Document:

<PAGE>
THE SECURITY INTERESTS GRANTED HEREBY ARE SUBJECT AND SUBORDINATE TO THE SENIOR
SECURITY INTERESTS IN THE SAME COLLATERAL GRANTED TO PNC BANK NA PURSUANT TO
THAT CERTAIN REVOLVING CREDIT AND SECURITY AGREEMENT DATED AS OF APRIL 28, 2000
BY AND BETWEEN ROBOTIC VISION SYSTEMS, INC. AND PNC BANK NA AS LENDER AND AGENT,
AS IT MAY BE AMENDED FROM TIME TO TIME.

                               SECURITY AGREEMENT

      SECURITY AGREEMENT dated as of December 4, 2002 by and between Robotic
Vision Systems, Inc., a Delaware corporation having its principal place of
business at 5 Shawmut Road, Canton, Massachusetts 02021 (the "Borrower") in
favor of Pat V. Costa ("Lender").

                                R E C I T A L S:

      The Borrower has executed and delivered to the Lender that certain 9%
Convertible Senior Note due December 4, 2005, in the original principal amount
of $500,000.00, made payable by the Borrower to the Lender (as amended or
otherwise modified from time to time, the "Note"); and

      The Lender has required as a condition to making the aforementioned loan
to the Borrower and in order to secure the prompt and complete payment,
observance and performance of all of the Borrower's obligations and liabilities
under this Agreement and under the Note (all such obligations and liabilities
hereinafter collectively referred to as the "Obligations") that the Borrower
execute and deliver this Agreement to the Lender.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto agree as follows:

      SECTION 1. Definitions.

            (a)   Capitalized terms used herein without definition shall have
the meanings given such terms in the Note.

            (b)   The words "hereof," "herein" and "hereunder" and words of
similar import, when used in this Agreement, shall refer to this Agreement as a
whole and not to any particular provision of this Agreement and section
references are to this Agreement unless otherwise specified.

            (c)   When used herein, (i) unless otherwise defined, the terms
Account, Account Debtor, Certificated Security, Chattel Paper, Commercial Tort
Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment, Financial
Asset, Fixtures, General Intangibles, Goods, Instrument, Inventory, Investment
Property, Letter-of-Credit Rights, Non-Cash Proceeds, Payment Intangibles,
Proceeds, Security, Security Entitlement, Software, Supporting Obligations and
Uncertificated Security have the respective meanings assigned thereto in the UCC
(as defined below); and (ii) the following terms have the following meanings
(such definitions to be applicable to both the singular and plural forms of such
terms):
<PAGE>
      Bank Indebtedness means, whether outstanding on the date hereof or
thereafter incurred, loans to the Borrower made by a Commercial Bank, under a
credit facility, loan agreement or similar agreement, including the Revolving
Credit and Security Agreement.

      Commercial Bank means any bank, trust company or other institutions
principally engaged in the business of lending money to businesses.

      Computer Hardware and Software means all of the Borrower's rights
(including rights as licensee and lessee) with respect to (i) computer and other
electronic data processing hardware, including all integrated computer systems,
central processing units, memory units, display terminals, printers, computer
elements, card readers, tape drives, hard and soft disk drives, cables,
electrical supply hardware, generators, power equalizers, accessories,
peripheral devices and other related computer hardware; (ii) all software
programs designed for use on the computers and electronic data processing
hardware described in clause (i) above, including all operating system software,
utilities and application programs in whatsoever form (source code and object
code in magnetic tape, disk or hard copy format or any other listings
whatsoever); (iii) any firmware associated with any of the foregoing; (iv) any
documentation for hardware, software and firmware described in clauses (i), (ii)
and (iii) above, including flow charts, logic diagrams, manuals, specifications,
training materials, charts and pseudo codes; and (v) all rights with respect to
all of the foregoing, including, any and all licenses, options, warranties,
service contracts, program services, test rights, maintenance rights, support
rights, improvement rights, renewal rights and indemnifications, and any
substitutions, replacements, additions or model conversions of any of the
foregoing.

      Intellectual Property means all of Borrower's past, present and future:
trade secrets and other proprietary information; trademarks, service marks,
business names, Internet domain names, designs, logos, trade dress, slogans,
indicia and other source and/or business identifiers, and the goodwill of the
business relating thereto and all registrations or applications for
registrations which have heretofore been or may hereafter be issued thereon
throughout the world; copyrights (including copyrights for computer programs and
software) and copyright registrations or applications for registrations which
have heretofore been or may hereafter be issued throughout the world and all
tangible property embodying the copyrights; unpatented inventions (whether or
not patentable); patent applications and patents; industrial designs, industrial
design applications and registered industrial designs; license agreements
related to any of the foregoing and income therefrom; books, records, writings,
computer tapes or disks, flow diagrams, specification sheets, source codes,
object codes and other physical manifestations, embodiments or incorporations of
any of the foregoing; the right to sue for all past, present and future
infringements of any of the foregoing; and all common law and other rights
throughout the world in and to all of the foregoing.

      Liens mean all mortgages, liens, pledges, security interests, charges,
claims, restrictions and encumbrances of any nature whatsoever.

