Document:

exv10w11

Exhibit 10.11

EXECUTION COPY

AMENDMENT NO. 3 AND CONSENT

     This Amendment No. 3 and Consent (this “Amendment”) dated as of October 23, 2009 is
entered into by and among BORGWARNER INC., a Delaware corporation (the “Borrower”), the
Guarantors, the Lenders and BANK OF AMERICA, N.A., as the administrative agent under the Credit
Agreement referred to below (in such capacity, the “Administrative Agent”), Issuing Bank
and Swingline Lender. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed thereto in the Credit Agreement.

STATEMENT OF PURPOSE

     WHEREAS, the Borrower, the Lenders and the Administrative Agent are all parties to that
certain Credit Agreement dated as of July 22, 2004 (as amended by that certain Amendment No. 1 and
Consent Agreement dated as of April 30, 2009 and that certain Amendment No. 2 dated as of August
11, 2009, as amended hereby and as further amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”).

     WHEREAS, the Borrower, the Guarantors, certain other Subsidiaries of the Borrower and the
Administrative Agent are all parties to that certain Unlimited Pledge Agreement dated as of June 1,
2009 (as amended hereby and as further amended, restated, supplemented or otherwise modified from
time to time, the “Unlimited Pledge Agreement”).

     WHEREAS, the Borrower has informed the Administrative Agent that it intends to complete the
following transactions:

     (a) a sale by its Subsidiary, BorgWarner Morse TEC Inc. of real and personal property
used in connection with the operations conducted at the Sallisaw, Oklahoma plant (including
IP Rights and Collateral) to a third party in exchange for partial payment in cash and an
obligation to pay the balance over time (such sale, the “Sallisaw Sale”); and

     (b) the sale of all of the outstanding stock of its indirect Foreign Subsidiaries (i)
BERU Motorsports Holding Ltd. and (ii) BERU SAS (neither of which constitutes a “Pledged
Entity” as defined in the Unlimited Pledge Agreement) (such sales, collectively, the
“Foreign Subsidiary Sales”).

     WHEREAS, the Borrower has further informed the Administrative Agent that the Sallisaw Sale
will be effected through a new domestic corporation (the “Sale Vehicle”), which will be
thirty percent (30%) owned by BorgWarner Morse TEC Inc. for a limited period of time.

     WHEREAS, Section 6.6(g)(iii) of the Credit Agreement requires that all Dispositions of
Collateral and IP Rights sold or disposed of pursuant to Section 6.6(g) of the Credit Agreement
must be solely for cash.

     WHEREAS, Section 6.3 of the Credit Agreement prohibits the sale by any Subsidiary of all or
substantially all of the stock of any other Subsidiary.

     WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders (a) consent
to the Sallisaw Sale notwithstanding the receipt of non-cash consideration therefor and (b) amend

 

 

the Credit Agreement to permit the Foreign Subsidiary Sales and future similar sales of
Foreign Subsidiaries.

     WHEREAS, subject to the terms and conditions of this Amendment, the parties hereto have agreed
to amend and modify the Credit Agreement and the Unlimited Pledge Agreement as provided herein.

     NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:

     1. Consent. Notwithstanding the limitations on Dispositions of Collateral and IP set
forth in Section 6.6 of the Credit Agreement to the contrary, and subject to and in accordance with
the terms and conditions set forth herein, the Administrative Agent and the Lenders pursuant to
Section 9.2 of the Credit Agreement consent to:

     (a) the Sallisaw Sale, provided that (i) the full amount of the book value of
the assets sold or disposed of in the Sallisaw Sale shall be deemed to have reduced the
aggregate amount of Dispositions permitted pursuant to Section 6.6(g) of the Credit
Agreement for the current fiscal year of the Borrower, (ii) the Sallisaw Sale is for fair
market value and (iii) after giving effect to the modifications in this paragraph 1, no
Default or Event of Default shall have occurred and be continuing at the time of the
Sallisaw Sale or would result from the Sallisaw Sale;

     (b) postpone any requirement under the Unlimited Pledge Agreement or any other Loan
Document that would require the Borrower or any of its Subsidiaries to deliver share
certificates with respect to the Equity Interests issued by the Sale Vehicle until such time
as a Collateral Trigger shall have occurred; and

     (c) the release of any Collateral sold pursuant to the Sallisaw Sale.

