Document:

sbsw_8k-ex1001.htm

    ***
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY
ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT

    EXHIBIT 10.1

    

    2009
Consulting Services Agreement

    

    This
Agreement is entered into as of the date signed below, by and
between

    

    St.
Bernard Software, Inc. ("St. Bernard"), a Delaware corporation, with offices at
15015 Avenue of Science, San Diego, California 92128 and

    

    (You)
Softworks Group Pty Ltd,  located at 97 Bliesner Road Obum Obum Qld
4309 Australia, Phone Number: +61 400 993 339  Facsimile
Number:  +61 7 3102 6277 (TAX ID:_ABN 70 056 091 322, reporting to
Australian Taxation Office).

    

    St.
Bernard desires to retain You as an independent contractor to perform consulting
services for St. Bernard from time to time, and You are willing to perform such
services on the basis set forth more fully below.

    

    In
consideration of the mutual promises contained herein, St. Bernard and You agree
as follows:

    

    1.  Services.

    

    You agree
to perform the services and create and provide the deliverables, including
source code, described in one or more Exhibits A (i.e., A-1, A-2, etc.), as
mutually agreed upon and attached hereto and incorporated herein by this
reference ("Services"), in a timely and workmanlike manner, according to the
Schedule of Work set forth in such Exhibits A.  Individual engagements
may be initiated during the term of this Agreement by St. Bernard’s submission
and Your acceptance of a Schedule of Work in the form of an Exhibit
A-1.  You will perform the specified Services under the general
direction of St. Bernard, but You will determine, in Your sole discretion, the
manner and means by which the Services are accomplished, subject to the express
condition that You will at all times comply with applicable
law.  Shipment of tangible deliverables will be made FOB St. Bernard's
offices in San Diego, California or as otherwise directed.

    

    This
Agreement will commence on the date first written above and, unless terminated
as provided in Section 12 below, shall remain in effect indefinitely for
the purpose of enabling successive individual engagements as We may mutually
agree.

    

    2.  Payment
for Services.

    

    A.  As
full compensation and consideration for the Services and Your other obligations
set forth herein, St. Bernard will pay You the fee(s) stated in the applicable
Exhibit A, up to the maximum amount stated therein.  Fees may be
stated as fixed fees or as hourly fees, as We may mutually agree for any
engagement.  Any out-of-pocket expenses incurred by You in connection
with providing the Services will be reimbursed only if approved in writing (on
Exhibit A or otherwise) by St. Bernard prior to incurring such
expenses.

    

    B.  You
may invoice St. Bernard one calendar month in advance for Services to be
performed.  You may also invoice St. Bernard for reimbursable expenses
incurred by You..  With each invoice You will provide a project report
which contains an explanation of the work performed and a project log that
summarizes the overall progress of the project to date and any problems that
require St. Bernard's assistance to resolve as well as supporting documentation
for reimbursable expenses.  Subject to St. Bernard's approval, St.
Bernard will pay Your invoice(s) net 7 days from date of issuance.

    

    C.  You
agree to promptly pay Your employees and agents for all work
performed.  If You do not pay Your employees and agents, on a current
basis, for work performed on behalf of St. Bernard, such nonpayment will be
deemed a material breach of this Agreement which will entitle St. Bernard to
contract directly with such persons on a consulting basis.

     

     

    
      
        
        

      

      
        
          Page 1
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

    
 

    3.  Right
to Review.

    

    A.  If
any major milestones are set forth in Exhibit A, St. Bernard will review and
approve Your performance to date at such milestones before You proceed to the
next stage. At each milestone St. Bernard will review materials, provide
directions for any revisions, and authorize You to proceed.

    

    B.  If
at any time St. Bernard directs any changes in the scope
of  the  project (including milestone revisions) which
materially increase or decrease the effort required to comply with the
provisions of Exhibit A, We will negotiate an appropriate adjustment of the
previously agreed fees in good faith.

