Document:

PERCEPTRON,
INC.

 

Executive Agreement Not to Compete

 

 

I recognize that Perceptron,
Inc., a Michigan corporation, and its direct and indirect subsidiaries , whether now in existence, or hereafter acquired or created,
(including, but not limited to, Perceptron B.V., Perceptron GmbH, Perceptron Canada, Inc., Peceptron Global, Inc. and Perceptron
Brazil, LLC (collectively, the “Company”), desires to insure that I do not compete with the Company, as specified below.

 

In consideration of
the Company’s employment of me, and other good and valuable consideration, the receipt of which is hereby acknowledged, I
agree as follows:

 

1.During
the term of my employment by the Company (which period shall be referred to as “my Engagement”), and thereafter during
the longer of (i) any period in which the Company is obligated to make payments to me (the “Payment Completion Period”),
or (ii) 12 months from the end of my Engagement (the “Non-Compete Period”), I shall not engage, directly or indirectly,
as officer, director, shareholder, partner, member, associate, consultant, owner, agent, independent contractor, employee or otherwise
of any person, firm, corporation or other business engaged, anywhere in the world, (i) in any business conducted by the Company
during my Engagement, or any business which I was aware, during my Engagement, that the Company planned to engage in, or (ii) in
any business involving the design, development, manufacture, sale or servicing of machine vision sensors and systems utilizing
electro-optical techniques or component parts utilized in such sensors or systems (the “Non-Compete Provisions”); provided
that the ownership of one (1%) percent or less of the stock in any publicly traded corporation in such a business shall not be
violative of the foregoing covenant. In the event that I shall fail to comply with any of my obligations under this Agreement,
in addition to any other remedies that the Company may have at law or in equity, my employment with the Company as an employee
shall automatically terminate and the Company’s obligations to me shall automatically terminate, including any obligations
of the Company to me for severance or other compensation or benefits following termination of my Engagement.

 

2.I
understand that nothing in this Agreement shall affect my obligations under the “Proprietary Information and Inventions Agreement”
between the Company and myself dated 4th November 2009.

 

3.I
shall notify the Company, during the Non-Compete Period of any change in my address and each subsequent employment or business
activity (stating the name and address of the employer or business, the nature of the business of such employer or business and
the nature of my position) in which I engage during such Non-Compete Period.

 

4.I
acknowledge that this Agreement embodies the entire agreement and understanding between the parties hereto and there are no other
agreements or understandings, oral or written, between the parties hereto with respect to the subject matter hereof, and, that
this Agreement shall supersede all previous agreements, negotiations, commitments and writings with respect to the subject matter
hereof. No waiver and no modification or amendment of any provision of this Agreement shall be effective unless specifically made
in writing and duly signed by the party to be bound thereby.

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5.I
hereby acknowledge that, 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.

 

6.I
acknowledge that the Company may assign its rights under this Agreement to any affiliate or any person who acquires or succeeds
to any part of the business or assets of the Company.

 

7.I
acknowledge that if there is a breach or threatened breach of the provisions of this Agreement, the Company shall be entitled to
an injunction restraining me from such breach, in addition to any other remedies available to the Company for such breach or threatened
breach.

 

8.I
acknowledge that this Agreement may be executed in one or more counterpart copies; each of those fully executed copies shall be
considered as original, but together shall constitute one agreement.

 

9.I
acknowledge that this Agreement has been negotiated, executed, and delivered in, and will be governed by the laws of, the State
of Michigan, without regard to the conflict or choice of law principles of that state which might otherwise be applicable, and
I acknowledge and agree to submit to the jurisdiction of the courts of and in the State of Michigan with respect thereto.

 

	Date:	4th November 2009	By:	/s/ Richard Price

 

ACCEPTED AND AGREED TO:

 

PERCEPTRON, INC., on
its own behalf

and on behalf of its
subsidiaries, whether

now in existence or hereafter
acquired or

created.

 

By: /s/ Eric Schneider

 

Title: Director, Human Resources

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FIRST AMENDMENT TO

EXECUTIVE AGREEMENT NOT TO COMPETE

 

 

This FIRST AMENDMENT
TO EXECUTIVE AGREEMENT NOT TO COMPETE (this “First Amendment”) is made effective as of August 30, 2012
by and between PERCEPTRON, INC., a Michigan corporation, on its own behalf and on behalf of its direct and indirect subsidiaries
whether now in existence or hereafter acquired (the “Company”) and Richard Price (“Price”).

 

WHEREAS, the Company
and Price are parties to that certain Executive Agreement Not to Compete dated November 4, 2009 (the “Non-Compete Agreement”);

 

WHEREAS, the Company
is party to that certain Asset Purchase Agreement, dated of even date hereof, by and between the Company and INSPECTRON, INC.,
a Michigan corporation of which Price is the sole shareholder (“Inspectron”), and the Company (the “Purchase
Agreement”), pursuant to which, among other transactions contemplated by the Purchase Agreement, Inspectron is purchasing
substantially all of the assets and assuming certain of the liabilities of the Company’s Commercial Products Business Unit
constituting, in the aggregate, substantially all of the CBU Business (as defined in the Purchase Agreement) (the “Transaction”);
and

 

WHEREAS, as a condition
of closing the Transaction, the Company and Price desire to amend the Non-Compete Agreement as it relates to Inspectron’s
operation of the CBU Business after the Closing.

 

NOW, THEREFORE, in
consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.Amendment.
Section 1 of the Non-Compete Agreement is hereby amended to add the following: “Notwithstanding the foregoing, (i) from and
after the date of this First Amendment, the Non-Compete Provisions shall not prohibit Richard Price from engaging, directly or
indirectly, in the CBU Business” and (ii) the Company waives the Non-Compete Provisions as to Richard Price’s activities
since June 13, 2012 in connection with the formation and start-up of Inspectron to engage in the Transaction and Inspectron’s
entering into the Transaction.

