COGNEX CORP
EX-10X SUMMARY OF ANNUAL BONUS PROGRAM
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<DESCRIPTION>EX-10X SUMMARY OF ANNUAL BONUS PROGRAM
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 10X</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COGNEX CORPORATION<BR>
SUMMARY OF ANNUAL BONUS PROGRAM</B>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cognex Corporation (the &#147;Company&#148;) provides selected employees, including the Company&#146;s named
executive officers, with an opportunity to earn cash bonuses pursuant to an annual bonus program
(the &#147;Bonus Program&#148;). Each participant in the Bonus Program is assigned a target annual cash
bonus. Participants may earn their bonuses based on the achievement of certain financial goals
set forth in the Company&#146;s annual budget related to the Company&#146;s operating income (excluding
stock-based compensation expense) as a percentage of revenue, or &#147;operating margin.&#148; The
Compensation/Stock Option Committee of the Company&#146;s Board of Directors establishes a minimum
level of operating margin, which must be achieved for any cash bonus to be paid to a participant.
Once the minimum threshold has been achieved, each participant&#146;s eligible bonus is calculated as
follows:
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    <TD>if the operating margin is above the minimum threshold but below the operating margin
target in the annual budget, each employee is eligible to receive a pro-rata portion of
his or her target bonus;</TD>
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    <TD>if the operating margin is equal to the operating margin set forth in the annual
budget, each employee is eligible to receive 100% of his or her target bonus; and</TD>
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    <TD>if the operating margin is above the operating margin set forth in the annual budget,
all exempt employees are eligible to receive an additional amount depending upon his or
her grade level and up to a maximum level approved by the Compensation/Stock Option
Committee.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Compensation/Stock Option Committee approves the target bonus for each employee at director
level and above, which includes the Company&#146;s named executive officers, and the amount by which
each individual can participate in any increase due to performance in excess of the budget target.
Once the operating margin criterion is met, the amount each employee at director level and above,
which includes the Company&#146;s named executive officers, receives depends upon the achievement of
individual performance goals, which are established annually.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the Bonus Program, Robert J. Shillman, the Company&#146;s President and Chief Executive Officer,
has the opportunity to earn 0-300% of his target bonus amount based on the achievement of the
specified performance goals; Eric A. Ceyrolle, the Company&#146;s Executive Vice President of Worldwide
Sales and Marketing, has the opportunity to earn 0-200% of his target bonus amount based on the
achievement of the specified performance goals; and Richard A. Morin, the Company&#146;s Senior Vice
President, Chief Financial Officer, and Treasurer, has the opportunity to earn 0-200% of his
target bonus amount based on the achievement of the specified performance goals.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The annual bonuses for the Company&#146;s named executive officers are listed in the Summary
Compensation Table set forth in the Company&#146;s proxy statement for its annual meeting of
shareholders.
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