Document:

Exhibit
10.1

 

October 1, 2010

 

David
J. Meyer

c/o Titan Machinery Inc.

4876
Rocking Horse Circle

Fargo,
ND 58104-6049

 

Dear
David:

 

This
letter agreement amends and restates the letter agreement dated November 16,
2007, confirming our discussions regarding your continuing as Chief Executive
Officer of Titan Machinery Inc. (the “Company”),
and sets out the terms and conditions of your employment with the Company, as
follows:

 

	
  Title:

  	
   

  	
  You
  will serve as the Company’s Chief Executive Officer.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  Unless
  terminated by either party as provided in this letter agreement, the term of
  your employment as Chief Executive Officer of the Company under this letter
  agreement shall be for a rolling three-year period (the “Term”)
  as follows:  the initial term shall commence
  on October 1, 2010 (“Effective Date”)
  and end on September 30, 2013, which end date shall be automatically extended
  by one year on each anniversary of the Effective Date.  Thus, for example, on October 1, 2011, the
  end date shall be extended to September 30, 2014, and on October 1, 2012, the
  end date shall be extended to September 30, 2015.  Such automatic extensions shall continue
  unless either party provides the other with written notice terminating the
  automatic extensions prior to August 1 of any year.

  
	
   

  	
   

  	
   

  
	
  Responsibilities:

  	
   

  	
  During
  your employment with the Company as Chief Executive Officer, you will report
  to the Board of Directors of the Company (the “Board”)
  and will be responsible for the overall operations and direction of the
  Company. You agree to serve the Company faithfully and to the best of your
  ability, and to devote your full working time, attention and efforts to the
  business of the Company. You may, to a reasonable extent, participate in
  charitable activities, personal investment activities and outside businesses
  that are not competitive with the business of the Company and serve on boards
  of directors, so long as such activities and directorships do not interfere
  with the performance of your duties and responsibilities to the Company;
  provided, that you shall report on all such activities and directorships to
  the Board at least annually.

  
	
   

  	
   

  	
   

  
	
  Representations:

  	
   

  	
  By
  signing below, you represent and confirm that you are under no contractual or
  legal commitments that would prevent you from fulfilling your duties and
  responsibilities to the Company as Chief Executive Officer.

  

 

1

 

	
  Initial Base Salary: 

  	
   

  	
  You
  will be paid a base salary at the rate of $275,000 per year for services
  performed, in accordance with the regular payroll practices of the Company
  with annual review by the Compensation Committee of the Board (the “Committee”). Your performance and
  base salary will be reviewed by the Committee annually and may be adjusted
  upward from time to time in the discretion of the Committee, but will not be
  reduced during the Term.

  
	
   

  	
   

  	
   

  
	
  Incentive Bonus: 

  	
   

  	
  For
  each full fiscal year of the Company that you are employed during the Term,
  you will be eligible for an incentive award opportunity payable from 0% to
  200% of your base salary at the rate in effect at the end of such fiscal
  year, pursuant to the terms and conditions established by the Committee from
  time to time, based upon a target equal to 100% of your annual base salary at
  the rate in effect at such time. 
  Objectives will be established during each fiscal year.  Any annual incentive bonus earned for a
  fiscal year will be paid to you within two and one-half (21⁄2) months after the
  end of such fiscal year.

  
	
   

  	
   

  	
   

  
	
  Long-Term
  Equity Incentive:

  	
   

  	
  Upon
  execution of this letter agreement and on each anniversary thereafter, you
  will be entitled to receive a restricted stock award.  Each award shall be granted in accordance
  with the terms of the Company’s Equity Grant Policy.  The number of shares under each award shall
  be determined by dividing your annual base salary in effect on the date of
  grant by the closing sale price of the Company’s stock on the date of
  grant.  The risks of forfeiture to
  which the restricted stock under each such award will be subject shall
  terminate on the third anniversary of the date of grant for each award.

  
	
   

  	
   

  	
   

  
	
  Benefits: 

  	
   

  	
  During
  your employment with the Company, you will be eligible to participate in the
  employee benefit plans and programs generally available to other executive
  officers of the Company, and in such other employee benefit plans and
  programs to the extent that you meet the eligibility requirements for each
  individual plan or program and subject to the provisions, rules and
  regulations applicable to each such plan or program as in effect from time to
  time. The plans and programs of the Company may be modified or terminated by
  the Company in its discretion.

  
	
   

  	
   

  	
   

  
	
  Vacation: 

  	
   

  	
  During
  your employment with the Company, you will receive vacation time off in
  accordance with the policies and practices of the Company, except that your
  annual accrual rate shall be not less than four weeks paid vacation off per
  year. Vacation time shall be taken at such times so as not to unduly disrupt
  the operations of the Company.

  
	
   

  	
   

  	
   

  
	
  Office Location: 

  	
   

  	
  Your
  employment will be based at the Company’s headquarters in Fargo, North
  Dakota.  Of course, regular travel will
  be required in the course of performing your duties and responsibilities as
  Chief Executive Officer.

