Document:

Exhibit
10.1

 

TAKUMI
SALE AGREEMENT

 

This
TAKUMI SALE AGREEMENT (this “Agreement”),
dated as of July 14, 2015, is entered into by and between HURCO COMPANIES, INC., an Indiana corporation (“Hurco”),
HURCO MANUFACTURING LIMITED, a company limited by shares incorporated under the laws of the Republic of China (“HML”),
and LIBERTY DIVERSIFIED INTERNATIONAL, INC., a Minnesota corporation (“LDI”). Hurco, HML, and LDI are collectively
referred to in this Agreement as the “Parties.”

 

RECITALS

 

A.            Hurco
owns all of the issued capital stock of the sole shareholder of HML.

 

B.             LDI
is the primary shareholder of Takumi-Machinery Co., Ltd., a company limited by shares incorporated under the laws of the Republic
of China (“Takumi-Taiwan”).
LDI holds approximately 98% of the total issued shares of Takumi-Taiwan (the “LDI
Shares”).

 

C.             Hurco
owns all of the issued capital stock of Hurco USA, Inc., an Indiana corporation (“Hurco
USA”). LDI owns all of the issued capital stock of Milltronics Manufacturing Company, Inc. d/b/a Milltronics CNC
Machines, a Minnesota corporation (“Milltronics”).
Hurco USA, Milltronics and LDI have entered into that certain Asset Purchase Agreement of even date herewith (the “Milltronics
APA”), pursuant to which Hurco USA will purchase substantially all of Milltronics’ assets (the “Milltronics
Transaction”). The execution of this Agreement by the Parties is a condition precedent to the closing of the Milltronics
APA.

 

D.            Concurrent
with the execution of the Milltronics APA, HML, LDI and Takumi-Taiwan will execute an Asset Purchase Agreement and related
documents (collectively, the “Takumi
APA”). pursuant to which HML will purchase certain of Takumi-Taiwan’s assets and goodwill (the
“Takumi
Transaction”). In consideration of Taiwan law, the Parties and Takumi-Taiwan have agreed, and the Takumi
APA so provides, that the effectiveness of the Takumi APA will remain subject to the approval of the shareholders of
Takumi-Taiwan.

 

E.             LDI
acknowledges that while the terms of the Milltronics APA and Takumi APA contemplate separate transactions between different buyers
and sellers, LDI and Hurco have negotiated the two transactions as an integrated acquisition arrangement.

 

F.             The
Parties desire to close the Milltronics Transaction on or before July 15, 2015 and to close the Takumi Transaction on or before
July 31, 2015. Subject to the terms of this Agreement, LDI has agreed to take certain actions, or as primary shareholder of Takumi-Taiwan
to cause Takumi- Taiwan to take certain actions, as set forth in detail in this Agreement, in order to comply with Taiwan law governing
requisite approvals of the Takumi Transaction and to cause the Takumi Transaction to close at the earliest possible date.

 

G.             LDI
will receive substantial benefits from the consummation of the Milltronics Transaction and the Takumi Transaction and enters into
this Agreement to provide a material inducement to Hurco USA and HML to enter into and consummate the Milltronics APA and the Takumi
APA.

 

    	-1-

    	 

    

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the promises and covenants contained herein, the Parties agree as follows:

 

ARTICLE I

Approval
of the Takumi Transaction

 

Section
1.1. Execution of the Takumi APA. LDI warrants (i) all necessary action in compliance with Taiwan law has been
taken to conduct a Meeting of the Board of Directors of Takumi-Taiwan to obtain authorization from its directors and supervisors
for the execution of the Takumi APA by the Chairman of Takumi-Taiwan concurrent with the execution of the Milltronics APA and
(ii) at such Board Meeting, the Board of Directors of Takumi Taiwan authorized the Chairman of Takumi-Taiwan to execute the Taiwan
APA, provided that the consummation of the transactions contemplated by the Takumi APA shall be subject to the approval of the
Takumi Transaction by the shareholders of Takumi-Taiwan.