      Permitted Liens means any (i) Liens for current taxes not yet due and
payable or being contested in good faith through appropriate proceedings, Liens
to lenders incurred on deposits made in the ordinary course of business in
connection with maintaining bank accounts, Liens in the ordinary course of
business in connection with workers' compensation, unemployment

                                     - 2 -
<PAGE>
insurance, social security and other types of laws, or to secure the performance
of tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, government permits, licenses and approvals, performance
and return-of-money bonds and other similar obligations arising in the ordinary
course of Borrower's business, (ii) Liens on any escrow account securing any
obligations of the Borrower, (iii) materialmen's, warehousemen's and mechanics'
Liens and other Liens arising by operation of law in the ordinary course of
business for sums not yet due and (iv) Liens incurred by the Borrower under and
with respect to the Revolving Credit and Security Agreement.

      Revolving Credit and Security Agreement means that certain Revolving
Credit and Security Agreement dated as of April 28, 2000 by and between the
Borrower and PNC Bank NA as Lender and Agent, as amended to date or as it may be
amended from time to time.

      UCC means the Uniform Commercial Code as in effect in the State of
Delaware on the date of this Agreement, as may be amended or modified from time
to time.

      SECTION 2. Grant of Security Interest. In order to secure the prompt,
complete payment and performance of the Obligations, the Borrower hereby grants
to the Lender, a security interest in all right, title and interest of the
Borrower in, to and under the following, whether now owned or existing or
hereafter arising or acquired and wheresoever located (collectively, the
"Collateral"):

      All of the Borrower's: (i) Accounts; (ii) Certificated Securities; (iii)
Chattel Paper, including Electronic Chattel Paper; (iv) Computer Hardware and
Software; (v) Commercial Tort Claims; (vi) Deposit Accounts; (vii) Documents;
(viii) Equipment; (ix) Financial Assets; (x) Fixtures; (xi) General Intangibles;
(xii) Goods; (xiii) Inventory; (xiv) Instruments; (xv) Intellectual Property;
(xvi) Investment Property; (xvii) Letter-of-Credit Rights; (xviii) Non-Cash
Proceeds; (xix) money (of every jurisdiction whatsoever); (xx) Proceeds; (xxi)
Securities; (xxii) Security Entitlements; (xxiii) Software; (xxiv) Supporting
Obligations; (xxv) Uncertificated Securities; and (xvi) to the extent not
included in the foregoing, other personal property of any kind or description,
together with all books, records, writings, data bases, information and other
property relating to, used or useful in connection with, or evidencing,
embodying, incorporating or referring to any of the foregoing, and all Proceeds,
products, offspring, rents, issues, profits and returns of and from any of the
foregoing.

      SECTION 3. Representations and Warranties. The Borrower represents and
warrants as follows:

            (a)   The Borrower is a corporation duly organized, validly existing
and in good standing under the laws of the state of Delaware.

            (b)   The execution and delivery of this Agreement and the
performance by the Borrower of its obligations hereunder are within the
Borrower's corporate powers, have been duly authorized by all necessary
corporate action and do not and will not contravene or conflict with any
provision of law or of the certificate of incorporation or by-laws of the
Borrower or, except with respect to covenants under the Revolving Credit and
Security Agreement, of any

                                     - 3 -
<PAGE>
material agreement, indenture, instrument or other document, or any material
judgment, order or decree, which is binding upon the Borrower.

            (c)   The principal place of business and chief executive office of
the Borrower are located at the address first specified above for the Borrower
and all records concerning the Accounts and all originals of all chattel paper
which evidence Accounts are located at such address. None of the Accounts is
evidenced by a promissory note or other instrument, except such promissory notes
or other instruments as have been delivered to the Lender hereunder as of the
date hereof.

            (d)   All information with respect to the Collateral set forth in
any schedule, certificate or other writing at any time heretofore or hereafter
furnished by the Borrower to the Lender is and will be true and correct in all
material respects as of the date furnished.

            (e)   The Borrower has good, indefeasible and merchantable title to
all of its property. The Borrower owns all of its property free and clear of any
Lien except for Permitted Liens and the security interests in favor of the
Lender as created by this Agreement. No effective financing statement or other
instrument similar in effect covering all or any part of the Collateral is on
file in any recording office, except as may have been filed in respect of
Permitted Liens or in favor of the Lender relating to this Agreement.

            (f)   This Agreement creates a valid security interest in the
Collateral, securing the payment of the Obligations upon filing of the financing
statement substantially in the form attached hereto as Exhibit A and upon filing
of a Grant of Security Interest (Trademarks) substantially in the form attached
hereto as Exhibit B and a Grant of Security Interest (Patents) substantially in
the form attached hereto as Exhibit C.

            (g)   The correct corporate name of the Borrower is Robotic Vision
Systems, Inc. and the Borrower has no other corporate name or fictitious name
and has not, during the immediately preceding five (5) years, been known as or
used any other corporate or fictitious name. The Borrower will not change its
name, identity or structure in any manner which might make any financing
statement filed hereunder seriously misleading, unless the Borrower shall have
given the Lender at least thirty (30) days' prior written notice thereof.

            (h)   No authorization, approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body is required
either (i) for the grant by the Borrower of the security interest granted hereby
or for the execution, delivery or performance of this Agreement by the Borrower
or (ii) for the perfection of or the exercise by the Lender of the Lender's
rights and remedies hereunder.

            (i)   This Agreement is the legal, valid and binding obligation of
the Borrower, enforceable in accordance with its terms, except that the
enforceability of this Agreement may be limited by bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors' rights generally
and by general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law).

