Document:

EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

      This REGISTRATION RIGHTS AGREEMENT, dated as of June 25, 2004, is made and
entered into by and among Robotic Vision Systems, Inc., a Delaware corporation
(the "Company") and RVSI Investors, L.L.C., a Delaware limited liability company
("Investor"). Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in Section 1 hereto.

                                   WITNESSETH:

      WHEREAS, the Company, the Investor and PNC Bank, National Association, as
agent (the "Agent"), have entered into a that certain Amended and Restated
Revolving Credit and Security Agreement dated as of November 26, 2003 (as
amended, restated or otherwise modified from time to time, the "Loan
Agreement"), pursuant to the terms of which the Investor and Agent have made
loans and certain other financial accommodations to Company;

      WHEREAS, the Company, the Investor and the Agent have entered into that
certain First Amendment to Amended and Restated Revolving Credit and Security
Agreement dated as of even date herewith (as amended, restated or otherwise
modified from time to time, the "Amendment"), pursuant to the terms of which the
Investor, the Agent and the Company have agreed to amend the terms of the Loan
Agreement and make additional loans and other financial accommodations to the
Company;

      WHEREAS, as consideration for the Investor entering into the Amendment and
making the additional loans and other financial accommodations pursuant thereto,
the Company delivered to the Investor that certain Common Stock Warrant dated as
of June 25, 2004 (as amended, restated or otherwise modified from time to time,
the "Warrant") to purchase shares of Common Stock; and

      WHEREAS, the Warrant is exercisable for Common Stock in accordance with
the terms thereof.

      NOW, THEREFORE, in consideration of the premises and the mutual promises
and covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

      Section 1. Definitions. As used in this Agreement, the following terms
shall have the following meanings:

      "Affiliate" shall mean, with respect to any specified Person, any other
Person that, directly or indirectly, through one or more intermediaries,
controls or is controlled by, or is under common control with, the Person
specified. For purposes of this definition, control of a Person means the power,
directly or indirectly, to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.

      "Agreement" shall mean this Registration Rights Agreement as originally
executed and as amended, supplemented or restated from time to time.

      "Board" shall mean the Board of Directors of the Company.

      "Business Day" shall mean each day other than a Saturday, a Sunday or any
other day on which banking institutions in the State of New York are authorized
or obligated by law or executive order to be closed.

      "Closing Date" shall mean June 25, 2004.

<PAGE>

      "Common Stock" shall mean the common stock of the Company, par value $0.01
per share.

      "Company" shall have the meaning set forth in the introductory paragraph
hereto.

      "Effectiveness Deadline Date" shall mean the earlier of (i) one hundred
fifty (150) days after the date of the issuance of the Warrant and (ii) the
effectiveness of a registration statement registering any shares of Common Stock
the issuance by the Company of which would make available to the Company
additional loan advances pursuant to the Amendment.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended,
or any successor federal statute, and the rules and regulations thereunder, all
as the same shall be in effect at the time.

      "Filing Deadline Date" shall mean the earlier of (i) sixty (60) days after
the date of the issuance of the Warrant and (ii) the date of filing of a
registration statement with respect to any shares of Common Stock the issuance
by the Company of which would make available to the Company additional loan
advances pursuant to the Amendment.

      "Holder" shall mean Investor and any assignee who becomes a party to this
Agreement as provided in Section 7(h), in each case in its capacity as a holder
of Registrable Securities. For purposes of this Agreement, the Company may deem
and treat the registered holder of a Registrable Security as the Holder and
absolute owner thereof, unless notified to the contrary in writing by the
registered Holder thereof.

      "Investor" shall have the meaning set forth in the introductory paragraph
hereto.

      "NASD" shall mean the National Association of Securities Dealers, Inc.

      "Person" shall mean an individual, corporation, partnership, limited
liability company, association, trust, joint venture, unincorporated
organization or any government, governmental department or agency or political
subdivision thereof.

      "Registrable Securities" shall mean at any time (i) any Common Stock
issued or issuable upon exercise, in whole or in part, of the Warrant; and (ii)
any other securities issued or issuable by way of conversion, exchange, stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other distribution with respect to or
in replacement of any shares referred to in (i) and (ii) above; provided,
however, such Registrable Securities shall cease to be Registrable Securities
when (A) a registration statement with respect to the sale of such Registrable
Securities shall have become effective under the Securities Act and such
Registrable Securities shall have been disposed of in accordance with such
registration statement, (B) such Registrable Securities shall have been sold in
accordance with Rule 144 (or any successor provision) under the Securities Act
or (C) they have ceased to be outstanding.

      "Registration Expenses" shall mean (i) the fees and disbursements of
counsel and independent public accountants for the Company incurred in
connection with the Company's performance of or compliance with this Agreement,
including the expenses of any special audits or "comfort" letters required by or
incident to such performance and compliance, and any premiums and other costs of
policies of insurance obtained by the Company against liabilities arising out of
the sale of any securities and (ii) all registration, filing and stock exchange
or NASD fees, all fees and expenses of complying with securities or "blue sky"
laws, all fees and expenses of custodians, transfer agents and registrars, all
printing expenses, messenger and delivery expenses, any reasonable fees and
disbursements of one common counsel retained by the holders of a majority of
Registrable Securities (not to exceed $10,000 in

                                     - 2 -
<PAGE>

the aggregate) and transfer taxes, if any; provided, however, "Registration
Expenses" shall not include any underwriting or brokerage commissions or
discounts associated with effecting any sales of Registrable Securities that may
be offered, which expenses shall be borne by each Holder of Registrable
Securities on a pro rata basis with respect to the Registrable Securities so
sold.

      "SEC" shall mean the Securities and Exchange Commission and any successor
thereto.

      "Securities Act" shall mean the Securities Act of 1933, as amended, or any
successor federal statute, and the rules and regulations thereunder, all as the
same shall be in effect at the time.

      "Shelf Registration Statement" shall have the meaning set forth in Section
2(a) hereof.

      "Warrant" shall have the meaning set forth in the recitals hereto.

      Section 2. Shelf Registration Statement; Filing and Effectiveness;
Black-Out Periods.

            a. Shelf Registration. The Company shall as promptly as practicable,
but in no event later than the Filing Deadline Date, prepare and file with the
SEC a shelf registration statement under the Securities Act on Form S-3 or Form
S-1, if Form S-3 is not available (or any similar or successor forms), that will
permit the resale of all Registrable Securities under such Warrant (the "Shelf
Registration Statement") and will use its best efforts to cause such Shelf
Registration Statement to be declared effective by the SEC as soon as reasonably
practicable thereafter but in no event later than the Effectiveness Deadline
Date. The Shelf Registration Statement and any form of prospectus included
therein (or prospectus supplement relating thereto) shall reflect the plan of
distribution or method of sale as the Holders may from time to time notify the
Company. To the extent permitted by applicable law, the Shelf Registration
Statement shall be in the shelf format, permitting the offer and sale of the
Registrable Securities on a delayed or continuous basis pursuant to Rule 415
under the Securities Act following the effectiveness of such Shelf Registration
Statement.

