Document:

exv4w14

Exhibit 4.14

EIGHT AMENDMENT TO

CREDIT AGREEMENT

     THIS SEVENTH AMENDMENT (“Amendment”) dated as of December 20, 2007, by and between
Perceptron, Inc. (“Company”) and Comerica Bank (“Bank”).

RECITALS:

     A. Company and Bank entered into a Credit Agreement dated as of October 24,
2002, which was amended by seven amendments (“Agreement”).

     B. Company and Bank desire to amend the Agreement as hereinafter set forth.

     NOW, THEREFORE, the parties agree as follows:

     1. The following definitions in Section 1 of the Agreement are amended to read in their
entirety as follows:

     “’Revolving Credit Maturity Date’ shall mean November 1, 2009.

     “’Applicable Fee Percentage” shall mean .075% per annum.”

     “’Applicable Margin’ shall mean as to any Prime-based Advance, one half of one
percent (1/2%) per annum and as to any Eurodollar-based Advance, one and eighty
eight one hundredths percent (1.88%) per annum.”

     “’Prime Based Rate’ shall mean for any day a per annum interest rate which is
the greater of (i) the Prime Rate minus the Applicable Margin or (ii) the Alternate
Base Rate.”

     2. Sections 2.1 and 2.6 of the Agreement are amended to change each reference to “Seven
Million Five Hundred Thousand Dollars ($7,500,000)” to read “Six Million Dollars ($6,000,000).”

     3. Section 4.8 of the Agreement and Schedule 1.1 are deleted in their entirety.

     4. Exhibit “B” is deleted and attached Exhibit “B” is substituted in its place.

     5. Company hereby represents and warrants that, after giving effect to the amendments
contained herein, (a) execution, delivery and performance of this Amendment and any other documents
and instruments required under this Amendment or the Agreement are within Company’s corporate
powers, have been duly authorized, are not in contravention of law or the terms of Company’s
Articles of Incorporation or Bylaws, and do not require the consent or approval of any governmental
body, agency, or authority; and this Amendment and any other documents and instruments required
under this Amendment or the Agreement, will be valid and binding in accordance with their terms;
(b) the continuing representations and warranties of

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Company set forth in Sections 6.1 through 6.5 and 6.7 through 6.12 of the Agreement are true and
correct on and as of the date hereof with the same force and effect as made on and as of the date
hereof; (c) the continuing representations and warranties of Company set forth in Section 6.6 of
the Agreement are true and correct as of the date hereof with respect to the most recent financial
statements furnished to the Bank by Company in accordance with Section 7.1 of the Agreement; and
(d) no Event of Default (as defined in the Agreement) or condition or event which, with the giving
of notice or the running of time, or both, would constitute an Event of Default under the
Agreement, as hereby amended, has occurred and is continuing as of the date hereof.

     6. Except as expressly provided herein, all of the terms and conditions of the Agreement
remain unchanged and in full force and effect.

     7. This Amendment shall be effective upon (a) execution of this Agreement by Company and the
Bank, (b) delivery by Company to Bank of an executed replacement Revolving Credit Note in form
acceptable to Bank and (b) execution by the Guarantor of the attached Acknowledgment of Guarantor.

     8. The Company and the undersigned guarantor are parties to certain documents, instruments
and/or agreements (collectively, the “Documents”) with or between them and Comerica Bank, a
Michigan banking corporation (the “Merged Bank”). The Merged Bank has been merged with and into
Comerica Bank, a Texas banking association (the “Surviving Bank”). The Company and the undersigned
guarantor hereby acknowledge and agree that any reference in the Documents to Comerica Bank, a
Michigan banking corporation, shall mean Comerica Bank, a Texas banking association, as successor
by merger to the Merged Bank.

     IN WITNESS the due execution hereof as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	COMERICA BANK	 	PERCEPTRON, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/S/ Sarah E. Virga
 

	 	By:
	 	/S/ John H. Lowry
 

	 	 
	Its:

	 	Assistant Vice President
	 	Its:
	 	Vice President & CFO	 	 
	 

	 	 
	 	 	 	 	 	 

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EXHIBIT “B”

REVOLVING CREDIT NOTE

Detroit, Michigan

December 20, 2007

$6,000,000

     On or before the Revolving Credit Maturity Date FOR VALUE RECEIVED, Perceptron, Inc., a
Michigan corporation (herein called “Company”) promises to pay to the order of COMERICA BANK
(herein called “Bank”) at its offices at 500 Woodward Avenue, Detroit, Michigan, in lawful currency
of the United States of America the indebtedness or so much of the sum of Six Million Dollars
($6,000,000) as may from time to time have been advanced and then be outstanding hereunder pursuant
to the Credit Agreement dated as of October 24, 2002, made by and between Company and Bank (as the
same may be amended or modified from time to time, herein called “Agreement”), together with
interest thereon as hereinafter set forth.

     Each of the Advances hereunder shall bear interest at the Applicable Interest Rate from time
to time applicable thereto under the Agreement or as otherwise determined thereunder, and interest
shall be computed, assessed and payable as set forth in the Agreement.