    

    C.  St.
Bernard reserves the right to reject the Services at any time if, in its
reasonable judgment, the Services do not conform with, or accomplish the
objectives set forth in, Exhibit A.  If St. Bernard rejects the
Services, St. Bernard will so notify You, and You will have 10 working days to
submit new deliverables and/or perform new Services which have corrected the
omissions and made the revisions noted by St. Bernard.  If You have
not submitted such new material as indicated, St. Bernard may terminate this
Agreement or the applicable Exhibit A as set forth in Section 13
below.

    

    4.
Conflicting Obligations.

    

    You
represent and warrant that neither You nor Your employees or agents, if any, is
under any pre-existing obligation or obligations inconsistent with the
provisions of this Agreement.  You warrant that You have the right to
disclose and use all ideas, processes, designs, data, and other information
which You will disclose or use in the performance of this
Agreement.  You also agree to disclose to St. Bernard any actual or
potential financial interest that You may have with respect to, or resulting
from, any recommendations or advice that You may give to St. Bernard under this
Agreement.

    

    5.  Ownership
and Rights in Work Product.

    

    A.  All
designs, discoveries, inventions, products, computer programs (including source
code), procedures, improvements, developments, drawings, specifications, data,
memoranda, notes, documents, manuals, information, and other materials, made,
conceived or developed by You, alone or with others, which result from or relate
to the Services which are delivered to and accepted by St. Bernard, and any
derivatives thereof ("Work Product"), and all such materials which You may
receive from St. Bernard while performing Services, shall be the sole property
of St. Bernard.  You agree to promptly disclose all such Work Product
to St. Bernard and to place a copyright designation in favor of St. Bernard on
all such Work Product.  You acknowledge that all Work Product
developed under this Agreement is “work made for hire”, and You hereby make,
without further consideration, a present assignment of all right, title and
interest in and to such Work Product, including, without limitation, any and all
intellectual property rights embodied therein.

    

    B.  You
agree to cooperate with and assist St. Bernard, or any person designated by St.
Bernard, to apply for and to execute, any applications and/or assignments
reasonably necessary to obtain any patent, copyright, trademark, or other
statutory protection for such Work Product in St. Bernard's name as St. Bernard
deems appropriate.  St. Bernard will compensate You for time expended
in satisfaction of this requirement at a reasonable hourly rate (not to exceed
the rate for the applicable Exhibit A) if such effort requires a significant
amount of Your time.

    

    6.
Confidentiality.

    

    A.  In
connection with Your performance under this Agreement, St. Bernard will disclose
to You certain information which St. Bernard deems to be valuable and
proprietary, including, but not limited to, documents and oral discussion of St.
Bernard's technology, strategy, operations, internal corporate information,
methods and procedures.   In addition, You understand that any
Work Product developed hereunder is, unless registered for another form of legal
protection, a trade secret of St. Bernard.  You agree that all Work
Product and all oral communications and written materials received by You from
St. Bernard hereunder in performance of this Agreement or any part thereof, as
well as any such information provided to You in the course of any engagement by,
or on behalf of any St. Bernard customer or business partner, is and will
remain, the “Proprietary Information” of St. Bernard or other disclosing party,
unless and until such time as:

     

     

    
      
        
        

      

      
        
          Page 2
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

    
 

    (1)           such
Information is generally available to the public, through no fault of Yours and
without breach of this Agreement;

    (2)           such
Information is already in Your possession without restriction and prior to any
disclosure hereunder;

    (3)           such
Information is or has been lawfully disclosed to You by a third party without
obligation of confidentiality upon You; or

    (4)           You
can prove that such information was developed independently by Your employees
who have not had access to information disclosed hereunder.

    

    B.  With
respect to all Proprietary Information (including any Work Product), You
agree:

    

    (1)           not
to copy, sell, disclose, make public, or authorize any disclosure or publication
of such Proprietary  Information and  to take all reasonable
and necessary steps to assure that no principal, officer, agent, employee,
representative or other person affiliated in any manner with You does
so;

    (2)           not
to use the Proprietary Information for any purpose other than the purpose for
which it is intended under this Agreement; and

    (3)           to
return or deliver, as appropriate, all Proprietary Information to St. Bernard
not later than the date of termination
of  this  Agreement.

