RESTRICTED STOCK AWARD AGREEMENT (EMPLOYEE)

Exhibit 10.1

RESTRICTED STOCK AWARD AGREEMENT (EMPLOYEE)

This Restricted Stock Award Agreement (“Agreement”) has been entered into as of the day of , 20 , between Hurco Companies, Inc., an Indiana corporation (the “Company”), and _____________ (“Participant”), an employee of the Company or one of the Company’s subsidiaries pursuant to the Company’s 2016 Equity Incentive Plan (the “Plan”).

WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) has granted to Participant a restricted stock award pursuant to the terms and conditions as provided in the Plan and this Agreement;

WHEREAS, the Company and Participant desire to set forth the terms and conditions of the award; and

WHEREAS, capitalized terms used but not otherwise defined herein shall have their meanings set forth in the Plan.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the Company and Participant agree as follows:

1.          Grant of Award. Subject to the terms and conditions stated in the Plan and this Agreement, the Committee hereby grants to Participant an award of ____________ restricted shares (the “Restricted Stock”) of the Company’s common stock (the “Common Stock”). The date of this grant (the “Restricted Stock Award Date”) is _________, 20__ .

2.          Representations of Participant. Participant hereby (a) accepts the award of Restricted Stock described in paragraph 1 hereof, (b) agrees that the Restricted Stock will be held by him or her and his or her successors subject to (and will not be disposed of except in accordance with) all of the restrictions, terms and conditions contained in this Agreement and the Plan, and (c) agrees that any certificates issued for the Restricted Stock may bear the following legend or such other legend as the Company, from time to time, deems appropriate:

“The transferability of this certificate and the shares represented hereby are subject to the terms and conditions (including forfeiture) contained in the Hurco Companies, Inc. 2016 Equity Incentive Plan, and an Award Agreement entered into between the registered owner and Hurco Companies, Inc. Copies of the Plan and Award Agreement are on file in the office of the Secretary of Hurco Companies, Inc.”

and that any book-entry of the Restricted Stock shall be subject to comparable stop transfer instructions.

3.          Vesting. Subject to the terms of the Plan and this Agreement, the Restricted Stock held by Participant shall become fully vested and nonforfeitable as to 1/3 of the shares of Restricted Stock on a cumulative basis, on each of the first, second, and third anniversaries of the Restricted Stock Award Date.

4.          Restriction Period. Except as otherwise provided in this Agreement, the Plan, or the Company’s Stock Ownership Policy, Participant may not sell, assign, transfer, pledge or otherwise dispose of or encumber any of the shares of Restricted Stock, or any interest therein, until his or her rights in such shares have vested in accordance with this Agreement (the “Restriction Period”). Any purported sale, assignment, transfer, pledge or other disposition or encumbrance in violation of this Agreement or the Plan will be void and of no effect.

5.          Voting and Dividends. During the Restriction Period, and except as otherwise provided in the Plan, Participant shall have all of the rights of a shareholder of the Company with respect to the Restricted Stock, including the right to vote the Restricted Stock. Any dividends or distributions paid with respect to the Restricted Stock during the Restriction Period shall be subject to the same restrictions and other terms and conditions as the Restricted Stock to which such dividends or distributions relate.

6.          Forfeiture. Except as provided in the Plan or by the Committee, in its sole discretion, upon termination of service with the Company or one of its subsidiaries, Participant shall forfeit all unvested shares of Restricted Stock, and shall not receive any compensation for such forfeited Restricted Stock. Participant shall have no further rights as a shareholder of the Company with respect to the forfeiture, including, without limitation, any right to receive any distribution payable to shareholders of record on or after the date of such forfeiture.

7.          Certificates or Book Entry. As soon as practicable after the Restricted Stock Award Date, the Company shall issue a stock certificate or establish a book entry in respect of the Restricted Stock which will be registered in Participant’s name. Any such stock certificate shall be deposited with the Company or its designee, together with an assignment separate from the certificate, in blank, signed by the Participant, and bear an appropriate legend referring to the restricted nature of the Restricted Stock evidenced thereby, including, but not limited to, the legend set forth in paragraph 2 hereof. Any book entry of the Restricted Stock shall be subject to comparable restrictions and corresponding stop transfer instructions. To the extent the shares of Restricted Stock become vested, and upon the Company’s determination that any necessary conditions precedent to the release of vested Shares (such as satisfaction of tax withholding obligations and compliance with applicable legal requirements) have been satisfied, the Company shall promptly provide Participant (or in the case of his death, his designated beneficiary) the certificates for the appropriate number of shares of Common Stock or shall release restrictions on any book entry evidencing the appropriate number of shares of Common Stock.

8.          Withholding. Prior to delivery of any shares of Common Stock pursuant to the vesting of Restricted Stock, the Company has the right and power to deduct or withhold, or permit Participant to remit to the Company, an amount (including an amount of shares of Common Stock) sufficient to satisfy all applicable tax withholding requirements, as set forth in the Plan.

9.          Qualification of Rights. Neither this Agreement nor the existence of the award shall be construed as giving Participant any right to be retained as an employee of the Company or any of its subsidiaries.

10.         Plan Controlling. The terms and conditions set forth in this Agreement are subject in all respects to the terms and conditions of the Plan, which are controlling. All determinations and interpretations of the Committee shall be binding and conclusive upon Participant and his or her legal representatives.

11.          Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana (without regard to any applicable principles of conflicts of law that might require the application of another jurisdiction’s laws).

12.          Notices. All notices and other communications required or permitted under this Agreement shall be written and shall be delivered personally or sent by registered or certified first-class mail, postage prepaid and return receipt required, addressed as follows: if to the Company, to the Company’s executive offices in Indianapolis, Indiana, and if to Participant or his or her successor, to the address last furnished by Participant to the Company. Each notice and communication shall be deemed to have been given when received by the Company or Participant.

13.          No Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

14.         Recoupment. Any rights, payments and benefits Participant may receive hereunder shall be subject to repayment or forfeiture pursuant to the Company’s policy on recoupment or recovery of incentive compensation, as in effect from time to time, and all laws and listing standards related to the recoupment or recovery of incentive compensation, all to the extent determined by the Company in its discretion to be applicable to Participant. This Section 14 shall not be the Company’s exclusive remedy with respect to such matters.

15.         Miscellaneous. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same instrument. This Agreement was negotiated by the parties hereto, each of which had the opportunity to engage legal counsel, and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party shall not apply to any construction or interpretation hereof. This Agreement supersedes all prior agreements, whether written or oral, between the parties with respect to its subject matter and, together with the Plan, constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of, the parties hereto and their respective permitted successors and assigns.

IN WITNESS WHEREOF, the Company and Participant have executed this Agreement as of the date first written above.