     This Note is a note under which advances, repayments and readvances may be made from time to
time, subject to the terms and conditions of the Agreement. This Note evidences borrowing under,
is subject to, is secured in accordance with, and may be matured under, the terms of the Agreement,
to which reference is hereby made.

     Company hereby waives presentment for payment, demand, protest and notice of dishonor and
nonpayment of this Note and agrees that no obligation hereunder shall be discharged by reason of
any extension, indulgence, or forbearance granted by any holder of this Note to any party now or
hereafter liable thereon. Any transferees of, or endorser, guarantor or surety paying this Note in
full shall succeed to all rights of Bank, and Bank shall be under no further responsibility for the
exercise thereof or the loan evidenced hereby. Nothing herein shall limit any right granted Bank
by other instrument or by law.

     This Note amends, restates, supersedes, replaces and reduces that certain Revolving Credit
Note dated as of October 24, 2002, made in the principal amount of Seven Million Five Hundred
Thousand Dollars ($7,500,000) by Company payable to Bank, and the initial Advance(s) under this
Note shall be deemed first applied, to the extent necessary, to repay the existing indebtedness of
Company to Bank under said Note; provided, however, the execution and delivery by
Company of this Note shall not, in any manner or circumstance, be deemed to be a novation of or to
have terminated, extinguished or discharged any of Company’s indebtedness evidenced by said Note,
all of which indebtedness shall continue under and shall hereinafter be evidenced and governed by
this Note.

 

     All capitalized terms used but not defined herein shall have the meanings ascribed to them in
the Agreement.

	 	 	 	 	 	 	 
	 	 	PERCEPTRON, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ John H. Lowry
 

	 	 
	 

	 	Its:
	 	Vice President & CFO	 	 
	 

	 	 	 	 	 	 

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ACKNOWLEDGMENT OF GUARANTOR

     The undersigned guarantor acknowledges and agrees to the foregoing Amendment and merger
acknowledgement and confirms that the Guaranty dated October 24, 2002, executed and delivered by
the undersigned to the Bank remains in full force and effect in accordance with its terms.

	 	 	 	 	 	 	 
	 	 	PERCEPTRON GLOBAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/S/ John H. Lowry
 

	 	 
	 

	 	Its:
	 	Vice President & CFO	 	 
	 

	 	 	 	 	 	 

5exv10w41

EXHIBIT
10.41

PERCEPTRON, INC.

SEVERANCE AGREEMENT

     THIS SEVERANCE AGREEMENT, dated as of September 26, 2005, is between Perceptron, Inc. (the
“Company”) and Mark S. Hoefing, who is currently employed by the Company in the position of Vice
President — Sales and Marketing (the “Executive”).

     1. Operation of Agreement. This Agreement sets forth the severance compensation that
the Company shall pay the Executive if the Executive’s employment with the Company terminates under
one of the applicable provisions set forth herein. As used in this Agreement, employment with the
Company shall be deemed to include employment with a subsidiary of the Company.

     2. Defined Terms. For purposes of this Agreement, the following terms shall have the
meanings set forth below:

          (a) “Cause” shall mean the Executive’s

          (i) personal dishonesty in connection with the performance of services for the Company,

          (ii) willful misconduct in connection with the performance of services for the Company,

          (iii) conviction for violation of any law involving (A) imprisonment that interferes
with performance of duties or (B) moral turpitude.

          (iv) repeated and intentional failure to perform stated duties, after written notice is
delivered identifying the failure, and it is not cured within 10 days following receipt of
such notice, or

          (v) breach of a fiduciary duty to the Company.

          (b) “Change in Control” shall be deemed to have occurred upon the occurrence of any of
the following events:

          (i) A merger involving the Company in which the Company is not the surviving
corporation (other than a merger with a wholly-owned subsidiary of the Company formed for
the purpose of changing the Company’s corporate domicile);

          (ii) A share exchange in which the shareholders of the Company exchange their stock in
the Company for stock of another corporation (other than a share exchange in which all or
substantially all of the holders of the voting stock of the Company, immediately prior to
the transaction, exchange, on a pro rata basis, their voting stock of the Company, for more
than 50% of the voting stock of such other corporation);

          (iii) A sale of all or substantially all of the assets of the Company; or

 

 

          (iv) Any person or group of persons (as defined in Section 13(d) of the Securities
Exchange Act of 1934, as amended) (other than any employee benefit plan or employee benefit
trust benefiting the employees of the Company) becoming a beneficial owner, directly or
indirectly, of securities of the Company representing more than 50% of either the then
outstanding Common Stock of the Company, or the combined voting power of the Company’s then
outstanding voting securities.

          (c) “Disability” shall mean the Executive’s inability to substantially perform the
Executive’s duties for such period as would qualify the Executive for benefits under the long-term
disability insurance policy provided by the Company or, if no such policy is provided, the
Executive’s total and permanent disability which prevents the Executive from performing for a
continuous period exceeding six months the duties assigned to the Executive. The determination of
Disability shall be made by a medical board-certified physician mutually acceptable to the Company
and the Executive (or the Executive’s legal representative, if one has been appointed), and if the
parties cannot mutually agree to the selection of a physician, then each party shall select such a
physician and the two physicians so selected shall select a third physician who shall make this
determination.