    

    C.  You
judicially admit for all purposes that damages for any violation or threatened
violation of this Section 6 are inadequate and that any violation or threatened
violation of this Section will constitute an irreparable injury to St.
Bernard.  You therefore agree that, in addition to all other rights
provided by law to which St. Bernard shall hereby be entitled, St. Bernard shall
have the right to have an injunction issued against You to prevent You from any
violation or further violation of this Section.  In the event that St.
Bernard seeks an injunction hereunder, You hereby waive any requirement for the
posting of a bond or any other security.

    

    D.  You agree not to enter into any
direct engagement to provide services in connection with use of St. Bernard
products for any customer of St. Bernard that you have provided services for
under this Agreement without St. Bernard’s prior written
consent.

    

    7.  Relationship
of Parties.

    

    You agree
that You and St. Bernard are independent contractors.  Neither You nor
Your employees or agents are, or will be deemed as a result of any engagement
hereunder to be, agents, employees, servants, partners, joint venturers or
franchisees of St. Bernard, and neither You nor Your employees or agents have
any authority whatsoever to bind St. Bernard by contract or
otherwise.

    

    8.  Personnel.

    

    You
represent that You have secured or will secure all personnel required to perform
the Services under this Agreement suitable written agreements to assure their
compliance with all provisions of this Agreement. St. Bernard reserves the right
to request the replacement of any of Your personnel assigned to perform the
Services.  If St. Bernard exercises this right, You will replace the
disapproved personnel with properly qualified personnel as soon as is reasonably
possible.

    

    9.  Employment
Taxes and Benefits.

    

    You
acknowledge and agree that it shall be Your obligation to report as income all
compensation received by You pursuant to this Agreement, and You agree to
indemnify St. Bernard and hold it harmless to the extent of any obligation
imposed on St. Bernard to pay any withholding taxes, social security,
unemployment or disability insurance or similar items, including interest and
penalties thereon, in connection with any payments made to You by St.
Bernard.  Neither You nor any of Your employees or agents will seek
any recovery from St. Bernard or benefits though St. Bernard under any Worker's
Compensation laws.

    

    10.  Intellectual
Property Indemnity.

    

    A.  You
warrant that: You are the sole developer of any Work Product produced hereunder;
such Work Product is original; such Work Product is not in the public domain;
and such Work Product does not, to Your knowledge, infringe upon or violate any
patent, copyright, trade secret or other proprietary right of any third
party.

    

    B.  If
any claim of  infringement relating to the Work Product is made by any
third party against St. Bernard, St. Bernard shall promptly notify You, and You
shall indemnify and hold St. Bernard harmless against any and all liability,
losses, claims, expenses (including reasonable attorneys' fees), demands or
damages of any kind arising out of or related to any such claim, whether or not
that claim is successful.

     

    
      
        
        

      

      
        
          Page 3
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

    
 

    C.  If
St. Bernard is enjoined, or likely to be enjoined, from using any of the Work
Product because of a claim of copyright or patent infringement or
misappropriation of trade secrets, or You settle such a claim, You will, at Your
own expense and. option,. either:

    

    (1)  Obtain
for St. Bernard the right to continue using such Work Product;

    (2)  Replace
or modify  the Work Product to make it non-infringing, so long as the
replacement or modification meets substantially similar
specifications;

    (3)  Replace
the Work Product with a non-infringing Work Product of equivalent function and
performance which is acceptable to St. Bernard; or

    (4)  Terminate
the applicable Exhibit A hereto and refund all payments made by St. Bernard
thereunder.

    

    11.
Indemnity.

    

    You agree
to indemnify and hold St. Bernard and its officers, directors, shareholders,
employees, agents, attorneys, insurers, successors, and assigns harmless from
and against all claims, damages, losses, and expenses, including reasonable
attorney's fees, arising out of or resulting from 1) personal injury or property
damage caused by the negligence or willful wrongdoing of Your personnel at or in
transit to/from St. Bernard facilities; and/or 2) breach of Your confidentiality
obligations in Section 6.