                                     - 4 -
<PAGE>
      SECTION 4. Further Assurances. (a) The Borrower agrees that from time to
time, at the expense of the Borrower, the Borrower will promptly execute and
deliver all further instruments and documents, and take all further action, that
may be necessary or desirable, or that the Lender may reasonably request, in
order to perfect, protect or otherwise evidence any security interest granted or
purported to be granted hereby or to enable the Lender to exercise and enforce
its rights and remedies hereunder with respect to any Collateral. Without
limiting the generality of the foregoing, the Borrower will execute and file
such financing or continuation statements, or amendments thereto, and such other
instruments or notices, as may be necessary or desirable, or as the Lender may
request, in order to perfect, preserve or otherwise evidence the security
interests granted or purported to be granted hereby.

            (b)   The Borrower hereby authorizes the Lender to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral without the signature of the Borrower where permitted
by law.

            (c)   The Borrower will furnish to the Lender from time to time
statements and schedules further identifying and describing the Collateral and
such other reports in connection with the Collateral as the Lender may
reasonably request, all in reasonable detail, and Borrower will, upon two (2)
Business Days' prior notice, permit the Lender, by any of its officers,
employees and/or designated agents, at any time or times during Borrower's usual
business hours, to inspect and/or conduct audits with respect to the Collateral.

      SECTION 5. Keeping of Records and Books of Account. The Borrower shall
maintain and implement administrative and operating procedures (including,
without limitation, an ability to recreate records evidencing the Accounts in
the event of the destruction of the originals thereof) and keep and maintain all
documents, books, records and other information reasonably necessary and
consistent with reasonable business practices for the collection of all
Accounts.

      SECTION 6. Transfers and Other Liens; Release of Liens.

            (a)   The Borrower shall not, unless the Lender shall have provided
its prior written consent thereto: (i) sell, assign (by operation of law or
otherwise) or otherwise dispose of any of the Collateral except (x) in the
ordinary course of business or (y) any sale, assignment or disposition of
Collateral resulting in gross proceeds to the Borrower not in excess of $50,000;
or (ii) create or suffer to exist any Lien upon or with respect to any of the
Collateral, except Permitted Liens.

            (b)   Upon any sale of the "Semiconductor Equipment Group" division
of the Borrower authorized by the Board of Directors of the Borrower, the Lender
agrees that he will release any and all Liens granted in his favor in respect of
any Collateral included in such sale.

      SECTION 7. Lender Appointed Attorney-in-Fact. Upon the occurrence and
during the continuance of an Event of Default, the Borrower hereby irrevocably
appoints the Lender the Borrower's attorney-in-fact, with full authority in the
place and stead of the Borrower and in the name of the Borrower, from time to
time in the Lender's discretion, to take any action and to

                                     - 5 -
<PAGE>
execute any instrument which the Lender may deem reasonably necessary or
advisable to accomplish the purposes of this Agreement, including, without
limitation:

            (a)   to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

            (b)   to receive, endorse, and collect any drafts or other
instruments, documents and chattel paper, in connection with clause(a) above;

            (c)   to file any claims or take any action or institute any
proceedings which the Lender may deem necessary or desirable for the collection
of any of the Collateral or otherwise to enforce the rights of the Lender with
respect to any of the Collateral; and

            (d)   to discharge any Lien on or against the Collateral or bond the
same.

      SECTION 8. Lender May Perform. If the Borrower fails to perform any
agreement contained herein, the Lender may itself perform, or cause performance
of, such agreement, and the expenses of the Lender incurred in connection
therewith shall be for the account of and payable by the Borrower under Section
12(b).

      SECTION 9. The Lender's Duties. The powers conferred on the Lender
hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody
of any Collateral in his possession and the accounting for moneys actually
received by him hereunder, the Lender shall have no duty as to any Collateral or
as to the taking of any necessary steps to preserve rights against prior parties
or any other rights pertaining to any Collateral.

      SECTION 10. Subordination. If the Borrower shall incur any Bank
Indebtedness, the Lender agrees to enter into a commercially reasonable
subordination agreement with the Commercial Bank loaning such Bank Indebtedness,
which shall provide for the relative ranking of such Bank Indebtedness and the
Lender's security interests granted herein, upon terms to be agreed upon.

      SECTION 11. Remedies. If an Event of Default shall have occurred and is
continuing:

            (a)   The Lender may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available
to it, all the rights and remedies of a secured party upon default under the UCC
(whether or not the UCC applies to the affected Collateral) and also may (i)
without notice, demand or legal process of any kind (except as may be required
by law), all of which the Borrower hereby waives, at any time or times enter the
Borrower's premises and take physical possession of the Collateral and maintain
such possession on the Borrower's premises, at no cost to the Lender, or remove
the Collateral or any part thereof, to such other places as the Lender may
desire, (ii) require the Borrower to, and the Borrower hereby agrees that it
will at its expense and upon request of the Lender forthwith, assemble all or
any part of the Collateral as directed by the Lender and make it available to
the Lender at a place to be designated by the Lender which is reasonably
convenient to both parties and (iii) without notice, except as specified below,
sell, lease, assign, grant an option or options

                                     - 6 -
<PAGE>
to purchase or otherwise dispose of the Collateral or any part thereof in one or
more parcels at public or private sale, at any exchange, broker's board or at
any of the Lender's offices or elsewhere, for cash, on credit or for future
delivery, and upon such other terms as the Lender may deem commercially
reasonable. The Borrower agrees that, to the extent notice of sale shall be
required by law, seven (7) days' notice to the Borrower of the time and place of
any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Lender shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given. The
Lender may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned. The Borrower agrees
that the Lender shall have no obligation to preserve rights in the Collateral
against prior parties or to marshall any Collateral for the benefit of any
Person.

