Item 8.01 Other Events

Todd Shipyards Corporation's ("Company") chief executive officer, Stephen G. Welch, entered into a pre-arranged, non-discretionary stock trading plan.

Under the adopted plan Mr. Welch may sell a maximum of 100,000 shares between the plan's inception date in June 2008 and the plan's April 30, 2010 end date, which represents approximately 60% of his holdings. Mr. Welch sold no stock during the first year the plan was in affect. The sales are being made for diversification and tax planning purposes and will be publicly disclosed through Form 4 filings with the Securities and Exchange Commission. The plan was adopted in accordance with guidelines specified under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and the Company's policies regarding stock transactions.

Rule 10b5-1 permits individuals who are not in possession of material, non-public information at the time the plan is adopted to establish pre-arranged plans to buy or sell company stock. These plans allow individuals to achieve prudent and gradual asset diversification over time.