
Participant of any Common Stock issued in respect of Performance Share Units, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to
delay and/or coordinate the timing and manner of sales by Participant and other holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers. 

7.     INCOME TAXES  

The
Company shall not deliver Shares or cash payments in respect of any Performance Share Units or dividends unless and until the Participant has made arrangements satisfactory to the Administrator to
satisfy applicable withholding tax obligations. In the case of Shares, unless the Participant pays the withholding tax obligations to the Company by cash or check in connection with the delivery of
the Common Stock, withholding may be effected, at the Company's option, by withholding Common Stock issuable in connection with the vesting of the Performance Share Units (provided that shares of
Common Stock may be withheld only to the extent that such withholding will not result in adverse accounting treatment for the Company). The Participant acknowledges that the Company shall have the
right to deduct any taxes required to be withheld by law in 

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connection
with the delivery of the Performance Share Units from any amounts payable by it to the Participant (including, without limitation, future cash wages). In the case of cash payments, the
Company may withhold from such payments any amounts necessary to satisfy withholding tax obligations. 

8.     NON-TRANSFERABILITY OF AWARD  

The
Participant represents and warrants that the Performance Share Units are being acquired by the Participant solely for the Participant's own account for investment and not with a view to or for
sale in connection with any distribution thereof. The Participant further understands, acknowledges and agrees that, except as otherwise provided in the Plan or as permitted by the Administrator, the
Performance Share Units may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of. 

9.     RESTRICTED ACTIVITIES  

	A.
	By
accepting the Performance Share Units, the Participant acknowledges and agrees that, during the Performance Period and the vesting period under the Grant
Notice, the Participant will have access to and become acquainted with the Company's and its Affiliates' confidential and proprietary information, including, but not limited to, information or plans
regarding the Company's and its Affiliates' customer relationships, personnel, or sales, marketing, and financial operations and methods; trade secrets; formulas; devices; secret inventions;
processes; and other compilations of information, records, and specifications (collectively "Proprietary Information"). The Participant shall not disclose any of the Company's or any of its
Affiliates' Proprietary Information directly or indirectly, or use it in any way, either during the vesting period under the Grant Notice or at any time thereafter, except as required in the course of
his employment or service with the Company or as authorized in writing by the Company. All files, records, documents, computer-recorded information, drawings, specifications, equipment and similar
items relating to the business of the Company or any of its Affiliates, whether prepared by the Participant or otherwise coming into the Participant's possession, shall remain the exclusive property
of the Company or its Affiliates, as the case may be, and shall not be removed from the premises of the Company under any circumstances whatsoever without the prior written consent of the Company,
except when (and only for the period) necessary to carry out the Participant's duties in the course of the Participant's employment, and if removed shall be immediately returned to the Company upon
any Termination of Employment. Notwithstanding the foregoing, Proprietary Information shall not include (i) information which is or becomes generally public knowledge or public except through
disclosure by the Participant in violation of these Standard Terms and Conditions or other applicable agreements and (ii) information that may be required to be disclosed by applicable law.

	B.
	By
accepting the Performance Share Units, the Participant acknowledges and agrees that, while employed by or in service with the Company and during any
vesting period following the Participant's Retirement, the Participant will not interfere with the business of the Company or any of its Affiliates by directly or indirectly soliciting, attempting to
solicit, inducing, or otherwise causing any employee of the Company or any of its Affiliates to terminate his or her employment in order to become an employee, consultant or independent contractor to
or for any other employer.

	C.
	By
accepting the Performance Share Units, the Participant acknowledges and agrees that, while employed by or in service with the Company and during any
vesting period following the Participant's Retirement, the Participant will not, without the prior consent of the Company, directly or indirectly, have an interest in, be employed by, or be connected
with, as an 

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employee,
consultant, officer, director, partner, stockholder or joint venturer, in any person or entity owning, managing, controlling, operating or otherwise participating or assisting in any
business which is in competition with the business of the Company or any of its Affiliates (i) during the vesting period under the Grant Notice prior to the Participant's Retirement, in any
location, and (ii) during the vesting period under the Grant Notice following the Participant's Retirement, in any country in which the Company or any of its Affiliates was conducting business
at the date of the Participant's Termination of Employment and continues to do so thereafter; provided, however, that the foregoing shall not prevent the Participant from being a stockholder of less
than 1% of the issued and outstanding securities of any class of a corporation listed on a national securities exchange.  