            (b)   Any cash held by the Lender as Collateral and all cash
proceeds received by the Lender in respect of any sale of, collection from, or
other realization upon all or any part of the Collateral may, in the discretion
of the Lender, then or at any time shall be applied by the Lender to the
Obligations. Any surplus of such cash or cash proceeds held by the Lender and
remaining after payment in full of all the Obligations shall be paid over to the
Borrower or to whomsoever may be lawfully entitled to receive such surplus.

      SECTION 12. Indemnity and Expenses. (a) The Borrower agrees to indemnify
the Lender from and against any and all claims, losses and liabilities growing
out of or resulting from this Agreement (including, without limitation,
enforcement of this Agreement), except claims, losses or liabilities resulting
from the Lender's gross negligence or willful misconduct.

            (b)   The Borrower will upon demand pay to the Lender the amount of
any and all reasonable expenses, including the reasonable fees and disbursements
of its counsel and of any experts and agents, including, without limitation, any
affiliates of the Lender, which the Lender may incur in connection with (i) the
administration of this Agreement, (ii) the custody (and protection during any
period of custody) of, collection from, or other realization upon, any of the
Collateral or (iii) the exercise or enforcement of any of the rights of the
Lender hereunder, including, without limitation, any and all audits with respect
to the Collateral conducted by or on behalf of the Lender pursuant to Section
4(c) hereof.

      SECTION 13. Amendments; Etc. No amendment or waiver of any provision of
this Agreement or consent to any departure by the Borrower herefrom shall in any
event be effective unless the same shall be in writing and signed by the Lender,
and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

      SECTION 14. Addresses for Notices; Consent. All notices and other
communications provided for hereunder shall be in writing and given in the
manner and to the address provided for each party in the Note.

      SECTION 15. Continuing Security Interest. This Agreement shall create a
continuing security interest in the Collateral and shall (i) remain in full
force and effect until payment in full of the Obligations; (ii) be binding upon
the Borrower, its successors and assigns; and (iii) inure, together with the
rights and remedies of the Lender hereunder, to the benefit of the Lender and

                                     - 7 -
<PAGE>
its successors, transferees and assigns. Without limiting the generality of the
foregoing clause (iii), the Lender may assign or otherwise transfer all or any
portion of its rights under the Note to any other person or entity, and such
other person or entity shall thereupon become vested with all the benefits in
respect thereof granted to Lender as a beneficiary hereunder or otherwise. Upon
the payment in full of the Obligations, the security interest granted hereby
shall terminate and all rights to the Collateral shall revert to the Borrower.
Upon any such termination, the Lender will, at the Borrower's expense, execute
and deliver to the Borrower such documents as the Borrower shall reasonably
request (including, without limitation those documents which are legally
necessary) to evidence such termination. The Borrower's successors and assigns
shall include, without limitation, a receiver, trustee or debtor-in-possession
thereof or therefor.

      SECTION 16. Survival of Representations and Warranties. The Borrower
covenants, warrants and represents to the Lender that all representations and
warranties of the Borrower contained in this Agreement shall be true at the time
of the Borrower's execution of this Agreement, shall survive the execution,
delivery and acceptance hereof by the parties hereto and the closing of the
transactions described herein as related hereto and shall continue in effect
until all of the Obligations shall have been paid in full. The Borrower and the
Lender expressly agree that any misrepresentation or breach of any warranty
whatsoever contained in this Agreement shall be deemed material.

      SECTION 17. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware (without giving
effect to any conflicts or choice of law provisions that would cause the
application of the domestic substantive laws of any other jurisdiction). With
respect to any suit, action or proceedings relating to this Agreement, the
parties hereto irrevocably submit to the non-exclusive jurisdiction of the
courts of the State of New York sitting in and for New York County, and the
United States District Court in the Southern District of New York, as well as to
the jurisdiction of all courts to which an appeal may be taken from such courts
and hereby waives, to the fullest extent permitted by applicable law, any and
all objections it may have to venue, including, without limitation, any claim
that any such suit, action or proceeding has been brought in an inconvenient
forum.

      SECTION 18. Counterparts. This Agreement may be executed in separate
counterparts, each of which shall be an original and all of which taken together
shall constitute one and the same instrument.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by its respective officers hereunto duly authorized
as of the date first above written.

                                    ROBOTIC VISION SYSTEMS, INC.

                                    By:
                                       -----------------------------
                                       Name:
                                       Title:

                                     - 8 -
<PAGE>
                                       -----------------------------
                                          PAT V. COSTA

                                     - 9 -
<PAGE>
                                    EXHIBIT A
                                       to
                               Security Agreement
                                   dated as of
                                December 4, 2002

                      Form of Financing Statement Attached

                                     - 10 -
<PAGE>
                                    EXHIBIT A
                                       to
                               Financing Statement

Debtor: Robotic Vision Systems, Inc.
Secured Party: Pat V. Costa

Description of Collateral:

      All of the Debtor's right, title and interest in and to the following,
whether now owned or existing or hereafter arising or acquired and wheresoever
located (unless otherwise defined, all of such terms have the respective
meanings assigned thereto in the Uniform Commercial Code as in effect in the
State of Delaware on the date of that certain Security Agreement dated as of
December 4, 2002 between Robotic Vision System, Inc. as Borrower, and Pat V.
Costa, as Lender, as the same may be amended or modified from time to time:

      (i) Accounts;

      (ii) Certificated Securities;

      (iii) Chattel Paper, including Electronic Chattel Paper;

      (iv) Computer Hardware and Software;

      (v) Commercial Tort Claims;

      (vi) Deposit Accounts;

      (vii) Documents;

      (viii) Equipment;

