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cgnxexhibit4bdescription

                                                                      Exhibit 4B                                                         Description of the Registrant’s Securities Registered Pursuant to                 Section 12 of the Securities Exchange Act of 1934, as amended                                                 The common stock, par value $0.002 per share (“Common Stock”), of Cognex Corporation, a  Massachusetts corporation (the “Company,” “we,” “us” or “our”), is registered under Section 12 of the   Securities Exchange Act of 1934, as amended (the “Exchange Act”).  The following descriptions of the   Common Stock set forth certain general terms and provisions of the Common Stock.  These descriptions   are in all respects subject to and qualified in their entirety by, and should be read in conjunction with, the   applicable provisions of the Restated Articles of Organization of the Company, as amended (the “Charter”),   the Amended and Restated By-laws of the Company, as amended (the “By-laws”) (each of which is   incorporated herein by reference), and the applicable provisions of Massachusetts law.      Common Stock            The Charter authorizes the issuance of up to 300,000,000 shares of Common Stock.            Voting Rights.  Except as may otherwise be required by law, each holder of Common Stock shall   have one vote in respect of each share of Common Stock held by such holder on all matters voted upon by   the shareholders.  Holders of Common Stock do not have cumulative voting rights.  Other than in a   contested election meeting (as defined in our By-laws), when a quorum is present at any meeting of   shareholders, a nominee for director shall be elected to the Board of Directors if the votes properly cast   “for” such nominee’s election exceed the votes properly cast “against” such nominee’s election.  In a   contested election meeting, when a quorum for an election is present at any meeting, directors shall be   elected by a plurality of the votes properly cast at such meeting.  When a quorum for the consideration of   a question (other than an election of directors) is present at any meeting, a majority of the votes properly   cast upon the question shall decide the question, except in any case where a larger vote is required by law   or by our Charter.         Dividend Rights.  Subject to the prior rights of holders of the Company’s preferred stock, if any,   the holders of Common Stock shall be entitled to receive such dividends (either in cash, stock or otherwise)   as may be declared from time to time by the Board of Directors out of assets of the Company legally   available for such dividends.                  Liquidation Rights.  After distribution in full of the preferential amount, if any, to be distributed to   the holders of the Company’s preferred stock, if any, in the event of voluntary or involuntary liquidation,   distribution, dissolution or winding-up of the Company, the holders of the Common Stock shall be entitled   to receive all of the remaining assets of the Company, tangible and intangible, of whatever kind available   for distribution to shareholders, ratably in proportion to the number of shares of Common Stock held by   them respectively.                  Other Rights.  Our Common Stock has no preference, conversion, exchange or redemption rights   and is not subject to any sinking fund.  Holders of our Common Stock have no preemptive rights, which   means that ownership of our Common Stock does not confer the right to acquire any additional securities   that we may issue at a subsequent date.                  Listing; Transfer Agent and Registrar.  Our Common Stock is authorized for listing on The   NASDAQ Global Select Market under the symbol “CGNX.”  The transfer agent and registrar for our   Common Stock is Computershare Trust Company, N.A.          

 