      In the event that the Company does not file a Shelf Registration Statement
required to be filed pursuant to this Section 2(a) with the SEC on or before the
applicable Filing Deadline Date, the Company shall pay to the Investor, as
liquidated damages and not as a penalty, in immediately available funds, $333
per calendar day after the applicable Filing Deadline Date until filed, which
cumulative amount shall be payable on the first Business Day of each calendar
month following the Filing Deadline Date. In the event that the Shelf
Registration Statement required to be filed pursuant to this Section 2(a) with
the SEC is not declared effective by the SEC on or before the applicable
Effectiveness Deadline Date (whether or not filed, and whether or not the
Company is required to pay the amounts described in the immediately preceding
sentence), the Company shall pay to the Investor, as liquidated damages and not
as a penalty, in immediately available funds, $333 per calendar day after the
applicable Effectiveness Deadline Date until declared effective, which
cumulative amount shall be payable on the first Business Day of each calendar
month following the Effectiveness Deadline Date.

            b. Effectiveness. The Company shall use its best efforts to keep the
Shelf Registration Statement continuously effective for the period beginning on
the date on which the Shelf Registration Statement is declared effective and
ending on the date that all of the Registrable Securities registered under the
Shelf Registration Statement have been sold. During the period that the Shelf
Registration Statement is effective, the Company shall supplement or make
amendments to the Shelf Registration Statement, if required by the Securities
Act or if reasonably requested by the Holders (whether or not required by the
form on which the securities are being registered), including to reflect any
specific plan of distribution or method of sale, and shall use its best efforts
to have such supplements and amendments declared effective, if required, as soon
as practicable after filing.

                                     - 3 -
<PAGE>

            c. Black-Out Periods. Notwithstanding anything herein to the
contrary, the Company shall have the right, exercisable from time to time by
delivery of a notice authorized by the Chief Executive Officer or the Chairman
of the Board of the Company, on not more than two occasions in any 12-month
period, to require the Holders not to sell pursuant to the Shelf Registration
Statement or to suspend the effectiveness thereof if at the time of the delivery
of such notice, the Board has reasonably and in good faith determined that such
registration and offering, continued effectiveness or sale would materially
interfere with any material transaction involving the Company; provided,
however, that in no event shall the restricted period extend for more than 60
consecutive days or more than 90 days in the aggregate during any twelve
(12)-month period. The Company shall (i) give the Holders same Business Day
written notice in the event that the Company has suspended sales of Registrable
Securities under this Section 3, (ii) give the Holders same Business Day written
notice of the completion of such offering or material transaction and (iii)
promptly file any amendment necessary for any registration statement or
prospectus of the Holders in connection with the completion of such event.

      Section 3. Registration Procedures.

            a. In connection with the filing of any registration statement as
provided in this Agreement, the Company shall use its best efforts to, as
expeditiously as reasonably practicable:

                  (i) prepare and file with the SEC the requisite registration
      statement (including a prospectus therein and any supplement thereto) to
      effect such registration and use its best efforts to cause such
      registration statement to become effective; provided, however, that before
      filing such registration statement or any amendments or supplements
      thereto, the Company will furnish copies of all such documents proposed to
      be filed to counsel for the Holders and provide reasonable time for such
      Holders and their counsel to comment upon such documents;

                  (ii) prepare and file with the SEC such amendments and
      supplements to such registration statement and the prospectus used in
      connection therewith as may be necessary to maintain the effectiveness of
      such registration and to comply with the provisions of the Securities Act
      with respect to the disposition of all securities covered by such
      registration statement during the period in which such registration
      statement is required to be kept effective;

                  (iii) furnish to each Holder of the securities being
      registered, without charge, such number of conformed copies of such
      registration statement and of each such amendment and supplement thereto
      (in each case including all exhibits) other than those which are being
      incorporated into such registration statement by reference, such number of
      copies of the prospectus contained in such registration statements
      (including each complete prospectus and any summary prospectus) and any
      other prospectus filed under Rule 424 under the Securities Act in
      conformity with the requirements of the Securities Act, and such other
      documents, including documents incorporated by reference, as the Holders
      may reasonably request;

                  (iv) register or qualify all Registrable Securities under such
      other securities or "blue sky" laws of such jurisdictions as the Holders
      and the underwriters of the securities being registered, if any, shall
      reasonably request, to keep such registration or qualification in effect
      for so long as such registration statement remains in effect, and take any
      other action which may be reasonably necessary or advisable to enable the
      Holders to consummate the disposition in such jurisdiction of the
      securities owned by the Holders, except that the Company shall not for any
      such purpose be required to qualify generally to do business as a foreign
      company, or to consent to general service of process in any such
      jurisdiction, or to be subject to any material tax obligation in any such
      jurisdiction where it is not then so subject;

                                     - 4 -
<PAGE>

                  (v) immediately notify the Holders at any time when the
      Company becomes aware that a prospectus relating thereto is required to be
      delivered under the Securities Act, of the happening of any event as a
      result of which the prospectus included in such registration statement, as
      then in effect, includes an untrue statement of a material fact or omits
      to state any material fact required to be stated therein or necessary to
      make the statements therein not misleading in light of the circumstances
      under which they were made, and, at the request of the Holders, promptly
      prepare, file with the SEC and furnish to the Holders a reasonable number
      of copies of a supplement to or an amendment of such prospectus as may be
      necessary so that, as thereafter delivered to the purchasers of such
      securities, such prospectus shall not include an untrue statement of a
      material fact or omit to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading in the
      light of the circumstances under which they were made and in connection
      therewith, prepare, file and cause to be declared effective any required
      post-effective amendments to the Shelf Registration Statement or any
      additional or supplemental registration statements;

                  (vi) comply or continue to comply in all material respects
      with the Securities Act and the Exchange Act and with all applicable rules
      and regulations of the SEC thereunder so as to enable any Holder to sell
      its Registrable Securities pursuant to Rule 144 promulgated under the
      Securities Act, as further agreed to in Section 6 hereof;

                  (vii) in connection with the preparation and filing of each
      registration statement, prospectus or amendment or supplement thereto
      registering Registrable Securities, the Company will give the Holders on
      whose behalf the Registrable Securities are to be registered and their
      underwriters, counsel and accountants the opportunity to participate in
      such preparation and filing, and in connection therewith, will give such
      Holders access to its books and records, officers and counsel to conduct a
      reasonable investigation; provided that such Holders agree to maintain any
      material non-public information regarding the Company in confidence in
      accordance with Regulation F-D under the Securities Act;

                  (viii) not file any registration statement, prospectus or
      amendment or supplement thereto to which the Holders shall have reasonably
      objected on the grounds that such registration statement, prospectus,
      amendment or supplement does not comply in all material respects with the
      requirements of the Securities Act, having been furnished with a copy
      thereof at least five Business Days prior to the filing thereof;