     In furtherance of clause (c) of this paragraph 1, the Lenders party hereto authorize the
Administrative Agent to, upon the request of, and at the sole expense of, the Borrower, enter
into all releases or other documents necessary or desirable for the release of the Liens created
by any of the Loan Documents on any Collateral sold pursuant to the Sallisaw Sale.

     2. Amendments.

     (a) Section 6.3 of the Credit Agreement (“Fundamental Changes”) is hereby amended by (i)
deleting the word “and” immediately before clause (d) thereof and replacing it with a comma and
(ii) adding the following immediately before the period at the end of such Section:

     “and (e) any Subsidiary may sell, transfer or otherwise dispose of all or substantially
all of the stock or assets of any of its Foreign Subsidiaries so long as such sale, transfer
or disposition is for fair market value and is not otherwise prohibited under Section
6.6”

     (b) Section 6.6 of the Credit Agreement (“Certain Dispositions”) is hereby amended by (i)
adding the phrase “clauses (a) through (d) of” before the reference to “Section 6.3” in
clause (e) thereof and (ii) deleting the introductory paragraph thereof in its entirety and
replacing it with the following:

     “The Borrower will not, and will not permit any of its Subsidiaries to, make any
Disposition, or enter into any agreement to make any Disposition, of any Collateral or IP
Rights

2

 

(including, without limitation, by way of the sale of the stock of any of the
Subsidiaries of the Borrower that own or possess IP Rights) except:”

     3. Conditions to Effectiveness. This Amendment shall be effective as of the date
hereof upon (a) receipt by the Administrative Agent of copies of this Amendment duly executed by
each Loan Party, the Administrative Agent and the Required Lenders and (b) payment of all fees and
expenses required to be paid pursuant to any Loan Document on or before the date hereof by any Loan
Party.

     4. Effect of the Agreement. Except as expressly provided herein, the Credit Agreement
and the other Loan Documents shall remain unmodified and in full force and effect. Except as
expressly set forth herein, this Amendment shall not be deemed (a) to be a waiver of, or consent
to, a modification or amendment of, any other term or condition of the Credit Agreement or any
other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or
the Lenders may now have or may have in the future under or in connection with the Credit Agreement
or the other Loan Documents or any of the instruments or agreements referred to therein, as the
same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a
commitment or any other undertaking or expression of any willingness to engage in any further
discussion with the Borrower or any other Person with respect to any waiver, amendment,
modification or any other change to the Credit Agreement or the Loan Documents or any rights or
remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with
respect to any such documents or (d) to be a waiver of, or consent to or a modification or
amendment of, any other term or condition of any other agreement by and among the Borrower, on the
one hand, and the Administrative Agent or any other Lender, on the other hand. References in the
Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”,
“herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall be deemed to be
references to the Credit Agreement as modified hereby.

     5. Representations and Warranties/No Default. By its execution hereof the Borrower
and each of the Guarantors hereby certifies, represents and warrants to the Administrative Agent
and the Lenders that:

     (a) after giving effect to this Amendment and the modifications set forth in paragraphs 1 and
2 above, each of the representations and warranties set forth in the Credit Agreement and the other
Loan Documents is true and correct as of the date hereof, except that for purposes of this
paragraph 5(a), the representations and warranties contained in Section 3.4(a) of the Credit
Agreement shall be deemed to refer to the most recent annual and quarterly financial statements
furnished pursuant to Sections 5.1(a) and (b) of the Credit Agreement, respectively;

     (b) after giving effect to this Amendment and the modifications set forth herein, no Default
or Event of Default has occurred or is continuing;

     (c) it has the right, power and authority and has taken all necessary corporate and other
action to authorize the execution, delivery and performance of this Amendment and each of the other
documents executed in connection herewith to which it is a party, in accordance with their
respective terms and the modifications contemplated hereby;

     (d) this Amendment and each of the other documents executed in connection herewith to which it
is a party has been duly executed and delivered by the duly authorized officers of the Borrower and
each Guarantor, as applicable, and each such document constitutes the legal, valid and binding
obligation of the Borrower or such Guarantor, as applicable, enforceable in accordance with its
terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
state or

3

 

federal debtor relief laws from time to time in effect which affect the enforcement of
creditors’ rights in general and the availability of equitable remedies; and

     (e) no consent, license or approval is required in connection with the execution, delivery and
performance by such Loan Party and the validity against such Loan Party of this Amendment and each
of the other documents executed in connection herewith to which it is a party.