 

Section
1.2. Shareholder Meeting. LDI, as the primary shareholder of Takumi-Taiwan, will cause Takumi-Taiwan to take
the following actions in order to obtain requisite shareholder approval of the Takumi Transaction:

 

(a)             As
soon as practicable after the closing of the Milltronics Transaction and the execution of the Takumi APA and in all cases, on or
before July 17, 2015, LDI shall cause to be delivered a meeting notice to all shareholders of Takumi-Taiwan in form and substance
the same as Exhibit A to this Agreement
(the “Shareholder Notice”),
calling a Special Shareholders Meeting of Takumi-Taiwan on the earliest practicable date as permitted by Taiwan law and in all
cases, on or before July 30, 2015 (the “Shareholder
Meeting”) to approve the Takumi Transaction and Takumi APA, including without limitation, all acts required to
perform Takumi-Taiwan’s obligations under the Takumi APA and close the Takumi Transaction (the “Special
Resolution”); and

 

(b)             LDI
shall cause Takumi to conduct the Shareholder Meeting, shall attend the Shareholder Meeting, and shall call the vote on the Special
Resolution.

 

Section
1.3. Voting. LDI agrees to vote the LDI Shares to approve the Takumi Transaction and Takumi APA at the Shareholder
Meeting and to take any and all other action necessary to cause the Takumi Transaction to be approved by the shareholders of Takumi-Taiwan.
LDI warrants that by virtue of LDI’s attendance at the Shareholder Meeting, and committed vote to approve the Shareholder
Resolution, sufficient issued shares of Takumi-Taiwan shall have approved the Special Resolution as required by Taiwan law.

 

Section
1.4. Closing. After approval of the Special Resolution, LDI shall cause Takumi-Taiwan to take all action necessary
on its part to close the Takumi Transaction within one business day or as soon as practicable thereafter and in all cases, on
or before July 31, 2015.

 

    	-2-

    	 

    

 

ARTICLE II

Exclusivity

 

Up
to and through approval and closing of the Takumi Transaction as contemplated under this Agreement, LDI will not, and LDI will
cause Takumi-Taiwan and LDI’s other subsidiaries, shareholders, affiliates, representatives and agents not to, directly or
indirectly, solicit, initiate, seek or encourage any inquiry, proposal or offer from, furnish any information to, or participate
in any discussions or negotiations with, any person (other than Hurco, HML, or any person on Hurco or HML’s behalf) regarding
any acquisition or disposition of any of the capital stock, assets, or business, in whole or in part, of Takumi-Taiwan, whether
directly or indirectly (by merger, tender offer, purchase, statutory share exchange, joint venture or otherwise).

 

ARTICLE III

Indemnification

 

Section
3.1. Indemnification. LDI shall defend, indemnify, and hold Hurco, HML, and their respective directors, officers,
shareholders, employees, agents, successors and assigns (collectively, the “Indemnified
Parties” and each, an “Indemnified
Party”) harmless from and against any and all liabilities, losses, damages, claims, costs or expenses (including,
without limitation, all attorneys’ fees and out of pocket costs and expenses incurred by HML and Hurco in negotiating, documenting
and preparing for the closing of the Takumi Transaction) (collectively, “Losses”),
incurred or suffered by any Indemnified Party resulting from, related to, arising out of, based upon, or by reason of (i) LDI’s
breach of any term or provision of this Agreement, or (ii) the Takumi Transaction’s failure or inability to close on or
before July 31, 2015 by reason of Takumi-Taiwan not obtaining full approval of and authorization by its Board of Directors and
its shareholders, as required by applicable Taiwan law, to execute and perform the Takumi APA and to close and consummate the
Takumi Transaction in accordance with the Takumi APA. LDI agrees in all events, the Losses are to be measured the same as if the
Taiwan APA was approved and enforceable and Takumi-Taiwan without good cause breached and failed to close the Taiwan Transaction.