    

    12.
Termination.

    

    Either of
Us may terminate this Agreement or the appropriate Exhibit A thereto upon the
occurrence of any of the following:

    

    A.  The
liquidation or dissolution of either party;

    

    B.  Your
material breach of this Agreement or any Statement of Work attached thereto,
which breach continues uncured for a period of 30 days following Your receipt of
written notice thereof from St. Bernard;

    

    C. St.
Bernard's material breach of this Agreement, which breach continues uncured for
a period of 30 days following St. Bernard's receipt of detailed written notice
thereof from You; or

    

    D.  90
days written notice by either party of intent to unilaterally terminate,
provided that Services shall continue during such 90-day period at St. Bernard's
option.

    

    13.
Effect of Termination.

    

    A.  Upon
early termination of this Agreement or any Exhibit A thereto for any reason, You
will be entitled to receive payment only until the date of termination (i.e. end
of any written notice period).

    

    B.  As
a condition of receiving any payment under this Section, You will deliver to St.
Bernard within 15 days from the date of termination of this
Agreement:

    

    
      	
            	
              (1)

            	
              Any
      property of St. Bernard in Your possession or control in good condition,
      reasonable wear and tear accepted;
and

            

    

    

    
      	
            	
              (2)

            	
              All
      Work Product, whether finished or unfinished, prepared or produced by You
      for the benefit of St. Bernard under this
  Agreement.

            

    

    

    C.  In
no event will St. Bernard be responsible for payment for Services or expenses
provided or incurred after the effective date of termination of this Agreement
(provided that this exclusion shall not apply to services performed at St.
Bernard’s request pursuant to Section 12.D).  St. Bernard
reserves the right to audit Your relevant books, time sheets, or other records
prior to any payment to You under this Section.

    

    D.  The
termination of this Agreement for any reason shall not relieve You of Your
obligations under Sections 5, 6, 9, 10, 11 and 12 hereof, nor shall any such
termination relieve You or St. Bernard from any liability arising from any
breach of this Agreement.

     

    
      
        
        

      

      
        
          Page 4
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

    
 

    14.  Assignment.

    

    The
rights and liabilities of the parties hereto shall be binding upon and inure to
the benefit of their respective successors, permitted assigns, executors, and
administrators, as the case may be; provided that, as St. Bernard has
specifically contracted for Your Services, You may not assign or delegate Your
obligations under this Agreement, either in whole or in part, without. the prior
written consent of St. Bernard.  Any attempted assignment or
delegation by You shall be null and void and shall give St. Bernard the right
immediately to terminate this Agreement without liability for Services
performed.

    

    15.  Permits.

    

    You shall
acquire and maintain in good standing, and at Your sole expense, all permits,
licenses and other entitlements required for its performance under this
Agreement.

    

    16.
Attorneys' Fees.

    

    In the
event that any dispute arises between the parties hereto with regard to any of
the provisions of this Agreement or the performance of any of the terms and
conditions hereof by either of the parties hereto, the prevailing party in any
such dispute shall recover all costs and expenses associated with such dispute,
including reasonable attorneys' fees.

    

    17.  Miscellaneous.

    

    A.  Exclusive
Agreement.  This Agreement, together with its Exhibits, is the
exclusive agreement between the parties with respect to its subject matter, and,
as of its date, supersedes all prior agreements, negotiations, representations,
and proposals, written or oral, related to its subject matter.  Its
terms cannot be modified, supplemented, or rescinded except by an agreement in
writing signed by both parties.  Neither party shall be bound by nor
liable to the other party for any representation, promise, or inducement made by
any of such party's agents or employees which is not embodied in this
Agreement.  In the event of any discrepancy or inconsistency between
this Agreement and any other form used by either party in connection herewith,
the terms of this Agreement shall govern.

