Document:

<PAGE>
                                                                   EXHIBIT 10.39

                         FORM OF STOCK OPTION AGREEMENT

_______, 20__

A Notice of Grant of Stock Options is attached which references options granted
to you on ____, 2005. [They are considered non-qualified stock options whole
grant is intended not to fall under the provisions of Section 422 of the
Internal Revenue Code of 1986, as amended. They are considered incentive stock
options within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended. Please contact your personal tax advisor for appropriate tax
treatment of these options.

If you sell stock acquired through these stock options within the "holding
period" as defined by IRS regulations, the Company is required to report the
ordinary income portion on your W-2 or a Form 1099. In that event, a form is
enclosed entitled "Notice of Sale of Stock Purchased with Stock Options" which
must be provided to the payroll department.]

Based on Security and Exchange Commission's ("SEC") rules and regulations, the
Company has adopted certain policies regarding purchasing common stock of
Salton, Inc., selling common stock or any other transaction that is deemed
trading under the rules and regulations of the SEC. Any Manager or employee that
has the ability to obtain material non-public information about the company,
cannot sell or buy common stock of the company two weeks prior to an earnings
release or 48 hours after such event.

Please sign and return the ORIGINAL COPY of your Notice of Grant of Stock
Options to Linda Kaiser, c/o Human Resources Department, 1801 N. Stadium
Boulevard, Columbia, MO 65202 in the envelope provided. You should retain a copy
for your files. The granting of the option will not be considered complete until
a signed copy is received.

Corporate Controller
Enclosures

<PAGE>

                        NOTICE OF GRANT OF STOCK OPTIONS
                              AND OPTION AGREEMENT

                                                           SALTON, INC.
                                                           ID: 363777824
                                                           1955 FIELD COURT
                                                           LAKE FOREST, IL 60045

NAME                                                       OPTION NUMBER:
ADDRESS                                                    PLAN:
CITY, STATE, ZIP                                           ID:

Effective (date), you have been granted a(n) (Incentive Stock Option) (or
Non-Qualified Option) to buy (number) shares of Salton, Inc. (the Company) stock
at (option price) per share.

The total option price of the shares granted is $0.00

Shares in each period will become fully vested on the date shown.

<Table>
<Caption>
   Shares        Vest Type      Full Vest    Expiration
------------- --------------- ------------- ------------
(# of shares)    Annually
<S>           <C>             <C>           <C>

</Table>

By your signature and the Company's signature below, you and the Company agree
that these options are granted under and governed by the terms and conditions of
the Company's Stock Option Plan as amended and the Option Agreement, all of
which are attached and made a part of this document.

Salton, Inc.                            Date:

(EMPLOYEE NAME)                         Date:<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                                                   EXHIBIT 10.40

                         SALTON, INC. BOARD OF DIRECTORS
                                  COMPENSATION
                                      2005

<Table>
<S>                                                       <C>
Annual Retainer                                           $40,000 per annum

Meeting and Committee Fees                                $1,000 per committee and board meeting

Audit Committee Chair Fee                                 $4,000 per annum

Compensation Committee and Nominating and                 $2,000 per annum
  Governance Committee Chair Fee

Telephone Meeting or Attendance Via                       Fees are generally not paid for special telephonic
  Telephone                                               Board or Committee meetings except as otherwise
                                                          specifically approved by the Chairperson of the
                                                          Board or committee

Reimbursement of Expenses                                 All non-employee directors are reimbursed for
                                                          all expenses incurred in attending meeting of
                                                          the Board of Directors or any committee thereof
</Table>exv10w1

 

Exhibit 10.1

EXTENSION OF AGREEMENT FOR CONSULTING SERVICES

     Reference is made to that certain Agreement for Consulting Services dated as of August 1, 2005
(the “Agreement”) by and between Lawrence Clayton, Jr. (“Consultant”) and Commerce
Energy Group, Inc. (“Commerce”). Consultant and Commerce hereby mutually agree that the
term of the Agreement described Paragraph B of Article III of the Agreement shall be extended, and
the Agreement shall continue in full force and effect upon the same terms, until November 30, 2005.

     IN
WITNESS WHEREOF, each of the parties has executed this Extension as
of September 29, 2005.