 

Section
3.2. Recovery. All Losses that are indemnified pursuant to Section 3.1 of this Agreement may be recovered by
Hurco or HML or any other Indemnified Party, at Hurco’s sole election, from the “Escrowed Funds” (as such term
is defined in the Milltronics APA), to the extent of such funds. Recourse against the Escrowed Funds for Losses shall at all times
be at Hurco’s sole election. Neither the exercise nor the failure to exercise any of Hurco or HML’s rights under this
Agreement, the Milltronics APA, or any agreement executed in connection with the foregoing shall constitute an election of remedies
or limit any of the Indemnified Parties in any manner in the enforcement of any other remedies that may be available to the Indemnified
Parties. Under no circumstances shall the liability of LDI for Losses incurred by any of the Indemnified Parties be limited to
the Escrowed Funds. Milltronics consents to the rights of Hurco or HML or any other Indemnified Party to recover Losses that are
indemnified pursuant to Section 3.1 of this Agreement from the Escrowed Funds, as evidenced by its Acknowledgement and Consent
immediately following the signatures by the Parties to this Agreement.

 

Section
3.3. Attorneys’ Fees. If Hurco or HML is the prevailing party in an action to recover any Losses for LDI’s
breach of this Agreement, LDI shall pay all of Hurco or HML’s costs and expenses, including all reasonable attorneys' fees
and expenses, incurred by Hurco or HML as a result of the breach or as a result of having to enforce this Agreement.

 

    	-3-

    	 

    

 

ARTICLE IV

Miscellaneous

 

Section
4.1. Incorporation of Recitals. The Parties agree that all of the statements in the Recitals of this Agreement
are correct and accurate. The Recitals are hereby incorporated into this Agreement by reference.

 

Section
4.2. Assignment. LDI shall not assign any of its rights or obligations under this Agreement without the express
written consent of Hurco.

 

Section
4.3. No Third Party Beneficiaries. Each of the provisions of this Agreement is for the sole and exclusive benefit
of the Parties respectively, as their interests may appear, and shall not be deemed for the benefit of any other person, firm,
corporation, entity or group of persons or entities, other than the Parties’ respective successors and permitted assigns.

 

Section
4.4. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors, assigns, devisees, and legal representatives.

 

Section
4.5. Partial Invalidity. In the event that any term or provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement or the application of such term or provision
to persons or circumstances other than those as to which it is held invalid, void or unenforceable shall not be affected thereby,
and every term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

 

Section
4.6. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State
of Minnesota, without giving effect to its conflicts of law rules.

 

Section
4.7. Entire Agreement. This Agreement is the entire agreement and supersedes all prior agreements and understandings,
written or oral, between the Parties with respect to the subject matter of this Agreement.

 

Section
4.8. Headings. The section and other headings contained in this Agreement are for convenience only and shall
not be deemed to limit, characterize or interpret any provision of this Agreement.

 

Section
4.9. Amendment. This Agreement may not be amended, modified, or changed in any respect without the approval
and written consent of the Parties.

 

Section
4.10.         Waiver.
None of the terms of this Agreement shall be deemed to have been waived by any Party, unless such waiver is in writing and signed
by that Party. No action taken pursuant to this Agreement, including any investigation by or on behalf of any Party, shall be deemed
to constitute a waiver by the Party taking such action of compliance with any representation, warranty, covenant or agreement contained
herein. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of
any other provision of this Agreement or of any further breach of the provision so waived or of any other provision of this Agreement.
No extension of time for the performance of any obligation or act hereunder shall be deemed an extension of time for the performance
of any other obligation or act.

 

Section
4.11.         Further
Assurances. The Parties shall make, execute, acknowledge and deliver such other instruments and documents, and take
all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby.

 

    	-4-

    	 

    

 

Section
4.12.         Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery and thereafter
shall be deemed to be an original, and all of which shall be taken to be one and the same instrument with the same effect as if
each of the Parties had signed the same signature page. Any signature page of this Agreement may be detached from any counterpart
of this Agreement without impairing the legal effect of any signature thereon and may be attached to another counterpart of this
Agreement identical in form hereto and having attached to it one or more additional signature pages.

 

Signature
Page Follows

 

    	-5-

    	 

    

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to
be duly executed by their respective officers, each of whom is duly authorized, as of the day and year first written above.