Certain Effects of Authorized but Unissued Common and Preferred Stock                 The existence of authorized and unissued common and preferred stock may enable our Board of   Directors to issue shares which could, under certain circumstances, have an anti-takeover effect or delay or   prevent a change in control of the Company by providing the Company with the capability to engage in   actions that would be dilutive to a potential acquirer, to pursue alternative transactions, or to otherwise   increase the potential cost to acquire control of the Company.       Provisions of our Charter, our By-laws and Massachusetts Law that May Have Anti-Takeover   Effects                  Board of Directors.  Our Charter provides that our Board of Directors is divided into three classes,   with one class being elected each year for a term of three years.  Directors may be removed from office (1)  with cause by vote of the holders of a majority of the shares issued and outstanding and entitled to vote  generally in the election of directors; (2) without cause by vote of the holders of at least 80% of the votes  entitled to be cast by the holders of all shares of the Company entitled to vote generally in the election of  directors, voting together as a single class; or (3) with cause by vote of a majority of the directors then in  office.                     Shareholder Action.  Any action required or permitted to be taken at any meeting of the   shareholders may be taken without a meeting if all shareholders entitled to vote on the matter consent to   the action in writing.                   Special Meetings of Shareholders.  Our By-laws provide that special meetings of the shareholders   may be called at any time by the Chairman of the Board, the President, or by a majority of the directors,   and shall be called by the Secretary of the Company upon written application of one or more shareholders   who hold at least forty (40) percent in interest of the capital stock entitled to vote at such meeting.                  Advance Notice Requirements for Nominations of Directors or Other Shareholder Proposals.  Our   By-laws require shareholders seeking to nominate persons for election as directors at an annual meeting of   shareholders, or to bring other business before an annual meeting (other than a matter brought under Rule   14a-8 under the Exchange Act), to provide timely notice in writing.  If shareholder proposals, including   proposals regarding the election of directors, are to be considered at an annual meeting of shareholders,   notice of them must be given by personal delivery or by U.S. mail, postage prepaid, to the Secretary of the   Company not later than the close of business on the ninetieth (90th) day nor earlier than the close of business  on the one-hundred twentieth (120th) day prior to the first anniversary of the preceding year’s annual   meeting (however, in the event that the date of the annual meeting is advanced by more than thirty (30)   days before or delayed by more than sixty (60) days after such anniversary date, notice by the shareholder   to be timely must be so delivered not earlier than the close of business on the one-hundred twentieth (120th)   day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th)   day prior to such annual meeting or the tenth (10th) day following the day on which public announcement  of the date of such meeting is first made), and with respect to a matter to be brought before a special meeting  of the shareholders not in lieu of an annual meeting, the close of business on the tenth (10th) day following  the date on which notice of such meeting is first given to shareholders.  Shareholder proposals also must  contain certain information set forth in our By-laws.                 Amendments to Charter and By-laws.  Our Charter and By-laws provide that certain provisions  may only be amended by the holders of at least 80% of the shares entitled to vote or the vote of a majority  of the Board of Directors (including a majority of the continuing directors).                  Limitation of Liability and Indemnification Matters.  Our Charter includes a provision that  eliminates or limits the personal liability of a director to the Company or its shareholders for monetary  damages for a breach of fiduciary duty as a director notwithstanding any provision of law imposing such                                         2   

 

liability, except where the director breached his or her duty of loyalty, failed to act in good faith, engaged  in intentional misconduct or knowingly violated a law, authorized the payment of an improper distribution  or obtained an improper personal benefit.  Further, our By-laws provide that, except as limited by law or  otherwise provided in the By-laws, each director or officer of the Company (and his or her heirs and  personal representatives) shall be indemnified by the Company against any expense incurred in connection  with each proceeding in which he or she is involved as a result of his or her serving or having served as a  director or officer.  Our By-laws further provide that no indemnification shall be provided to a director or  officer with respect to a proceeding as to which it shall have been adjudicated that he or she did not act in  good faith in the reasonable belief that his or her action was in the best interests of the Company.  We will  pay sums on account of indemnification in advance of a final disposition of a proceeding upon receipt of  an undertaking by the director or officer to repay such sums if it is subsequently established that he or she  is not entitled to indemnification.               Business Combinations with Interested Stockholders.  In general, the Massachusetts General Laws   prevent a publicly held Massachusetts corporation from engaging in a business combination, as defined in   the Massachusetts General Laws, with an interested stockholder for a period of three years after the date of   the transaction in which the person became an interested stockholder, unless: (1) before the date on which   the person became an interested stockholder, the board of directors of the corporation approved either the   business combination or the transaction in which the person became an interested stockholder; (2) the   interested stockholder acquires at least 90% of the outstanding voting stock of the corporation at the time   it becomes an interested stockholder; or (3) the business combination is approved by the board of directors   and the holders of at least two-thirds of the outstanding voting stock of the corporation voting at a meeting,   excluding the voting stock owned by the interested stockholder.  An interested stockholder is generally a   person owning 5% or more of the outstanding voting stock of the corporation.  A business combination   includes mergers, consolidations, stock and asset sales and other transactions with the interested stockholder   that result in a financial benefit to the interested stockholder.  Our Charter also requires a supermajority   shareholder vote to approve certain business combinations involving interested stockholders (as defined in   the Charter).                Control Share Acquisitions.  Subject to certain exceptions, the control share acquisitions provisions   of the Massachusetts General Laws generally provide that any person, including his, her or its affiliates,   who acquires shares of a corporation that are subject to the control share acquisitions statute and whose   shares represent one-fifth or more, one-third or more, or a majority or more of the voting power of the   corporation in the election of directors cannot exercise any voting power with respect to those shares, unless   these voting rights are authorized by the stockholders of the corporation.  The authorization of voting rights   requires the affirmative vote of the holders of a majority of the outstanding voting shares, excluding shares   owned by:  (1) the person making an acquisition of this nature; (2) any officer of the corporation; and (3)   any employee who is also a director of the corporation.  Our Charter includes a provision which permits   the Company to effect redemptions of shares acquired in a control share acquisition under certain   circumstances.                                                           3cgnxformofrsuagreement