    

    B.  Severability.  If
any provision of this Agreement is held invalid, illegal, or unenforceable, the
validity, legality, or enforceability of the remaining provisions shall in no
way be affected or impaired thereby.

    

    C.  Waiver.  No
waiver of any breach of this Agreement shall constitute a waiver of any other
breach, whether of the same or any other covenant, term, or
condition.  The subsequent performance of any of the terms, covenants,
or conditions of this Agreement shall not constitute a waiver of any preceding
breach regardless of the other party's knowledge of the preceding breach at the
time of subsequent performance, nor shall any delay or omission of either
party's exercise of any right arising from any such default affect or impair the
parties' rights as to the same of future default.

    

    D.  California
Law.  This Agreement is entered into in San Diego County, California,
and shall be governed by and construed in accordance with, laws of the State of
California applicable to contracts made and wholly to be performed in California
by residents of California.  The parties agree that the. exclusive
jurisdiction and venue of any action between the parties rising out of this
business relationship, including disputes that may arise following termination
of this Agreement, shall be the Superior Court of California for the County of
San Diego, or the United States District Court for the Southern District of
California, and each of the parties hereby submits itself to the exclusive
jurisdiction and venue of such courts for purposes of such
action.  You acknowledge and agree that this Section serves as a
material inducement for St. Bernard to enter into this Agreement.

    

    E.  Captions.  The
captions inserted herein are inserted only as a matter of convenience and for
reference and in no way define, limit or describe the scope of this Agreement or
the intent of any provisions thereof.

    

    F.  Notice.  Whenever
notice is required to be given under the terms of this Agreement, it shall be in
writing and shall be personally delivered or mailed, Certified Mail, Return
Receipt Requested, addressed as set forth on Page 1 of this Agreement, to the
party to receive such notice.  Any change of address of either party
shall be effective upon receipt of written notice of such change by the opposite
party.

     

     

    
      
        
        

      

      
        
          Page 5
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

    
 

    G.  No
Third Party Beneficiaries.  This Agreement is intended for the benefit
of the parties hereto and their permitted assigns, and no other person or entity
shall be entitled to rely upon this Agreement or be entitled to any benefits
under this Agreement.

    

    IN
WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date
first written above.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  ST.
      BERNARD SOFTWARE, INC.

                                	 
      	
                                  CONSULTANT

                                
	 
      	 
      	 
      
	
                                  /s/ Lou Ryan                

                                	 
      	
                                  SIGNATURE:
      /s/ Craig
      Sproule            

                                
	
                                  DATE:
      01/07/09

                                	 
      	
                                  NAME:
      Craig Sproule

                                
	 
      	 
      	
                                  TITLE:
      Director

                                
	
                                  DATE:

                                	 
      	
                                  DATE:
      12/26/08

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
      
        
        

      

      
        
          Page 6
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

     

     

    ***
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY
ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT

    

    EXHIBIT
A

     

    Statement
of Work

     

    2009
Statement of Work

     

    The body
of work for 2009 is made up of three core activities:

    
      	
              1.  

            	
              New
      feature development: based on roadmap features as defined by SBS Product
      Management;

            

    

    
      	
              2.  

            	
              Lifecycle
      management: bug fixes and minor enhancements as triaged by relevant
      stakeholders; and

            

    

    
      	
              3.  

            	
              Testing
      and Quality assurance: testing of all relevant software and hardware
      (determined via requirements) that is due for
  release.

            

    

    

    Change
Orders

    

    This
statement of work details the scope of our arrangement but both parties agree
that over the course of the project certain changes must occur to stay in line
with business priorities or evolving product needs.  In all changes,
both parties will discuss the impact and agree to the changes.  Unless
it is determined to be a material departure to this statement of work, the fees
will remain unchanged.  If the change is determined to be a material
departure, both parties agree to discuss the impact and amend the arrangement
accordingly.

