Exhibit 10.1

                              SEPARATION AGREEMENT
                              --------------------


This Separation Agreement ("Agreement") is dated this 271h day of March, 2007,
by and between Cognex Corporation, a Massachusetts corporation with its
principal place of business at One Vision Drive, Natick, MA 01760-2059 ("Cognex"
or the "Company"), and James F. Hoffmaster, with a residence at 60 Deerpath
Road, Dedham, MA 02026 (hereinafter "Hoffmaster").

In consideration of and in exchange for the promises, payments and benefits set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:


1.0      SEPARATION
         ----------

         Hoffmaster's employment with Cognex will terminate effective at the end
         of the business day on March 27th, 2007 ("Separation Date"). As of the
         Separation Date, Hoffmaster's salary will cease as will his
         participation in all other Cognex-sponsored benefits including, without
         limitation, vesting of existing stock options, optional life insurance,
         accidental death and dismemberment, short-term disability, or long-term
         disability.

2.0      REQUIRED SEVERANCE BENEFITS
         ---------------------------

2.1      On the Separation Date, Hoffmaster will be paid a) all regular base
         wages and salary due through the Separation Date, and b) all accrued,
         but unused, Paid Time Off ("PTO"), up to the maximum number of days in
         accordance with the Company's PTO Policy.

2.2      After the Separation Date, Hoffmaster shall be allowed to continue his
         existing medical and dental insurance pursuant to COBRA requirements,
         provided that Hoffmaster pays Cognex, on or by the applicable due date,
         the total cost of premiums for any such medical and dental insurance
         which he elects to receive for that month.


3.0      ADDITIONAL CONSIDERATION
         ------------------------

         In consideration for Hoffmaster's entering into this Agreement, and for
         his abiding by all the terms herein, including specifically the
         obligations and general release and waiver of claims by him set forth
         in Section 4.0 below, Cognex agrees to provide the additional payments
         and benefits described in this Section 3. Irrespective of anything to
         the contrary in this Agreement, any and all such additional payments
         and benefits are contingent on Hoffmaster abiding by the terms of this
         Agreement and all other agreements between Hoffmaster and Cognex
         referenced herein.


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3.1      Separation Payments: Following the Revocation Period (as defined below
         in Section 5.2), Cognex will provide bi-weekly payments to Hoffmaster
         in an amount equal to the bi-weekly gross salary that Hoffmaster was
         receiving prior to the Separation Date, less all legally required and
         voluntarily authorized deductions. These bi-weekly payments shall
         commence on the first Cognex pay date following the expiration of the
         Revocation Period ("Payment Start Date") and will end on the earlier of
         (i) twelve (12) months from the Payment Start Date or (ii) breach by
         Hoffmaster pursuant to Section 6.1 below, or (iii) the date on which
         Hoffmaster commences full-time employment. Hoffmaster agrees that he
         will promptly notify Cognex in the event that he commences full-time
         employment at any time in the twelve month period following the Payment
         Start Date.

3.2      Stock Options: Treatment of Hoffmaster's stock options will be
         according to the provisions of the Plan under which they were granted
         and in accordance with the applicable Stock Option Agreement. Cognex
         agrees to provide administrative assistance to Hoffmaster in performing
         a cashless exercise of his vested and unexercised stock options
         consistent with his Stock Option Agreement(s) at the same terms
         available to Cognex employees at the time of such exercise. All vesting
         of any unvested stock options shall cease upon the Separation Date.

3.3      Medical/Dental Insurance Premiums: For the period of time that
         Hoffmaster continues to participate in Cognex's medical and/or dental
         plans pursuant to COBRA, Cognex shall contribute an amount each month
         toward Hoffmaster's premium for said plan(s). The dollar amount of each
         payment made by Cognex shall be equal to the monthly dollar amount that
         Cognex contributed to Hoffmaster's premium prior to the Separation
         Date. Said payments by Cognex shall cease upon the earlier to occur of
         the following:

               a)   Hoffmaster becomes employed full-time elsewhere, or
               b)   Hoffmaster ceases to participate in Cognex's medical and/or
                    dental plans

         Prior to the premium due date each month, Hoffmaster shall pay to
         Cognex an amount equal to the total monthly cost of Hoffmaster's COBRA
         insurance premium, less the aforementioned Cognex contribution, and
         Cognex shall then be responsible for making the full payment of the
         monthly COBRA premium.