	D.
	By
accepting the Performance Share Units, the Participant acknowledges and agrees that, while employed by or in service with the Company and during any
vesting period following the Participant's Retirement, the Participant shall not directly or indirectly make, repeat or publish any false, disparaging, negative, unflattering, accusatory, or
derogatory remarks or references, whether oral or in writing, concerning the Company, any of its Affiliates or any of its or their respective products, services, affiliates, subsidiaries, officers,
directors, employees or stockholders.

	E.
	By
accepting the Performance Share Units, the Participant acknowledges and agrees that (i) the provisions of Section 2 providing for the
continued vesting of the Earned Units upon Retirement and this Section 9 are mutually dependent and not severable, and (ii) the Company would not provide for the continued vesting of the
Earned Units upon Retirement as provided for in Section 2 but for the Participant's promises set out in and the enforceability of this Section 9. Accordingly, if the Participant fails to
comply with this Section 9 or any part thereof, or if Section 9 or any part thereof is ever declared to be illegal, invalid, or otherwise unenforceable in any respect by a court of
competent jurisdiction, then the Participant agrees that (x) the Performance Share Units, including any Earned Units, held by the Participant that have not been settled shall immediately be
forfeited and canceled (regardless of whether then vested or unvested) and (y) with respect to any Performance Share Units that have been settled, the Participant shall immediately pay to the
Company the fair market value of the Shares associated with the settlement of the Performance Share Units at the time of vesting; provided that if the scope of the restrictions in this
Section 9 as to time, geography, or scope of activities are deemed by court of competent jurisdiction to exceed the limitations permitted by applicable law, the Participant and the Company
agree that the restrictions so deemed shall be, and are, automatically reformed to the maximum limitation permitted by such law. 

10.   RECOUPMENT  

If
the Administrator determines that recoupment of incentive compensation paid pursuant to this Award is required under any law, listing standard or any recoupment policy of the Company, then this
Award will terminate immediately on the date of such determination to the extent required by such law, listing standard or recoupment policy and the Administrator may recoup any such incentive
compensation in accordance with such recoupment policy or as required by law or listing standard. The Company shall have the right to offset against any other amounts due from the Company to the
Participant the amount owed by the Participant hereunder. 

11.   OTHER AGREEMENTS SUPERSEDED  

The
Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire understanding between the Participant and the Company regarding the Performance Share Units. Any prior
agreements, commitments or negotiations concerning the Performance Share Units are superseded. 

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12.   LIMITATION OF INTEREST IN SHARES SUBJECT TO PERFORMANCE SHARE UNITS  

Neither
the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or
to any shares of Common Stock allocated or reserved for the purpose of the Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such shares of Common Stock, if any,
as shall have been issued to such person upon vesting of the Performance Share Units. Nothing in the Plan, in the Grant Notice, these Standard Terms and Conditions or any other instrument executed
pursuant to the Plan shall confer upon the Participant any right to continue in the Company's employ or service nor limit in any way the Company's right to terminate the Participant's employment at
any time for any reason 

13.   DEFINITIONS  

For
purposes hereof, the following terms shall have the following meanings: 

	A.
	"Confidential
Information" shall mean, without limitation, all documents or information, in whatever form or medium, or consisting of knowledge or
"know-how" whether or not recorded in any medium, concerning or evidencing sales; costs; pricing; strategies; forecasts and long range plans; financial and tax information; personnel
information (including without limitation compensation, other terms of employment, or performance other than as concerns solely the Participant); business, marketing and operational projections,
plans, and opportunities; and customer, vendor, and supplier information; but excluding any such information that is or becomes generally available to the public other than as a result of any
unauthorized disclosure or breach of duty by the Participant.

