November 13, 2001
Xxxxxxx Xxxx
0000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxxx, XX 00000
Dear Xxxxxxx:
This letter agreement will confirm the terms of employment associated with your
appointment as Chairman and Chief Executive Officer of Hurco Companies, Inc.
Position and Responsibilities
o Chairman and Chief Executive Officer
o Effective November 13, 2001
o You will continue as a member of Xxxxx's Board of Directors
Compensation
o Base salary $245,000 annually subject to annual review by the
Compensation Committee of the Board of Directors.
o Annual bonus to be determined by the Compensation Committee of the
Board of Directors.
o You will be eligible to participate in the Deferred Compensation
Program as approved by the Compensation Committee.
Vacation
o Vacation consistent with the vacation plan in effect for corporate
officers.
Life Insurance
o You are eligible to participate in the Split Dollar Life Insurance
Plan available to corporate officers.
Other Expenses to be paid by Hurco
o Hurco will provide you with a suitable automobile as it does other
senior officers. Appropriate arrangements will be made
for reimbursement of social / country club expenses intended primarily
for Hurco business purposes.
Relocation Expenses
o Hurco will continue to pay for the apartment you are using until the
earlier of when you acquire permanent housing or you and your family
or September 2, 2002.
o The company will reimburse all reasonable moving expenses including
packing and shipping of household furnishings and personal property.
Reimbursement or direct payment of these expenses will be subject to
submission of appropriate invoices and other supporting documentation.
The reimbursement will be "grossed up" for Federal and State Income
Taxes in accordance with established Company practices for
executive officers.
Employment Termination Agreement
o In the event you are removed as Chairman and Chief Executive Officer
by action of the Board of Directors, your salary and status as an
employee would continue for thirty (30) days following written notice
of termination, at which time you will be paid twelve (12) months
severance, at your then base salary.
o Health, life and disability insurance benefits will be maintained
at the expense of the Company during the twelve months (12) severance
period or until you have obtained alternate employment, if earlier.
o In the event you resign of your own volition prior to the
termination of your employment, Hurco will make no further
payments (salary and benefits) after your last day of employment.
We wish your every success with your new responsibilities.
Sincerely, Acknowledged and accepted
/s/ X. Xxxxxx Xxxx /s/ Xxxxxxx Xxxx
O. Xxxxxx Xxxx Xxxxxxx Xxxx
Chairman,
Compensation Committee 11-13-02
of the Board of Directors Date