                  (ix) make available to its security holders, as soon as
      reasonably practicable, an earnings statement covering the period of at
      least 12 months, but not more than 18 months, beginning with the first
      calendar month after the effective date of such registration statement,
      which earnings statement shall satisfy the provisions of Section 11(a) of
      the Securities Act;

                  (x) provide a transfer agent and registrar for all Registrable
      Securities covered by such registration statement not later than the
      effective date of such registration statement;

                  (xi) cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable
      Securities to be sold and not bearing any Securities Act legend; and
      enable certificates for such Registrable Securities to be issued for such
      number of shares and registered in such names as the selling Holders may
      reasonably request in writing at least two Business Days prior to any sale
      of Registrable Securities;

                                     - 5 -
<PAGE>

                  (xii) list and cause to remain listed all Registrable
      Securities covered by such registration statement on any securities
      exchange or national quotation system on which any such class of
      securities is then listed or quoted and cause to be satisfied all
      requirements and conditions of such securities exchange or national
      quotation system to the initial and continued listing or quoting of such
      securities that are reasonably within the control of the Company
      including, without limitation, registering the applicable class of
      Registrable Securities under the Exchange Act, if appropriate, and using
      its best efforts to cause such registration to become and remain effective
      pursuant to the rules of the SEC;

                  (xiii) in connection with any sale, transfer or other
      disposition by any Holder of any Registrable Securities pursuant to any
      registration statement or Rule 144 promulgated under the Securities Act,
      cooperate with such Holder to facilitate the timely preparation and
      delivery of certificates representing the Registrable Securities to be
      sold and not bearing any Securities Act legend, and enable certificates
      for such Registrable Securities to be for such number of shares and
      registered in such name as the selling Holders may reasonably request in
      writing at least three Business Days prior to any sale of Registrable
      Securities;

                  (xiv) notify each Holder, promptly after and effective on the
      same Business Day it shall receive notice thereof, of the time when such
      registration statement, or any post-effective amendments to the
      registration statement, shall have become effective, or a supplement to
      any prospectus forming part of such registration statement has been filed
      with the SEC;

                  (xv) notify each Holder of any request by the SEC for the
      amendment or supplement of such registration statement or prospectus for
      additional information; and

                  (xvi) advise effective on the same Business Day each Holder,
      promptly after it shall receive notice or obtain knowledge thereof, of (A)
      the issuance of any stop order, injunction or other order or requirement
      by the SEC suspending the effectiveness of such registration statement or
      the initiation or threatening of any proceeding for such purpose and use
      all commercially reasonable efforts to prevent the issuance of any stop
      order, injunction or other order or requirement or to obtain its
      withdrawal if such stop order, injunction or other order or requirement
      should be issued, (B) the suspension of the registration of the subject
      shares of the Registrable Securities in any state jurisdiction and (C) the
      removal of any such stop order, injunction or other order or requirement
      or proceeding or the lifting of any such suspension.

            b. In connection with the filing of any registration statement
covering Registrable Securities, each selling Holder shall furnish in writing to
the Company such information regarding such Holder (and any of its Affiliates),
the Registrable Securities to be sold, the intended method of distribution of
such Registrable Securities and such other information requested by the Company
as is necessary or advisable for inclusion in the registration statement
relating to such offering pursuant to the Securities Act. Such writing shall
expressly state that it is being furnished to the Company for use in the
preparation of a registration statement, preliminary prospectus, supplementary
prospectus, final prospectus or amendment or supplement thereto, as the case may
be.

      Each Holder agrees by acquisition of the Registrable Securities that upon
receipt of any notice from the Company of the happening of any event of the kind
described in paragraph Section 3(a)(v), such Holder will forthwith discontinue
its disposition of Registrable Securities pursuant to the registration statement
relating to such Registrable Securities until such Holder's receipt of the
copies of the supplemented or amended prospectus contemplated by Section
3(a)(v).

                                     - 6 -
<PAGE>

      Each Holder agrees (i) that it will effect no stabilization transactions
or engage, directly or indirectly, in any stabilization activity, as defined and
prohibited by Regulation M, promulgated under the Exchange Act, in connection
with any offering of any securities of the Company and (ii) that it will not,
directly or indirectly, bid for, purchase or attempt to induce any person to bid
for or purchase any securities of the Company during the restricted period, as
defined and prohibited by Regulation M, in connection with the distribution of
the Registrable Securities.

      Section 4. Piggy-Back Registration; Cut-back.

            a. If, at any time commencing after the date hereof, the Company
proposes to register any of its securities under the Securities Act on a
registration statement that may be used for the registration of the Registrable
Securities (other than in connection with a merger, pursuant to Form S-8, S-4 or
comparable registration statement, in connection with a registration requested
pursuant to Section 2 hereof or in connection with an exchange offer or an
offering of securities solely to the Company's existing stockholders) it will
give written notice by registered mail, at least thirty (30) business days prior
to the filing of each such registration statement, to all Holders of the
Registrable Securities of its intention to do so. If Holders of the Registrable
Securities notify the Company within twenty (20) days after receipt of any such
notice of its or their desire to include any Registrable Securities in such
proposed registration statement, the Company shall afford such Holders of the
Registrable Securities the opportunity to have any such Registrable Securities
registered under such registration statement.

            b. Notwithstanding the provisions of Section 4(a): (A) the Company
shall have the right any time after it shall have given written notice pursuant
to this Section 4 (irrespective of whether a written request for inclusion of
any such securities shall have been made) to elect to postpone or not to file
any such proposed registration statement, or to withdraw the same after filing
but prior to the effective date thereof, and (B) if the underwriter or
underwriters, if any, of any such proposed public offering shall be of the
reasonable opinion that the total amount or kind of securities held by the
Holders of Registrable Securities and any other persons or entities entitled to
be included in such public offering would adversely affect the success of such
public offering, then the amount of securities to be offered for the accounts of
holders of Registrable Securities shall be reduced pro rata to the extent
necessary to reduce the total amount of securities to be included in such public
offering to the amount reasonably recommended by the underwriter or underwriters
thereof (provided the number of shares to be included on behalf of such Holders
of Registrable Securities shall not be reduced below 10% of the total number of
shares ultimately offered for sale on behalf of the Company and all such Holders
of Registrable Securities pursuant to such public offering), whereupon the
Company shall only be obligated to register such reduced portion of the
Registrable Securities.