	B.
	"Good
Reason" shall mean the Participant's Termination of Employment from the Company or its successor within sixty (60) days following the occurrence
of (i) a material reduction in the Participant's base salary; (ii) a material adverse change in the Participant's responsibilities; or (iii) a required relocation of the
Participant's principal place of employment by more than thirty-five (35) miles from its location as in effect immediately prior to the Change of Control; provided, that the
Participant shall have provided written notice to the Company or its successor of his or her intention to resign for Good Reason and the grounds therefor within thirty (30) days following the
occurrence of the event constituting Good Reason, and the Company shall have failed to cure such event within thirty (30) days of receiving such notice.

	C.
	"Retirement"
shall mean the Participant's voluntary Termination of Employment from the Company after the earlier of (i) the date on which the
Participant attains age sixty-five (65) or (ii) the date on which the Participant has attained age fifty-five (55) and at least ten (10) years of
continuous service with the Company.

	D.
	"Serious
Misconduct" shall mean the occurrence of any of the following: (i) any willful, intentional or grossly negligent act by the Participant
having the effect of materially injuring the interest, business or prospects of the Company or its successor or any of their Affiliates; (ii) the material violation or material failure by the
Participant to comply with the Company's or its successor's material published rules, regulations or policies, as in effect from time to time; (iii) the Participant's conviction of a felony
offense or conviction of a misdemeanor offense involving moral turpitude, fraud, theft or dishonesty; (iv) any willful or intentional misappropriation or embezzlement of the property of the
Company or its successor or any of their Affiliates; or (v) a material breach of Section 9 above by the Participant; provided, however, that in the event that the Company or its
successor determines to terminate the Participant's employment pursuant to clauses (ii) or (v) of this definition of Serious Misconduct, such termination shall only become effective if
the Company or its successor shall first give the Participant written notice of such Serious Misconduct, which notice shall identify 

7

 

in
reasonable detail the manner in which the Company or its successor believes Serious Misconduct to exist and indicates the steps required to cure such Serious Misconduct, if curable, and the
Participant shall fail within thirty (30) days of such notice to substantially remedy or correct the same. 

14.   GENERAL  

In
the event that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be
reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to
the extent necessary to reform or delete such illegal, invalid or unenforceable provision.  

The
headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of these Standard Terms and Conditions, nor shall they affect
its meaning, construction or effect.  

These
Standard Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns. 

These
Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of law. 

In
the event of any conflict between the Grant Notice, these Standard Terms and Conditions and the Plan, the Grant Notice and these Standard Terms and Conditions shall control. In the event of any
conflict between the Grant Notice and these Standard Terms and Conditions, the Grant Notice shall control.  

All
questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the Administrator in its total and absolute discretion. 

15.   ELECTRONIC DELIVERY  

By
executing the Grant Notice, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to
applicable securities laws) regarding the Company and the Subsidiaries, the Plan, and the Performance Share Units via Company web site or other electronic delivery. 

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QuickLinks

Exhibit 10.37

DOUGLAS DYNAMICS, INC. GRANT NOTICE FOR 2010 STOCK INCENTIVE PLAN PERFORMANCE SHARE UNITS

Attachment A

DOUGLAS DYNAMICS, INC. STANDARD TERMS AND CONDITIONS FOR PERFORMANCE SHARE UNITSQuickLinks
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  Exhibit 10.38    
    

 
    Douglas Dynamics, Inc.
  2013 Annual Incentive Plan    
    

	1)
	The
Douglas Dynamics, Inc. Annual Incentive Plan ("Plan") is designed to provide an opportunity for the President and the other named executive
officers of the Company selected to participate in the Plan (collectively, the "Participants") to earn a cash bonus upon the achievement of the performance targets established under the Plan.