  
	
   

  	
   

  	
   

  
	
  Noncompetition: 

  	
   

  	
  In
  consideration of you and the Company entering into this letter agreement, and
  other good and valuable consideration, the receipt and

  

 

2

 

	
   

  	
   

  	
  sufficiency
  of which is hereby acknowledged, and to protect the reasonable business
  interests of the Company, you agree that while you are an employee of the
  Company, and for a period of 24 months after termination of your employment
  for any reason, you will not directly or indirectly, whether on your own
  behalf or that of a third party (other than the Company), you will not engage
  in the business (whether as an owner of, or as employee, director or officer
  of or consultant to any business, other than the Company, that is engaged in
  the business), of owning or operating agricultural or construction equipment
  stores in any state in which the Company or its subsidiaries owns or operates
  any agricultural or construction equipment stores during the term of your
  employment.  You agree that the Company
  will be entitled to equitable relief without the requirement of posting a
  bond to enforce the terms of such noncompetition restriction, in addition to
  any other rights or remedies that the Company may have.  In the event that any provision of this noncompetition
  clause (or any other provision contained in this letter agreement) shall be
  determined by any court of competent jurisdiction to be unenforceable, such
  provision shall be interpreted to extend only over the maximum period of time
  for which it may be enforceable and/or over the maximum geographical area as
  to which it may be enforceable and/or to the maximum extent in all other
  respects as to which they may be enforceable, all as determined by such court
  in such action so as to be enforceable to the extent consistent with then
  applicable law.  This noncompetition
  clause shall survive the termination of your employment, and shall apply
  whether the termination of your employment is voluntary or involuntary and
  regardless of the reason for such termination.

  
	
   

  	
   

  	
   

  
	
  Termination: 

  	
   

  	
  You
  may terminate the employment relationship during the Term with at least 60
  days’ written notice. The Company may terminate the employment relationship
  during the Term for Cause at any time with written notice or without Cause
  with at least 60 days’ written notice. 
  Upon termination of your employment by either party for any reason,
  you will promptly resign any and all positions you then hold as officer or
  director of the Company or any of its affiliates.

  
	
   

  	
   

  	
   

  
	
  Severance: 

  	
   

  	
  In
  case of involuntary termination of your employment by the Company without
  Cause prior to the expiration of the Term or in the case of voluntary
  resignation of your employment for Good Reason prior to the expiration of the
  Term (each a “Qualifying Termination”),
  the Company will pay you as severance pay an amount equal to two
  (2) times the sum of (a) your annual base salary at the rate in effect
  on your last day of employment plus (b) the annual incentive bonus last
  paid to you preceding the Qualifying Termination.  In addition, upon a Qualifying Termination
  the Company will, for a period of 24 months following the effective date of
  termination of your employment, allow you to continue to participate in the
  Company’s group medical and dental plans at the Company’s expense (with
  premiums payable on a monthly basis), to the extent you were a participant as
  of your last day of employment; however, if your participation in any such
  plan is

  

 

3

 

	
   

  	
   

  	
  barred
  or not permitted under the terms thereof, the Company will arrange to provide
  you with substantially similar coverage at its expense up to the expense.
  Benefits provided by the Company may be reduced if you become eligible for
  comparable benefits from another employer or third party.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Payment
  by the Company of any severance pay or premium reimbursements under this
  paragraph will be conditioned upon you (1) signing and not revoking a
  full release of all claims against the Company, its affiliates, officers,
  directors, employees, agents and assigns, substantially in the form attached
  to this letter agreement as Exhibit A, (2) complying with your
  obligations under the Noncompetition Agreement or any other agreement between
  you and the Company then in effect, (3) cooperating with the Company in
  the transition of your duties, and (4) agreeing not to disparage or
  defame the Company, its affiliates, officers, directors, employees, agents,
  assigns, products or services.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Any
  severance payable will be paid to you over 24 months in accordance with the
  Company’s normal payroll practices commencing on the first day of the month
  following the Qualifying Termination, but not earlier than expiration of any
  rescission periods.  All payments under
  this severance clause are subject to applicable withholding for income and
  FICA taxes and any other proper deductions. 
  Notwithstanding the foregoing, if any of the payments described in
  this severance clause are subject to the requirements of Section 409A of the
  Internal Revenue Code, as amended (the “Code”), and
  the Company determines that you are a “specified employee” as defined in
  Section 409A of the Code, such payments shall not commence earlier than the
  first day of the seventh month following your “separation from service” as
  determined under Section 409A of the Code.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  purposes of this letter agreement, “Cause” and “Good Reason” have the
  following definitions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Cause” means a determination in
  good faith by the Board of the existence of one or more of the following:
  (i) commission by you of any act constituting a felony; (ii) any
  intentional and/or willful act of fraud or material dishonesty by you related
  to, connected with or otherwise affecting your employment with the Company,
  or otherwise likely to cause material harm to the Company or its reputation;
  (iii) the willful and/or continued failure, neglect, or refusal by you
  to perform in all material respects your duties with the Company as an
  employee, officer or director, or to fulfill your fiduciary responsibilities
  to the Company, which failure, neglect or refusal has not been cured within
  fifteen (15) days after written notice thereof to you from the Company;
  or (iv) a material breach by you of the Company’s material policies or
  codes of conduct or of your material obligations under other agreement
  between you and the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Good Reason” means any one or more
  of the following occur without your consent: (i) the assignment to you
  of material duties inconsistent with your

  

 

4

 

	
   

  	
   

  	
  status
  or position as Chief Executive Officer, or other action that results in a
  substantial diminution in your status or position, which has not been cured
  by the Company within fifteen (15) days after written notice thereof to
  the Company from you; (ii) the relocation of your principal office for
  Company business to a location more than forty (40) miles from the
  Company’s current headquarters; or (iii) material breach by the Company of
  any terms or conditions of this letter agreement, which breach has not been
  caused by you and which has not been cured by the Company within fifteen
  (15) days after written notice thereof to the Company from you.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  the event of termination of your employment by the Company for Cause,
  resignation by you other than for Good Reason, or termination due to your
  death or any disability for which you are qualified for benefits under the
  Company’s group long-term disability program, the Company’s only obligation
  hereunder shall be to pay such compensation and provide such benefits as are earned
  by you through the date of termination of employment.

