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Exhibit 10.6

Silicon Valley Bank

Amendment to Loan Documents

Borrower:   InVision Technologies, Inc.
Date:
 
July 19, 2002

        THIS AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley
Bank ("Silicon") and the borrower named above ("Borrower").

        The Parties agree to amend the Loan and Security Agreement between them,
dated November 8, 2000 (as otherwise amended, if at all, the "Loan Agreement"),
as follows, effective as of the date hereof. (Capitalized terms used but not
defined in this Amendment shall have the meanings set forth in the Loan
Agreement.)

        1.    Amended Schedule.    The Schedule to the Loan Agreement is hereby
amended in its entirety to read as set forth in the Amended and Restated
Schedule to Loan and Security Agreement of even date herewith.

        2.    Certain Provisions Only Applicable on Event of Default.    The
provisions of Sections 4.3, 4.4 and 4.5 of the Loan Agreement shall only be
applicable after the occurrence and during the continuance of an Event of
Default.

        3.    Delete Termination Fee.    The second and third sentences of
Section 6.2 of the Loan Agreement, which provide for a termination fee, are
hereby deleted from the Loan Agreement.

        4.    Modified Negative Covenant Regarding Acquisitions.    Subclause
(ii) of Section 5.5 of the Loan Agreement is hereby amended to read as follows:

(ii)    acquire any assets, except in the ordinary course of business; provided,
however, if no Default or Event of Default has occurred and is continuing (and
also subject to the remaining terms of this Section 5.5), Borrower will be
permitted to acquire assets outside the ordinary course of business provided
further that the amount of cash expenditures with respect to such acquisitions
do not exceed $25,000,000 in the aggregate during the period from July 19, 2002
and July 19, 2003 and each anniversary year thereafter and provided Borrower
promptly notifies Silicon in writing of any such requests;

        5.    Modified Negative Covenant Regarding Transactions Outside the
Ordinary Course of Business.    Subclause (iii) of Section 5.5 of the Loan
Agreement is hereby amended to read as follows:

(iii)    enter into any other transaction outside the ordinary course of
business; provided, however, if no Default or Event of Default has occurred and
is continuing (and also subject to the remaining terms of this Section 5.5),
Borrower will be permitted to enter into transactions outside the ordinary
course of business provided further that the amount of cash expenditures with
respect to such transactions do not exceed $25,000,000 in the aggregate during
the period from July 19, 2002 and July 19, 2003 and each anniversary year
thereafter and provided Borrower promptly notifies Silicon in writing of any
such requests;

        6.    Additional Definitions.    The definitions on Exhibit A hereto are
hereby added to Section 8 of the Loan Agreement in alphabetical order.

        7.    Representations True.    Borrower represents and warrants to
Silicon that all representations and warranties set forth in the Loan Agreement,
as amended hereby, are true and correct.

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        8.    General Provisions.    This Amendment, the Loan Agreement, any
prior written amendments to the Loan Agreement signed by Silicon and Borrower,
and the other written documents and agreements between Silicon and Borrower set
forth in full all of the representations and agreements of the parties with
respect to the subject matter hereof and supersede all prior discussions,
representations, agreements and understandings between the parties with respect
to the subject hereof. Except as herein expressly amended, all of the terms and
provisions of the Loan Agreement, and all other documents and agreements between
Silicon and Borrower shall continue in full force and effect and the same are
hereby ratified and confirmed.

Borrower:   Silicon:
INVISION TECHNOLOGIES, INC.
 
SILICON VALLEY BANK
By
 
/s/ Ross Mulholland

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By
 
/s/ Quentin Falconer

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    President or Vice President   Title   Senior VP

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By
 
    

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      Secretary or Ass't Secretary        

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Exhibit A

Additional Definitions

        "Closing Date" is the date of this Amendment.

        "Investment" is any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

        "Loan Documents" means, collectively, the Loan Agreement, the
Representations, and all other present and future documents, instruments and
agreements between Silicon and Borrower, including, but not limited to those
relating to the Loan Agreement, and all amendments and modifications thereto and
replacements therefor.