      Section 5. Indemnification.

            a. Indemnification by the Company. In the event of any registration
of any Registrable Securities of the Company under the Securities Act, the
Company will, and hereby does, indemnify and hold harmless each Holder, its
direct and indirect partners, officers, directors, trustees, agents, equity
holders, managed or advised accounts and investment advisers, and each Person,
if any, who controls or is alleged to control such Holder within the meaning of
the Securities Act or the Exchange Act, against any losses, claims, damages, and
expenses (including, without limitation, reasonable attorneys', accountants' and
expert witness fees and expenses), joint or several, to which the Holders or any
such indemnitees may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages, liabilities and expenses (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the registration statement under which such
Registrable Securities were registered and sold under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained
therein, or

                                     - 7 -
<PAGE>

any amendment or supplement thereto, or arising out of or based upon any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or any violation of the
Securities Act, the Exchange Act or state securities laws or rules thereunder by
the Company relating to any action or inaction by the Company in connection with
such registration, and the Company will reimburse each Holder for any reasonable
legal or any other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, liability, action or
proceedings; provided, however, that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage, liability (or action or
proceeding in respect thereof) or expense arises out of or is based upon an
untrue statement or alleged statement or omission or alleged omission made in
such registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by any Holder specifically
stating that it is for use in the preparation thereof; and provided, further,
that the Company shall not be liable to the Holders or any other Person who
controls such Holder within the meaning of the Securities Act or the Exchange
Act in any such case to the extent that any such loss, claim, damage, liability
(or action or proceeding in respect thereof) or expense arises out of such
Person's failure to send or give a copy of the final prospectus or supplement to
the Persons asserting an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale
of Registrable Securities to such Person if such statement or omission was
corrected in such final prospectus or supplement and furnished to such Holder a
reasonable time prior to such sale by such Holder. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of
the Holders or any such controlling Person and shall survive the transfer of
such securities by the Holders.

            b. Indemnification by the Holders. The Company may require, as a
condition to including any Registrable Securities in any registration statement
pursuant to this Agreement, that the Company shall have received an undertaking
satisfactory to it from each Holder of such Registrable Securities to indemnify
and hold harmless (in the same manner and to the same extent as set forth in
Section 5(a)) the Company, each member of the Board and each officer of the
Company who signs the registration statement and each other Person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act, with respect to any untrue statement of a material fact in or omission to
state a material fact from such registration statement, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, if and only to the extent that such untrue
statement or omission was made in reliance upon and in conformity with written
information furnished to the Company by each Holder giving such indemnification
specifically stating that it is for use in the preparation of such registration
statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Company or any such
Board member, officer, or controlling Person and shall survive the transfer of
such securities by any Holder. The obligation of a Holder to indemnify will be
several, not joint and several, among such Holders of Registrable Securities and
the liability of each such Holder of Registrable Securities will be in
proportion to and limited in all events to the net amount received by such
Holder from the sale of Registrable Securities pursuant to such registration
statement.

            c. Notices of Claims, etc. Promptly after receipt by an indemnified
party of notice of the commencement of any action or proceeding involving a
claim referred to in the preceding paragraphs of this Section 5, such
indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party, give written notice to the latter of the commencement of
such action; provided, however, that the failure of any indemnified party to
give notice as provided herein shall not relieve the indemnifying party of its
obligations under the preceding paragraphs of this Section 5, except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any such action is brought against an indemnified party,
unless in such indemnified party's reasonable judgment a

                                     - 8 -
<PAGE>

conflict of interest between such indemnified and indemnifying parties may exist
in respect of such claim, the indemnifying party shall be entitled to assume the
defense thereof, for itself, if applicable, together with any other indemnified
party similarly notified, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to the indemnified party for any legal or
other expenses subsequently incurred by the latter in connection with the
defense thereof.

            d. Indemnification Payments. To the extent that the indemnifying
party does not assume the defense of an action brought against the indemnified
party as provided in Section 5(c), the indemnified party (or parties if there is
more than one) shall be entitled to the reasonable legal expenses of counsel for
the indemnified party (or parties). In such event, however, the indemnifying
party will not be liable for any settlement effected without the written consent
of such indemnifying party, which consent shall not be unreasonably withheld.
The indemnification required by this Section 5 shall be made by periodic
payments of the amount thereof during the course of an investigation or defense,
as and when bills are received or expense, loss, damage or liability is
incurred. The indemnifying party shall not settle any claim without the consent
of the indemnified party unless such settlement involves a complete release of
such indemnified party without any admission of liability by the indemnified
party.

            e. Contribution. If, for any reason, the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of the expense, loss, damage or liability, in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and the indemnified party on the other (determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission or alleged omission to state therein a material
fact relates to information supplied by the indemnifying party or the
indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission). No indemnified party guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any indemnifying party, and the liability for contribution of
each Holder of Registrable Securities will be several and not joint and several
and will be in proportion to and limited in all events to the net amount
received by such Holder from the sale of Registrable Securities pursuant to such
registration statement.

      Section 6. Covenants Relating To Rule 144. The Company will file in a
timely manner, information, documents and reports in compliance with the
Exchange Act and will, at its expense, forthwith upon the request of the
Holders, deliver to the Holders a certificate, signed by the Company's principal
financial officer, stating (a) the Company's name, address and telephone number
(including area code), (b) the Company's Internal Revenue Service identification
number, (c) the Company's SEC file number, (d) the number of Registrable
Securities outstanding as shown by the most recent report or statement published
by the Company, (e) whether the Company has filed the reports required to be
filed under the Exchange Act for a period of at least 90 days prior to the date
of such certificate and in addition has filed the most recent annual report
required to be filed thereunder and (f) such other information as required by,
and so long as necessary to permit sales of Registrable Securities pursuant to,
Rule 144 under the Securities Act.

                                     - 9 -
<PAGE>

      Section 7. Miscellaneous.

            a. Termination. The rights of each Holder under this Agreement shall
terminate upon the date that all of the Registrable Securities held by such
Holder may be sold under Rule 144(k) (or any successor provision) under the
Securities Act.

            b. Expenses. All Registration Expenses incurred in connection with
any Shelf Registration Statement under Section 2 shall be borne by the Company,
whether or not any registration statement related thereto becomes effective.

            c. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to each of the other parties.

            d. Applicable Law; Jurisdiction. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York. The parties
consent to the non-exclusive jurisdiction of the United States District Court
for the Southern District of New York in connection with any civil action
concerning any controversy, dispute or claim arising out of or relating to this
Agreement, or any other agreement contemplated by, or otherwise with respect to,
this Agreement or the breach hereof, unless such court would not have subject
matter jurisdiction thereof, in which event the parties consent to the
jurisdiction of the State of New York.

            e. Waiver Of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

            f. Prior Agreement; Construction; Entire Agreement. This Agreement,
including the exhibits and other documents referred to herein (which form a part
hereof), constitutes the entire agreement of the parties with respect to the
subject matter hereof, and supersedes all prior agreements and understandings
between the parties, and all such prior agreements and understandings are merged
herein and shall not survive the execution and delivery hereof. This Agreement
is in addition to and not in lieu of that certain Registration Rights Agreement
dated as of November 26, 2003 made by and between the Company and the Investor.