      (ix) Financial Assets;

      (x) Fixtures;

      (xi) General Intangibles;

      (xii) Goods;

      (xiii) Inventory;

      (xiv) Instruments;

      (xv) Intellectual Property;

      (xvi) Investment Property;

      (xvii) Letter-of-Credit Rights;

      (xviii) Non-Cash Proceeds;

      (xix) money (of every jurisdiction whatsoever);

      (xx) Proceeds;

      (xxi) Securities;

                                     - 11 -
<PAGE>
      (xxii) Security Entitlements;

      (xxiii) Software;

      (xxiv) Supporting Obligations;

      (xxv) Uncertificated Securities; and

      (xvi) to the extent not included in the foregoing, other personal
property of any kind or description;

          together with all books, records, writings, data bases, information
and other property relating to, used or useful in connection with, or
evidencing, embodying, incorporating or referring to any of the foregoing, and
all Proceeds, products, offspring, rents, issues, profits and returns of and
from any of the foregoing.

                                     - 12 -
<PAGE>
                                    EXHIBIT B
                                       to
                               Security Agreement
                                   dated as of
                                December 4, 2002

            Form of Grant of Security Interest (Trademarks) Attached

                                     - 13 -
<PAGE>
                                    EXHIBIT C
                                       to
                               Security Agreement
                                   dated as of
                                December 4, 2002

              Form of Grant of Security Interest (Patents) Attached

                                     - 14 -<PAGE>
                                        INDEMNIFICATION AGREEMENT (the
                                        "Agreement") dated as of April 2, 2002
                                        ROBOTIC VISION SYSTEMS INC., a Delaware
                                        corporation (including any successors
                                        thereto, the "Company") and PAT V. COSTA
                                        ("Indemnitee").

      The Company, Indemnitee and another person have been named as defendants
in certain purported class actions stemming from the Company's May 2001
restatement of certain of its consolidated financial statements (the
"Restatement"). Under the Company's Amended and Restated Certificate of
Incorporation, the Company may provide its executive officers with
indemnification against claims and actions against them arising out of their
service to, and activities on behalf of, the Company. The parties desire that
the Company obligate itself contractually to indemnify Indemnitee to the fullest
extent permitted by applicable law.

      NOW, THEREFORE, in consideration of the foregoing premises and the
covenants contained in this Agreement, the Company and Indemnitee hereby
covenant and agree as follows:

      1.    CERTAIN DEFINITIONS. For purposes of this Agreement:

            (a)   Change of Control shall mean the occurrence of any of the
following events:

                  (i) The acquisition after the date hereof by any individual,
            entity or group (within the meaning of Section 13(d)(3) or 14(d) (2)
            of the Securities Exchange Act of 1934, as amended (the "Exchange
            Act")) (a "Person") of beneficial ownership (within the meaning of
            Rule 13d-3 promulgated under the Exchange Act) of 15% or more of
            either (x) the then outstanding shares of common stock of the
            Company (the "Outstanding Company Common Stock") or (y) the combined
            voting power of the then outstanding voting securities of the
            Company entitled to vote generally in the election of directors (the
            "Outstanding Company Voting Securities"); provided, however, that
            for purposes of this paragraph (i), the following acquisitions shall
            not constitute a Change of Control: any acquisition directly from
            the Company or any Subsidiary thereof; any acquisition by the
            Company or any Subsidiary thereof; any acquisition by any employee
            benefit plan (or related trust) sponsored or maintained by the
            Company or any Subsidiary of the Company; or any acquisition by any
            entity or its security holders pursuant to a transaction which
            complies with clauses (A), (B), and (C) of paragraph (iii) below;

                  (ii) Individuals who, as of the Agreement Date, constitute the
            Board (the "Incumbent Board"), cease for any reason to constitute at
            least a majority of the Board; provided, however, that any
            individual becoming a director subsequent to the Agreement Date
            whose election or appointment by the Board or nomination for
            election by the Company's stockholders was approved by a vote of at
            least a majority of the directors then comprising the Incumbent
            Board shall be
<PAGE>
            considered as though such individual were a member of the Incumbent
            Board, but excluding, for this purpose, any such individual whose
            initial assumption of office occurs as a result of an actual or
            threatened election contest with respect to the election or removal
            of directors or other actual or threatened solicitation of proxies
            or consents by or on behalf of a Person other than the Board;

                  (iii) Consummation of a reorganization, merger or
            consolidation or sale or other disposition of all or substantially
            all of the assets of the Company or an acquisition of assets of
            another corporation (a "Business Combination"), in each case unless,
            following such Business Combination, (A) all or substantially all of
            the individuals and entities who were the beneficial owners,
            respectively, of the Outstanding Company Common Stock and
            Outstanding Company Voting Securities immediately prior to such
            Business Combination beneficially own, directly or indirectly, more
            than 50% of the combined voting power of the then outstanding voting
            securities entitled to vote generally in the election of directors
            of the corporation resulting from such Business Combination
            (including, without limitation, a corporation which as a result of
            such transaction owns the Company or all or substantially all of the
            Company's assets either directly or indirectly or through one or
            more subsidiaries) in substantially the same proportions as their
            ownership, immediately prior to such Business Combination of the
            Outstanding Company Voting Securities, (B) no Person (excluding any
            employee benefit plan or related trust) of the Company, or the
            corporation resulting from such Business Combination, beneficially
            owns, directly or indirectly, 15% or more of the combined voting
            power of the then outstanding voting securities of such corporation
            except to the extent that such ownership of the Company existed
            prior to the Business Combination and (C) at least a majority of the
            members of the Board of Directors of the corporation resulting from
            such Business Combination were the members of the Incumbent Board at
            the time of the execution of the initial agreement, or of the action
            of the Board, providing for such Business Combination;

                  (iv) Approval by the stockholders of the Company of a complete
            liquidation or dissolution of the Company; or

                  (v) The Indemnitee ceasing to serve as the Company's Chairman,
            President and Chief Executive Officer for any reason.