     3. Termination of Employment. The Executive shall be entitled to the Regular
Severance Benefits (as defined in Section 3(b) below) set forth in this Section 3 if the Executive
has incurred a Termination of Employment. The severance benefit provided under this Section 3 is
in lieu of cash severance payments offered under the Company’s documented severance policy, if any.

          (a) For purposes of Section 3 of the Agreement, “Termination of Employment” shall be defined
as the Executive’s involuntary termination by the Company for any reason other than death,
Disability or Cause.

          (b) Upon satisfaction of the requirements set forth in this Section 3, upon the Executive’s
execution of a release (in the form attached hereto as Exhibit A), the Executive shall be entitled
to (the “Regular Severance Benefits”):

          (i) A cash severance benefit equal to one-half the Executive’s current annual base
salary, as in effect at the time of the Termination of Employment;

          (ii) A prorated portion of any bonus that the Executive would have earned for the year
of termination had the Executive been employed by the Company at the end of the applicable
bonus period;

          (iii) Any payments of commissions required to be made to the Executive upon termination
of employment under the terms of any commission plan that the Executive participated in at
the date of termination of employment;

          (iv) Subject to Section 6, continuation of Company-provided health (including vision
and dental, if provided by the Company at the date of termination) and welfare benefits
(including executive life insurance coverage, if provided by the Company to the Executive at
the date of termination) for six months, on the terms (or comparable terms) provided by the
Company to its employees from time to time during

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this period. Health benefits shall be provided through continued coverage under the
Company’s group health plan, if allowed under the terms of such plan, or by the
reimbursement of COBRA continuation coverage premiums paid by the Executive, as determined
by the Company; provided, however, if the health plan is self-insured by the Company, then
the determination shall be made by the Executive. Any continuation of group health plan
coverage under this paragraph shall run concurrently with the period of required COBRA
continuation coverage under the Code. If COBRA continuation coverage is not available, the
Company shall reimburse the Executive for premiums for comparable coverage, provided,
however, that the reimbursement shall not exceed the greater of (i) two times the annual
premium paid by the Company for such coverage at the date of termination or (ii) two times
the then current amount of the COBRA premium under the Company’s group health plan for
coverage comparable to that elected by the Executive. Welfare benefits (other than health
benefits) shall be continued only to the extent permitted under the terms of such plans;

          (v) Continuation of the Executive’s then current car benefit for six months in
accordance with the Company car policy in effect at the time of termination.

          (c) The Executive’s cash severance benefit under Section 3(b)(i) shall be payable in the same
manner as the Executive’s base salary, the pro rata share of any bonus under Section 3(b)(ii) shall
be payable at the time set forth in the bonus program and commissions payable under Section
3(b)(iii) shall be payable at the time set forth in the commission plan, or, in each case, such
earlier time as is required to avoid such payments being subject to Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”).

     4. Termination of Employment Following a Change in Control. Subject to Section 11(a)
hereunder, the Executive shall be entitled to the Change in Control Severance Benefits (as defined
in Section 4(c) below) set forth in this Section 4, in lieu of the severance benefits the Executive
is entitled to under Section 3 of this Agreement, if there has been a Change in Control and the
Executive has incurred a Termination of Employment. The severance benefit provided under this
Section 4 is in lieu of cash severance payments offered under the Company’s documented severance
policy, if any.

          (a) For purposes of Section 4 of the Agreement, “Termination of Employment” shall be defined
as:

          (i) The Executive’s involuntary termination by the Company for any reason other than
death, Disability or Cause; or

          (ii) The Executive’s termination for “Good Reason,” defined as the occurrence of any of
the following events without the Executive’s written consent, if the Executive terminates
employment within one (1) year following the occurrence of such event:

          (A) Any reassignment of the Executive to substantial duties materially
inconsistent with the Executive’s position, duties, responsibilities and status with
the Company immediately prior to the Change in Control or a

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substantial diminution in the Executive’s position, duties, responsibilities or
status with the Company from his position, duties, responsibilities or status with
the Company immediately prior to the Change in Control; provided that the fact that
the Company is no longer a publicly traded company or the Executive no longer has
duties and responsibilities associated exclusively with a publicly traded company,
such as Securities and Exchange Commission or stock exchange reporting
responsibilities or investor or analyst relations responsibilities, shall
not be deemed to be a reassignment of the Executive to substantial duties
materially inconsistent with the Executive’s position, duties, responsibilities and
status with the Company immediately prior to the Change in Control or a substantial
diminution in the Executive’s position, duties, responsibilities or status with the
Company from his position, duties, responsibilities or status with the Company
immediately prior to the Change in Control;

          (B) Any reduction in the Executive’s base salary or targeted incentive bonus or
commissions in effect immediately prior to the Change in Control, or failure by the
Company to continue any bonus, stock or other incentive plans in effect immediately
prior to the Change in Control (without the implementation of comparable successor
plans that provide comparable award opportunities/benefits), or any removal of the
Executive from participation in such aforementioned plans;

          (C) The discontinuance or reduction in benefits to the Executive under any
qualified or nonqualified retirement or welfare plan maintained by the Company
immediately prior to the Change in Control (without the implementation of comparable
successor plans that provide comparable benefits), or the discontinuance of any
fringe benefits or other perquisites that the Executive received immediately prior
to the Change in Control (without the implementation of comparable successor plans
that provide comparable benefits);

          (D) Required relocation of the Executive’s principal place of employment more
than 50 miles from the Executive’s place of employment prior to the Change in
Control; or

          (E) The Company’s breach of any provision in this Agreement, provided that the
Company has not cured such breach within 10 days following written notice by the
Executive to the Company of such breach.