                                                                          EXHIBIT 10U              RESTRICTED STOCK UNIT AWARD AGREEMENT                         FOR COMPANY EMPLOYEES                    UNDER THE COGNEX CORPORATION                 2007 STOCK OPTION AND INCENTIVE PLAN    Name of Grantee:    No. of Restricted Stock Units:    Grant Date:          Pursuant to the Cognex Corporation 2007 Stock Option and Incentive Plan, as amended   through the date hereof (the “Plan”), Cognex Corporation (the “Company”) hereby grants an   award of the number of Restricted Stock Units listed above (an “Award”) to the Grantee named   above.  Each Restricted Stock Unit shall relate to one share of Common Stock, par value $0.002   per share (the “Stock”), of the Company.          1.    Restrictions on Transfer of Award.  This Award may not be sold, transferred,  pledged, assigned or otherwise encumbered or disposed of by the Grantee, and any shares of   Stock issuable with respect to the Award may not be sold, transferred, pledged, assigned or   otherwise encumbered or disposed of until (i) the Restricted Stock Units have vested as provided   in Paragraph 2 of this Agreement and (ii) shares of Stock have been issued to the Grantee in   accordance with the terms of the Plan and this Agreement.          2.    Vesting of Restricted Stock Units.  The restrictions and conditions of Paragraph 1  of this Agreement shall lapse on the Vesting Date(s) specified in the following schedule so long   as the Grantee remains an employee of the Company or a Subsidiary on such Vesting Date(s).  If   a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 1 shall   lapse only with respect to the number of Restricted Stock Units specified as vested on such date.                   Incremental Number of                Restricted Stock Units Vested           Vesting Date                      _____________                   _______________                     _____________                   _______________                     _____________                   _______________          The Administrator may at any time accelerate the vesting schedule specified in this   Paragraph 2.          [Included for Directors/Chief Financial Officer/Executive Officer Senior Vice Presidents:  In the event of a corporate transaction, including a merger or reorganization, whereby the holders  of the outstanding shares of common stock of the Company before the transaction fail to have a  beneficial interest of 51 percent or more of the shares of outstanding common stock of the  Company or its successor (or its ultimate parent) after the consummation of the transaction, all 

 

 unvested Restricted Stock Units granted pursuant to this Award shall become vested immediately   prior to the consummation of the transaction.]          [Included for Other Executive Officers: In the event of a corporate transaction, including   a merger or reorganization, whereby the holders of the outstanding shares of common stock of   the Company before the transaction fail to have a beneficial interest of 51 percent or more of the   shares of outstanding common stock of the Company or its successor (or its ultimate parent) after   the consummation of the transaction, and within 12 months of the consummation of the   transaction, Grantee’s employment is involuntarily terminated, all unvested Restricted Stock   Units granted pursuant to this Award shall become immediately vested and fully exercisable. For   purposes hereof, Grantee’s employment is considered to be involuntarily terminated if the   Company or its successor terminates Grantee’s employment without Cause or Grantee resigns   for Good Reason. The term “Cause” shall mean (i) Grantee’s willful and continued failure to   perform substantially Grantee’s duties with the Company (other than any failure resulting from   incapacity due to physical or mental illness), after a written demand of performance is delivered   to Grantee by the Board or the Chief Executive Officer of the Company which identifies the   manner in which the Board or Chief Executive Officer believes that Grantee has not substantially  performed Grantee’s duties; or (ii) Grantee’s willful engagement in illegal conduct or gross   misconduct which is materially injurious to the Company. The term “Good Reason” shall mean   (i) a material diminution in Grantee’s duties or responsibilities, excluding for this purpose any   diminution related solely to the Company ceasing to be a reporting company for purposes of the   Securities Exchange Act of 1934, or (ii) the Company’s requiring Grantee to be based at any   office or location that is more than fifty (50) miles from Grantee’s current office.]          3.    Termination of Employment.  If the Grantee’s employment with the Company   and its Subsidiaries terminates for any reason (including death or disability) prior to the   satisfaction of the vesting conditions set forth in Paragraph 2 above, any Restricted Stock Units   that have not vested as of such date shall automatically and without notice terminate and be   forfeited, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal   representatives will thereafter have any further rights or interests in such unvested Restricted   Stock Units.          4.    Issuance of Shares of Stock.  As soon as practicable following each Vesting Date   (but in no event later than two and one-half months after the end of the year in which the Vesting  Date occurs), the Company shall issue to the Grantee the number of shares of Stock equal to the   aggregate number of Restricted Stock Units that have vested pursuant to Paragraph 2 of this   Agreement on such date and the Grantee shall thereafter have all the rights of a stockholder of   the Company with respect to such shares.           5.    Incorporation of Plan.  Notwithstanding anything herein to the contrary, this   Agreement shall be subject to and governed by all the terms and conditions of the Plan, including   the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this   Agreement shall have the meaning specified in the Plan, unless a different meaning is specified   herein.          6.    Tax Withholding.   The Grantee shall, not later than the date as of which the   receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the   Company or make arrangements satisfactory to the Administrator for payment of any Federal,                                         2    