            (b)   Claim shall mean any threatened, pending, or completed action,
suit, or proceeding (including, without limitation, securities laws actions,
suits, and proceedings and also any cross claim or counterclaim in any action,
suit, or proceeding), whether civil, criminal, arbitral, administrative, or
investigative in nature, or any inquiry or investigation (including discovery),
whether conducted by the Company or another Person, that Indemnitee in good
faith believes could reasonably be expected to lead to the institution of any
action, suit, or proceeding.

            (c)   Expenses shall mean all costs, expenses (including attorneys'
and expert witnesses' fees), and obligations paid or incurred in connection with
investigating, defending, (including affirmative defenses and counterclaims),
being a witness in, or participating in

                                        2
<PAGE>
(including on appeal), or preparing to defend, be a witness in, or participate
in, any Claim relating to any Indemnifiable Event.

            (d)   Indemnifiable Event shall mean any actual or alleged act,
omission, statement, misstatement, event, or occurrence related to the fact that
Indemnitee is or was a director, officer, agent, or fiduciary of the Company, or
is or was serving at the request of the Company as a director, officer, trustee,
agent, or fiduciary of another corporation, partnership, joint venture, employee
benefit plan, trust, or other enterprise, or by reason of an actual or alleged
thing done or not done by Indemnitee in any such capacity, arising out of or in
connection with the Restatement or in the events which gave rise to the need for
the Company to make the Restatement. For purposes of this Agreement, the Company
agrees that Indemnitee's service on behalf of or with respect to any Subsidiary
or employee benefit plan of the Company or any Subsidiary of the Company shall
be deemed to be at the request of the Company.

            (e)   Indemnifiable Liabilities shall mean all Expenses and all
other liabilities, damages (including, without limitation, punitive, exemplary,
and the multiplied portion of any damages), judgments, payments, fines,
penalties, amounts paid in settlement, and awards paid or incurred that arise
out of, or in any way relate to, any Indemnifiable Event.

            (f)   Person shall mean any individual, corporation, partnership,
limited liability company, joint venture, trust, unincorporated association, or
other form of business or legal entity or governmental entity.

            (g)   Potential Change of Control shall be deemed to have occurred
if: (i) the Company enters into an agreement, the consummation of which would
result in the occurrence of a Change of Control, (ii) any Person (including the
Company) publicly announces an intention to take or to consider taking actions
that, if consummated, would constitute a Change of Control and the success and
consummation of such intention reasonably appears to be more likely than not, or
(iii) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change of Control has occurred, except in each case for a
transaction in which an Indemnitee is participating as an active principal and
not solely as a result of such Indemnitee's position as a director or officer.

            (h)   Reviewing Party shall mean those members of the Board who are
not parties to the particular Claim for which Indemnitee is seeking
indemnification or if a Change of Control has occurred or if there is a
Potential Change of Control and Indemnitee so requests, or if such members of
the Board so elect, or if all of the members of the Board are parties to such
Claim, Special Counsel.

            (i)   Special Counsel shall mean special, independent legal counsel
selected by Indemnitee and approved by the Company (which approval shall not be
unreasonably withheld), and who has not otherwise performed material services
for the Company or for Indemnitee within the last three years (other than as
Special Counsel under this Agreement or similar agreements). Notwithstanding the
foregoing, Skadden, Arps, Slate, Meagler & Flom LLP may serve as Special
Counsel.

            (j)   Subsidiary shall mean, with respect to any Person, any
corporation or other entity of which a majority of the voting power of the
voting equity securities or equity interest is owned, directly or indirectly, by
that Person.

                                       3
<PAGE>
      2.    INDEMNIFICATION AND EXPENSE ADVANCEMENT.

            (a)   The Company shall indemnify Indemnitee and hold Indemnitee
harmless to the fullest extent permitted by law, as soon as practicable, but in
no event later than 30 days after written demand is presented to the Company,
from and against any and all Indemnifiable Liabilities. Notwithstanding the
foregoing, the obligations of the Company under this Section 2(a) shall be
subject to the condition that the Reviewing Party shall not have determined (in
a written opinion, in any case in which Special Counsel is involved) that
Indemnitee is not permitted to be indemnified under applicable law. Nothing
contained in this Agreement shall require any determination under this Section
2(a) to be made by the Reviewing Party prior to the disposition or conclusion or
the Claim against the Indemnitee.