3.4      Hoffmaster shall be entitled to use an office at Cognex, including a
         desktop computer, use of Cognex voicemail and email services, and
         reasonable secretarial services for purposes of outplacement assistance
         after the Separation Date. The foregoing shall be available to
         Hoffmaster until the earlier to occur of:

               a)   April 30th, 2007, or
               b)   Hoffmaster secures full-time employment with another
                    employer.


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3.5      Hoffmaster may keep the PC and related peripherals that Cognex provided
         to him for home use while he was an employee.



4.0      ADDITIONAL OBLIGATIONS OF THE PARTIES
         -------------------------------------

4.1      In consideration of the undertakings, transactions and consideration
         recited in this Agreement, including without limitation the payments
         and benefits described in Sections 3.0 above, Hoffmaster hereby
         unconditionally discharges and forever releases Cognex and its past,
         present and future officers, directors, shareholders, agents,
         employees, representatives, attorneys, successors, subsidiaries and
         affiliates (hereinafter, the "Releasees"), or any of them, of and from
         any and all claims, demands, suits, causes of action, damages, costs
         (including reasonable attorney's fees and costs actually incurred),
         charges and complaints which Hoffmaster now has, owns or holds, or at
         any time heretofore ever had, owned or held, or may have owned or held,
         whether known or unknown, suspected or unsuspected, on account of or
         arising out of his employment with Cognex and/or the termination of his
         employment with Cognex. Hoffmaster hereby waives any and all such
         claims, demands, suits, causes of action, damages, costs (including
         reasonable attorney's fees and costs actually incurred), charges and
         complaints of any type and description against the Releasees. The
         foregoing shall include, but is not limited to, Hoffmaster's release,
         discharge and waiver with respect to any or all of the following:

         4.1.1    Any claim, demand, suit, cause of action, damage, cost, charge
                  or complaint in connection with salary, commissions, bonuses,
                  profit sharing, stock, stock options, retirement plans and/or
                  any other benefits.

         4.1.2    Any claim,  demand,  suit, cause of action,  damage, cost,
                  charge or complaint arising under federal Title VII of the
                  Civil Rights Act of 1964,  as amended  (which,  among other
                  things,  prohibits  discrimination  in  employment on account
                  of a person's race, color,  religion,  sex or national
                  origin);  federal Age  Discrimination in Employment Act (the
                  ADEA, which,  among other things,  prohibits  discrimination
                  in employment on account of a person's age); federal
                  Americans with Disabilities  Act; federal Family and Medical
                  Leave Act; the federal  Sarbanes-Oxley  Act;  the Employee
                  Retirement Income Security Act of 1974 ("ERISA"),  29 U.S.C.
                  ss.1001 et seq., the Massachusetts  Fair Employment  Practices
                  Act, Mass. Gen. Laws ch. 151B, ss. 1 et seq., the
                  Massachusetts  Civil Rights Act, Mass. Gen. Laws ch.12, ss.
                  11H et seq., the  Massachusetts  Equal Rights Act, Mass. Gen.
                  Laws ch. 93, ss. 102 and Mass. Gen. Laws ch.  214,  ss. 1 C,
                  the  Massachusetts  Labor  and  Industries  Act,  Mass.  Gen.
                  Laws ch.  149,  ss. 1 et seq.,  the  Massachusetts  Privacy
                  Act, Mass. Gen. Laws ch. 214, ss. 1B et seq., and the
                  Massachusetts  Family and Medical Leave Act, Mass. Gen. Laws
                  ch. 149, ss. 52D et seq.


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         4.1.3    Any other statutory, common law or other claims of any nature
                  against the Releasees, including, without limitation, any
                  claims growing out of any alleged legal restriction on the
                  rights of any of the Releasees to terminate Hoffmaster's
                  employment.