  
	
   

  	
   

  	
   

  
	
  Indemnification: 

  	
   

  	
  The
  Company will indemnify you in connection with your duties and
  responsibilities for the Company in accordance with the Company’s bylaws and
  as set forth in any indemnification agreement between you and the Company
  from time to time.

  
	
   

  	
   

  	
   

  
	
  Taxes: 

  	
   

  	
  The
  Company may withhold from any compensation payable to you in connection with
  your employment such federal, state and local income and employment taxes as
  the Company shall determine are required to be withheld pursuant to any
  applicable law or regulation.

  
	
   

  	
   

  	
   

  
	
  Applicable Law: 

  	
   

  	
  This
  letter agreement shall be interpreted and construed in accordance with the
  laws of the State of Delaware.

  
	
   

  	
   

  	
   

  
	
  Entire Agreement: 

  	
   

  	
  This
  letter agreement and the documents referenced herein constitute the entire
  agreement between the parties, and supersedes all prior discussions,
  agreements, including but not limited to the letter agreement dated November
  16, 2007, and negotiations between us. No amendment or modification of this
  letter agreement will be effective unless made in writing and signed by you
  and an authorized director of the Company.

  

 

[signature page follows]

 

5

 

Sincerely,

 

TITAN
MACHINERY INC.

 

	
  By:

  	
  /s/
  Gordon Paul Anderson

  	
   

  
	
  Gordon
  Paul Anderson,

  
	
  Chair
  of the Compensation Committee

  

 

 

I
accept and agree to the terms and conditions of employment with Titan Machinery
Inc. as set forth above.

 

 

	
  /s/
  David J. Meyer

  	
   

  	
  October
  1, 2010

  
	
  David
  J. Meyer 

  	
   

  	
  Dated

  

 

6

 

Exhibit A

 

FORM OF RELEASE BY DAVID J. MEYER

 

Definitions. I intend all
words used in this Release to have their plain meanings in ordinary English.
Specific terms that I use in this Release have the following meanings:

 

	
   

  	
  A.

  	
  I, me,
  and my include both me (David J. Meyer) and anyone who has or obtains
  any legal rights or claims through me.

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Titan means Titan
  Machinery Inc., any company related to Titan Machinery Inc. in the present or
  past (including without limitation, its predecessors, parents, subsidiaries,
  affiliates, joint venture partners, and divisions), and any successors of
  Titan Machinery Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Company means Titan;
  the present and past officers, directors, committees, shareholders, and
  employees of Titan; any company providing insurance to Titan in the present
  or past; the present and past fiduciaries of any employee benefit plan
  sponsored or maintained by Titan (other than multiemployer plans); the
  attorneys for Titan; and anyone who acted on behalf of Titan or on
  instructions from Titan.

  
	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Agreement means the
  letter agreement between me and Titan dated                 ,
  2007, including all of the documents attached to such agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  My Claims mean all of
  my rights that I now have to any relief of any kind from the Company, whether
  I now know about such rights or not, including without limitation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  all claims arising out of
  or relating to my employment with Titan or the termination of that employment;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  all claims arising out of
  or relating to the statements, actions, or omissions of the Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  all claims for any alleged
  unlawful discrimination, harassment, retaliation or reprisal, or other
  alleged unlawful practices arising under any federal, state, or local
  statute, ordinance, or regulation, including without limitation, claims under
  Title VII of the Civil Rights Act of 1964, the Age Discrimination in
  Employment Act, the Americans with Disabilities Act, 42 U.S.C. § 1981, the
  Employee Retirement Income Security Act, the Equal Pay Act, the Worker
  Adjustment and Retraining Notification Act, the Sarbanes-Oxley Act, the
  Family and Medical Leave Act, the Fair Credit Reporting Act, the North Dakota
  Human Rights Act, N.D. Stat. § 14.02-4-01 et seq., the North Dakota Equal Pay
  Act, N.D. Stat. § 34-06.1-01 et seq., the North Dakota Age Discrimination
  Act, N.D. Stat. § 34-01-17, and workers’ compensation non-interference or
  non-retaliation statutes;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  all claims for alleged
  wrongful discharge; breach of contract; breach of implied contract; failure
  to keep any promise; breach of a covenant of good faith and fair dealing;
  breach of fiduciary duty; estoppel; my activities, if any, as a
  “whistleblower”; defamation; infliction of emotional distress; fraud;
  misrepresentation; negligence; 

  

 

A-1

 

	
   

  	
   

  	
   

  	
  harassment; retaliation or
  reprisal; constructive discharge; assault; battery; false imprisonment;
  invasion of privacy; interference with contractual or business relationships;
  any other wrongful employment practices; and violation of any other principle
  of common law;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  all claims for
  compensation of any kind, including without limitation, bonuses, commissions,
  stock-based compensation or stock options, vacation pay and paid time off,
  perquisites, and expense reimbursements;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  all claims for back pay,
  front pay, reinstatement, other equitable relief, compensatory damages,
  damages for alleged personal injury, liquidated damages, and punitive
  damages; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
  all claims for attorneys’
  fees, costs, and interest.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  However, My Claims
  do not include any claims that the law does not allow to be waived; any
  claims that may arise after the date on which I sign this Release; any rights
  I may have to indemnification from Titan as a current or former officer,
  director or employee of Titan; any claims for payment of severance benefits
  under the Agreement; any rights I have to severance pay or benefits under the
  Agreement; or any claims I may have for earned and accrued benefits under any
  employee benefit plan sponsored by the Company in which I am a participant as
  of the date of termination of my employment with Titan.

