Tuesday, June 9, 2015

TITAN Machinery CoFounder Jumps Out As President With Golden Parachute

Titan Machinery co founder Peter Christenson suddenly stepped down as President and from the board of directors effective June 4,2015. No explanation as to why he is stepping down has yet to be disclosed. As of this morning the company still has not named a new president.

Today the company disclosed the service agreement that Titan has entered into with the former president.
According to the footnote in the 10Q, the President "ELECTED TO RESIGN" and was not removed by the board.
  • The Company will compensate Service Provider (Peter Christianson)  for his consulting services at $500,000 per year, payable on a monthly basis.
  •  While Service Provider is not obligated to work a certain schedule or number of hours per week, and the Parties’ focus will be on satisfactory results, the Parties estimate that the project work for the Company will require approximately 120 hours per month.
  •  . Service Provider will provide consulting services as an independent contractor to the Company beginning on February 1, 2016, for a term of three (3) years, ending on January 31, 2019. The parties may extend the period of their consulting relationship by mutual, written agreement
  •  The Company shall not direct or control the means or manner in which Service Provider performs the services. Service Provider is free to work his own schedule and do the job at his own pace and via his own methods, subject only to his obligation to satisfy standards the Company for the project in a timely manner.
  •  The Company also will reimburse Service Provider for reasonable attorney fees incurred in connection with negotiating this Agreement. 
  •  Unauthorized Disclosure of Information. If it appears that Service Provider has disclosed (or is about to disclose) Information in violation with this Agreement, the Company shall be entitled to an injunction to restrain Service Provider from disclosing, in whole or in part, such Information, or from providing any services to any party to whom such Information has been disclosed or may be disclosed. The Company shall not be prohibited by this provision from pursuing other remedies, including a claim for losses and damages.
  •  Availability of Injunctive Relief. A breach of this Agreement may cause irreparable harm for which monetary damages may be inadequate. In addition to the right to petition the court for provisional relief, Service Provider agrees that the Company may also petition the court for injunctive relief without having to post a bond or other security where the Company alleges or claims a violation of Sections 11 (Confidentiality) and 12 (Intellectual Property) of this Agreement, Section 10 of Exhibit B to this Agreement (Availability for Other Work), or any other agreement regarding trade secrets, confidential information or non-solicitation.
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2 comments:

  1. Glad Titan can afford to drop a half million on a guy that never ran the company profitable. Quite the irony.

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    1. $500,000 per year for 3 years. He earned $500,000 year as president and they don't even have a president anymore, so I guess the position he did hold wasn't so important.
      On top of that this guy and his brothers and family members along with the chairman (have) had an equity interest in a real estate company that Titan has a $100 million agreement.
      http://newsgrade.blogspot.com/2013/04/titan-machinery-files-proxy-statement.html

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