        "Permitted Investments" are: (a) Investments shown on the Schedule and
existing on the Closing Date; and (b) (i) marketable direct obligations issued
or unconditionally guaranteed by the United States or its agency or any State
maturing within 1 year from its acquisition, (ii) commercial paper maturing no
more than 1 year after its creation and having the highest rating from either
Standard & Poor's Corporation or Moody's Investors Service, Inc., and
(iii) Silicon's certificates of deposit issued maturing no more than 1 year
after issue.

        "Representations" means the written Representations and Warranties
provided by Borrower to Silicon referred to in the Schedule.

        "Subsidiary" is for any Person, or any other business entity of which
more than 50% of the voting stock or other equity interests is owned or
controlled, directly or indirectly, by the Person or one or more Affiliates of
the Person.

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Silicon Valley Bank

Amended and Restated Schedule to

Loan and Security Agreement

Borrower:   InVision Technologies, Inc.
Address:
 
7151 Gateway Blvd.
Newark, California 94560
Date:
 
July 19, 2002

This Amended and Restated Schedule forms an integral part of the Loan and
Security Agreement between Silicon Valley Bank and the above-borrower dated
November 8, 2000, and amends and restates in its entirety the prior Schedule to
Loan and Security Agreement (as previously amended, the "Original Schedule"),
effective on the date hereof.

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1.
 
CREDIT LIMIT
(Section 1.1):
 
An amount equal to the sum of (A) and (B) below:
 
 
 
 
 
 
B.
 
Revolving Loans. An amount not to exceed $25,000,000 at any one time outstanding
(the "Maximum Revolving Credit Limit"), plus
 
 
 
 
 
 
C.
 
Term Loans. An amount equal to the unpaid principal balance from time to time
outstanding of Term Loan #1 (as defined in the Existing Loan Documents) (the
"Term Loans"). The current unpaid principal balance outstanding of Term Loan #1
is $132,501.04.
 
 
Letter of Credit Sublimit
(Section 1.5):
 
$25,000,000.
 
 
Foreign Exchange
Contract Sublimit:
 
$25,000,000.
 
 
 
 
 
 
 
 
 

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Borrower may enter into foreign exchange forward contracts with Silicon, on its
standard forms, under which Borrower commits to purchase from or sell to Silicon
a set amount of foreign currency more than one business day after the contract
date (the "FX Forward Contracts"); provided that: (1) at the time the FX Forward
Contract is entered into Borrower has Revolving Loans available to it under this
Agreement in an amount at least equal to 10% of the amount of the FX Forward
Contract; (2) the total FX Forward Contracts at any one time outstanding may not
exceed 10 times the amount of the Foreign Exchange Contract Sublimit set forth
above; and (3) each FX Forward Contract shall have an expiry date no later than
thirty days prior to the Maturity Date, provided that an FX Forward Contract may
have an expiry date later than thirty days prior to the Maturity Date if and
only if Borrower's Obligations with respect to such FX Forward Contract are
secured by specifically pledged unencumbered cash account, in an amount equal to
10% of such FX Forward Contract, on terms acceptable to Silicon in its sole
discretion. Silicon shall have the right to withhold, from the Revolving Loans
otherwise available to Borrower under this Agreement, a reserve (which shall be
in addition to all other reserves regarding Letters of Credit and Cash
Management Services) in an amount equal to 10% of the total FX Forward Contracts
from time to time outstanding. Silicon may, in its discretion, terminate the FX
Forward Contracts at any time that an Event of Default occurs and is continuing.
Borrower shall execute all standard form applications and agreements of Silicon
in connection with the FX Forward Contracts, and without limiting any of the
terms of such applications and agreements, Borrower shall pay all standard fees
and charges of Silicon in connection with the FX Forward Contracts.
 
 
Cash Management
Services and Reserves:
 
Borrower may use up to $25,000,000 of Revolving Loans available hereunder for
Silicon's cash management services, including, merchant services, business
credit card, ACH and other services identified in the cash management services
agreement related to such service (collectively, the "Cash Management
Services"). Silicon will reserve against Revolving Loans which would otherwise
be available hereunder such sums as Silicon shall determine is appropriate in
its sole discretion in connection with the Cash Management Services, and Silicon
may charge to Borrower's Revolving Loan account any amounts that may become due
or owing to Silicon in connection with the Cash Management Services. Borrower
agrees to execute and deliver to Silicon all standard form applications and
agreements of Silicon in connection with the Cash Management Services, and,
without limiting any of the terms of such applications and agreements, Borrower
will pay all standard fees and charges of Silicon in connection with the Cash
Management Services. The Cash Management Services shall terminate on the
Maturity Date.
 