 

	 	HURCO COMPANIES, INC.
	 	 
	 	By:	/s/ Greg Volovic
	 	 	Greg Volovic, President

 

	 	HURCO MANUFACTURING LIMITED
	 	 	 
	 	By:	/s/ Sonja K. McClelland
	 	Printed:	Sonja K. McClelland
	 	Title:	Director

 

	 	LIBERTY DIVERSIFIED INTERNATIONAL, INC.
	 	 	 
	 	By:	/s/ Byron Wieberdink
	 	Printed:	Byron Wieberdink
	 	Title:	VP & CFO

 

ACKNOWLEDGEMENT and CONSENT:

 

	MILLTRONICS MANUFACTURING COMPANY, INC.
	 
	By:	/s/ Byron Wieberdink
	Printed:	Byron Wieberdink
	Title:	VP & CFO

 

[Signature Page to Takumi Sale Agreement]

 

    	 

    	 

    

 

Exhibit A

 

NOTICE OF SPECIAL SHAREHOLDERS MEETING

OF

TAKUMI MACHINERY CO., LTD. 

 

匠澤機械股份有限公司臨時股東會開會通知

 

To:Shareholders of Takumi Machinery Co., Ltd.

致匠澤機械股份有限公司全體股東

 

Date: July 16, 2015

日期民國104年7月16日

 

Please be advised that the Special Shareholders Meeting of Takumi
Machinery Co., Ltd. will be held on July 27, 2015 at 10:00 a.m. at the conference room of the Company.

 

匠澤機械股份有限公司將於民國104年7月27日上午十點於本公司會議室召開臨時股東會。

 

AGENDA

議程

 

		1.	Disposal of Business and Related Assets of the Company.

處分公司營業及相關資產案。

 

		2.	Amendment to Articles of Incorporation

章程修正案

 

		3.	Other Business, if any.

其他議案。

 

Board of Directors, Takumi
Machinery Co., Ltd.

匠澤機械股份有限公司董事會a51133859ex4_7.htm

  

EXHIBIT 4.7

FORM OF RESTRICTED STOCK AWARD

 

Date

  

Dear _______________:

 

I am pleased to inform you that the Compensation/Incentive Committee of Chemed Corporation (the "Company"), has granted you _______ shares of the Company's Capital Stock ("Capital Stock"), par value $1.00 per share, under the 2015 Stock Incentive Plan (the "Plan"). This letter evidences the issuance or transfer of such shares to you today and sets forth the agreement under which such shares (hereinafter sometimes called the "Restricted Shares") are being issued or transferred to you.

 

	 	
1.

	The Restricted Shares are issued or transferred to you subject to the following restrictions:
	 
	 	 	
(a)

	
As long as you are employed by the Company or a Subsidiary (as defined in paragraph 9 below) and until the restrictions set forth in this subparagraph (a) lapse in accordance with paragraph 5, you will not, except as otherwise specifically required or permitted by this Agreement, sell, exchange, transfer, pledge, hypothecate or otherwise dispose of any of the Restricted Shares or any interest therein.

	 
	 	 	
(b)

	
During your employment with the Company or a Subsidiary, you will not, except as otherwise required or permitted by this Agreement, sell, exchange, transfer, pledge, hypothecate or otherwise dispose of any Restricted Shares, or any interest therein, with respect to which the restrictions on transfer herein imposed have not lapsed ("Non-vested Shares").

	 
	 	
2.

	Upon the issuance or transfer to you of the Restricted Shares, you shall for all purposes be a stockholder of record of the Company with respect to the Restricted Shares and shall have all rights of a holder of Capital Stock with respect to such shares (including the right to vote such shares at any meeting of holders of Capital Stock and the right to receive all dividends paid with respect to such shares), subject only to the restrictions imposed by paragraph 1 of this Agreement. To evidence such restrictions and until such restrictions shall have lapsed, the certificates or book entry for the Restricted Shares shall carry a legend to the effect, in form satisfactory to the Company's counsel, that they were issued or transferred subject to, and may be sold or otherwise disposed of only in accordance with, the terms of this Agreement.
	 