  

 

Consideration. I am entering
into this Release in consideration of Titan’s obligations to provide me certain
severance benefits as specified in the Agreement. I will receive consideration
from Titan as set forth in the Agreement if I sign and do not rescind this
Release as provided below. I understand and acknowledge that I would not be
entitled to the consideration under the Agreement if I did not sign this
Release. The consideration is in addition to anything of value that I would be
entitled to receive from Titan if I did not sign this Release or if I rescinded
this Release. I acknowledge and represent that I have received all payments and
benefits that I am entitled to receive (as of the date of this Release) by
virtue of any employment by the Company.

 

Agreement to Release My Claims. In exchange for the consideration described in the Agreement, I give up
and release all of My Claims. I will not make any demands or claims  against the Company for compensation or damages
relating to My Claims. The consideration that I am receiving is a fair
compromise for the release of My Claims.

 

Cooperation. Upon the
reasonable request of the Company, I agree that I will (i) timely execute
and deliver such acknowledgements, instruments, certificates, and other
ministerial documents (including without limitation, certification as to
specific actions performed by me in my capacity as an officer of the Company)
as may be necessary or appropriate to formalize and complete the applicable
corporate records; (ii) reasonably consult with the Company regarding
business matters that I was involved with while employed by the Company; and
(iii) be reasonably available, with or without subpoena, to be
interviewed, review documents or things, give depositions, testify, or engage
in other reasonable activities in connection with any litigation or
investigation, with respect to matters that I may have knowledge of by virtue
of my employment by or service to the Company. In performing my obligations
under this paragraph to testify or otherwise provide information, I will
honestly, truthfully, forthrightly, and completely provide

 

A-2

 

the
information requested, volunteer pertinent information and turn over to the
Company all relevant documents which are or may come into my possession.

 

My Continuing Obligations. I understand and acknowledge that I must comply with
all of my post-employment obligations under the Agreement. I will not defame or
disparage the reputation, character, image, products, or services of Titan, or
the reputation or character of Titan’s directors, officers, employees and
agents, and I will refrain from making public comment about the Company except
upon the express written consent of an officer of Titan.

 

Additional Agreements and Understandings. Even though Titan will provide consideration for me
to settle and release My Claims, the Company does not admit that it is
responsible or legally obligated to me. In fact, the Company denies that it is
responsible or legally obligated to me for My Claims, denies that it engaged in
any unlawful or improper conduct toward me, and denies that it treated me
unfairly.

 

Advice to Consult with an Attorney. I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this
Release and I have done so. My decision whether to sign this Release is my own
voluntary decision made with full knowledge that the Company has advised me to
consult with an attorney.

 

Period to Consider the Release. I understand that I have 21 days from the date
I received this Release (or 21 days after the last day of my employment
with Titan, if later) to consider whether I wish to sign this Release. If I
sign this Release before the end of the 21-day period, it will be my voluntary
decision to do so because I have decided that I do not need any additional time
to decide whether to sign this Release. I understand and agree that if I sign
this Release prior to my last day of employment with Titan it will not be valid
and Titan will not be obligated to provide the consideration described in the
Release.

 

My Right to Rescind this Release. I understand that I may rescind this Release at any
time within 7 days after I sign it, not counting the day upon which I sign it.
This Release will not become effective or enforceable unless and until the
7-day rescission period has expired without my rescinding it. I understand that
if I rescind this Release Titan will not be obligated to provide the
consideration described in the Release.

 

Procedure for Accepting or Rescinding the Release. To accept the terms of this Release, I must deliver
the Release, after I have signed and dated it, to Titan by hand or by mail
within the 21-day period that I have to consider this Release. To rescind my
acceptance, I must deliver a written, signed statement that I rescind my
acceptance to Titan by hand or by mail within the 15-day rescission period. All
deliveries must be made to Titan at the following address:

 

Chief
Financial Officer

                                              

                                              

 

If
I choose to deliver my acceptance or the rescission by mail, it must be
postmarked within the period stated above and properly addressed to Titan at
the address stated above.

 

A-3

 

Interpretation of the Release. This Release should be interpreted as broadly as
possible to achieve my intention to resolve all of My Claims against the
Company. If this Release is held by a court to be inadequate to release a
particular claim encompassed within My Claims, this Release will remain in full
force and effect with respect to all the rest of My Claims. I agree that the
provisions of this Release may not be amended, waived, changed or modified
except by an instrument in writing signed by an authorized representative of
Titan and by me.

 

My Representations. I am legally
able and entitled to receive the consideration being provided to me in
settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with
Titan. No child support orders, garnishment orders, or other orders requiring
that money owed to me by Titan be paid to any other person are now in effect.

 

I
have read this Release carefully. I understand all of its terms. In signing
this Release, I have not relied on any statements or explanations made by the
Company except as specifically set forth in the Agreement. I am voluntarily
releasing My Claims against the Company. I intend this Release and the Agreement
to be legally binding.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  David
  J. Meyer

  

 

A-4Exhibit
10.2

 

October 1, 2010

 

Peter
Christianson

c/o Titan Machinery Inc.