 
 
 
 
 
 
 
 

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Additionally, Borrower covenants and agrees that if at any time the value of the
Collateral, as determined by Silicon in its discretion, is less than the
aggregate amount of the outstanding Letters of Credit FX Forward Contracts and
the Cash Management Services utilization (the difference between the value of
the Collateral and the aggregate outstanding Letters of Credit, FX Forward
Contracts and the Cash Management Services utilization is hereinafter referred
to as the "Collateral Shortfall"), Borrower shall provide Silicon cash
collateral in an amount equal to the Collateral Shortfall to secure all of the
Obligations relating to said Letters of Credit, FX Forward Contracts and Cash
Management Services utilization, pursuant to Silicon's then standard form cash
pledge agreement.
 
 
Exim Agreement;
Cross-Collateralization;
Cross-Default:
 
Silicon and the Borrower are parties to that certain Loan and Security Agreement
(Exim Program) dated November 8, 2000 (as amended from time to time, the "Exim
Agreement"). This Agreement and the Exim Agreement shall continue in full force
and effect, and all rights and remedies under this Agreement and the Exim
Agreement are cumulative. The term "Obligations" as used in this Agreement and
the Exim Agreement shall include without limitation the obligation to pay when
due all Loans made pursuant to this Agreement (the "Non-Exim Loans") and all
interest thereon and the obligation to pay when due all Loans made pursuant to
the Exim Agreement (the "Exim Loans") and all interest thereon. Without limiting
the generality of the foregoing, all "Collateral" as defined in this Agreement
and as defined in the Exim Agreement shall secure all Non-Exim Loans and all
Exim Loans and all interest thereon, and all other Obligations relating thereto.
Any Event of Default under this Agreement shall also constitute an Event of
Default under the Exim Agreement and any Event of Default under the Exim
Agreement shall also constitute an Event of Default under this Agreement. In the
event Silicon assigns its rights under this Agreement and/or under any Note
evidencing Non-Exim Loans, and/or its rights under the Exim Agreement and/or
under any Note evidencing Exim Loans to any third party, including without
limitation the Export-Import Bank of the United States ("Exim Bank"), whether
before or after the occurrence of any Event of Default, Silicon shall have the
right (but not any obligation), in its sole discretion, to allocate and
apportion Collateral to the Agreement and/or Note assigned and to specify the
priorities of the respective security interests in such Collateral between
itself and the assignee, all without notice to or consent of the Borrower.

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2.
 
INTEREST.
 
 
 
 
 
 
 
 
Interest Rate
(Section 1.2):
 
A rate equal to the "Prime Rate" in effect from time to time, minus 0.50% per
annum. Interest shall be calculated on the basis of a 360-day year for the
actual number of days elapsed. "Prime Rate" means the rate announced from time
to time by Silicon as its "prime rate;" it is a base rate upon which other rates
charged by Silicon are based, and it is not necessarily the best rate available
at Silicon. The interest rate applicable to the Obligations shall change on each
date there is a change in the Prime Rate.
 
 
 
 
 
 
 
 
 

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With respect to each of Term Loan #1, the interest rate shall be a rate equal to
the Prime Rate in effect from time to time, plus 1.0% per annum. Interest shall
be calculated on the basis of a 360-day year for the actual number of days
elapsed. The interest rate applicable to the Obligations pertaining to the Term
Loans shall change on each date there is a change in the Prime Rate.
 
 
Minimum Monthly
Interest (Section 1.2):
 
Not Applicable.

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3.
 
FEES (Section 1.4):
 
 
 
 
 
 
 
 
Loan Fee:
 
$62,500, payable on the anniversary of this Agreement (July 19, 2003) and on
each subsequent anniversary of this Agreement thereafter, if, in each case, this
Agreement has been extended pursuant to the provisions set forth in the Maturity
Date.

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4.
 