(b) The Executive who believes the Executive is entitled to a Termination of Employment for
Good Reason, as defined in Section 4 above, may apply in writing to the Company for confirmation of
such entitlement prior to the Executive’s actual separation from employment, by following the
claims procedure set forth in Section 15 hereof. The submission of such a request by the Executive
shall not constitute “Cause” for the Company to terminate the Executive as defined under Section
2(a) hereof. If the Executive’s request for a Good Reason Termination of Employment is denied
under both the request and appeal procedures set forth in paragraphs (b) and (c) of Section 15
hereof, then the parties shall use their best efforts to resolve the claim within 90 days after the
claim is submitted to arbitration pursuant to
Section 15(d).

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          (c) Upon satisfaction of the requirements set forth in Sections 4 or 11(a) hereof and with
respect to any one or more Changes in Control that may occur during the term of this Agreement,
upon the Executive’s execution of a release (in the form attached hereto as Exhibit A), the
Executive shall be entitled to (the “Change in Control Severance Benefits”):

          (i) A cash severance benefit equal to one times the Executive’s current annual base
salary, as in effect at the time of the Change in Control;

          (ii) A prorated portion of the Executive’s target bonus for the year of termination, if
any, based on the number of days worked in the year of termination;

          (iii) An amount equal to the positive difference, if any, between a prorated portion of
the Executive’s target commissions for the year of termination, as established by the
Company, under the terms of any commission plan that the Executive participated in at the
date of termination of employment, based on the number of days worked in the year of
termination, less any commissions otherwise paid or payable under such plan for such year;

          (iv) Subject to Section 6, continuation of Company-provided health (including vision
and dental, if provided by the Company immediately prior to the Change in Control) and
welfare benefits (including executive life insurance coverage, if provided by the Company to
the Executive immediately prior to the Change in Control) for one year, on the terms (or
comparable terms) provided by the Company to the Executive immediately prior to the Change
in Control. Health benefits shall be provided through continued coverage under the
Company’s group health plan, if allowed under the terms of such plan, or by the
reimbursement of COBRA continuation coverage premiums paid by the Executive, as determined
by the Company; provided, however, if the health plan is self-insured by the Company, then
the determination shall be made by the Executive. Any continuation of group health plan
coverage under this paragraph shall run concurrently with the period of required COBRA
continuation coverage under the Code. If COBRA continuation coverage is not available, the
Company shall reimburse the Executive for premiums for comparable coverage, provided,
however, that the reimbursement shall not exceed the greater of (i) two times the annual
premium paid by the Company for such coverage at the date of termination or (ii) two times
the amount of the COBRA premium under the Company’s group health plan for coverage
comparable to that elected by the Executive, (A) at the time of the Change of Control or (B)
at the time of the required payment, whichever is greater. Welfare benefits (other than
health benefits) shall be continued only to the extent permitted under the terms of such
plans;

          (v) Continuation of the Executive’s then current car benefit for one year in accordance
with the Company car policy in effect at the time of termination.

          (vi) Continued coverage, during the six (6) years following the Executive’s termination
for his actions or omissions as an officer and, if applicable, director of the Company prior
to the date of termination of his employment, under any directors and officers liability
insurance policy maintained by the Company (or, if the Company does not maintain such a
policy, by its affiliates) for its former directors and

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officers or, at the Company’s election, for the current directors and officers. If the
Company or its affiliates does not otherwise maintain such a policy, then the Company shall
be required to provide the Executive with such a policy, to the extent available. The
policy dollar coverage limits of any such policy shall be not less than the policy limit
under any Company policy in place within the one (1) year prior to the Executive’s
termination of employment (the “Existing Policy”) or, if less, the policy dollar coverage
limit that can be purchased by the Company for all of its current and former directors and
officers at an annual premium equal to two times the Company’s annual premium for the
Existing Policy.

          (d) Subject to Section 11(a) hereof, the Executive’s cash severance benefit under Section
4(c)(i), (ii) and (iii) shall be paid in a lump sum cash payment within ten (10) days following the
Executive’s Termination of Employment, as defined in Section 4. Any payment made later than 10
days following the Executive’s Termination of Employment (or applicable due date under Section
11(a) hereof) for whatever reason, shall include interest at the prime rate plus two percent, which
shall begin accruing on the 10th day following the Executive’s Termination of Employment (or
applicable due date under Section 11(a) hereof). For purposes of this Section 4, “prime rate”
shall be determined by reference to the prime rate established by Comerica Bank (or its successor),
in effect from time to time commencing on the 10th day following the Executive’s Termination of
Employment (or applicable due date under Section 11(a) hereof).