     6. Reaffirmations. Each Loan Party (a) agrees that the modifications contemplated by
this Amendment shall not limit or diminish the obligations of such Person under, or release such
Person from any obligations under, the Credit Agreement, the Guaranty or any other Loan Document to
which it is a party, (b) confirms and reaffirms its obligations under the Credit Agreement, the
Guaranty and each other Loan Document to which it is a party and (c) agrees that the Credit
Agreement, the Guaranty and each other Loan Document to which it is a party remain in full force
and effect and are hereby ratified and confirmed.

     7. Miscellaneous.

     (a) Governing Law and Waiver of Jury Trial. THE PROVISIONS OF SECTIONS 9.9 AND 9.10
OF THE CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS, AS IF FULLY
REPRODUCED HEREIN.

     (b) Counterparts. This Amendment may be executed by one or more of the parties hereto
in any number of separate counterparts and all of said counterparts taken together shall be deemed
to constitute one and the same instrument.

     (c) Electronic Transmission. A facsimile, telecopy, pdf or other reproduction of this
Amendment may be executed by one or more parties hereto, and an executed copy of this Amendment may
be delivered by one or more parties hereto by facsimile or similar instantaneous electronic
transmission device pursuant to which the signature of or on behalf of such party can be seen, and
such execution and delivery shall be considered valid, binding and effective for all purposes. At
the request of any party hereto, all parties hereto agree to execute an original of this Amendment
as well as any facsimile, telecopy, pdf or other reproduction hereof.

     (d) Costs and Expenses. The Borrower agrees to pay to the Administrative Agent on
demand all fees and out-of-pocket charges and other expenses incurred in connection with this
Amendment, including, without limitation, the reasonable fees and disbursements of counsel for the
Administrative Agent.

[Signature Pages Follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date and year first above written.

	 	 	 	 	 	 	 
	 	 	BORGWARNER INC., as Borrower
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER DIVERSIFIED TRANSMISSION PRODUCTS INC.,

as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER DIVERSIFIED TRANSMISSION PRODUCTS 

SERVICES INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER EMISSIONS SYSTEMS HOLDING INC., as
Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER EMISSIONS SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER EMISSIONS SYSTEMS OF MICHIGAN INC.,

as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER EUROPE INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Pages Continue]

 

 

	 	 	 	 	 	 	 
	 	 	BORGWARNER HOLDING INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER INVESTMENT HOLDING INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER JAPAN INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER MORSE TEC INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER NW INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER POWDERED METALS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER SOUTH ASIA INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER THERMAL SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Pages Continue]

2

 

	 	 	 	 	 	 	 
	 	 	BORGWARNER THERMAL SYSTEMS OF MICHIGAN INC., as

Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER TORQTRANSFER SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER TRANSMISSION SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BORGWARNER TURBO SYSTEMS INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BRONSON SPECIALTIES INC., as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BWA TURBO SYSTEMS HOLDING CORPORATION, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	KUHLMAN CORPORATION, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Pages Continue]

3

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BWA RECEIVABLES CORPORATION, as Guarantor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Pages Continue]

4

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Lender, Issuing Bank and Swing Line

Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	MORGAN STANLEY BANK, N.A., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Signature Pages Continue]

5

 

	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	INTESA SANPAOLO S.P.A., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH BANK USA, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

6exv10wq

EXHIBIT 10Q

V: 4/21/98

[Optionee Name]

No: [Grant Number]

COGNEX CORPORATION

STOCK OPTION AGREEMENT (NON-QUALIFIED)

UNDER 1998 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

AGREEMENT entered into as of [Grant Date], by and between COGNEX CORPORATION, a Massachusetts
corporation (the “Company”) and the undersigned officer or director of the Company or one of its
subsidiaries (the “Optionee”).

Recitals:

	1.	 	The Company desires to afford the Optionee an opportunity to purchase
shares of its common stock ($0.002 par value) (“Shares”) to carry out
the purposes of the Cognex Corporation 1998 Non-Employee Director
Stock Option Plan (the “Plan”).
	 