MATURITY DATE
(Section 6.1):
 
With respect to the Revolving Loans: July 19, 2004; provided, however, prior to
July 19, 2003 (and each anniversary date of this Agreement thereafter, if any),
Silicon will review this Agreement and determine, in its sole discretion,
whether or not to offer Borrower (on terms acceptable to Silicon in its sole
discretion and to Borrower in its sole discretion) a one year extension of the
then applicable Maturity Date, which extension, if any, to be effective only
upon execution by each of Silicon and Borrower of a written agreement evidencing
such extension.
 
 
 
 
With respect to the Term Loans: The outstanding principal balance of Term Loan
#1 will continue to be repaid in monthly principal payments of $11,041.72 each
in accordance with the terms of the Existing Loan Documents until the earlier
of: (i) June 29, 2003, (ii) all Obligations related to Term Loan #1 have been
indefeasibly paid in full to Silicon or (iii) the date this Agreement terminates
by its terms or is terminated by either party in accordance with its terms.
Interest on Term Loan #1 shall be payable monthly as provided for in Section 1.2
of this Agreement.

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5.
 
FINANCIAL COVENANTS
(Section 5.1):
 
Borrower shall comply with each of the following covenant(s). Compliance shall
be determined as of the end of each fiscal quarter, except as otherwise
specifically provided below:
 
 
Minimum Tangible
Net Worth:
 
Borrower shall maintain a Tangible Net Worth of not less than the following:
 
 
 
 
For the fiscal quarter ending June 30, 2002: $140,000,000;
 
 
 
 
For the fiscal quarter ending September 30, 2002: $160,000,000;
 
 
 
 
For the fiscal quarter ending December 31, 2002: $190,000,000; and
 
 
 
 
For the fiscal quarter ending March 31, 2003: $210,000,000.
 
 
 
 
 
 
 
 
 

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Borrower covenants that by December 31, 2002, Borrower shall provide Silicon
with financial projections setting forth Borrower's forecasted quarterly net
income through at least the fiscal quarter ending December 31, 2003, and based
upon such projections, Silicon will establish the Minimum Tangible Net Worth
financial covenant for, at a minimum, the fiscal quarters ending after March 31,
2003 set forth on such projections. Borrower covenants that by December 31 of
each calendar year ending thereafter, Borrower will provide Silicon with
financial projections setting forth Borrower's forecasted quarterly net income
through at least the fiscal quarter ending the following December 31, and based
upon such projections, Silicon will establish the Minimum Tangible Net Worth
financial covenant for, at a minimum, the fiscal quarters set forth on such
projections.
 
 
Definitions.
 
For purposes of the foregoing financial covenants, the following term shall have
the following meaning:
 
 
 
 
"Current assets", "current liabilities" and "liabilities" shall have the meaning
ascribed thereto by generally accepted accounting principles.
 
 
 
 
"Tangible Net Worth" shall mean the excess of total assets over total
liabilities, determined in accordance with generally accepted accounting
principles, with the following adjustments:
 
 
 
 
 
 
(A) there shall be excluded from assets: (i) notes, accounts receivable and
other obligations owing to the Borrower from its officers or other Affiliates,
and (ii) all assets which would be classified as intangible assets under
generally accepted accounting principles, including without limitation goodwill,
licenses, patents, trademarks, trade names, copyrights, capitalized software and
organizational costs, licenses and franchises
 
 
 
 
 
 
(B) there shall be excluded from liabilities: all indebtedness which is
subordinated to the Obligations under a subordination agreement in form
specified by Silicon or by language in the instrument evidencing the
indebtedness which is acceptable to Silicon in its discretion ("Subordinated
Debt").

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6.
 
REPORTING.
(Section 5.3):
 
Borrower shall provide Silicon with the following:
 
 
 
 
1.
 
Monthly unaudited financial statements, as soon as available, and in any event
within thirty days after the end of each month.
 
 
 
 
2.
 
Quarterly Compliance Certificates, within thirty days after the end of each
fiscal quarter, in such form as Silicon shall reasonably specify, signed by the
Chief Financial Officer of Borrower, certifying that as of the end of such
fiscal quarter Borrower was in full compliance with all of the terms and
conditions of this Agreement, and setting forth calculations showing compliance
with the financial covenants set forth in this Agreement and such other
information as Silicon shall reasonably request.
 