	 	 	 
	 

	 	/S/ LAWRENCE CLAYTON, JR.
	 

	 	 
	 

	 	LAWRENCE CLAYTON, JR.

	 	 	 	 	 
	 	 	COMMERCE ENERGY GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/S/ STEVEN S. BOSS
	 

	 	 	 	 
	 

	 	 	 	Steven S. Boss

Chief Executive OfficerInfoTech USA, Inc.; Exhibit 10.1

 

 

Exhibit 10.1

Summary of the Salaries 

for the Named Executive Officers

of InfoTech USA, Inc.

	
             
 	
            
Base Salary (1) (2) (3)
 
 
	
            
Name and Title of Executive Officer
 
 	
            
2005
 
 	
            
2004
 
 
	
            J. Robert Patterson
 Vice President, Chief Financial Officer and Treasurer
 	
            $132,500
 	
            $120,250
 
	
            Sebastian F. Perez
 Chief Operating Officer and acting President and Chief Executive Officer
 	
            138,750
 	
            138,750
 

	
             
 	
            (1)
 	
            The named executive officers were determined by reference to the executive officers who will be named in the Summary Compensation Table of the Company’s 2005 Proxy Statement
 

	
             
 	
            (2)
 	
            In September of each year, the Compensation Committee meets to determine whether, based on market data, the performance of each executive officer and the performance of the Company during the preceding fiscal year, base salaries for the named executive officers should be increased.  Additionally, base salaries for the named executive officers will generally increase concurrent with an officer’s promotion or an increase in an officer’s responsibilities, as may be determined by the Compensation Committee from time to time.
 

	
             
 	
            (3)
 	
            In addition to the base salary listed above, certain of the executive officers listed may receive perquisites, including automobile allowances.InfoTech USA, Inc.; Exhibit 10.2

 

Exhibit 10.2

Summary of Directors’ Compensation

Effective as of October 1, 2005

Upon the recommendation of the Compensation Committee of the Board of Directors of InfoTech USA, Inc., on September 23, 2005, the Board of Directors approved the payment of the following compensation to each director who is not an employee of the Company or the Company's majority stockholder, Applied Digital Solutions, Inc.,  in respect of his service on the Board of Directors, effective October 1, 2005:

	
             
 	
            •
 	
            an annual retainer fee of $1,000, payable quarterly in advance;
 

	
             
 	
            •
 	
            a fee of $200 for each Board meeting attended in person;
 

	
             
 	
            •
 	
            a fee of $100 for each Board meeting attended telephonically;
 

	
             
 	
            •
 	
            an award of 12,500 stock options for each Board committee on which the director serves; and
 

	
             
 	
            •
 	
            reimbursement of customary expenses for attending Board, committee and stockholder meetings.
 

The Company also pays the premiums for directors’ liability insurance and travel accident insurance for each director.  Non-employee directors also receive option grants upon becoming a director or at the Compensation Committee’s discretion.Subscription Agreement with Steven Cohen

 

EXHIBIT 10.1

SUBSCRIPTION AGREEMENT AND INVESTOR INFORMATION STATEMENT

     Ladenburg Thalmann Financial Services Inc. (the “Company”) and Steven M. Cohen (the
“Investor”) hereby agree as follows:

     1. Subscription for Securities. Investor hereby subscribes for and agrees to purchase
500,000 shares of Common Stock (“Share(s)”) at $0.45 per share upon the terms and conditions
described in this Agreement.

     2. Investor Deliveries. On the Closing Date (as hereafter defined), the Investor
shall wire to the Company the sum of $225,000, representing full payment for the Shares.
Certificates representing the Shares will be delivered to the Investor as soon thereafter as
practicable. “Closing Date” shall mean the date mutually agreed to by the Company and Investor
promptly after approval by the American Stock Exchnage, but not later than three business days
after such approval.

     3. Investor Representations and Warranties. Investor acknowledges, represents and
warrants to the Company as follows:

          (a) Information about the Company. Investor has read the Company’s recent filings
under the Securities Exchange Act of 1934 (“Exchange Act”). Investor has been given access to full
and complete information regarding the Company and has utilized such access to his satisfaction for
the purpose of verifying the information included in those filings. Investor has either met with
or been given reasonable opportunity to meet with officers of the Company for the purpose of asking
reasonable questions of such officers concerning the terms and conditions of the offering of the
Shares and the business and operations of the Company and all such questions have been answered to
Investor’s full satisfaction. Investor has been given an opportunity to obtain any additional
relevant information to the extent reasonably available to the Company. Investor has received all
information and materials regarding the Company that he has reasonably requested.