          (e) Section 4 of this Agreement shall terminate upon the first of the following events to
occur:

          (i) Three years from the date hereof if a Change in Control has not occurred within
such three-year period;

          (ii) Termination of the Executive’s employment with the Company prior to a Change in
Control, provided, however, if there is a Change in Control within six months after the
termination of the Executive’s employment with the Company, other than a termination due to
the Executive’s death or Disability, an involuntary termination by the Company for Cause or
a termination of employment by the Executive, then the Agreement shall not be deemed to have
terminated and the Executive shall be entitled to receive the Change in Control Severance
Benefits provided in Section 4, less any Regular Severance Benefits the Executive has been
paid under Section 3, in lieu of the severance benefits the Executive is entitled to under
Section 3;

          (iii) The expiration of two years following a Change in Control;

          (iv) Termination of the Executive’s employment with the Company following a Change in
Control due to the Executive’s death or Disability;

          (v) Termination of the Executive’s employment by the Company for Cause following a
Change in Control; or

          (vi) Termination of employment by the Executive for other than Good Reason following
the date of a Change in Control.

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Unless Section 4 of this Agreement has first terminated under clauses (ii) through (vi) hereof,
commencing on the third anniversary of the date of this Agreement, and on each one-year anniversary
thereafter, Section 4 of this Agreement shall be extended for one additional year, unless at least
180 days prior to any such anniversary, the Company notifies the Executive in writing that it shall
not extend the term of Section 4 of this Agreement.

     5. Golden Parachute Limit. Payments under this Agreement, when aggregated with any
other “golden parachute” amounts (defined under Section 280G of the Code) as compensation that
becomes payable or accelerated due to a Change in Control) payable under this Agreement or any
other plans, agreements or policies of the Company, shall not exceed to the golden parachute cap
under Sections 280G and 4999 of the Code.

     6. No Mitigation or Duty to Seek Reemployment. The Executive shall be under no duty
or obligation to seek or accept other employment after Termination of Employment and shall not be
required to mitigate the amount of any payments provided for by this Agreement by seeking
employment or otherwise. The Regular Severance Benefit and Change in Control Severance Benefits
payments shall not be reduced or suspended if the Executive accepts other employment, except that
Company is not required to continue any health or welfare benefit payments which duplicate employee
benefits and perquisites received in such other employment.

     7. Pro Rata Share of Bonus. For purposes of this Agreement, a pro rata share of any
bonus or target bonus shall mean the total bonus or target bonus payable multiplied by a fraction,
the numerator of which is the number of days in the applicable bonus period prior to the date of
the Executive’s Termination of Employment, Disability or death and the denominator of which is the
number of days in the bonus period.

     8. Stock Options. The Executive’s rights with respect to any options to purchase
Company stock shall be governed by the terms of the agreements pursuant to which such options were
issued.

     9. Non-Competition and Restrictive Covenant. If, during the term that the Executive
is receiving benefits under this Agreement, Executive violates the terms of this Agreement or the
Perceptron Executive Agreement Not to Compete (as defined below) or any other non-competition
agreement with the Company, the Company’s obligations to the Executive under this Agreement shall
automatically terminate.

     10. Tax Withholding. The Company may withhold from any cash amounts payable to the
Executive under this Agreement to satisfy all applicable Federal, State, local or other income
(including excise) and employment withholding taxes. In the event the Company fails to withhold
such sums for any reason, or withholding is required for any non-cash payments provided in
connection with the Executive’s Termination of Employment, the Company may require the Executive to
promptly remit to the Company sufficient cash to satisfy all applicable income and employment
withholding taxes.

     11. Binding Effect.

          (a) This Agreement shall be binding upon the successors and assigns of the Company. The
Company shall take whatever actions are necessary to ensure that any successor

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to its operations (whether by purchase, merger, consolidation, sale of substantially all
assets or otherwise) assumes the obligations under this Agreement and shall cause such successor to
evidence the assumption of such obligations in an agreement satisfactory to the Executive.
Notwithstanding any other provisions in this Agreement, if the Company fails to obtain an agreement
evidencing the assumption of the Company’s obligations by any such successor, the Executive shall
be entitled to immediate payment of the severance compensation provided under Section 4,
irrespective of whether the Executive’s employment has then terminated. For purposes of
implementing the foregoing, the date on which any succession becomes effective shall be deemed to
constitute the date of the Executive’s Termination of Employment.

          (b) This Agreement shall be binding upon the Executive and shall inure to the benefit of and
be enforceable by the Executive’s legal representatives and heirs. However, the rights of the
Executive under this Agreement shall not be assigned, transferred, pledged, hypothecated or
otherwise encumbered, except by operation of law.

     12. Amendment of Agreement. This Agreement may not be modified or amended except by
instrument in writing signed by the parties hereto. The parties agree that this Agreement may be
amended to comply with applicable law, including, but not limited to, Code Section 409A.

     13. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall continue in full force and effect.