4876
Rocking Horse Circle

Fargo,
ND 58104-6049

 

Dear
Peter:

 

This
letter agreement amends and restates the letter agreement dated November 16,
2007, confirming our discussions regarding your continuing as President and
Chief Financial Officer of Titan Machinery Inc. (the “Company”),
and sets out the terms and conditions of your employment with the Company, as
follows:

 

	
  Title:

  	
   

  	
  You
  will serve as the Company’s President and Chief Financial Officer.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  Unless
  terminated by either party as provided in this letter agreement, the term of
  your employment as President and Chief Financial Officer of the Company under
  this letter agreement shall be for a rolling three-year period (the “Term”) as follows: the initial term shall commence on
  October 1, 2010 (“Effective Date”)
  and end on September 30, 2013, which end date shall be automatically extended
  by one year on each anniversary of the Effective Date.  Thus, for example, on October 1, 2011, the
  end date shall be extended to September 30, 2014, and on October 1, 2012, the
  end date shall be extended to September 30, 2015.  Such automatic extensions shall continue
  unless either party provides the other with written notice terminating the
  automatic extensions prior to August 1 of any year. 

  
	
   

  	
   

  	
   

  
	
  Responsibilities:

  	
   

  	
  During
  your employment with the Company as President and Chief Financial Officer,
  you will report to the Board of Directors of the Company (the “Board”) and will be responsible
  for the overall operations and direction and financial matters of the
  Company. You agree to serve the Company faithfully and to the best of your
  ability, and to devote your full working time, attention and efforts to the
  business of the Company. You may, to a reasonable extent, participate in
  charitable activities, personal investment activities and outside businesses
  that are not competitive with the business of the Company and serve on boards
  of directors, so long as such activities and directorships do not interfere
  with the performance of your duties and responsibilities to the Company;
  provided, that you shall report on all such activities and directorships to
  the Board at least annually.

  
	
   

  	
   

  	
   

  
	
  Representations:

  	
   

  	
  By
  signing below, you represent and confirm that you are under no contractual or
  legal commitments that would prevent you from fulfilling your duties and
  responsibilities to the Company as President and Chief Financial Officer.

  

 

1

 

	
  Initial
  Base Salary:

  	
   

  	
  You
  will be paid a base salary at the rate of $275,000 per year for services
  performed, in accordance with the regular payroll practices of the Company
  with annual review by the Compensation Committee of the Board (the “Committee”). Your performance and
  base salary will be reviewed by the Committee annually and may be adjusted
  upward from time to time in the discretion of the Committee, but will not be
  reduced during the Term.

  
	
   

  	
   

  	
   

  
	
  Incentive
  Bonus:

  	
   

  	
  For
  each full fiscal year of the Company that you are employed during the Term,
  you will be eligible for an incentive award opportunity payable from 0% to
  200% of your base salary at the rate in effect at the end of such fiscal
  year, pursuant to the terms and conditions established by the Committee from
  time to time, based upon a target equal to 100% of your annual base salary at
  the rate in effect at such time. 
  Objectives will be established during each fiscal year.  Any annual incentive bonus earned for a
  fiscal year will be paid to you within two and one-half (21⁄2) months after the
  end of such fiscal year.

  
	
   

  	
   

  	
   

  
	
  Long-Term
  Equity Incentive:

  	
   

  	
  Upon
  execution of this letter agreement and on each anniversary thereafter, you
  will be entitled to receive a restricted stock award.  Each award shall be granted in accordance
  with the terms of the Company’s Equity Grant Policy.  The number of shares under each award shall
  be determined by dividing your annual base salary in effect on the date of
  grant by the closing sale price of the Company’s stock on the date of grant.  The risks of forfeiture to which the
  restricted stock under each such award will be subject shall terminate on the
  third anniversary of the date of grant for each award.

  
	
   

  	
   

  	
   

  
	
  Benefits:

  	
   

  	
  During
  your employment with the Company, you will be eligible to participate in the
  employee benefit plans and programs generally available to other executive
  officers of the Company, and in such other employee benefit plans and
  programs to the extent that you meet the eligibility requirements for each
  individual plan or program and subject to the provisions, rules and
  regulations applicable to each such plan or program as in effect from time to
  time. The plans and programs of the Company may be modified or terminated by
  the Company in its discretion.

  
	
   

  	
   

  	
   

  
	
  Vacation:

  	
   

  	
  During
  your employment with the Company, you will receive vacation time off in
  accordance with the policies and practices of the Company, except that your
  annual accrual rate shall be not less than four weeks paid vacation off per
  year. Vacation time shall be taken at such times so as not to unduly disrupt
  the operations of the Company.

  
	
   

  	
   

  	
   

  
	
  Office
  Location:

  	
   

  	
  Your
  employment will be based at the Company’s headquarters in Fargo, North
  Dakota.  Of course, regular travel will
  be required in the course of performing your duties and responsibilities as
  President and Chief Financial Officer.