            g. Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent, postage prepaid, by registered, certified or express mail or
reputable overnight courier service or be telecopier and shall be deemed given
when so delivered by hand or, if mailed, three days after mailing (one Business
Day in the case of express mail or overnight courier service), addressed as
follows:

      If to the Company:

            Robotic Vision Systems, Inc.
            486 Amherst Street
            Nashua, New Hampshire 03063

      If to the Investor:

            c/o Equity Group Investments, L.L.C.
            Two North Riverside Plaza, Suite 600
            Chicago, Illinois 60606
            Attention: General Counsel

                                     - 10 -
<PAGE>

      If to any other Holder of Registrable Securities, to such address as such
Holder specifies in such Holder's joinder to this Agreement.

            h. Successors And Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. Each party hereto shall be permitted to assign any of its
rights hereunder to any third party, provided that (ii) such transfer is
effected in accordance with applicable federal and state securities laws, (ii)
such assignee becomes a party to this Agreement by executing a joinder hereto,
(iii) the Company is given written notice by the relevant Holder of the transfer
stating the name and address of the assignee and identifying the securities with
respect to which such registration rights are being assigned, and (iv) in the
event of any merger or other similar transaction in which the Company is not the
surviving entity, the Company will cause such successor to assume the
obligations of the Company under this Agreement.

            i. Headings. Headings are included solely for convenience of
reference and if there is any conflict between headings and the text of this
Agreement, the text shall control.

            j. Amendments And Waivers. The provisions of this Agreement may be
amended or waived at any time only by the written agreement of the Company and
the Holders of three-fourths of the Registrable Securities; provided, however,
that the provisions of this Agreement may not be amended or waived without the
consent of the Holders of all the Registrable Securities adversely affected by
such amendment or waiver if such amendment or waiver adversely affects a portion
of the Registrable Securities but does not so adversely affect all of the
Registrable Securities; provided, further, that the provisions of the preceding
provision may not be amended or waived except in accordance with this sentence.
Any waiver, permit, consent or approval of any kind or character on the part of
any such Holders of any provision or condition of this Agreement must be made in
writing and shall be effective only to the extent specifically set forth in
writing. Any amendment or waiver effected in accordance with this paragraph
shall be binding upon each Holder of Registrable Securities and the Company.

            k. Interpretation; Absence Of Presumption. For the purposes hereof,
(i) words in the singular shall be held to include the plural and vice versa and
words of one gender shall be held to include the other gender as the context
requires, (ii) the terms "hereof," "herein," and "herewith" and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section,
paragraph or other references are to the Sections, paragraphs, or other
references to this Agreement unless otherwise specified, (iii) the word
"including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless the context otherwise requires or unless
otherwise specified, (iv) the word "or" shall not be exclusive, and (v)
provisions shall apply, when appropriate, to successive events and transactions.

            This Agreement shall be construed without regard to any presumption
or rule requiring construction or interpretation against the party drafting or
causing any instruments to be drafted.

            l. Severability. If any provision of this Agreement shall be or
shall be held or deemed by a final order by a competent authority to be invalid,
inoperative or unenforceable, such circumstance shall not have the effect of
rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable, but this Agreement shall be construed as if such
invalid, inoperative or unenforceable provision had never been contained herein
so as to give full force and effect to the remaining such terms and provisions.

                                     - 11 -
<PAGE>

            m. Specific Performance; Other Rights. The parties recognize that
various other rights rendered under this Agreement are unique and, accordingly,
the parties shall, in addition to such other remedies as may be available to
them at law or in equity, have the right to enforce the rights under this
Agreement by actions for injunctive relief and specific performance.

            n. Further Assurances. In connection with this Agreement, as well as
all transactions and covenants contemplated by this Agreement, each party hereto
agrees to execute and deliver or cause to be executed and delivered such
additional documents and instruments and to perform or cause to be performed
such additional acts as may be necessary or appropriate to effectuate, carry out
and perform all of the terms, provisions and conditions of this Agreement and
all such transactions and covenants contemplated by this Agreement.

            o. No Waiver. The waiver of any breach of any term or condition of
this Agreement shall not operate as a waiver of any other breach of such term or
condition or of any other term or condition, nor shall any failure to enforce
any provision hereof operate as a waiver of such provision or of any other
provision hereof.

                            [SIGNATURE PAGES FOLLOW]

                                     - 12 -
<PAGE>

      IN WITNESS WHEREOF, the parties have executed and delivered this
Registration Rights Agreement as of the date first above written.

                                        ROBOTIC VISION SYSTEMS, INC., a
                                        Delaware corporation

                                        By:        /s/ Jeffrey P. Lucas
                                           -------------------------------------
                                           Name: Jeffrey P. Lucas
                                           Title: Chief Financial Officer

                                        RVSI INVESTORS, L.L.C., a
                                        Delaware limited liability company

                                        By: EGI-Fund (02-04) Investors, L.L.C.
                                        Its: Managing Member

                                        By:        /s/ William C. Pate
                                           -------------------------------------
                                        Name: William C. Pate
                                        Title: Vice President

                                     - 13 -EXHIBIT 10.1

                               FIRST AMENDMENT TO
          AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

      THIS FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY
AGREEMENT ("Amendment"), dated as of June 25, 2004, is by and among ROBOTIC
VISION SYSTEMS, INC., a corporation organized under the laws of the State of
Delaware ("Borrower"), RVSI INVESTORS, L.L.C., a limited liability company
organized under the laws of the State of Delaware ("RI") and the other lenders
which are now or which hereafter become a party to the Credit Agreement referred
to below (collectively, "Lenders" and individually a "Lender") and PNC BANK,
NATIONAL ASSOCIATION ("PNC"), as agent for Lenders (PNC, in such capacity,
"Agent").

                                    RECITALS

      A. Agent, Lender and Borrower entered into a certain Amended and Restated
Revolving Credit and Security Agreement dated as of November 26, 2003, as same
may be amended, restated or replaced from time to time (the "Credit Agreement"),
pursuant to which Lender agreed to extend financial accommodations to Borrower
as described therein.

      B. Borrower has requested and Agent and Lender have agreed to amend the
Credit Agreement as provided herein.

      NOW, THEREFORE, for and in consideration of the foregoing premises and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

      1. DEFINITIONS. All capitalized terms used herein and not otherwise
defined shall have the meanings provided for in the Credit Agreement.

      2. AMENDMENT. Upon satisfaction of the conditions precedent set forth in
Section 3 of this Amendment, the Credit Agreement is hereby amended as follows:

            2.1 Section 1 of the Credit Agreement is hereby amended as follows:

                  (a) The following definition is hereby added as follows:

                        "Additional Maximum Non-Guaranteed Revolving Advance
                        Amount" at any time shall mean an amount equal to the
                        aggregate amount of gross cash proceeds ("Sale
                        Proceeds") of all sales of Common Stock received by
                        Borrower on or before July 31, 2004 at a per share sales
                        price equal to or greater than $2.00 per share (after
                        taking into account the value of any and all warrants or
                        other rights, if any, issued by Borrower in favor of the
                        purchaser of such Common Stock), up to $2,000,000. All
                        Sale Proceeds shall be delivered to Agent immediately
                        upon receipt by Borrower and such proceeds shall be
                        applied as follows: first, to ratably repay interest due
                        in respect of the Revolving Advances, to be distributed

<PAGE>

                        to each Lender pro rata according to the applicable
                        Commitment Percentage of such Lender; second, to ratably
                        repay principal due in respect of the Revolving
                        Advances, to be distributed to each Lender pro rata
                        according to the applicable Commitment Percentage of
                        such Lender; and third, to any other Obligation until
                        paid in full.

