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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
      D.C. 20549</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
      to Section 13 or 15(d) of </strong></font></div>
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      Securities Exchange Act of 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      August 21, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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                INC.</strong></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
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    <div>&#160;</div>
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                incorporation)</font></div>
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            <td valign="top" width="30%">&#160;</td>
            <td width="2%">&#160;</td>
            <td valign="top" width="30%">&#160;</td>
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    </div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

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            <td colspan="2" valign="top" width="60%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4000
                Executive Parkway, Suite 200</strong></font></div>
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                Ramon, CA </strong></font></div>
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            <td width="2%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>94583</strong></font></div>
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            <td width="2%">&#160;</td>
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            <td colspan="4" valign="top" width="92%">&#160;</td>
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          <tr>
            <td colspan="4" valign="top" width="92%">
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                telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(925)
                355-2000</strong></font></div>
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          <tr>
            <td colspan="4" valign="top" width="92%">&#160;</td>
          </tr>
          <tr>
            <td colspan="4" valign="top" width="92%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Not
                Applicable </strong></font></div>
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          </tr>
          <tr>
            <td colspan="4" valign="top" width="92%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                name or former address, if changed since last
                report.)</font></div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
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      communications pursuant to Rule 425 under the Securities Act (17 CFR
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      14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div>
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      communications pursuant to Rule
      13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.02: Termination of a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      previously announced in January and March 2006, SBE, Inc. (&#8220;SBE&#8221;) has
      implemented a company-wide salary reduction program under which all employees&#8217;
salaries have been reduced and under which the members of SBE&#8217;s Board of
      Directors (the &#8220;Board&#8221;) ceased to receive any cash compensation, and has been
      making stock grants to all employees and Board members of SBE pursuant to SBE&#8217;s
      2006 Equity Incentive Plan. Under this stock grant program, since March 2006,
      at
      the time of each regular payroll date of SBE, each employee has received a
      stock
      bonus for a number of shares equal to (a) the dollar amount by such employee&#8217;s
      gross salary was reduced for such payroll period pursuant to SBE&#8217;s salary
      reduction program, divided by (b) 85% of the closing price of SBE&#8217;s Common Stock
      on a date within five business days prior to the payroll date, such date to
      be
      selected by SBE in its sole discretion. In addition, since such time, each
      non-employee member of the Board has received a monthly stock bonus for a number
      of shares equal to (a) his monthly director fee ($3,750 in the case of the
      Chairman of the Board and $2,500 in the case of all other non-employee
      directors), divided by (b) 85% of the closing price of SBE&#8217;s Common Stock on a
      date within five business days prior to the payment date, such date to be
      selected by SBE in its sole discretion.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
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      21, 2006, the Board suspended the stock grant program for all members of the
      Board and the following officers of SBE: Greg Yamamoto, David Brunton, Leo
      Fang,
      Nelson Abal and Kirk Anderson. The suspension shall be effective as of August
      1,
      2006 for all members of the board and effective as of August 16, 2006 for all
      affected officers. Despite suspension of the stock grant program, the
      previously-announced salary reductions and cessation of cash Board compensation
      will remain in effect until such time as the Board shall determine. The Board
      anticipates that it will adopt a bonus plan for the affected individuals that
      will pay a prescribed amount of cash or stock upon SBE&#8217;s completion one of a
      number of specified milestones to be set forth in a written bonus plan, provided
      that the affected individual remains employed by the Company or a member of
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      Board at the time such milestone is achieved. SBE will make an announcement
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned, thereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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      August 22, 2006</font></div>
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          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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                Inc. </strong></font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                David W. Brunton</font></div>
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                W. Brunton</font></div>
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                Financial Officer</font></div>
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{"company-data": {"conformed-name": "SBE INC", "cik": "0000087050", "assigned-sic": "3576", "irs-number": "941517641", "state-of-incorporation": "DE", "fiscal-year-end": "1031"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-08419", "film-number": "061050297"}, "business-address": {"street1": "4550 NORRIS CANYON ROAD", "city": "SAN RAMON", "state": "CA", "zip": "94583", "phone": "5103552000"}, "mail-address": {"street1": "4550 NORRIS CANYON RD", "city": "SAN RAMON", "state": "CA", "zip": "94583"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of
The
      Securities Exchange Act of 1934
Date
      of
      Report (Date of earliest event reported):
August 21, 2006
SBE,
                INC.
(Exact
                name of registrant as specified in its
                charter)
Delaware
0-8419
94-1517641
(State
                or other jurisdiction
(Commission
                File Number)
(IRS
                Employer Identification No.)
of
                incorporation)
4000
                Executive Parkway, Suite 200
San
                Ramon, CA
94583
(Address
                of principal executive offices)
(Zip
                Code)
Registrant's
                telephone number, including area code:
(925)
                355-2000
Not
                Applicable
(Former
                name or former address, if changed since last
                report.)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under
      the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
      communications pursuant to Rule
      14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule
      13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
      1.02: Termination of a Material Definitive Agreement.
As
      previously announced in January and March 2006, SBE, Inc. ("SBE") has
      implemented a company-wide salary reduction program under which all employees'
salaries have been reduced and under which the members of SBE's Board of
      Directors (the "Board") ceased to receive any cash compensation, and has been
      making stock grants to all employees and Board members of SBE pursuant to SBE's
      2006 Equity Incentive Plan. Under this stock grant program, since March 2006,
      at
      the time of each regular payroll date of SBE, each employee has received a
      stock
      bonus for a number of shares equal to (a) the dollar amount by such employee's
      gross salary was reduced for such payroll period pursuant to SBE's salary
      reduction program, divided by (b) 85% of the closing price of SBE's Common Stock
      on a date within five business days prior to the payroll date, such date to
      be
      selected by SBE in its sole discretion. In addition, since such time, each
      non-employee member of the Board has received a monthly stock bonus for a number
      of shares equal to (a) his monthly director fee ($3,750 in the case of the
      Chairman of the Board and $2,500 in the case of all other non-employee
      directors), divided by (b) 85% of the closing price of SBE's Common Stock on a
      date within five business days prior to the payment date, such date to be
      selected by SBE in its sole discretion.
On
      August
      21, 2006, the Board suspended the stock grant program for all members of the
      Board and the following officers of SBE: Greg Yamamoto, David Brunton, Leo
      Fang,
      Nelson Abal and Kirk Anderson. The suspension shall be effective as of August
      1,
      2006 for all members of the board and effective as of August 16, 2006 for all
      affected officers. Despite suspension of the stock grant program, the
      previously-announced salary reductions and cessation of cash Board compensation
      will remain in effect until such time as the Board shall determine. The Board
      anticipates that it will adopt a bonus plan for the affected individuals that
      will pay a prescribed amount of cash or stock upon SBE's completion one of a
      number of specified milestones to be set forth in a written bonus plan, provided
      that the affected individual remains employed by the Company or a member of
      the
      Board at the time such milestone is achieved. SBE will make an announcement
      of
      such bonus plan at the time it is adopted by the Board.
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned, thereunto
      duly authorized.
Dated:
      August 22, 2006
SBE,
                Inc.
By:
/s/
                David W. Brunton
David
                W. Brunton
Chief
                Financial Officer