    

     

    Proposed
Releases

     

     

    6.2
update 1 [***]

     

    Main
purpose of this release is to deliver the block page re-authentication feature
[*].  Additional high priority bug fixes will be included if time
permits.

     [***]

     [***]

     [***]

     [***]

     

    6.2
update 2

     

    The focus
of this release is to deliver support for Active Directory 2008. Additional high
priority bug fixes will be included if time
permits  [***].

    

    
      	
              -  

            	
              AD2008.

            

    

    
      	
              -  

            	
               [***]

            

    

    

    [***]

     

    You will
be eligible for the following reimbursable expenses as long as they are
specifically tied to You performing your duties within the scope of this
Agreement.  In all cases You will make commercially reasonable efforts
to minimize these expenses by using the most reasonable travel and
accommodations.

     

    Reimburseable
Expenses

     

    
      	
              ·  

            	
              Flights

            

    

     

    
      	
              ·  

            	
              Accommodation

            

    

     

    
      	
              ·  

            	
              Travel
      Insurance

            

    

     

    
      	
              ·  

            	
              Car
      Hire

            

    

     

    
      	
              ·  

            	
              Taxi
      Hire

            

    

     

     

    
      
        
        

      

      
        
          Page 7
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.

        

        
          

        

      

      
        
        

      

    

     

    Consulting
Fees by Month

     

    The fee
schedule below is for the plans as described within this statement of work and
the fee reduction within February is to comply with the budget and to
accommodate for the severance costs incurred in terminating developers within
San Diego.  The fee schedule below also has a fee reduction following
the delivery of 6.5 as some of the developers will not be needed for the
on-going work and some will be redeployed from 6.5 on to the remaining
development projects.

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            Fees

                          	
                            Travel

                          	 	
                            Total

                          
	
                            January

                          	
                            155,000

                          	
                            7,000

                          	 	
                            162,000

                          
	
                            February

                          	
                            115,000

                          	
                            7,000

                          	 	
                            122,000

                          
	
                            March

                          	
                            155,800

                          	
                            7,000

                          	 	
                            162,800

                          
	
                            April

                          	
                            155,800

                          	
                            7,000

                          	 	
                            162,800

                          
	
                            May

                          	
                            155,800

                          	
                            7,000

                          	 	
                            162,800

                          
	
                            June

                          	
                            155,800

                          	
                            7,000

                          	 	
                            162,800

                          
	
                            July

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	
                            August

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	
                            September

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	
                            October

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	
                            November

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	
                            December

                          	
                            135,800

                          	
                            7,000

                          	 	
                            142,800

                          
	 
      	
                            1,708,000

                          	
                            84,000

                          	 	
                            1,792,000

                          

                  

                

              

            

          

        

      

    

    
    

     

    

     

    

     

    

    
      	
              /s/
      Craig Sproule

            	 
      	
              /s/
      Lou Ryan

            
	
              Consultant
      Signature

            	 
      	
              Supervisor
      Signature

            
	
              Dated:  12/26/08

            	 
      	
              Dated:  01/07/09

            

    

     

    

     

     

     

    
      Page 8
of 8 ***
Certain confidential information in this document has been omitted pursuant to a
request for Confidential Treatment and filed separately with the Commission
pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as
amended.EXHIBIT
10.39

 

TITAN
MACHINERY INC.

COMPENSATION ARRANGEMENTS FOR EXECUTIVE OFFICERS

FOR FISCAL YEAR 2010

 

The Titan Machinery Inc. Board of Directors approved
the 2010 fiscal year base salaries for the executive officers as set forth
below.

 

	
   

  	
   

  	
  2009 Annual

  	
   

  
	
  Executive Officer and Title

  	
   

  	
  Base Salary

  	
   

  
	
  David J. Meyer

  	
   

  	
  $

  	
  262,500

  	
   

  
	
  Chairman and Chief Executive Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Peter Christianson

  	
   

  	
  $

  	
  262,500

  	
   

  
	
  President and Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Ted Christianson

  	
   

  	
  $

  	
  170,000

  	
   

  
	
  Vice President, Finance and Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]