  

 

2

 

	
  Noncompetition:

  	
   

  	
  In
  consideration of your and the Company entering into this letter agreement,
  and other good and valuable consideration, the receipt and sufficiency of
  which is hereby acknowledged, and to protect the reasonable business
  interests of the Company, you agree that while you are an employee of the
  Company, and for a period of 24 months after termination of your employment
  for any reason, you will not directly or indirectly, whether on your own
  behalf or that of a third party (other than the Company), you will not engage
  in the business (whether as an owner of, or as employee, director or officer
  of or consultant to any business, other than the Company, that is engaged in
  the business), of owning or operating agricultural or construction equipment
  stores in any state in which the Company or its subsidiaries owns or operates
  any agricultural or construction equipment stores during the term of your
  employment.  You agree that the Company
  will be entitled to equitable relief without the requirement of posting a
  bond to enforce the terms of such noncompetition restriction, in addition to
  any other rights or remedies that the Company may have.  In the event that any provision of this
  noncompetition clause (or any other provision contained in this letter
  agreement) shall be determined by any court of competent jurisdiction to be
  unenforceable, such provision shall be interpreted to extend only over the
  maximum period of time for which it may be enforceable and/or over the
  maximum geographical area as to which it may be enforceable and/or to the
  maximum extent in all other respects as to which they may be enforceable, all
  as determined by such court in such action so as to be enforceable to the
  extent consistent with then applicable law. 
  This noncompetition clause shall survive the termination of your
  employment, and shall apply whether the termination of your employment is
  voluntary or involuntary and regardless of the reason for such termination.

  
	
   

  	
   

  	
   

  
	
  Termination:

  	
   

  	
  You
  may terminate the employment relationship during the Term with at least 60
  days’ written notice.  The Company may
  terminate the employment relationship during the Term for Cause at any time
  with written notice or without Cause with at least 60 days’ written notice.
  Upon termination of your employment by either party for any reason, you will
  promptly resign any and all positions you then hold as officer or director of
  the Company or any of its affiliates.

  
	
   

  	
   

  	
   

  
	
  Severance:

  	
   

  	
  In
  case of involuntary termination of your employment by the Company without
  Cause prior to the expiration of the Term or in the case of voluntary
  resignation of your employment for Good Reason prior to the expiration of the
  Term (each a “Qualifying Termination”),
  the Company will pay you as severance pay an amount equal to two
  (2) times the sum of (a) your annual base salary at the rate in effect
  on your last day of employment plus (b) the annual incentive bonus last
  paid to you preceding the Qualifying Termination.  In addition, upon a Qualifying Termination
  the Company will, for a period of 24 months following the effective date of
  termination of your employment, allow you to continue to participate in the
  Company’s group medical and dental plans at the Company’s expense (with
  premiums

  

 

3

 

	
   

  	
   

  	
  payable
  on a monthly basis), to the extent you were a participant as of your last day
  of employment; however, if your participation in any such plan is barred or
  not permitted under the terms thereof, the Company will arrange to provide
  you with substantially similar coverage at its expense up to the expense.
  Benefits provided by the Company may be reduced if you become eligible for
  comparable benefits from another employer or third party.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Payment
  by the Company of any severance pay or premium reimbursements under this
  paragraph will be conditioned upon you (1) signing and not revoking a
  full release of all claims against the Company, its affiliates, officers,
  directors, employees, agents and assigns, substantially in the form attached
  to this letter agreement as Exhibit A, (2) complying with your
  obligations under the Noncompetition Agreement or any other agreement between
  you and the Company then in effect, (3) cooperating with the Company in
  the transition of your duties, and (4) agreeing not to disparage or
  defame the Company, its affiliates, officers, directors, employees, agents,
  assigns, products or services.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Any
  severance payable will be paid to you over 24 months in accordance with the
  Company’s normal payroll practices commencing on the first day of the month
  following the Qualifying Termination, but not earlier than expiration of any
  rescission periods.  All payments under
  this severance clause are subject to applicable withholding for income and
  FICA taxes and any other proper deductions. 
  Notwithstanding the foregoing, if any of the payments described in
  this severance clause are subject to the requirements of Section 409A of the
  Internal Revenue Code, as amended (the “Code”), and
  the Company determines that you are a “specified employee” as defined in
  Section 409A of the Code, such payments shall not commence earlier than the
  first day of the seventh month following your “separation from service” as
  determined under Section 409A of the Code.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  For
  purposes of this letter agreement, “Cause” and “Good Reason” have the
  following definitions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Cause” means a determination in good
  faith by the Board of the existence of one or more of the following:
  (i) commission by you of any act constituting a felony; (ii) any
  intentional and/or willful act of fraud or material dishonesty by you related
  to, connected with or otherwise affecting your employment with the Company,
  or otherwise likely to cause material harm to the Company or its reputation;
  (iii) the willful and/or continued failure, neglect, or refusal by you
  to perform in all material respects your duties with the Company as an employee,
  officer or director, or to fulfill your fiduciary responsibilities to the
  Company, which failure, neglect or refusal has not been cured within fifteen
  (15) days after written notice thereof to you from the Company; or
  (iv) a material breach by you of the Company’s material policies or
  codes of conduct or of your material obligations under other agreement
  between you and the Company.

  

 

4

 

	
   

  	
   

  	
  “Good Reason” means any one or more
  of the following occur without your consent: (i) the assignment to you
  of material duties inconsistent with your status or position as President and
  Chief Financial Officer, or other action that results in a substantial
  diminution in your status or position, which has not been cured by the
  Company within fifteen (15) days after written notice thereof to the
  Company from you; (ii) the relocation of your principal office for
  Company business to a location more than forty (40) miles from the
  Company’s current headquarters; or (iii) material breach by the Company of
  any terms or conditions of this letter agreement, which breach has not been
  caused by you and which has not been cured by the Company within fifteen
  (15) days after written notice thereof to the Company from you.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  the event of termination of your employment by the Company for Cause,
  resignation by you other than for Good Reason, or termination due to your
  death or any disability for which you are qualified for benefits under the
  Company’s group long-term disability program, the Company’s only obligation
  hereunder shall be to pay such compensation and provide such benefits as are
  earned by you through the date of termination of employment.