          (b) Speculative Investment. Investor is aware that the Shares are a speculative
investment that involve a high degree of risk including, but not limited to, the risk of losses
from operations of the Company and the total loss of his investment. Investor acknowledges and is
aware that there is no assurance as to the future performance of the Company. Investor has such
knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Shares and has obtained, in his judgment, sufficient
information from the Company to evaluate the merits and risks of an investment in the Company.
Investor has not utilized any person as his purchaser representative (as defined in Regulation D)
in connection with evaluating such merits and risks and has relied solely upon his own
investigation in making a decision to invest in the Company. Investor believes that the investment
in the Shares is suitable for him based upon his investment objectives and financial needs, and
Investor has adequate means for providing for his current financial needs and contingencies and has
no need for liquidity with respect to his investment in the Company.

          (c) Restrictions on Transfer. Investor understands that (i) the Shares have not been
registered under the Securities Act of 1933 (“Securities Act”) or the securities laws of certain
states in reliance on specific exemptions from registration, (ii) no securities administrator of
any state or the federal government has recommended or endorsed this offering of Shares or made any
finding or determination relating to the fairness of an investment in the Company, and (iii) the
Company is relying on his representations and agreements for the purpose of determining whether
this transaction meets the requirements of the exemptions afforded by the Securities Act and
certain state securities laws. Investor understands and agrees that the Shares cannot be resold,
pledged, assigned or otherwise disposed of unless they are subsequently registered under the
Securities Act and under applicable securities laws of certain states, or an exemption from such
registration is available. Investor acknowledges that, notwithstanding the Company’s commitment
described below in

 

 

Section 4, there can be no assurance that the Company will be able to keep the Registration
Statement (defined below) effective until he sells the Shares registered thereon.

          (d) No Market for Shares. Investor is purchasing the Shares for his own account for
investment and not with a view to, or for sale in connection with, any subsequent distribution of
the Shares, nor with any present intention of selling or otherwise disposing of all or any part of
the Shares. Investor understands that, although there is a public market for the Shares, there is
no assurance that such market will continue.

     4. Registration Rights. Promptly following the date hereof, the Company shall use its
best efforts to file and keep in effect a Registration Statement on Form S-8 or other applicable
form to register under the Act the resale of the Shares.

     5. Lock-up and Insider Trading Policy. The Investor agrees that he will not sell,
assign or transfer any of the Shares until November 15, 2005, except to an Immediate Family Member
who shall agree to continue to be bound by this restriction. Investor understands that he will be
required to abide by all of the Company’s policies in effect, including the Company’s Insider
Trading Policy, with respect to the ownership and trading of the Company’s securities.

     6. Indemnification. Investor hereby agrees to indemnify and hold harmless the
Company, its respective officers, directors, stockholders, employees, agents and attorneys against
any and all losses, claims, demands, liabilities, and expenses (including reasonable legal or other
expenses incurred by each such person in connection with defending or investigating any such claims
or liabilities, whether or not resulting in any liability to such person or whether incurred by the
indemnified party in any action or proceeding between the indemnitor and indemnified party or
between the indemnified party and any third party) to which any such indemnified party may become
subject, insofar as such losses, claims, demands, liabilities and expenses (a) arise out of or are
based upon any untrue statement or alleged untrue statement of a material fact made by Investor and
contained herein or (b) arise out of or are based upon any breach by Investor of any
representation, warranty or agreement made by him contained herein.