	 	
3.

	Under Section 83(b) of the Internal Revenue Code, you may, within 30 days from the date of grant of the Restricted Shares, make an election which would cause you to be taxed on the value of such Shares based on their Fair Market Value (as defined in the Plan) on the date of grant; otherwise, in the absence of such an election, you will be taxed at the time of the lapse on the Restricted Shares, based on their Fair Market Value at the time of the lapse.
	 
	 	
4.

	In the event that, as the result of a stock dividend, stock split, recapitalization, merger, consolidation, reorganization, or other similar event, you shall, as the owner of Restricted Shares, be entitled, under the provisions of the Plan or otherwise, to new or additional or different shares or securities as follows:
	 
	 	 	
(a)

	
such new or additional or different shares or securities shall be deemed "Restricted Shares,"

	 
	 	 	
(b)

	
all the provisions of this Agreement relating to restrictions and lapse of restrictions shall be applicable thereto, and

	 
	 	 	
(c)

	
the certificates or other instruments evidencing such new or additional or different shares or securities shall bear the legend referred to in the third sentence of paragraph 2. The foregoing restrictions shall not apply to any fractional shares resulting from any such event, or to any pre-emptive or other rights to purchase securities to which you, as a holder of Restricted Shares, may become entitled in connection with a public offering of Capital Stock.

	 
	 	
5.

	
(a)

	
The restrictions set forth in paragraph 1 above on the transfer of the Restricted Shares shall lapse ratably as follows, subject to all the then applicable provisions of this Agreement:

	 
	 	 	 	
_______ Shares on or after [first anniversary of grant]

	 
	 	 	 	
_______ Shares on or after [second anniversary of grant]

	 
	 	 	 	
_______ Shares on or after [third anniversary of grant]

 

 

  

E-1

  

 

 

	 	 	
(b)

	
If your employment with the Company or a Subsidiary shall, while you hold any Non-vested Shares, terminate for any reason other than death, disability, retirement under a retirement plan of the Company or a Subsidiary, or change in control of the Company such Non-vested Shares shall be forfeited by you. If your employment with the Company or a Subsidiary shall, while you hold any Non-vested Shares, terminate by reason of death, disability, or change in control of the Company, the restrictions on transfer applicable to such Non-vested Shares shall lapse pro-rata as of the effective date of such termination of employment. If your employment with the Company or a Subsidiary shall terminate by retirement under a retirement plan of the Company or a Subsidiary the restrictions on transfer shall lapse on a pro rata basis one third on each annual anniversary of the grant.

	 
	 	 	
(c)

	
If, as and when the restrictions lapse with respect to Restricted Shares pursuant to this paragraph 5, there will be delivered to you, promptly upon your request, certificates or book entry free of any legend for a like number of shares in exchange for those referred to in paragraph 2 of this Agreement.

	 
	 	
6.

	Except as otherwise expressly required or permitted by this Agreement, no right, benefit or interest in the Restricted Shares or under this Agreement shall be subject to anticipation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation.
	 
	 	
7.

	
(a)

	
Nothing in paragraph 1 or elsewhere in this Agreement shall preclude a transfer to your legal representatives following your death or a distribution to the persons provided for in paragraph 7(b)(iii) or shall preclude you, upon not less than thirty (30) days' advance written notice to the Company, from making a gift of any Restricted Shares, or any interest therein, (i) to one or more of your Immediate Family Members, (ii) to a trust of which the beneficiary or beneficiaries of the corpus or of the income, or both, is either yourself or one or more of your Immediate Family Members, or both, or (iii) to a corporation all of the stock of which is owned by you or one or more of your Immediate Family Members, or both. For the purpose of this provision, an "Immediate Family Member" shall be deemed to be a spouse, child, stepchild, grandchild, parent, brother or sister or child of a brother or sister of yours, whether of the whole or half blood, and whether the relationship arose by adoption.