  
	
   

  	
   

  	
   

  
	
  Indemnification:

  	
   

  	
  The
  Company will indemnify you in connection with your duties and
  responsibilities for the Company in accordance with the Company’s bylaws and
  as set forth in any indemnification agreement between you and the Company
  from time to time.

  
	
   

  	
   

  	
   

  
	
  Taxes:

  	
   

  	
  The
  Company may withhold from any compensation payable to you in connection with
  your employment such federal, state and local income and employment taxes as
  the Company shall determine are required to be withheld pursuant to any
  applicable law or regulation.

  
	
   

  	
   

  	
   

  
	
  Applicable
  Law:

  	
   

  	
  This
  letter agreement shall be interpreted and construed in accordance with the
  laws of the State of Delaware.

  
	
   

  	
   

  	
   

  
	
  Entire
  Agreement:

  	
   

  	
  This
  letter agreement and the documents referenced herein constitute the entire
  agreement between the parties, and supersedes all prior discussions, agreements,
  including but not limited to the letter agreement dated November 16, 2007,
  and negotiations between us. No amendment or modification of this letter
  agreement will be effective unless made in writing and signed by you and an
  authorized director of the Company.

  

 

[signature page follows]

 

5

 

Sincerely,

 

TITAN
MACHINERY INC.

 

	
  By:

  	
  /s/
  Gordon Paul Anderson

  	
   

  
	
  Gordon Paul Anderson,

  
	
  Chair of the Compensation Committee

  

 

 

I
accept and agree to the terms and conditions of employment with Titan Machinery
Inc. as set forth above.

 

 

	
  /s/
  Peter Christianson

  	
   

  	
  October
  1, 2010

  
	
  Peter
  Christianson 

  	
   

  	
  Dated

  

 

6

 

Exhibit A

 

FORM OF RELEASE BY PETER
CHRISTIANSON

 

Definitions. I intend all
words used in this Release to have their plain meanings in ordinary English.
Specific terms that I use in this Release have the following meanings:

 

	
   

  	
  A.

  	
  I, me,
  and my include both me (Peter Christianson) and anyone who has or
  obtains any legal rights or claims through me.

  
	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Titan means Titan
  Machinery Inc., any company related to Titan Machinery Inc. in the present or
  past (including without limitation, its predecessors, parents, subsidiaries,
  affiliates, joint venture partners, and divisions), and any successors of
  Titan Machinery Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Company means Titan;
  the present and past officers, directors, committees, shareholders, and
  employees of Titan; any company providing insurance to Titan in the present
  or past; the present and past fiduciaries of any employee benefit plan
  sponsored or maintained by Titan (other than multiemployer plans); the
  attorneys for Titan; and anyone who acted on behalf of Titan or on
  instructions from Titan.

  
	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Agreement means the
  letter agreement between me and Titan dated                 ,
  2007, including all of the documents attached to such agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  My Claims mean all of
  my rights that I now have to any relief of any kind from the Company, whether
  I now know about such rights or not, including without limitation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  all
  claims arising out of or relating to my employment with Titan or the
  termination of that employment;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
  all
  claims arising out of or relating to the statements, actions, or omissions of
  the Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
  all
  claims for any alleged unlawful discrimination, harassment, retaliation or
  reprisal, or other alleged unlawful practices arising under any federal,
  state, or local statute, ordinance, or regulation, including without
  limitation, claims under Title VII of the Civil Rights Act of 1964, the Age
  Discrimination in Employment Act, the Americans with Disabilities Act, 42
  U.S.C. § 1981, the Employee Retirement Income Security Act, the Equal Pay
  Act, the Worker Adjustment and Retraining Notification Act, the Sarbanes-Oxley
  Act, the Family and Medical Leave Act, the Fair Credit Reporting Act, the
  North Dakota Human Rights Act, N.D. Stat. § 14.02-4-01 et seq., the North
  Dakota Equal Pay Act, N.D. Stat. § 34-06.1-01 et seq., the North Dakota Age
  Discrimination Act, N.D. Stat. § 34-01-17, and workers’ compensation
  non-interference or non-retaliation statutes;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
  all
  claims for alleged wrongful discharge; breach of contract; breach of implied
  contract; failure to keep any promise; breach of a covenant of good faith and
  fair dealing; breach of fiduciary duty; estoppel; my activities, if any, as a
  “whistleblower”; defamation; infliction of emotional distress; fraud;
  misrepresentation; negligence;

  

 

A-1

 

	
   

  	
   

  	
   

  	
  harassment;
  retaliation or reprisal; constructive discharge; assault; battery; false
  imprisonment; invasion of privacy; interference with contractual or business
  relationships; any other wrongful employment practices; and violation of any
  other principle of common law;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  all
  claims for compensation of any kind, including without limitation, bonuses,
  commissions, stock-based compensation or stock options, vacation pay and paid
  time off, perquisites, and expense reimbursements;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  all
  claims for back pay, front pay, reinstatement, other equitable relief,
  compensatory damages, damages for alleged personal injury, liquidated
  damages, and punitive damages; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
  all
  claims for attorneys’ fees, costs, and interest.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  However,
  My Claims do not include any claims that the law does not allow to be
  waived; any claims that may arise after the date on which I sign this
  Release; any rights I may have to indemnification from Titan as a current or
  former officer, director or employee of Titan; any claims for payment of
  severance benefits under the Agreement; any rights I have to severance pay or
  benefits under the Agreement; or any claims I may have for earned and accrued
  benefits under any employee benefit plan sponsored by the Company in which I
  am a participant as of the date of termination of my employment with Titan.