     14. Limitation on Rights.

          (a) This Agreement shall not be deemed to create a contract of employment between the Company
and the Executive and shall create no right in the Executive to continue in the Company’s
employment for any specific period of time, or to create any other rights in the Executive or
obligations on the part of the Company, except as set forth herein. This Agreement shall not
restrict the right of the Company to terminate the Executive, or restrict the right of the
Executive to terminate employment.

          (b) Subject to the exception for cash severance payments under the Company’s documented
severance policy referenced in Sections 3 and 4 above, this Agreement shall not be construed to
exclude the Executive from participation in any other compensation or benefit programs in which the
Executive is specifically eligible to participate either prior to or following the execution of
this Agreement, or any such programs that generally are available to other executive personnel of
the Company, nor shall it affect the kind and amount of other compensation to which the Executive
is entitled.

          (c) The rights of the Executive under this Agreement shall be solely those of an unsecured
general creditor of the Company.

     15. Claims Procedure.

          (a) The administrator for purposes of this Agreement shall be the Company (“Administrator”),
whose address is 47827 Halyard Drive, Plymouth, Michigan 48170, and

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whose telephone number is (734) 414-6100. The “Named Fiduciary” as defined in Section
402(a)(2) of ERISA, also shall be the Company. The Company shall have the right to designate one
or more Company employees as the Administrator and the Named Fiduciary at any time, and to change
the address and telephone number of the same. The Company shall give the Executive written notice
of any change in the Administrator and Named Fiduciary, or in the address or telephone number of
the same.

          (b) The Administrator shall make all determinations as to the right of any person to receive
benefits under the Agreement. Any denial by the Administrator of a claim for benefits by the
Executive (“the claimant”) shall be stated in writing by the Administrator and delivered or mailed
to the claimant within 10 days after receipt of the claim, unless special circumstances require an
extension of time for processing the claim. If such an extension is required, written notice of
the extension shall be furnished to the claimant prior to the termination of the initial 10-day
period. In no event shall such extension exceed a period of 10 days from the end of the initial
period. Any notice of denial shall set forth the specific reasons for the denial, specific
reference to pertinent provisions of this Agreement upon which the denial is based, a description
of any additional material or information necessary for the claimant to perfect the claim, with an
explanation of why such material or information is necessary, and any explanation of claim review
procedures, written to the best of the Administrator’s ability in a manner that may be understood
without legal or actuarial counsel.

          (c) A claimant whose claim for benefits has been wholly or partially denied by the
Administrator may request, within 60 days following the date of such denial, in a writing addressed
to the Administrator, a review of such denial. The claimant shall be entitled to submit such
issues or comments in writing or otherwise, as the claimant shall consider relevant to a
determination of the claim, and the claimant may include a request for a hearing in person before
the Administrator. Prior to submitting the request, the claimant shall be entitled to review such
documents as are pertinent to the claim. The claimant may, at all stages of review, be represented
by counsel, legal or otherwise, of the claimant’s choice. All requests for review shall be
promptly resolved. The Administrator’s decision with respect to any such review shall be set forth
in writing and shall be mailed to the claimant not later than 10 days following receipt by the
Administrator of the claimant’s request unless special circumstances, such as the need to hold a
hearing, require an extension of time for processing, in which case the Administrator’s decision
shall be so mailed not later than 20 days after receipt of such request.

          (d) A claimant who has followed the procedure in paragraphs (b) and (c) of this Section, but
who has not obtained full relief on the claim for benefits, may, within 60 days following the
claimant’s receipt of the Administrator’s written decision on review, apply in writing to the
Administrator for binding arbitration of the claim before an arbitrator mutually acceptable to both
parties, the arbitration to be held in Plymouth, Michigan, in accordance with the arbitration rules
of the American Arbitration Association, Commercial Disputes Resolution Procedures, as then in
effect. If the parties are unable to mutually agree upon an arbitrator, then the arbitration
proceedings shall be held before three arbitrators, one of which shall be designated by the
Company, one of which shall be designated by the claimant and the third of which shall be
designated mutually by the first two arbitrators in accordance with the arbitration rules
referenced above. The arbitrator(s) sole authority shall be to interpret and apply the provisions
of this Agreement; the arbitrator(s) shall not change, add to, or subtract from, any of

9

 

the Agreement’s provisions. The arbitrator(s) shall have the power to compel attendance of
witnesses at the hearing. Any court having jurisdiction may enter a judgment based upon such
arbitration. All decisions of the arbitrator(s) shall be final and binding on the claimant and the
Company without appeal to any court. The Executive and the Company hereby acknowledge that as
arbitration is the exclusive remedy with respect to any grievance hereunder, neither party has the
right to resort to any federal, state or local court or administrative agency concerning breaches
of this Agreement, and the decision of the arbitrator shall be a complete defense to any suit,
action or proceeding instituted in any federal, state or local court or before any administrative
agency with respect to any dispute which is arbitrable as herein set forth.

     16. Legal Fees and Expenses.

          (a) Except as otherwise provided in Section 16(b), in the event any arbitration or litigation
is brought to enforce any provision of this Agreement and the Executive prevails, then the
Executive shall be entitled to recover from the Company the Executive’s reasonable costs and
reasonable expenses of such arbitration or litigation, including reasonable fees and disbursements
of counsel (both at trial and in appellate proceedings), (“Expenses). Except as otherwise provided
in Section 16(b), if the Company prevails, then each party shall be responsible for its/his
respective costs, expenses and attorneys fees, and the costs of the arbitrator shall be equally
divided.