	 
	 	 	
(b)

	
The term "Donee," as used in this Agreement, shall be deemed to mean (i) the person, or collectively, all the persons (including a trust or corporation), to whom a gift permitted by paragraph 7(a) has been made by you, (ii) your legal representatives following your death, and (iii) the persons to whom Restricted Shares shall be distributed by your legal representatives as the persons whom they believe to be entitled thereto under your will, or, in case of intestacy, under the laws relating to intestacy.

	 
	 	 	
(c)

	
In case of any gift, transfer or distribution to a Donee, (i) the Restricted Shares so given, transferred or distributed shall continue to be subject to all the restrictions and other provisions of this Agreement, (ii) the certificates for the Restricted Shares so given, transferred or distributed shall bear the legend referred to in paragraph 2 of this Agreement, and (iii) the Donee shall, with respect to the Restricted Shares so given, transferred or distributed, have all the powers and shall be required to comply with all the restrictions and other provisions of this Agreement requiring the taking, or refraining from taking, of action to the same extent as you were immediately prior to the making of such gift, transfer or distribution.

	 
	 	
8.

	Any provision of this Agreement to the contrary, the Company may take such steps as it believes necessary or desirable to obtain sufficient funds from you to pay all taxes, required by law to be withheld in respect of the Restricted Shares including requiring payments to the Company by you or on your behalf and/or taking deductions from amounts payable by the Company to you or on your behalf.
	 
	 	
9.

	As used in this Agreement, the term "Company or a Subsidiary" shall mean the Company, its divisions and units, and all corporations or other forms of business association of which shares (or other ownership interests) having 50% or more of the voting power regularly entitled to vote for directors (or equivalent management) or regularly entitled to receive 50% or more of the dividends (or their equivalents) paid on the Capital Stock (or its equivalent) are owned or controlled, directly or indirectly, by the Company.
	 
	 	
10.

	Each of the parties hereto agrees to execute and deliver all consents and other instruments and to take all other action deemed necessary or desirable by counsel for the Company to carry out each term of this Agreement. Each party recognizes that the other party has no adequate remedy at law for breach of this Agreement and recognizes, consents and agrees that the other party shall be entitled to an injunction or decree of specific performance directed to the other party and to the bank acting under any such deposit agreement requiring that the provisions of this Agreement be carried out.
	 
	 	
11.

	
(a)

	
Any notice to the Company under this Agreement shall be deemed to have been given when delivered in person to the Secretary of the Compensation/Incentive Committee or mailed by certified or registered mail to the Secretary of the Compensation/Incentive Committee at Suite 2600, 255 East Fifth Street, Cincinnati, Ohio 45202, or such other address as the Company may from time to time designate in writing by notice to you given pursuant to paragraph 11(b) hereof.

 

  

E-2

  

 

 

	 	 	
(b)

	
Any notice to you under or pursuant to this Agreement shall be deemed to have been given if and when delivered to you in person or if and when mailed by certified or registered mail to you at your address hereinabove given or such other address as you may from time to time designate in writing by notice to the Company given pursuant to paragraph 11(a) above.

	 
	 	
12.

	Notwithstanding any remedy provided for in this Agreement, nothing in this Agreement shall preclude the Company from taking any other action or enforcing any other remedy available to the Company.
	 
	 	
13.

	This Agreement has been executed pursuant to the Plan of the Company, and the Plan is hereby incorporated herein by reference.
	 
	 	
14.

	This Agreement shall be binding upon and inure to the benefit of (a) the Company, its successors and assigns, and (b) you, and to the extent applicable, each Donee.
	 
	 	
15.

	This Agreement has been executed, and it and the Restricted Shares have been or are to be delivered, in accordance with the laws of the State of Ohio, the state in which the Company maintains its principal executive offices, and the validity, interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Ohio.

 

 

	 	 	 	Very truly yours,	 
	 	 
	 	 	 	CHEMED CORPORATION	 
	 	 
	 	 
	Executed and agreed to	
By:

	
  

	 
	as of:	 	
Naomi C. Dallob

	 
	 	 	 	 	
Vice President and Secretary

	
  

	 	
  

	 	 	 
	 	 
	
Date:

	 	
  

	
Date:

	
  

	 

 

E-3

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