	2.	 	Section 5 of the Plan provides that each option is to be evidenced by
an option agreement, setting forth the terms and conditions of the
option.

ACCORDINGLY, in consideration of the premises and of the mutual covenants and agreements contained
herein, the Company and the Optionee hereby agree as follows:

	1.	 	    Grant of Option

The Company hereby grants to the Optionee a non-qualified stock option (the “Option”) to purchase
all or any part of an aggregate of [Number of Shares Granted] Shares on the terms and conditions
hereinafter set forth.

	2.	 	    Purchase Price

The purchase price (“Purchase Price”) for the Shares covered by the Option shall be [Grant Price]
per Share.

	3.	 	Time and Manner of Exercise of Option
	 
	3.1	 	The Option shall not be exercisable prior to [Vest Date 1].
Thereafter, the Option shall only be exercisable as follows:

	 	 	 	 	 	 
	 	 	 	 	Shares
	 	 	 	 	Becoming Available
	 	 	On or After	 	for Exercise
	 

	 	[Vest Date 1]
	 	[no. shares vesting]
	 

	 	[Vest Date 2]
	 	[no. shares vesting]
	 

	 	[Vest Date 3]
	 	[no. shares vesting]
	 

	 	[Vest Date 4]
	 	[no. shares vesting]

 

 

	 
	 
	 
	 
	 
	 	 	Notwithstanding the foregoing, the Option shall not be exercisable until     such
time that the Optionee and the Company have duly executed any of the
agreements required at the time of grant of the Option by the Company for
directors of the Company who are not employees (including, but not limited to,
the Company’s Confidentiality and Non-Competition Agreement). In the event the
Company undergoes a Change of Control, all of the options shall immediately
vest and become fully exercisable.

	3.2	 	To the extent that the right to exercise the Option has accrued and is
in effect, the Option may be exercised in full at one time or in part
from time to time, by giving written notice, signed by the person or
persons exercising the Option, to the Company, stating the number of
Shares with respect to which the Option is being exercised,
accompanied by payment in full of the Purchase Price for such Shares,
which payment may, at the Company’s sole discretion, be in whole or in
part in shares of the common stock of the Company already owned by the
person or persons exercising the Option, valued at fair market value.
If such stock is then actively traded in an established
over-the-counter market, the fair market value shall be the mean
between the bid and asked prices quoted in such market at the close on
the date nearest preceding the date of exercise; and if such stock is
listed on any national exchange or traded on the NASDAQ National
Market System, the price shall be the mean between the high and low
sale prices quoted on such exchange on the date nearest preceding the
date of exercise. There shall be no such exercise at any one time as
to fewer than Two Hundred and Fifty (250) Shares or all of the
remaining Shares then purchasable by the person or persons exercising
the Option, if fewer than Two Hundred and Fifty (250) Shares. Upon
such exercise, delivery of a certificate for paid-up, non-assessable
Shares shall be made at the principal office of the Company to the
person or persons exercising the Option at such time, during ordinary
business hours, after fifteen (15) days but not more than thirty (30)
days from the date of receipt of the notice by the Company, as shall
be designated in such notice, or at such time, place and manner as may
be agreed upon by the Company and the person or persons exercising the
Option.
	 
	3.3	 	The Company shall at all times during the term of the Option reserve
and keep available such number of shares of its common stock as will
be sufficient to satisfy the requirements of the Option, shall pay all
original issue and transfer taxes with respect to the issue and
transfer of Shares pursuant hereto, and all other fees and expenses
necessarily incurred by the Company in connection therewith. The
holder of this Option shall not have any of the rights of a
stockholder of the Company in respect of the Shares until one or more
certificates for such Shares shall be delivered to him upon the due
exercise of the Option.
	 
	4.	 	    Term of Option
	 
	4.1	 	The Option shall terminate on [Expiration Date], but shall be subject
to earlier termination as hereinafter provided.
	 
