Exhibit 10.1


 


HURCO COMPANIES, INC.


FISCAL 2015 SHORT-TERM INCENTIVE
COMPENSATION PLAN


 


A.           General


 


The Fiscal 2015 Short-Term Incentive Compensation
Plan (the “Plan”) of Hurco Companies, Inc. (the “Company”) is administered by the Compensation Committee
of the Board of Directors of the Company. The Compensation Committee has the authority to interpret and administer all provisions
and to make any rules and regulations or take any action it deems necessary with respect to the Plan.


 


Any payment of short-term incentive compensation
for fiscal 2015 to a participant will be paid in cash, less applicable tax withholding, as determined by the Compensation Committee
no later than January 31, 2016.


 


B.           Participation


 


The executive officers of the Company listed
in the table below have been granted an award under the Plan. Any participant whose employment terminates during fiscal 2015 for
any reason other than death, disability or retirement will have forfeited all rights and interests in and to any short-term compensation
that may have accrued or been earned while the participant was actively employed. If a participant’s employment with the
Company terminates during fiscal 2015 due to death, disability or retirement, the Compensation Committee may, in its sole discretion,
approve the payment of a pro-rated portion of the amount payable under the Plan to such participant. For purposes of the Plan,
the term “disability” means the total and permanent disability of the participant as determined by the Compensation
Committee pursuant to section 22(e)(3) of the Internal Revenue Code of 1986, as amended, and the term “retirement”
means termination of the participant’s employment with the Company after the participant’s 65th birthday
or such other age as set forth in the Company’s retirement policy as in effect from time to time.


 


C.           Performance
Metrics and Percentage Payout Levels


 


 


Compensation under the
Plan will be based upon the achievement of the performance metrics and relative weightings set forth below:


 


	Name	 	Performance Metric	 	Weighting	 
	Michael Doar	 	Operating Income Margin	 	70	%
	 	 	Strategic Objectives	 	 	30	%
	 	 	 	 	 	 	 
	Gregory S. Volovic	 	Operating Income Margin	 	 	70	%
	 	 	Strategic Objectives	 	 	30	%
	 	 	 	 	 	 	 
	John P. Donlon	 	Operating Income Margin	 	 	50	%
	 	 	Strategic Objectives	 	 	50	%
	 	 	 	 	 	 	 
	Sonja K. McClelland	 	Operating Income Margin	 	 	70	%
	 	 	Strategic Objectives	 	 	30	%



  




    	 



    	 



    

 


“Operating
Income Margin” is defined as the operating income of the Company on a consolidated basis divided by the sales and
service fees of the Company on a consolidated basis, each as reported in the Company’s audited financial statements for
the fiscal year ending October 31, 2015. The Compensation Committee will establish the performance goals related to Operating
Income Margin and the percentage payout levels (the “Percentage Payout Levels”) that will be associated with the
attainment of those performance goals. The Percentage Payout Levels for Operating Income Margin will range from 50%
(threshold) to 100% (Target Amount (as defined below)) to 200% (maximum), with amounts interpolated between the stated
performance levels. The performance goals and Percentage Payout Levels related to Operating Income Margin will be established
by the Compensation Committee and communicated to the participants at a time when the outcome with respect to the relevant
performance under those performance goals is substantially uncertain.


 


The Compensation Committee
will establish and communicate to each of the participants his or her Strategic Objective(s) and the associated Percentage Payout
Level(s) at a time when the outcome with respect to the achievement of the Strategic Objectives is substantially uncertain. The
aggregate Percentage Payout Level for the 2015 Strategic Objectives for each participant may range from 50% to 200% of the Target
Amount.


 


D.           Determination
of Attainment






Following the end of
fiscal year 2015, the Compensation Committee will determine the degree to which the Operating Income Margin goals were attained
and the overall achievement by each participant of the applicable 2015 Strategic Objectives, and the resulting Percentage Payout
Level relative to the Target Amount for each metric.


 


The weightings applicable
to each of Operating Income Margin and the 2015 Strategic Objectives set forth above shall be applied to the Percentage Payout
Level for each metric by participant as determined by the Compensation Committee, resulting in a weighted-average Percentage Payout
Level (“Weighted-Average Percentage Payout Level”) relative to the Target Amount for each officer. If Operating Income
Margin is zero or a negative number, then no amounts will be paid under the Plan, even if all or a portion of the performance goals
under the 2015 Strategic Objectives were attained.


 


E.           Target
Amount


 


The Weighted-Average Percentage Payout Level applicable to each
participant will be multiplied by his or her “Target Amount,” which shall be determined by multiplying the base salary
of the applicable participant paid during fiscal 2015 by the target percentage set forth below:


 


	Name	 	Target Percentage of 
2015 Base Salary	 
	Michael Doar	 	 	85	%
	Gregory S. Volovic	 	 	75	%
	John P. Donlon	 	 	40	%
	Sonja K. McClelland	 	 	50	%



 


The Committee retains the discretion to adjust downward, but
not upward, the amount of compensation that would otherwise be payable under the Plan.