 4.2     Hoffmaster shall continue at all times to abide by the terms of the
         Employee Invention, Non-Disclosure and Non-Competition Agreement
         ("Employee Agreement"), duly executed between Cognex and Hoffmaster on
         May 24, 2001, the terms of which remain in full force and effect and
         which is incorporated herein by this reference. Hoffmaster specifically
         reaffirms each of the following provisions contained therein:

         4.2.1    Hoffmaster's acceptance of his non-competition obligations,
                  and remedy for breach thereof, and

         4.2.2    Hoffmaster's acceptance of his confidentiality and
                  non-disclosure obligations, and remedy for breach thereof.

         4.2.3    Hoffmaster's acceptance of his non-solicitation obligations,
                  and remedy for breach thereof.

 4.3     Cognex agrees that it shall not disparage Hoffmaster, nor the
         circumstances surrounding his separation. Hoffmaster agrees that he
         shall not disparage Cognex, nor its officers, directors, employees or
         agents.

 4.4     Each party agrees that it and its officers, directors, employees,
         agents, administrators or representatives will keep the terms of this
         Agreement confidential, unless otherwise required by law or applicable
         regulation.

 4.5     Except as provided in Section 3.5 above, Hoffmaster acknowledges that
         he has returned to Cognex all Cognex property and materials, both
         tangible and intangible, including, without limitation, any and all
         computer equipment (e.g., laptop computer, etc.), cell phones, Cognex
         credit cards and telephone charge cards, manuals, building keys and
         passes, trade secrets, proprietary, and confidential business
         information that he had in his possession at the office or elsewhere,
         regardless of the medium in which it is stored, including any and all
         copies thereof. Hoffmaster agrees that in the event he discovers any
         other Cognex property in his possession after the Separation Date, he
         will immediately return such to Cognex.


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5.0      OFFER PERIOD AND ACCEPTANCE
         ---------------------------

5.1      By signing the Acknowledgement of Receipt of this Separation Agreement
         on page 8 of this Agreement, Hoffmaster acknowledges receipt of this
         Agreement on April 9`h 2007. Hoffmaster has twenty-one (21) calendar
         days, or until April 30th, 2007, to consider the terms and conditions
         of this Agreement, and to accept same by initialing each page of this
         Agreement and by signing in the space provided on page 7 in the
         presence of either a representative of the Company's Human Resources
         Department or its Chief Executive Officer. Hoffmaster may accept this
         Agreement sooner than the end of said 21-day period if he desires to do
         so voluntarily. Cognex advises Hoffmaster to consult with an attorney
         prior to signing this Agreement.

5.2      In addition to the above-referenced 21-day consideration period,
         Hoffmaster shall be entitled to revoke his acceptance of this
         Agreement, within seven (7) calendar days following his signing
         ("Revocation Period"), by providing written notice of revocation to
         Cognex prior to the expiration of the Revocation Period. In any event,
         and notwithstanding anything to the contrary in this Agreement, Cognex
         shall not be obligated to provide any of the payments or benefits
         referred to in Section 3 of this Agreement, until after the expiration
         of the Revocation Period, and then, only if Hoffmaster has not revoked
         this Agreement.

5.3      In the event that Hoffmaster either (i) does not accept this Agreement
         during the 21-day consideration period as described in Section 5.0, or
         (ii) revokes his acceptance of this Agreement as described in Section
         5.2, then Cognex shall extend to Hoffmaster only those payments and
         benefits set forth in Section 2.0, above.


6.0      BREACH
         ------

6.1      In the event that Hoffmaster is in breach of any of his obligations
         under this Agreement, or in any other written agreement entered into
         between Hoffmaster and Cognex, and in the event that said breach is not
         remedied within 30 days of written notice by Cognex, then,
         notwithstanding anything to the contrary in this Agreement:

          o    Cognex may obtain a court order enforcing the breached
               provision(s), and
          o    Cognex shall not be required to make any payments or to grant him
               any other benefits described in Section 3 herein to Hoffmaster,
               and
          o    Hoffmaster shall promptly return to Cognex any and all
               consideration he received from Cognex pursuant to this Agreement,
               and
          o    Hoffmaster shall reimburse Cognex for any and all expenses
               (including costs and attorneys' fees) incurred to enforce this
               Agreement and to recover any and all of the consideration paid to
               Hoffmaster pursuant to this Agreement.