 
 
 
3.
 
Within 5 days of filing, copies of all reports on Form 10-Q and 10-K filed by
Borrower with the Securities and Exchange Commission.
 
 
 
 
 
 
 
 
 

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4.
 
Annual financial statements, as soon as available, and in any event within 120
days following the end of Borrower's fiscal year, certified by independent
certified public accountants acceptable to Silicon.

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7.
 
COMPENSATION
(Section 5.5):
 
Not Applicable.
8.
 
BORROWER INFORMATION:
 
 
 
 
 
 
 
 
Prior Names of
Borrower
(Section 3.2):
 
See Representations and Warranties dated January 17, 2002.
 
 
Prior Trade
Names of Borrower
(Section 3.2):
 
See Representations and Warranties dated January 17, 2002.
 
 
Existing Trade
Names of Borrower
(Section 3.2):
 
See Representations and Warranties dated January 17, 2002.
 
 
Other Locations and
Addresses (Section 3.3):
 
See Representations and Warranties dated January 17, 2002.
 
 
Material Adverse
Litigation (Section 3.10):
 
None.

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9.
 
OTHER COVENANTS
(Section 5.1):
 
Borrower shall at all times comply with all of the following additional
covenants:
 
 
 
 
(1)
 
Banking Relationship. Borrower shall at all times maintain its primary banking
relationship with Silicon. Without limiting the generality of the foregoing,
Borrower shall, at all times, maintain not less than 25% of its total cash and
investments on deposit with Silicon. As to any Deposit Accounts and investment
accounts maintained with another institution, Borrower shall cause such
institution, within 30 days after the date of this Agreement, to enter into a
control agreement in form acceptable to Silicon in its good faith business
judgment in order to perfect Silicon's first-priority security interest in said
Deposit Accounts and investment accounts.
 
 
 
 
 
 
 
 
 

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(a)
 
Subordination of Inside Debt. All present and future indebtedness of the
Borrower to its officers, directors and shareholders ("Inside Debt") shall, at
all times, be subordinated to the Obligations pursuant to a subordination
agreement on Silicon's standard form. Borrower represents and warrants that
there is no Inside Debt presently outstanding, except for the following: NONE.
Prior to incurring any Inside Debt in the future, Borrower shall cause the
person to whom such Inside Debt will be owed to execute and deliver to Silicon a
subordination agreement on Silicon's standard form.
 
 
 
 
 
 
(b)
 
Copyright Filings. Within 60 days after the date hereof, Borrower shall (i)
execute and deliver to Silicon an Intellectual Property Security Agreement
between Borrower and Silicon (the "Intellectual Property Agreement") on
Silicon's standard form, (ii) cause all of its computer software and copyrights,
the licensing of which results in Accounts, or which is material to its business
to be registered with the United States Copyright Office, (ii) complete the
Exhibits to the Intellectual Property Agreement with all of the information
called for with respect to such software and other intellectual property, (iii)
cause the Intellectual Property Agreement to be recorded in the United States
Copyright Office, and (iv) provide evidence of such recordation to Silicon.
 
 
 
 
 
 
(c)
 
Transactions with Subsidiaries. Borrower agrees that the aggregate amount of all
expenses Borrower incurs on behalf of its Subsidiaries plus the aggregate amount
of money or other assets Borrower loans and/or transfers to its Subsidiaries
shall not at anytime exceed $1,000,000 during the term of this Agreement. The
preceding shall not include any such expenses, loans and/or transfers incurred
or made prior to the date of this Agreement.
 
 
 
 
 
 
(d)
 
Investments. Borrower shall not directly or indirectly acquire or own any
Person, or make any Investment in any Person, other than Permitted Investments,
or permit any of its Subsidiaries to do so.

 
 
 
 
 
 
 
Borrower:
 
Silicon:

INVISION TECHNOLOGIES, INC.

 

SILICON VALLEY BANK
By
 
/s/ Ross Mulholland

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President or Vice President
 
By
 
/s/ Quentin Falconer

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Title
 
Senior VP

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By
 
    

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Secretary or Ass't Secretary
 
 
 
 

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Exhibit 10.6

Amendment to Loan Documents