	4.2	 	In the event that the Optionee ceases to be affiliated with the
Company (or one of its subsidiaries) by reason of termination of his
or her directorship, the Option may be exercised, to the extent then
exercisable under Section 3.1 within seven (7) business days after
the date on which the Optionee ceased his or her such affiliation
with the Company, at which time the Option shall terminate, unless
termination (a) was by the Company for cause or was by the Optionee
in breach of a directorship contract, in either of which cases the
Option shall terminate immediately at the time the Optionee ceases
his or her such affiliation with the Company, (b) was because the
Optionee has become disabled (within the meaning of Section
105(d)(4) of the Internal Revenue Code of 1986, as amended), or (c)
was by reason of the death of the Optionee. In the case of
disability, the Option may be exercised, to the extent then
exercisable under Section 3.1, at any time within twelve (12) months
after the date of termination of his or her such affiliation with
the Company, at which time the Option shall terminate, but in any
event prior to [Expiration Date].
	 
	4.3	 	In the event of the death of the Optionee, the Option may be
exercised, to the extent the Optionee was entitled to do so on the
date of his or her death under the provisions of Section 3.1 by the
estate of the Optionee or by any person or persons who acquire the
right to exercise the Option by bequest or inheritance or otherwise
by reason of the death of the Optionee. In such circumstances, the
Option may be exercised at any time within twelve (12) months after
the date of death of the Optionee, at which time the Option shall
terminate, but in any event prior to [Expiration Date].

 

 

	5.	 	    Transferability of Options
	 
	 	 	The right of the Optionee to exercise the Option shall not be assignable or transferable by the
Optionee otherwise than by will or the laws of descent and distribution, and the Option may be
exercised during the lifetime of the Optionee only by him, except that the Optionee may transfer
the option to the Optionee’s spouse children or to a trust for the benefit of the Optionee or the
Optionee’s spouse or children. The Option shall be null and void and without effect upon the
bankruptcy of the Optionee or upon any attempted assignment or transfer, except as hereinabove
provided, including without limitation, any purported assignment, whether voluntary or by operation
of law, pledge, hypothecation or other disposition contrary to the provisions hereof, or levy of
execution, attachment, trustee process or similar process, whether legal or equitable, upon the
Option.
	 
	6.	 	    Restrictions on Issue of Shares
	 
	6.1	 	Notwithstanding the provisions of Section 3 hereof, the Company may
delay the issuance of Shares covered by the exercise of the Option and
the delivery of a certificate for such Shares until one of the
following conditions shall be satisfied:

	 	6.1.1	 	The Shares with respect to which such option has
been exercised are, at the time of the issue of
such shares, effectively registered under
applicable federal and state securities acts now
in force or hereafter amended; or
	 
	 	6.1.2	 	Counsel for the Company shall have given an opinion, which
opinion shall not be unreasonably conditioned or withheld, that
such Shares are exempt from registration under applicable
federal and state securities acts, as now in force or hereafter
amended.

	6.2	 	In the event that for any reason the Shares to be issued upon
exercise of the Option shall not be effectively registered under
the Securities Act of 1933 (the “1933 Act”), upon any date on
which the Option is exercised in whole or in part, the Company
shall be under no further obligation to issue Shares covered by
the Option, unless the person exercising the Option shall give a
written representation to the Company, substantially in the form
attached hereto as Exhibit 1, that such person is acquiring the
Shares issued to him pursuant to such exercise of the Option for
investment and not with a view to, or for sale in connection
with, the distribution of any such Shares, and that he will make
no transfer of the same except in compliance with the 1933 Act
and the rules and regulations promulgated thereunder and then in
force, and in such event, the Company may place an “investment
legend”, so called, upon any certificate for the Shares issued by
reason of such exercise.
	 
	7.	 	    Adjustments Upon Changes in Capitalization; Change in Control

In the event that the outstanding shares of the common stock of the Company are changed into or
exchanged for a different number or kind of shares or other securities of the Company or of another
corporation by reason of any reorganization, merger, consolidation, recapitalization,
reclassification, stock split-up, combination of shares or dividend payable in capital stock,
appropriate adjustment shall be made in the number and kind of shares as to which the Option, or
any part thereof then unexercised, shall be exercisable, to the end that the proportionate interest
of the Optionee shall remain as before the occurrence of such event; such adjustment in the Option
shall be made without change in the total price applicable to the unexercised portion of the Option
and with a corresponding adjustment in the Option price per share. In the event of a “Change in
Control”, as such term is defined in the Plan, the provisions of Section 7 of the Plan shall apply
to this Option.