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6.2      In the event that Cognex is in breach of any term of this Agreement
         which is not cured by it within 30 days following written notification
         by Hoffmaster of said breach, then, notwithstanding anything to the
         contrary in this Agreement:

          o    Hoffmaster may obtain a court order enforcing the breached
               provision(s) of this Agreement, and
          o    Hoffmaster may discontinue his, releases, discharges and waivers
               under this Agreement, and
          o    Cognex shall reimburse Hoffmaster for any and all expenses
               (including costs and attorneys' fees) incurred to enforce this
               Agreement.

6.3      The foregoing remedies available to the non-breaching party are in
         addition to all other remedies available to it in law and in equity.
         Each party further understands that it could be held liable for
         monetary damages to the other party for any action constituting a
         breach by it.





7.0      MISCELLANEOUS
         -------------

7.1      By signing this Agreement, Hoffmaster represents and warrants that he
         has not heretofore violated any provision of this Agreement or
         disclosed the negotiations, terms, provisions or existence of this
         Agreement to any person except his immediate family, his/her attorney,
         and/or his/her financial advisor(s), and in the case of such
         disclosure, he/she has advised such individual(s) that they cannot
         further disclose any of same to others.

7.2      Hoffmaster understands and agrees (i) that he was an "at will" employee
         at all times during his employment with Cognex, and (ii) that Cognex
         has no legal obligation to provide any payments or benefits of any kind
         to Hoffmaster other than those described in Section 2.0, above.

7.3      Whenever possible, each provision of this Agreement will be interpreted
         in such a manner as to be valid and effective under applicable law, but
         if any provision of this Agreement is held to be prohibited by or
         invalid under applicable law, such provision(s) will be ineffective
         only to the extent of such prohibition or invalidity, without
         invalidating the remainder of such provision or the remaining
         provisions of this Agreement. Hoffmaster may not assign any of his
         rights or delegate any of his duties under this Agreement.


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7.4      This Agreement, including the Employee Agreement referenced in Section
         4.2 and the Arbitration Agreement referenced in Section 7.6 below,
         supersedes all prior understandings and agreements, either written or
         verbal, between the parties with respect to the subject matter herein,
         and is intended as the final expression of the parties' agreement.
         Except as set forth in this Agreement and in the Employment Agreement
         and in the Arbitration Agreement, there is no other understanding or
         agreement between Hoffmaster and Cognex pertaining to Hoffmaster's
         employment with Cognex, its terms and conditions, and/or the
         termination thereof. No modification or waiver of the terms and
         conditions of this Agreement shall be valid unless in writing and
         signed by both parties.

7.5      The headings and captions contained in this Agreement are included
         solely for the purpose of convenience of the reader and shall in no way
         affect the interpretation or construction of the terms and conditions
         of this Agreement.

7.6      This Agreement shall be governed by the laws of the Commonwealth of
         Massachusetts, without giving any effect to the principles of conflicts
         of laws of such state, and shall be binding upon and inure to the
         benefit of the parties and their respective agents, representatives,
         assigns, heirs, executors, administrators, and successors. Any dispute
         arising out of or related to this Agreement, or the termination of
         Hoffmaster's employment, shall be settled exclusively through
         arbitration in accordance with the terms set forth in the Arbitration
         Agreement executed between Hoffmaster and Cognex on May 24, 2001 (the
         "Arbitration Agreement"), which by this reference is incorporated
         herein.


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                            [Signature Page Follows]

<PAGE>


WHEREFORE, Cognex and Hoffmaster have read this Agreement and attest that they
fully understand and knowingly and voluntarily accept all of its provisions in
their entirety without reservation.

HOFFMASTER                                         COGNEX CORPORATION

By: /s/ James F. Hoffmaster                        By: /s/ Robert J. Shillman
    -----------------------                            ----------------------
    James F. Hoffmaster                                Robert J. Shillman
                                                       Chairman & C.E.O.

Date: 4/9/07                                       Date: 4/9/07
     --------                                            ------

/s/ Patricia A. Bautz
---------------------
Signature of witness to Hoffmaster's Signature

Printed Name of witness: Patricia A. Bautz
                         ------------------

Date: 4/9/07
      ------

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