                  (b) The definition of "Indebtedness" is hereby restated in its
            entirety to read as follows:

                        "Indebtedness" of a Person at a particular date shall
                        mean all obligations of such Person which in accordance
                        with GAAP would be classified upon a balance sheet as
                        liabilities (except capital stock and surplus earned or
                        otherwise) and in any event, without limitation by
                        reason of enumeration, shall include all indebtedness,
                        debt and other similar monetary obligations of such
                        Person whether direct, contingent or guaranteed, all
                        premiums, if any, which are currently due with respect
                        to such indebtedness and any cash payments or other
                        amounts payable in connection with such indebtedness and
                        all indebtedness secured by a Lien on assets owned by
                        such Person, whether or not such indebtedness actually
                        shall have been created, assumed or incurred by such
                        Person. Any indebtedness of such Person resulting from
                        the acquisition by such Person of any assets subject to
                        any Lien shall be deemed, for the purposes hereof, to be
                        the equivalent of the creation, assumption and incurring
                        of the indebtedness secured thereby, whether or not
                        actually so created, assumed or incurred.

                  (c) The definition of "Lien" is hereby restated in its
            entirety to read as follows:

                        "Lien" shall mean any mortgage, deed of trust, pledge,
                        hypothecation, assignment, encumbrance, security
                        interest, lien (whether statutory or otherwise), Charge,
                        claim, option, reservation, right of way, easement or
                        defect of any kind or preference, or priority or other
                        security agreement or preferential arrangement held or
                        asserted in respect of any asset of any kind or nature
                        whatsoever including, without limitation, any
                        conditional sale or other title retention agreement, any
                        exclusive license, any easement, right of way or other
                        encumbrance relating to real property, any lease having
                        substantially the same economic effect as any of the
                        foregoing, and the filing of, or agreement to give, any
                        financing statement under the Uniform Commercial Code or
                        comparable law of any jurisdiction.

                                       2
<PAGE>

                  (d) The definition of "Maximum Loan Amount" is hereby restated
            in its entirety to read as follows:

                        "Maximum Loan Amount" shall mean an amount up to
                        $16,000,000 plus the unpaid amount of the Aggregate
                        Capitalized Interest, if any, less the amount of any
                        permanent reductions of the Maximum Non-Guaranteed
                        Revolving Advance Amount or the Maximum Export-Related
                        Revolving Advance Amount pursuant to Section 2.14
                        hereof.

                  (e) The definition of "Maximum Non-Guaranteed Revolving
            Advance Amount" is hereby restated in its entirety to read as
            follows:

                        "Maximum Non-Guaranteed Revolving Advance Amount" at any
                        time shall mean $4,000,000, plus the Additional Maximum
                        Non-Guaranteed Revolving Advance Amount, plus the unpaid
                        amount of the Aggregate Capitalized Interest, if any,
                        less the then outstanding Non-Guaranteed Letter of
                        Credit Usage, subject to the permanent reductions to the
                        Maximum Non-Guaranteed Revolving Advance Amount pursuant
                        to Section 2.14 hereof.

                  (f) The definition of "Pro Rata Share" is hereby restated in
            its entirety to read as follows:

                        "Pro Rata Share" shall mean, (a) with respect to EXIM, a
                        fraction (expressed as a percentage), the numerator of
                        which is the amount of Borrower's aggregate export sales
                        and the denominator of which is Borrower's aggregate
                        export and non-export sales, each as calculated for the
                        then-current calendar month and each of the five (5)
                        immediately preceding calendar months and (b) with
                        respect to Lenders, a fraction (expressed as a
                        percentage), the numerator of which is the amount of
                        Borrower's aggregate non-export sales and the
                        denominator of which is Borrower's aggregate export and
                        non-export sales, each as calculated for the
                        then-current calendar month and each of the five (5)
                        immediately preceding calendar months.

                  (g) The definition of "Registration Rights Agreement" is
            hereby reinstated in its entirety to read as follows:

                        "Registration Rights Agreement" shall mean (i) that
                        certain Registration Rights Agreement dated November 26,
                        2003 between Borrower and RI, as amended, restated or
                        otherwise modified from time to time, and (ii) that
                        certain Registration Rights Agreement dated June 25,
                        2004 between Borrower and RI, as amended, restated or
                        otherwise modified from time to time.

                  (h) The following definition is hereby added as follows:

                        "SEG" shall mean Borrower's Semiconductor Equipment
                        Group line of business.

                                       3
<PAGE>

            2.2 Section 2.1(a) is hereby restated in its entirety to read as
      follows:

                  2.1 (a) Non-Guaranteed Revolving Advances. Subject to the
            terms and conditions set forth in this Agreement, each Lender,
            severally and not jointly, will make loans (the "Non-Guaranteed
            Revolving Advances") to Borrower in aggregate amounts outstanding at
            any time equal to such Lender's Commitment Percentage of the lesser
            of (x) the Maximum Non-Guaranteed Revolving Advance Amount or (y) an
            amount equal to the sum of:

                        (i) up to 85% of the value of all Eligible Receivables
                  other than EXIM Bank Guaranteed Receivables to the extent that
                  the Export-Related Revolving Advances have not been
                  permanently terminated; plus

                        (ii) the amount by which the sum of Sections
                  2.2(a)(y)(i), (ii) and (iii)(without taking into account the
                  $10,000,000 limitation set forth in Section 2.2(a)(y)(iii))
                  exceeds $10,000,000; plus

                        (iii) $1,500,000, minus

                        (iv) the outstanding Non-Guaranteed Letter of Credit
                  Usage, minus

                        (v) such other reserves as Agent in good faith may
                  reasonably deem proper and necessary from time to time.

                  The amount derived from (x) the sum of Sections
            2.1(a)(y)(i),(ii) and (iii), minus (y) the sum of Sections
            2.1(a)(y)(iv) and (v) at any time and from time to time shall be
            referred to as the "Non-Guaranteed Formula Amount". The
            Non-Guaranteed Revolving Advances shall be evidenced by one or more
            secured promissory notes (collectively, as each may be amended,
            restated, modified and/or replaced from time to time, the
            "Non-Guaranteed Revolving Notes") substantially in the form attached
            hereto as Exhibit 2.1(a).