 

 state, and local taxes required by law to be withheld on account of such taxable event.  Such   withholding shall be satisfied by the Company withholding from Shares to be issued to the   Grantee a number of Shares with an aggregate Fair Market Value that would satisfy the   withholding amount due.  Alternatively, or in addition, the Company may decide in its sole and   absolute discretion to satisfy Grantee’s obligation for tax-related items by one or a combination   of the following: (i) withholding from proceeds of the sale of Shares acquired upon   vesting/settlement of the Restricted Stock Units either through a voluntary sale or through a   mandatory sale arranged by the Company (on Grantee’s behalf pursuant to this authorization); or   (ii) in any other manner permitted by the Plan.          7.    Section 409A of the Code.  This Agreement shall be interpreted in such a manner   that all provisions relating to the settlement of the Award are exempt from the requirements of   Section 409A of the Code as “short-term deferrals” as described in Section 409A of the Code.          8.    No Obligation to Continue Employment.  Neither the Company nor any   Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in   employment and neither the Plan nor this Agreement shall interfere in any way with the right of   the Company or any Subsidiary to terminate the employment of the Grantee at any time.          9.    Integration.  This Agreement constitutes the entire agreement between the parties   with respect to this Award and supersedes all prior agreements and discussions between the   parties concerning such subject matter.          10.   Data Privacy Consent.  In order to administer the Plan and this Agreement and to   implement or structure future equity grants, the Company, its subsidiaries and affiliates and   certain agents thereof (together, the “Relevant Companies”) may process any and all personal or   professional data, including but not limited to Social Security or other identification number,   home address and telephone number, date of birth and other information that is necessary or   desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).    By entering into this Agreement, the Grantee (i) authorizes the Company to collect, process,  register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy   rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the  Relevant Companies to store and transmit such information in electronic form; and (iv)  authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant  Companies consider appropriate.  The Grantee shall have access to, and the right to change, the  Relevant Information.  Relevant Information will only be used in accordance with applicable  law.          11.   Notices.  Notices hereunder shall be mailed or delivered to the Company at its   principal place of business and shall be mailed or delivered to the Grantee at the address on file  with the Company or, in either case, at such other address as one party may subsequently furnish   to the other party in writing.          12.   Restrictive Covenants.  The Grantee reaffirms his/her promise to be bound by the   restrictive covenants set forth in the Employee Invention, Non-Disclosure and Non-Competition   Agreement or Employee Invention and Non-Disclosure Agreement, as applicable, entered into   between the Grantee and the Company (the “Employment Agreement”).  The Grantee agrees that   any gains realized by the Grantee pursuant to the vesting of this Award (along with other good                                         3    

 

and valuable consideration including, but not limited to employment by the Company, salary and  other Company-provided benefits) are additional and sufficient consideration for the Grantee’s  performance of Grantee’s obligations as stated in the Employment Agreement.  To the extent  permitted by applicable law, Grantee agrees that if Grantee breaches the Employment Agreement  then Grantee shall pay damages to the Company, including, but not limited to an amount equal to  the sum of: (a) the total of all gains realized by Grantee as a result of vesting of this Award, and  (b) the total of all gains realized by Grantee as a result of the sale of any shares acquired by  Grantee through the vesting of this Award.  The determination of the existence of breach of the  Employment Agreement shall be made by the Company in good faith, which determination shall  be conclusive for purposes of this Agreement.                                                            COGNEX CORPORATION                                           By:                                                                                Title:   The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed  to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s  instructions to the Grantee (including through an online acceptance process) is acceptable.    Dated:                                                                                                                 Grantee’s Signature                                            Grantee’s name and address:                                                                                                                                                                                                                                                                                                4

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