 

2.Waiver.
The Company hereby waives the notice required by Section 3 in connection with the Transaction.

 

3.Non-Compete
Agreement. Except as specifically set forth in this First Amendment, the Non-Compete Agreement shall remain in full force and
effect. This First Amendment shall be construed as one with the Non-Compete Agreement, and the Non-Compete Agreement shall, where
the context requires, be read and construed throughout so as to incorporate this First Amendment.

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4.Counterparts.
This First Amendment may be executed in any number of counterparts, all of which together
will constitute one and the same agreement, and it may be executed by facsimile signature.

 

5.Defined Terms.
Capitalized terms used but not defined in this letter agreement shall have the meanings ascribed thereto in the Non-Compete Agreement.

 

 

[Signature Page Follows]

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IN WITNESS WHEREOF,
this Agreement has been duly executed as of the day first written above.

 

 

 

	 	Perceptron, Inc.
	 	 	 
	 	 	 
	 	By:	/s/ David W. Geiss
	 	 	David W. Geiss
	 	 	Vice President, General Counsel
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	/s/ Richard Price
	 	Richard Price

 

    	3PERCEPTRON,
INC.

FIRST AMENDMENT TO SEVERANCE AGREEMENT

 

 

THIS FIRST AMENDMENT
TO SEVERANCE AGREEMENT, dated as of July 2, 2010, between Perceptron, Inc. (the “Company”) and Richard Price (the
“Executive”), (the “Agreement”) is dated June 13, 2012.

 

The Company and the
Executive hereby agree as follows:

 

1.Defined
Terms. Terms defined in the Agreement shall be used in this First Amendment with their defined meanings as contained in
the Agreement, unless otherwise defined here.

 

2.Amendment
of the Agreement. Company and Executive agree, effective upon expiration of the Revocation Period set forth in the release
executed by Executive as required by the Agreement, as follows:

 

(i)Executive’s
employment with Company has terminated effective June 13, 2012 (the “Effective Date”).

 

(ii)Pursuant
to Section 3 of the Agreement, Executive shall be entitled to the payments set forth in Section 3(b) of the Agreement, as modified
below:

 

		(a)	Notwithstanding Section 6 of the Agreement, all benefits of any kind and any payments of any kind
under the Agreement including those modified below shall cease immediately at the time of closing of any transaction in which the
Executive becomes affiliated in any way or capacity with the purchase of substantially all of the assets of the Company’s
Commercial Products Business Unit.

 

		(b)	Executive shall not receive any bonus for the Company’s fiscal year 2012, as otherwise provided
in Section 3(b)(ii) of the Agreement.

 

		(c)	The Company will pay directly the Executive’s COBRA continuation coverage premiums through
December 13, 2012 unless terminated earlier pursuant to Section 2(ii)(a) of this First Amendment, if the Executive elects COBRA
continuation coverage, in lieu of Executive’s continued direct coverage under the Company’s group health plan.

 

		(d)	The Company’s obligation to provide health and welfare plan benefits following the Effective
Date, as provided in Section 3(b)(iii) of the Agreement, shall cover only the following benefits and shall expire on December 13,
2012 unless terminated earlier pursuant to Section 2(ii)(a) of this First Amendment:

 

    	 

    	 

    
 

Group Life coverage

 

Executive Life Coverage

 

(iii)Executive
shall not be entitled to any payments under Section 4 of the Agreement.

 

(iv)The
following stock option agreements between the Company and Executive (the “Option Agreements”) provide that all options
which are exercisable under the terms of the Option Agreements at the Effective Date terminate three months after the Effective
Date. All Options under the Option Agreements which are not exercisable at the Effective Date shall be terminated at that time.

 

	Agreement Date	Plan	Number of
Exercisable
Options	Number of
Unexercisable
Options	Termination
Date
	December 1, 2009	2004	10,000	10,000	September 13, 2012
	September 1, 2011	2004	0	10,000	Not Applicable

 

3.Non-Competition
and Restrictive Covenant. If, during the term that the Executive is receiving benefits under the Agreement, Executive violates
the terms of this Agreement, the Perceptron Executive Agreement Not to Compete, dated November 4, 2009 (the “Non-Compete
Agreement”), the Company’s Proprietary Information and Inventions Agreement, dated November 4, 2009 (the “Proprietary
Information Agreement”), or any other non-competition or confidentiality agreement with the Company, the Company’s
obligations to the Executive under this Agreement and the Option Agreements shall automatically terminate.

 

4.Continued
Effectiveness. All other provisions of the Agreement shall remain in full force and effect, including, but not limited
to, Sections 5, 6, 9 and 10, and shall apply equally to all amounts or benefits required to be paid or provided to Executive under
this Agreement.

 

5.Amendment
of Agreement. The Agreement, including this First Amendment, shall not be modified or amended except by instrument in writing
signed by the parties hereto. The parties agree that the Agreement, including this First Amendment, shall be amended if required
and as required to comply with applicable law, including, but not limited to, Code Section 409A.

 

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

 

7.Entire
Agreement. The Agreement, including this First Amendment, represent the entire agreement and understanding of the parties
with respect to the subject matter of the Agreement (other than the Non-Compete Agreement, the Proprietary Information Agreement,
and the Option Agreements, which shall remain in full force and effect after the execution of this Agreement).

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

 

	 	PERCEPTRON, INC.
	 	 
	 	 
	 	By:	            /s/ Harry T. Rittenour
	 	 	Harry T. Rittenour, President and CEO
	 	 	 
	 	 	 
	 	                     /s/ Richard Price
	 	RICHARD PRICE

 

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