            (b)   If so requested by Indemnitee, the Company shall advance to
Indemnitee all reasonable expenses incurred by Indemnittee to the fullest extent
permitted by law (or, if applicable, reimburse Indemnitee for any and all
reasonable Expenses incurred by Indemnitee and previously paid by Indemnitee)
within ten business days after such request (an "Expense Advance") and delivery
by Indemnitee of an undertaking to repay Expense Advances if and to the extent
such undertaking is required by applicable law prior to the Company's payment of
Expense Advances. The Company shall be obligated from time to time at the
request of Indemnitee to make or pay an Expense Advance in advance of the final
disposition or conclusion of any Claim. In connection with any request for an
Expense Advance, if requested by the Company, Indemnitee or Indemnitee's counsel
shall submit an affidavit stating that the Expenses to which the Expense Advance
relate are reasonable. Any dispute as to the reasonableness of any Expense shall
not delay an Expense Advance by the Company. If, when, and to the extent that
the Reviewing Party determines that Indemnitee would not be permitted to be
indemnified with respect to a Claim under applicable law or the amount of the
Expense Advance was not reasonable, the Company shall be entitled to be
reimbursed by Indemnitee and Indemnitee hereby agrees to reimburse the Company
without interest (which agreement shall be an unsecured obligation of
Indemnitee) for (x) all related Expense Advances theretofore made or paid by the
Company in the event that it is determined that indemnification would not be
permitted or (y) the excessive portion of any Expense Advances in the event that
it is determined that such Expense Advances were unreasonable, in either case,
if and to the extent such reimbursement is required by applicable law; provided,
however, that if Indemnitee has commenced legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee could be
indemnified under applicable law, or that the Expense Advances were reasonable,
any determination made by the Reviewing Party that Indemnitee would not be
permitted to be indemnified under applicable law or that the Expenses Advances
were unreasonable shall not be binding, and the Company shall be obligated to
continue to make Expense Advances until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed), which determination shall be conclusive and binding. If
there has been no determination by the Reviewing Party or if the Reviewing Party
determines that Indemnitee substantively is not permitted to be indemnified in
whole or part under applicable law or that any Expense Advances were
unreasonable, Indemnitee shall have the right to commence litigation in any
court in the Commonwealth of Massachusetts having subject matter jurisdiction
thereof and in which venue is proper seeking an initial determination by the
court or challenging any such determination by the Reviewing Party or any aspect
thereof, and the Company hereby consents to service of process and to

                                       4
<PAGE>
appear in any such proceeding. Any determination by the Reviewing Party
otherwise shall be conclusive and binding on the Company and Indemnitee.

            (c)   Nothing in this Agreement, however, shall require the Company
to indemnify Indemnitee with respect to any Claim initiated by Indemnitee, other
than a Claim solely seeking enforcement of the Company's indemnification
obligations to Indemnitee or a Claim authorized by the Board.

      3.    CHANGE OF CONTROL. The Company agrees that, if there is a Change of
Control, or if there is a Potential Change of Control and Indemnitee requests in
writing that Special Counsel be the Reviewing Party, then Special Counsel shall
be the Reviewing Party. The Company agrees to pay the reasonable fees of Special
Counsel and to indemnify Special Counsel against any and all expenses (including
attorneys' fees), claims, liabilities, and damages arising out of or relating to
this Agreement or Special Counsel's engagement pursuant hereto.

      4.    INDEMNIFICATION FOR ADDITIONAL EXPENSES. The Company shall indemnify
Indemnitee against any and all costs and expenses (including attorneys' and
expert witnesses' fees) and, if requested by Indemnitee, shall (within ten
business days of that request) advance those costs and expenses to Indemnitee
that are incurred by Indemnitee if Indemnitee, whether by formal proceedings or
through demand and negotiation without formal proceedings: (a) seeks to enforce
Indemnitee's rights under this Agreement; (b) seeks to enforce Indemnitee's
rights to expense advancement or indemnification under any other agreement or
provision of the Company's Amended and Restated Certificate of Incorporation, as
the same may have been amended from time to time (the "Certificate of
Incorporation"), or the Company's Bylaws (the "Bylaws") now or hereafter in
effect relating to Claims for Indemnifiable Events; or (c) seeks recovery under
any directors' and officers' liability insurance policies maintained by the
Company, in each case regardless of whether Indemnitee ultimately prevails;
provided that a court of competent jurisdiction has not found Indemnitee's claim
for indemnification or expense advancements under the foregoing clauses (a), (b)
or (c) to be frivolous, presented for an improper purpose, without evidentiary
support, or otherwise sanctionable under Federal Rule of Civil Procedure No. 11
or an analogous rule or law, or beyond the scope of indemnification permitted by
the Delaware General Corporation Law, and provided, further, that if a court
makes such a finding, Indemnitee shall reimburse the Company for all amounts
previously advanced to Indemnitee pursuant to this Section 4.

      5.    PARTIAL INDEMNITY. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some, but not all, of
Indemnitee's Indemnifiable Liabilities, the Company shall indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled.

      6.    CONTRIBUTION.

            (a)   Contribution Payment. To the extent the indemnification
provided for under any provision of this Agreement is determined (in the manner
hereinabove provided) not to be permitted under applicable law, the Company, in
lieu of indemnifying Indemnitee shall, to the extent permitted by law,
contribute to the amount of any and all Indemnifiable Liabilities incurred or
paid by Indemnitee for which such indemnification is not permitted. The amount
the Company contributes shall be in such proportion as is appropriate to reflect
the relative fault of Indemnitee, on the one hand, and the Company and any and
all other parties (including officers

                                       5
<PAGE>
and directors of the Company other than Indemnitee) who may be at fault
(collectively, including the Company, the "Third Parties"), on the other hand.

            (b)   Relative Fault. The relative fault of the Third Parties and
the Indemnitee shall be determined by reference to the relative fault of
Indemnitee as determined by the court or other governmental agency or, to the
extent such court or other governmental agency does not apportion relative
fault, by the Reviewing Party (which shall include Special Counsel) after giving
effect to, among other things, the relative intent, knowledge, access to
information, and opportunity to prevent or correct the relevant events, of each
party, and other relevant equitable considerations. The Company and Indemnitee
agree that it would not be just and equitable if contribution were determined by
pro rata allocation or by any other method of allocation that does not take
account of the equitable considerations referred to in this Section 6(b).

