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UPDATE: Hurco exec getting $500,000 exit package

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The president and chief operating officer of Hurco Cos. Inc. has resigned effective Oct. 31 to pursue other interests, the Indianapolis-based machine tool maker announced today.

James D. Fabris will be replaced for the “foreseeable future” by CEO Michael Doar, Hurco said.

Fabris did not return repeated telephone calls.

Fabris has been Hurco's president and COO since November 2001. He previously served as executive vice president of operations from 1997 to 2001 and was vice president from 1995 to 1997.

The company said in a Securities and Exchange Commission filing this morning that Fabris will receive an exit package totaling $504,510—18 months of base salary, plus a one-time payment of $52,260. If he doesn’t get another job by Oct. 31, 2011, he gets up to an additional $160,349.

In August, Hurco reported its second straight quarterly loss after sales dropped a staggering 64 percent.

Hurco lost $1.2 million for that quarter, which ended July 31. The company had a profit of $5.8 million during the same quarter last year.

Quarterly revenue fell to $19 million, down from $57.3 million a year ago.

According to Hurco’s last proxy statement, Fabris earned total compensation of $1.02 million in the fiscal year that ended in October 2008. That was 7.8 percent more than he earned the previous year.

Of that compensation, $332,596 was salary and $600,000 was a bonus. The $97,052 remainder included supplemental insurance, matching contributions to his 401(k) and a leased company car. He’s also entitled to Hurco’s outplacement assistance in his search for a new job.

Fabris’ compensation package was just shy of Doar’s. He earned $1.13 million in 2008.

Fabris owns 27,500 shares in Hurco. He also has 20,000 Hurco stock options with a $2.15 exercise price that expire Dec. 17, 2011. Hurco shares now are trading at16.18 apiece, giving those options a value of more than $280,000.

The shares rose 2 cents apiece in morning trading.

 

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