	a)
	The
performance metrics and weightings used under the Plan will be approved by the Compensation Committee of the Board of Directors (the "Committee"), which
has the authority to change the performance metrics and/or weightings used under the Plan each year:

	i)
	Operating
Income—70% weighting

	ii)
	Free
Cash Flow ("FCF")—30% weighting

	b)
	Target
Bonus:

	i)
	President—100%
of annual base salary

	ii)
	Other
Participants—75% of annual base salary

	c)
	Plan
will be subject to overall maximum bonus:

	i)
	President—150%
of annual base salary

	ii)
	Other
Participants—125% of annual base salary 

Notwithstanding
anything herein to the contrary, the Committee has the authority to change the target and maximum bonuses under the Plan for subsequent years.  

	2)
	Operating
Income

	a)
	For
purposes of the Plan, Operating Income is defined as adjusted EBITDA less depreciation, plus other expense, adjusted for non recurring expenses, as
approved by the Committee

	b)
	Targeted
Operating Income will be set annually by the Committee

	c)
	Performance
is measured by the degree to which Operating Income achieves, exceeds, or falls short of, Targeted Operating Income

	d)
	Achievement
of Targeted Operating Income will result in a bonus as a % of annual base salary equal to the Target Bonus multiplied by the weighting of the
Operating Income metric. For 2013 this would result in a bonus of:

	i)
	President—70%
of annual base salary (100% target × 70% weighting)

	ii)
	Other
Participants—52.5% of annual base salary (75% target × 70% weighting)

	e)
	If
Operating Income falls below 50% of Targeted Operating Income, no Operating Income bonus will be earned

	f)
	If
Operating Income falls between 50% and 100% of Targeted Operating Income, bonus earned will be reduced linearly from the amount determined under
Section 2(d) for each 1% reduction in Operating Income below Targeted Operating Income. For 2013, the reduction would be as follows for each 1% reduction in Operating Income below Targeted
Operating Income:

	i)
	1.4%%
for President

	ii)
	1.05%
for Other Participants 

	g)
	If
Operating Income exceeds Targeted Operating Income, the Operating Income bonus earned will be increased linearly for each 1% increase in Operating Income
above Targeted Operating Income by 1.4% (for both President and other Participants)

	3)
	Free
Cash Flow (FCF)

	a)
	For
purposes of the Plan, FCF is defined as cash generated by operating activities, less net cash used in investing activities, adjusted for non recurring
items, as approved by the Committee

	b)
	Targeted
FCF will be set annually by the Committee

	c)
	Performance
is measured by the degree to which FCF achieves, exceeds, or falls short of, Targeted FCF

	d)
	Achievement
of Targeted FCF will result in a bonus as a % of annual base salary equal to the Target Bonus multiplied by the weighting of the FCF metric. For
2013 this would result in a bonus of:

	i)
	President—30.0%
of annual base salary (100% target × 30% weighting)

	ii)
	Other
Participants—22.5% of annual base salary (75% target × 30% weighting)

	e)
	If
free cash flow falls below $9.5 million, then no FCF bonus will be earned

	f)
	If
FCF falls between $9.5 million and Targeted FCF, then the bonus earned will be reduced linearly from the amounts determined under
Section 3(d), which, for 2013 would be:

	i)
	President—the
FCF bonus reduced linearly from 30% to 0% of annual base salary

	ii)
	Other
Participants—the FCF bonus reduced linearly from 22.5% to 0% of annual base salary

	g)
	If
FCF exceeds Targeted FCF, then the FCF bonus earned will be increased linearly for each $1 million increase in FCF above Targeted FCF by 0.833%
(for both President and other Participants)

	4)
	Overall
Bonus Earned

	a)
	For
2013, the total bonus that may be earned under the Plan is subject to a cap:

	i)
	President—150%
of annual base salary

	ii)
	Other
Participants—125% of annual base salary 

As
noted above, the Committee has the authority to change the maximum bonuses under the Plan for subsequent years. 

QuickLinks

Exhibit 10.38

Douglas Dynamics, Inc. 2013 Annual Incentive Plan

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