     7. Governing Law and Jurisdiction. This Subscription Agreement will be deemed to have
been made and delivered in New York City and will be governed as to validity, interpretation,
construction, effect and in all other respects by the internal laws of the State of New York. Each
of the Company and the Investor hereby (i) agrees that any legal suit, action or proceeding arising
out of or relating to this Subscription Agreement will be instituted exclusively in New York State
Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, (ii) waives any objection to the venue of any such suit, action or proceeding and the
right to assert that such forum is not a convenient forum for such suit, action or proceeding,
(iii) irrevocably consents to the jurisdiction of the New York State Supreme Court, County of New
York, and the United States District Court for the Southern District of New York in any such suit,
action or proceeding, (iv) agrees to accept and acknowledge service of any and all process that may
be served in any such suit, action or proceeding in New York State Supreme Court, County of New
York or in the United States District Court for the Southern District of New York and (v) agrees
that service of process upon it mailed by certified mail to its address set forth on my signature
page will be deemed in every respect effective service of process upon it in any suit, action or
proceeding.

     8. Counterparts. This Subscription Agreement may be executed in one or more
counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. The execution of this Subscription Agreement may be by actual or
facsimile signature.

2

 

     9. Benefit. Except as otherwise set forth herein, this Subscription Agreement is
binding upon and inures to the benefit of the parties hereto and their respective heirs, executors,
personal representatives, successors and assigns.

     10. Notices. All notices, offers, acceptance and any other acts under this
Subscription Agreement (except payment) must be in writing, and is sufficiently given if delivered
to the addressees in person, by overnight courier service, or, if mailed, postage prepaid, by
certified mail (return receipt requested), and will be effective three days after being placed in
the mail if mailed, or upon receipt or refusal of receipt, if delivered personally or by courier or
confirmed telecopy, in each case addressed to a party. All communications to me should be sent to
Investor’s residence address on the signature page hereto. All communications to the Company
should be sent to:

			
	                              	 	Ladenburg Thalmann Financial Services Inc.

590 Madison Avenue, 34th Floor

New York, New York 10022

Attn: Sal Giardina, Chief Financial Officer

     11. Entire Agreement. This Subscription Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof and supersedes all prior oral and
written agreements between the parties hereto with respect to the subject matter hereof. In the
event any parts of this Subscription Agreement are found to be void, the remaining provisions of
this Subscription Agreement are nevertheless binding with the same effect as though the void parts
were deleted. This Subscription Agreement may not be changed, waived, discharged, or terminated
orally, but rather, only by a statement in writing signed by the party or parties against which
enforcement or the change, waiver, discharge or termination is sought.

     12. Section Headings. Section headings herein have been inserted for reference only
and will not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in
whole or in part, any of the terms or provisions of this Subscription Agreement.

     13. Survival of Representations, Warranties and Agreements. The representations,
warranties and agreements contained herein will survive the delivery of, and the payment for, the
Shares.

3

 

SIGNATURE PAGE FOR INDIVIDUAL INVESTORS - COMPLETE ALL INFORMATION

			
	Name:	 	Steven M. Cohen

 

			
	Residence Address:	 	

 

			
	Telephone:	 	(H)                                          (W)                                         
(Cell)                                        

 

			
	Social Securities Number:	 	

 

Amount of Investment:

Number of Shares: 500,000

Corresponding dollar amount ($0.45 multiplied by number of Shares): $225,000

Accredited Investor Status For Individuals.

               (i) I am an accredited investor within the meaning of Section 2(15) of the Securities Act and
Rule 501 promulgated thereunder because (check any boxes that apply):

			
	               x	 	My individual annual income during each of the two most
recent years exceeded $200,000 and I expect my annual income
during the current year will exceed $200,000.

			
	               o	 	If I am married, my joint annual income with my spouse
during each of the two most recent years exceeded $300,000
and I expect my joint annual income with my spouse during the
current year will exceed $300,000.

			
	               x	 	My individual or joint (together with my spouse) net
worth (including my home, home furnishings and automobiles)
exceeds $1,000,000.

     I hereby confirm the information set forth above is true and correct in all respects as of the
date hereof and will be on the date of the purchase of Shares.

	 	 	 	 
	 

	 	 	The foregoing subscription is accepted and the
Company hereby agrees to be bound by its terms.
	 
	 	 	 
	 

	 	 	LADENBURG THALMANN FINANCIAL SERVICES INC.
	 
	 	 	 
	 

	 	 	By: /s/ Salvatore Giardina
	Signature: /s/ Steven M. Cohen

	 	 	Name: Salvatore Giardina
	Print Name: Steven M. Cohen

	 	 	Title: Vice President and Chief Financial Officer
	Date: As of September 26, 2005

	 	 	Date: As of September 26, 2005

4

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