Item 5.02 Departure of Directors or Certain Officers; Election of Director;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On October 17, 2008, Datawatch Corporation announced that its Board of Directors has approved the appointment of Harvey Gross as Vice President of Enterprise Product Management and Development, an executive officer of the company. The Board of Directors also approved officer salary and bonus plans for the 2009 fiscal year, which began on October 1, 2008. For the 2009 fiscal year, base salaries for Kenneth Bero, President and Chief Executive Officer, Murray Fish, Chief Financial Officer and Vice President, John H. Kitchen, III, Senior Vice President and Chief Marketing Officer, and Dan Incropera, Corporate Controller and Vice President, will be $285,000, $170,000, $190,000, and $135,000, respectively. Additionally, Messrs. Fish, Kitchen and Incropera will be eligible for bonus payments based on their achievement of certain management objectives. The targets for these bonuses were set for Messrs. Fish, Kitchen and Incropera in the amounts of $40,000, $20,000, and $14,000, respectively.

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