      7.    SEPARATE COUNSEL. As of the date hereof, the Company and Indemnitee
are represented by the same legal counsel in connection with certain Claims
relating to the Restatement. The parties acknowledge that all fees and expenses
of such counsel shall be paid by the Company. In the event that there is a
reasonable probability that the continued representation of both the Company and
Indemnitee by such counsel in any action, suit or proceeding would present such
counsel with a conflict of interest, Indemnitee may be represented by separate
counsel, and the reasonable expenses of such counsel shall be considered
Expenses subject to this Agreement.

      8.    NO PRESUMPTION. For purposes of this Agreement, the termination of
any Claim by judgment, order, settlement (whether with or without court
approval), or conviction, or upon a plea of nolo contendere, or its equivalent,
or an entry of an order or probation prior to judgment shall not create a
presumption (other than a presumption arising as a matter of law that the
parties may not contractually agree to disregard) that Indemnitee did not meet
any particular standard of conduct or have any particular belief or that a court
has determined that indemnification is not permitted by applicable law.

      9.    NON-EXCLUSIVITY. The rights of Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Certificate of
Incorporation or the Bylaws or the Delaware General Corporation Law or
otherwise. To the extent that a change in the Delaware General Corporation Law
(whether by statute or judicial decision) permits greater indemnification by
agreement than would be afforded currently under the Bylaws or the Certificate
of Incorporation and this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
that change. Indemnitee's rights under this Agreement shall not be diminished by
any amendment to the Certificate of Incorporation or Bylaws, or of any other
agreement or instrument to which Indemnitee is not a party, and shall not
diminish any other rights that Indemnitee now or in the future has against the
Company.

      10.   PERIOD OF LIMITATIONS. No action, lawsuit, or proceeding may be
brought against Indemnitee or Indemnitee's spouse, heirs, executors, or personal
or legal representatives, nor may any cause of action be asserted in any such
action, lawsuit, or proceeding, by or on behalf of the Company, after the
expiration of two years after the running of the statute of limitations
commences with respect to Indemnitee's act or omission that gave rise to the
action, lawsuit, proceeding, or cause of action; provided, however, that if any
shorter period of limitations is

                                       6
<PAGE>
otherwise applicable to any such action, lawsuit, proceeding, or cause of
action, the shorter period shall govern.

      11.   AMENDMENTS. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by all of the parties
hereto. No waiver of any provision of this Agreement shall be effective unless
in a writing signed by the party or parties granting the waiver. No waiver of
any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall that
waiver constitute a continuing waiver.

      12.   OTHER SOURCES. Indemnitee shall not be required to exercise any
rights that Indemnitee may have against any other Person (for example, under an
insurance policy) before Indemnitee enforces his rights under this Agreement.
However, to the extent the Company actually indemnifies Indemnitee or advances
Indemnitee Expenses, the Company shall be subrogated to the rights of Indemnitee
and shall be entitled to enforce any such rights which Indemnitee may have
against third parties. Indemnitee shall assist the Company in enforcing those
rights if it pays Indemnitee's costs and expenses of doing so. If Indemnitee is
actually indemnified or advanced Expenses by any third party, then, for so long
as Indemnitee is not required to disgorge the amounts so received, to that
extent the Company shall be relieved of its obligation to indemnify Indemnitee
or advance Indemnitee Expenses.

      13.   BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, assigns (including any direct or indirect successor by merger or
consolidation), spouses, heirs, and personal and legal representatives. This
Agreement shall continue in effect regardless of whether Indemnitee continues to
serve as an officer or director of the Company or another enterprise at the
Company's request.

      14.   SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under present or future laws effective during
the term hereof, that provision shall be fully severable; this Agreement shall
be construed and enforced as if that illegal, invalid, or unenforceable
provision had never comprised a part hereof; and the remaining provisions shall
remain in full force and effect and shall not be affected by the illegal,
invalid, or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of that illegal, invalid, or unenforceable provision, there
shall be added automatically as a part of this Agreement a provision as similar
in terms to the illegal, invalid, or unenforceable provision as may be possible
and be legal, valid, and enforceable.

      15.   GOVERNING LAW. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the Commonwealth of Massachusetts
applicable to contracts made and to be performed in that state without giving
effect to the principles of conflicts of law.

      16.   HEADINGS. The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

      17.   NOTICES. Whenever this Agreement requires or permits notice to be
given by one party to the others, such notice must be in writing to be effective
and shall be deemed delivered and received by the party to whom it is sent upon
actual receipt (by any means) of such notice.

                                       7
<PAGE>
Receipt of a notice by the Secretary of the Company shall be deemed receipt of
such notice by the Company.

      18.   COMPLETE AGREEMENT. This Agreement constitutes the complete
understanding and agreement among the parties with respect to the subject matter
hereof and supersedes all prior agreements and understandings between the
parties with respect to the subject matter hereof, other than any
indemnification rights that Indemnitee may enjoy under the Certificate of
Incorporation, the Bylaws, or the Delaware General Corporation Law.

      19.   COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but in making proof
hereof it shall not be necessary to produce or account for more than one such
counterpart.

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

                                      ROBOTIC VISION SYSTEMS INC.

                                      By: /s/ John J. Connolly
                                          --------------------------------------
                                             Name:  John J. Connolly
                                             Title: Chief Financial Officer

                                      INDEMNITEE:

                                      /s/ Pat V. Costa
                                      ------------------------------------------
                                      PAT V. COSTA

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]