  

 

Consideration. I am entering
into this Release in consideration of Titan’s obligations to provide me certain
severance benefits as specified in the Agreement. I will receive consideration
from Titan as set forth in the Agreement if I sign and do not rescind this
Release as provided below. I understand and acknowledge that I would not be
entitled to the consideration under the Agreement if I did not sign this
Release. The consideration is in addition to anything of value that I would be
entitled to receive from Titan if I did not sign this Release or if I rescinded
this Release. I acknowledge and represent that I have received all payments and
benefits that I am entitled to receive (as of the date of this Release) by
virtue of any employment by the Company.

 

Agreement to Release My Claims. In exchange for the consideration described in the Agreement, I give up
and release all of My Claims. I will not make any demands or claims  against the Company for compensation or damages
relating to My Claims. The consideration that I am receiving is a fair
compromise for the release of My Claims.

 

Cooperation. Upon the
reasonable request of the Company, I agree that I will (i) timely execute
and deliver such acknowledgements, instruments, certificates, and other
ministerial documents (including without limitation, certification as to
specific actions performed by me in my capacity as an officer of the Company)
as may be necessary or appropriate to formalize and complete the applicable
corporate records; (ii) reasonably consult with the Company regarding
business matters that I was involved with while employed by the Company; and
(iii) be reasonably available, with or without subpoena, to be interviewed,
review documents or things, give depositions, testify, or engage in other
reasonable activities in connection with any litigation or investigation, with
respect to matters that I may have knowledge of by virtue of my employment by
or service to the Company. In performing my obligations under this paragraph to
testify or otherwise provide information, I will honestly, truthfully,
forthrightly, and completely provide 

 

A-2

 

the
information requested, volunteer pertinent information and turn over to the
Company all relevant documents which are or may come into my possession.

 

My Continuing Obligations. I understand and acknowledge that I must comply with
all of my post-employment obligations under the Agreement. I will not defame or
disparage the reputation, character, image, products, or services of Titan, or
the reputation or character of Titan’s directors, officers, employees and
agents, and I will refrain from making public comment about the Company except
upon the express written consent of an officer of Titan.

 

Additional Agreements and Understandings. Even though Titan will provide consideration for me
to settle and release My Claims, the Company does not admit that it is
responsible or legally obligated to me. In fact, the Company denies that it is
responsible or legally obligated to me for My Claims, denies that it engaged in
any unlawful or improper conduct toward me, and denies that it treated me
unfairly.

 

Advice to Consult with an Attorney. I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this
Release and I have done so. My decision whether to sign this Release is my own
voluntary decision made with full knowledge that the Company has advised me to
consult with an attorney.

 

Period to Consider the Release. I understand that I have 21 days from the date
I received this Release (or 21 days after the last day of my employment
with Titan, if later) to consider whether I wish to sign this Release. If I
sign this Release before the end of the 21-day period, it will be my voluntary
decision to do so because I have decided that I do not need any additional time
to decide whether to sign this Release. I understand and agree that if I sign this
Release prior to my last day of employment with Titan it will not be valid and
Titan will not be obligated to provide the consideration described in the
Release.

 

My Right to Rescind this Release. I understand that I may rescind this Release at any
time within 7 days after I sign it, not counting the day upon which I sign it.
This Release will not become effective or enforceable unless and until the
7-day rescission period has expired without my rescinding it. I understand that
if I rescind this Release Titan will not be obligated to provide the
consideration described in the Release.

 

Procedure for Accepting or Rescinding the Release. To accept the terms of this Release, I must deliver
the Release, after I have signed and dated it, to Titan by hand or by mail
within the 21-day period that I have to consider this Release. To rescind my
acceptance, I must deliver a written, signed statement that I rescind my
acceptance to Titan by hand or by mail within the 15-day rescission period. All
deliveries must be made to Titan at the following address:

 

Chief
Financial Officer

                                              

                                              

 

If
I choose to deliver my acceptance or the rescission by mail, it must be
postmarked within the period stated above and properly addressed to Titan at
the address stated above.

 

A-3

 

Interpretation of the Release. This Release should be interpreted as broadly as
possible to achieve my intention to resolve all of My Claims against the
Company. If this Release is held by a court to be inadequate to release a
particular claim encompassed within My Claims, this Release will remain in full
force and effect with respect to all the rest of My Claims. I agree that the
provisions of this Release may not be amended, waived, changed or modified
except by an instrument in writing signed by an authorized representative of
Titan and by me.

 

My Representations. I am legally
able and entitled to receive the consideration being provided to me in
settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with
Titan. No child support orders, garnishment orders, or other orders requiring
that money owed to me by Titan be paid to any other person are now in effect.

 

I
have read this Release carefully. I understand all of its terms. In signing
this Release, I have not relied on any statements or explanations made by the
Company except as specifically set forth in the Agreement. I am voluntarily
releasing My Claims against the Company. I intend this Release and the
Agreement to be legally binding.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  Christianson

  

 

A-4

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