 

 

	8.	 	    Severability

Each provision of this Agreement shall be treated as a separate and independent clause, and the
unenforceability of any one clause shall in no way impair the enforceability of any of the other
clauses herein. In the event that any provision hereof or any obligation or grant, or rights by the
undersigned hereunder is found invalid or unenforceable pursuant to judicial decree or decision,
any such provision, obligation, or grant of right shall be deemed and construed to extend only to
the maximum permitted by law, and the remainder of this Agreement shall remain valid and
enforceable according to its terms.

	9.	 	    Withholding Taxes

Whenever Shares are to be issued upon exercise of this Option, the Company shall have the right to
require the Optionee to remit to the Company an amount sufficient to satisfy all Federal, state and
local withholding tax requirements prior to the delivery of any certificate or certificates for
such Shares.

	10.	 	    Transfer Restriction

This Section Has Been Deleted.

	11.	 	    No Special Rights

Nothing contained in the Plan or in this Agreement shall be construed or deemed by any person under
any circumstances to bind the Company to continue the affiliation of the Optionee, as director,
with the Company for the period within which this Option may be exercised.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and its corporate seal to
be hereto affixed by Robert J. Shillman, its President thereunto duly authorized, and the Optionee
has hereunto set his hand and seal, all as of the day and year first above written.

	 	 	 	 	 
	 	COGNEX CORPORATION

 	 
	 	By:  	 	 
	 	 	President 	 
	 	 	 	 
	 	  	 	 
	 	 	Optionee 	 
	 	 	 	 
	 	  	 	 
	 	 	[Optionee Name] 	 
	 	 	 	 
	 	  	 	 
	 	 	[SSN] 	 
	 	 	 	 
	 

 

 

	 	 	 	 	 

EXHIBIT 1

TO STOCK OPTION AGREEMENT

Cognex Corporation

Gentlemen:

In connection with the exercise by me as to [No. of Shares Granted] shares of the non-qualified
stock option granted to me under date of [Grant Date], I hereby acknowledge that I have been
informed as follows:

	1.	 	The shares of common stock of the Company to be issued to me pursuant
to the exercise of said option have not been registered under the
Securities Act of 1933, as amended (the “Act”), and accordingly, must
be held indefinitely unless such shares are subsequently registered
under the Act, or an exemption from such registration is available.
	 
	2.	 	Routine sales of securities made in reliance upon Rule 144 under the
Act can be made only after the holding period and in limited amounts
in accordance with the terms and conditions provided by that Rule, and
in any sale to which that Rule is not applicable, registration or
compliance with some other exemption under the Act will be required.
	 
	3.	 	The Company is under no obligation to me to register the shares or to
comply with any such exemptions under the Act.
	 
	4.	 	The availability of Rule 144 is dependent upon adequate current public
information with respect to the Company being available and, at the
time that I may desire to make a sale pursuant to the Rule, the
Company may neither wish nor be able to comply with such requirement.

In consideration of the issuance of certificates for the shares to me, I hereby represent and
warrant that I am acquiring such shares for my own account for investment, and that I will not
sell, pledge or transfer such shares in the absence of an effective registration statement covering
the same, except as permitted by the provisions of Rule 144, if applicable, or some other
applicable exemption under Act. In view of this representation and warranty, I agree that there may
be affixed to the certificates for the shares to be issued to me and to all certificates issued
hereafter representing such shares (until in the opinion of counsel, which opinion must be
reasonably satisfactory in form and substance to counsel for the Company, it is no longer necessary
or required) a legend as follows:

“The shares of common stock represented by this certificate have not been registered under the
Federal Securities Act of 1933, as amended, and were acquired by the registered holder, pursuant to
a representation and warranty that such holder was acquiring such shares for his own account and
for investment, with no intention to transfer or dispose of same, in violation of the registration
requirements of that Act. These shares may not be sold, pledged, or transferred, in the absence of
an effective registration statement under the Securities Act of 1933, as amended, or an opinion of
counsel, which opinion is reasonably satisfactory to counsel to the Company, to the effect that
registration is not required under said Act.”

I further agree that the Company may place a stop order with its Transfer Agent, prohibiting the
transfer of such shares so long as the legend remains on the certificates representing the shares.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	[Optionee Name]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]