          (b) Except to the extent prohibited by applicable law, in the event any arbitration or
litigation is brought to enforce any provision of Section 4 of this Agreement, the Company shall
advance to the Executive one half of the amount of the Executive’s Expenses and shall pay the costs
of the arbitrator. The Executive shall be obligated to repay such advances to the Company only if
the Company prevails in the arbitration or litigation.

          (c) In the event that it is determined that the Executive is entitled to compensation, legal
fees and expenses hereunder, the Executive also shall be entitled to interest thereon, from the
date payment thereof was due, payable to the Executive at the prime rate of interest plus two
percent.

          (d) For purposes of this Section 16, “prevails” means that the Executive receives an award of
severance benefits in such arbitration or litigation in excess of the amount offered to be paid by
the Company to the Executive prior to the initiation of the arbitration or litigation. For
purposes of this Section 16, “prime rate” shall be determined by reference to the prime rate
established by Comerica Bank as in effect from time to time during the period from the date such
amounts should have been paid to the date of actual payment. For purposes of determining the date
when legal fees and expenses are payable, such amounts are not due until 30 days after notification
to the Company of such amounts.

     17. Nonalienation of Benefits. Except in so far as this provision may be contrary to
applicable law, no sale, transfer, alienation, assignment, pledge, collateralization or attachment
of any benefits under this Agreement shall be valid or recognized by the Company.

10

 

     18. ERISA. This Agreement is an unfunded compensation arrangement for a member of a
select group of the Company’s management and any exemptions under ERISA, as applicable to such an
arrangement, shall be applicable to this Agreement.

     19. Reporting and Disclosure. The Company, from time to time, shall provide
government agencies with such reports concerning this Agreement as may be required by law, and the
Company shall provide the Executive with such disclosure concerning this Agreement as may be
required by law or as the Company may deem appropriate.

     20. Notices. Any notice required or permitted by this Agreement shall be in writing,
sent by registered or certified mail, return receipt requested, addressed to the Board and the
Company at the Company’s then principal office, or to the Executive at the Executive’s last address
on file with the Company, as the case may be, or to such other address or addresses as any party
hereto may from time to time specify in writing for the purpose of this Agreement in a notice given
to the other parties in compliance with this section. Notices shall be deemed given when received.

     21. Miscellaneous/Severability. A waiver of the breach of any term or condition of
this Agreement shall not be deemed to constitute a waiver of any subsequent breach of the same or
any other term or condition. This Agreement is intended to be performed in accordance with, and
only to the extent permitted by, all applicable laws, ordinances, rules and regulations. To the
extent that any provision or benefit under this Agreement is not deemed to be in accordance with
any applicable law, ordinance, rule or regulation, the noncomplying provision shall be construed,
or benefit limited, to the extent necessary to comply with all applicable laws, ordinances and
regulations and any such provision or benefit shall not affect the validity of any other provision
or benefit provided by this Agreement. The headings in this Agreement are inserted for convenience
of reference only and shall not be a part of or control or affect the meaning of any provision
hereof.

     22. Governing Law. To the extent not preempted by Federal law, this Agreement shall
be governed and construed in accordance with the laws of the State of Michigan, without regard to
its conflicts of law rules.

     23. Entire Agreement. This document represents the entire agreement and understanding
of the parties with respect to the subject matter of the Agreement (other than the Perceptron
Executive Agreement Not to Compete dated even date herewith (“Perceptron Executive Agreement Not to
Compete”), the Company’s Proprietary Information and Inventions Agreement, and any commission plan
between the Company and the Executive, which shall remain in full force and effect after the
execution of this Agreement) and it may not be altered or amended except by an agreement in writing
that is executed by both parties to this Agreement. Specifically, this Agreement supersedes any
other severance pay provisions in effect on the date of this Agreement.

11

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above.

	 	 	 	 	 
	 	PERCEPTRON, INC.
 	 
	 	By:  	A. A. Pease 	 
	 	 	Alfred A. Pease, President and Chief Executive Officer	 
	 	 	 	 
	 
	 	 	 
	 	     /s/ Mark S. Hoefing 	 
	 	Mark S. Hoefing 	 
	 	 	 
	 

12

 

EXHIBIT A

RELEASE AGREEMENT

     THIS AGREEMENT (“Agreement”) is made by and between
                                        
 (“Employee”) and
Perceptron, Inc. (the “Company”).

RECITALS

     A. Employee has terminated employment with the Company, effective
                    ,
                    .

     B. Employee has been given the opportunity to review this Agreement, to consult with legal
counsel, and to ascertain his rights and remedies.

     C. Employee and Company, without any admission of liability, desire to settle with finality,
compromise, dispose of, and release any and all claims and demands asserted or which could be
asserted arising out of Employee’s employment at and separation from Company.