            2.3 Section 2.14 is hereby restated in its entirety to read as
      follows:

                  2.14 Reductions of the Revolving Credit; Optional Prepayments;
            Mandatory Prepayments

                        (a) Borrower may at any time and from time to time, upon
                  not less than ten (10) Business Days' written notice to Agent,
                  elect to reduce permanently and terminate the Maximum
                  Non-Guaranteed Revolving Advance Amount without premium or
                  penalty in whole or in part (except for the Termination Fee),
                  provided that (i) any such partial reductions shall be in a
                  minimum

                                       4
<PAGE>

                  amount of $500,000, in integral multiples of $500,000, (ii)
                  for any partial reductions or terminations, Borrower
                  contemporaneously therewith permanently reduces and terminates
                  the Maximum Export-Related Revolving Advance Amount in an
                  amount equal to the Pro Rata Share, (iii) and provided,
                  further, that any amounts so terminated may not be reinstated.
                  In connection with any such reduction, Borrower shall pay to
                  Agent the principal amount of the Non-Guaranteed Revolving
                  Advances or the Maximum Export-Related Advance Amount, as the
                  case may be, to the extent subject to reduction, together with
                  all accrued but unpaid interest on such amounts to the date of
                  prepayment, and all other amounts payable with respect to such
                  amounts, if any, to the date of prepayment, including the
                  Termination Fee.

                        (b) Intentionally Omitted.

                        (c) When Borrower sells or otherwise disposes of any
                  Collateral (other than sales or dispositions permitted under
                  Section 7.1(b) hereof) in any single transaction or series of
                  related transactions, the net proceeds of such sale (i.e.,
                  gross proceeds less the reasonable costs of such sales or
                  other dispositions) shall be delivered promptly to Agent but
                  in no event more than one (1) Business Day following receipt
                  of such net proceeds, and until the date of payment, such
                  proceeds shall be held in trust for Agent, and such proceeds
                  shall be applied as follows: first, to ratably repay interest
                  due in respect of the Revolving Advances, to be distributed to
                  each Lender pro rata according to the applicable Commitment
                  Percentage of such Lender; second, to ratably repay principal
                  due in respect of the Revolving Advances, to be distributed to
                  each Lender pro rata according to the applicable Commitment
                  Percentage of such Lender; and third, to any other Obligation
                  until paid in full. Upon application of the proceeds described
                  above, the applicable Maximum Non-Guaranteed Revolving Advance
                  Amount and the Maximum Guaranteed Revolving Advance Amount
                  shall be permanently reduced in an amount equal to the
                  applicable Pro Rata Share. Nothing herein shall be deemed to
                  be implied consent to any such sale otherwise prohibited by
                  the terms and conditions hereof.

            2.4 Section 4.2(b) is hereby restated in its entirety to read as
      follows:

                  (b) Borrower shall (i) promptly notify Agent in writing upon
            acquiring or otherwise obtaining any Collateral after the date
            hereof consisting of Deposit Accounts, Investment Property,
            Letter-of-Credit Rights, Tangible Chattel Paper (excluding any
            checks or other items of payment) or Electronic Chattel Paper
            (excluding any wire transfers, automated clearing house electronic
            funds transfers or depository transfer

                                       5
<PAGE>

                  checks) (as such terms are defined from time to time in the
                  UCC) each having a value in excess of One Hundred Thousand
                  Dollars ($100,000) and, upon the request of Agent, promptly
                  execute such other documents, and do such other acts or things
                  deemed appropriate by Agent to deliver to Agent control with
                  respect to such Collateral; (ii) promptly notify Agent in
                  writing upon acquiring or otherwise obtaining any Collateral
                  after the date hereof consisting of Documents or Instruments
                  and, upon the request of Agent, promptly execute such other
                  documents, and do such other acts or things deemed appropriate
                  by Agent to deliver to Agent possession of such Documents
                  which are negotiable and Instruments, and, with respect to
                  nonnegotiable Documents, to have such nonnegotiable Documents
                  issued in the name of Agent; (iii) with respect to Collateral
                  in the possession of a third party, other than Certificated
                  Securities and Goods covered by a Document, obtain an
                  acknowledgment from the third party that it is holding the
                  Collateral for the benefit of Agent; (iv) promptly notify
                  Agent in writing upon incurring or otherwise obtaining a
                  Commercial Tort Claim having a value in excess of $250,000
                  after the date hereof against any third party, of the details
                  thereof in the form of an amendment to Schedule 5.2(c) hereto,
                  and do such other acts or things deemed appropriate by Agent
                  to give Agent a security interest in such Commercial Tort
                  Claim; (v) not change its state of incorporation or
                  organization or type of organization; and (vi) not change its
                  legal name without providing Agent with at least 30 days'
                  prior written notice.

            2.5 Section 6.6 is hereby restated in its entirety to read as
      follows:

                        6.6 Fixed Charge Coverage Ratio. Maintain during each
                  period consisting of four (4) consecutive fiscal quarters of
                  Borrower on a consolidated basis a Fixed Charge Coverage Ratio
                  for the period ending on each of the dates set forth below not
                  less than the ratio set forth opposite such period end date:

                                     Period End Date              Coverage Ratio
                             ---------------------------------------------------
                             March 30, 2004                    -       (2.5)
                             June 30, 2004                     -       (4.5)
                             September 30, 2004                -       (1.0)
                             December 31, 2004                 -       1.00
                             March 30, 2005                    -       1.50
                             June 30, 2005                     -       1.50
                             September 30, 2005                -       2.00
                             December 31, 2005 and thereafter  -       2.00

                  Notwithstanding the foregoing, for the period ending December
                  31, 2003, the Fixed Charge Coverage Ratio shall be calculated
                  for the fiscal quarter ending on such date rather than on the
                  prior four fiscal quarters, for the period ending March 30,
                  2004, the Fixed Charge Coverage Ratio shall be

                                       6
<PAGE>

                  calculated for period of two (2) consecutive fiscal quarters
                  ending on such date rather than on the prior four fiscal
                  quarters, and for the period ending June 30, 2004, the Fixed
                  Charge Coverage Ratio shall be calculated for period of three
                  (3) consecutive fiscal quarters ending on such date rather
                  than on the prior four fiscal quarters.

            2.6 The following section is hereby inserted as Section 6.14:

                  6.14 Sale of SEG. Borrower shall use its best efforts to sell
            or cause the sale of SEG as soon as practicable and the net proceeds
            of such sale shall be applied in accordance with the provisions of
            Section 2.14 hereof. The foregoing shall not be deemed to be implied
            consent by Agent or any Lender to any such sale of SEG.