     In consideration of the foregoing and of the promises and mutual covenants contained herein,
it is hereby agreed between Employee and Company as follows:

AGREEMENT

     1. In exchange for the good and valuable consideration set forth in that certain Agreement,
made as of                     , between the Company and Employee (the “Severance Agreement”), Employee
hereby releases, waives and discharges any and all manner of action, causes of action, claims,
rights, charges, suits, damages, debts, demands, obligations, attorneys fees, and any and all other
liabilities or claims of whatsoever nature, whether in law or in equity, known or unknown,
including, but not limited to, age discrimination under the Age Discrimination in Employment Act of
1967 (as amended), employment discrimination prohibited by other federal, state or local laws, and
any other claims, which Employee has claimed or may claim or could claim in any local, state or
federal or other forum, against Company, its directors, officers, employees, agents, attorneys,
successors and assigns as a result of or relating to Employee’s employment at and separation from
Company and as an officer of Company as a result of any acts or omissions by Company or any of its
directors, officers, employees, agents, attorneys, successors or assigns (“Covered Acts or
Omissions”) which occurred prior to the date of this Agreement; excluding only those for
indemnification under the Company’s articles of incorporation, bylaws or applicable law by reason
of his service as an officer or director of the Company and those arising under the Severance
Agreement between the Parties dated                     .

     2. Employee agrees to immediately return to Company all property, assets, manuals, materials,
information, notes, reports, agreements, memoranda, customer lists, formulae, data, know-how,
inventions, trade secrets, processes, techniques, and all other assets, materials and information
of any kind or nature, belonging or pertaining to Company (“Company Information and Property”),
including, but not limited to, computer programs and diskettes or other media for electronic
storage of information containing Company Information and Property, in Employee’s possession, and
Employee shall not retain copies of any such Company Information and

 

 

Property. Employee further agrees that from and after the date hereof he will not remove from
Company’s offices any Company Information and Property, nor retain possession or copies of any
Company Information and Property.

     3. Employee agrees that he shall never make any statement that negatively affects the goodwill
or good reputation of the Company, or any officer or director of Company, except as required by
law, and except that such statements may be made to members of the Board of Directors of the
Company.

     4. Employee covenants and agrees that he shall never commence or prosecute, or knowingly
encourage, promote, assist or participate in any way, except as required by law, in the
commencement or prosecution, of any claim, demand, action, cause of action or suit of any nature
whatsoever against Company or any officer, director, employee or agent of Company (“Covered
Litigation”) that is based upon any claim, demand, action, cause of action or suit released
pursuant to this Agreement or involving or based upon the Covered Acts and Omissions.

     5. Employee further agrees that he has read this Agreement carefully and understands all of
its terms.

     6. Employee understands and agrees that he was advised to consult with an attorney and did so
prior to executing this Agreement.

     7. Employee understands and agrees that he has been given twenty-one (21) days within which to
consider this Agreement.

     8. Employee understands and agrees that he may revoke this Agreement for a period of seven (7)
calendar days following the execution of this Agreement (the “Revocation Period”). This Agreement
is not effective until this revocation period has expired. Employee understands that any
revocation, to be effective, must be in writing and either (a) postmarked within seven (7) days of
execution of this Agreement and addressed to Perceptron, Inc., 47827 Halyard Drive, Plymouth,
Michigan 48170 or (b) hand delivered within seven (7) days of execution of this Agreement to
Perceptron, Inc., 47827 Halyard Drive, Plymouth, Michigan 48170. Employee understands that if
revocation is made by mail, mailing by certified mail, return receipt requested, is recommended to
show proof of mailing.

     9. In agreeing to sign this Agreement and separate from Company, Employee is doing so
completely voluntarily and of his own free-will and without any encouragement or pressure from
Company and agrees that in doing so he has not relied on any oral statements or explanations made
by Company or its representatives.

     10. Both parties agree not to disclose the terms of this Agreement to any third party, except
as is required by law, or as is necessary for purposes of securing counsel from either parties’
attorneys or accountants.

     11. This Agreement shall not be construed as an admission of wrongdoing by Company.

2

 

     12. This Agreement contains the entire agreement between Employee and Company regarding the
matters set forth herein. Any modification of this Agreement must be made in writing and signed by
Employee and each of the entities constituting the Company.

     13. This Agreement shall be governed by and construed in accordance with the domestic laws of
the State of Michigan, without giving effect to any choice of law or conflict of law provision or
rule (whether of the State of Michigan or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Michigan.

     14. In the event any provision of this Agreement or portion thereof is found to be wholly or
partially invalid, illegal or unenforceable in any judicial proceeding, then such provision shall
be deemed to be modified or restricted to the extent and in the manner necessary to render the same
valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and
this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such
provision had been originally incorporated herein as so modified or restricted, or as if such
provision had not been originally incorporated herein, as the case may be.

     15. If there is a breach or threatened breach of the provisions of this Agreement, Company
may, in addition to other available rights and remedies, apply to any court of competent
jurisdiction for specific performance and/or injunctive relief in order to enforce, or prevent any
violation of, any of the provisions of this Agreement.

     The parties hereto have entered into this Agreement as of this
                     day of
                    ,            
         .

	 	 	 	 	 
	 	 	PERCEPTRON, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	 

3

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