            2.7 Section 7.1 (b) is hereby restated in its entirety to read as
      follows:

                  (b) Sell, lease, transfer or otherwise dispose of any of its
            material properties or assets, except for (i) sales of Inventory in
            the ordinary course of its business, (ii) nonexclusive licenses of
            intangible assets and (iii) sales or dispositions of obsolete or
            unnecessary Equipment or Inventory; or

            2.8 Section 7.4 is hereby restated in its entirety to read as
      follows:

                  7.4 Investments. Purchase or acquire obligations or stock of,
            or any other interest in, any Person (such purchases or acquisitions
            collectively, "Investments"), except (a) obligations issued or
            guaranteed by the United States of America or any agency thereof,
            (b) commercial paper with maturities of not more than 180 days and a
            published rating of not less than A-1 or P-1 (or the equivalent
            rating), (c) certificates of deposit and bankers' acceptances having
            maturities of not more than 180 days and repurchase agreements
            backed by United States government securities of a commercial bank
            if (i) such bank has a combined capital and surplus of at least
            $500,000,000, or (ii) its debt obligations, or those of a holding
            company of which it is a Subsidiary, are rated not less than A (or
            the equivalent rating) by a nationally recognized investment rating
            agency, (d) U.S. money market funds that invest solely in
            obligations issued or guaranteed by the United States of America or
            an agency thereof, (e) Investments in Foreign Subsidiaries in an
            aggregate amount at all times for Borrower not to exceed $1,000,000
            in any single calendar year, (f) as set forth on Schedule 7.4 and
            (g) Investments in addition to the Investments otherwise permitted
            hereunder not to exceed $25,000 in the aggregate.

            2.9 Section 7.8 is hereby restated in its entirety to read as
      follows:

                  7.8 Indebtedness. Create, incur, assume or suffer to exist any
            Indebtedness (exclusive of trade debt) except in respect of (a) the

                                       7
<PAGE>

            Obligations owing to Lenders, (b) Indebtedness incurred for capital
            expenditures permitted under Section 7.6 hereof, (c) Indebtedness
            existing on the Closing Date and listed on Schedule 7.8 hereto, (f)
            guarantees permitted under Section 7.3 hereof, (g) Indebtedness on
            account of Current Liabilities (other than for money borrowed)
            incurred in the normal and ordinary course of business, (h)
            Indebtedness in an amount not to exceed $556,630 representing
            increases of principal amounts owing under certain promissory notes
            issued by Borrower in favor of former shareholders of Auto Image ID,
            Inc., in connection with Borrower's acquisition of such company and
            identified on Schedule 7.8 hereto, and (i) unsecured Indebtedness in
            addition to the Indebtedness otherwise permitted hereunder not to
            exceed $200,000 in the aggregate.

            2.10 Section 10.5 is hereby restated in its entirety to read as
      follows:

                  10.5 Borrower fails or neglects to perform, keep or observe
            any term, provision, condition or covenant herein contained (other
            than those listed in Sections 6.5, 6.6, 10.1, 10.3 and 10.6 or
            Article IX), or contained in any Other Documents or any other
            agreement or arrangement, now or hereafter entered into between
            Borrower and Agent or any Lender, and the same shall remain
            unremedied for fifteen (15) days after notice to Borrower from Agent
            of the occurrence of such failure or neglect;

            2.11 Section 13.1 is hereby restated in its entirety to read as
      follows:

                  13.1 Term. Unless sooner terminated as herein provided, this
            Agreement, which shall inure to the benefit of and shall be binding
            upon the respective successors and permitted assigns of Borrower,
            Agent and each Lender, shall become effective on the date hereof and
            shall continue in full force and effect until the earlier to occur
            of (i) November 30, 2005 or (ii) the closing of the sale of SEG (the
            "Termination Date"). Borrower may terminate this Agreement at any
            time upon ninety (90) days' prior written notice upon payment in
            full of the Obligations and any applicable prepayment fees set forth
            in Section 2.14 herein.

            2.12 The following Schedules are hereby restated in their entirety
      as set forth below:

                  (a) Schedule 4.5 in the form attached hereto as Exhibit C.

                  (b) Schedule 4.19 in the form attached hereto as Exhibit D.

                  (c) Schedule 5.2(a) in the form attached hereto as Exhibit E.

                  (d) Schedule 5.2(c) in the form attached hereto as Exhibit F.

                  (e) Schedule 5.2(d) in the form attached hereto as Exhibit G.

                                       8
<PAGE>

                  (f) Schedule 5.4 in the form attached hereto as Exhibit H.

                  (g) Schedule 5.8(b) in the form attached hereto as Exhibit I.

                  (h) Schedule 5.8(d) in the form attached hereto as Exhibit J.

                  (i) Schedule 5.11(a) in the form attached hereto as Exhibit K.

                  (j) Schedule 5.11(b) in the form attached hereto as Exhibit L.

                  (k) Schedule 7.4 in the form attached hereto as Exhibit M.

      3. CONDITIONS PRECEDENT. The amendments set forth in Section 2 above shall
be effective upon the execution and delivery of this Amendment by Borrower,
Agent and Lender and the delivery to Agent of the following, all in form and
substance acceptable to Agent and Lender:

                  (a) required third party consents, including that of Agent and
            the Export-Import Bank of the United States ("EXIM");

                  (b) all outstanding landlord waivers (including the location
            at 180 Oser Avenue, Hauppauge, New York) to have been delivered to
            Agent in connection with the Credit Agreement, or, in the
            alternative, the establishment of adequate reserves in a manner
            satisfactory to Agent and Lender;

                  (c) a warrant in favor of RI for an aggregate 450,000 shares
            of Borrower's Common Stock in the form attached as Exhibit A hereto;

                  (d) Amended and Restated Non-Guaranteed Revolving Credit Note
            in the form attached as Exhibit B hereto;

                  (e) Registration Rights Agreement between Borrower and RI
            dated as of even date herewith;

                  (f) control agreements for all Borrower depository accounts
            held at financial institutions other than those held with Agent;

                  (g) opinion of Borrower's outside counsel;

                  (h) Reaffirmation of that certain Subordination, Forbearance
            and Waiver of Offset Rights Agreement dated April 11, 2003 executed
            by Pat V. Costa and Borrower; and

                  (i) such other documents as Agent and Lender may reasonably
            request.

      4. TERMINATION OF NOVEMBER 26, 2003 SIDE LETTER. Borrower by its execution
hereof acknowledges and agrees that the letter agreement dated November 26, 2003
entered into by and between Borrower, Agent and Lender providing for a one-year
extension of

                                       9
<PAGE>

the Termination Date and an increase in capital expenditures is hereby
terminated and is of no further force or effect.

      5. EXPENSES. Borrower shall pay all fees, costs and expenses incurred by,
or charged by Agent, Lender and EXIM in connection with this Amendment and the
agreements, documents and other items contemplated hereunder.

      6. REAFFIRMATION OF GRANTS OF SECURITY INTERESTS. Borrower heretofore or
hereafter expressly acknowledges and agrees that all collateral, security
interests, liens, pledges and mortgages heretofore or hereafter granted to Agent
and Lender including, without limitation, such collateral, security interests,
liens, pledges and mortgages granted under the Credit Agreement and all
supplements thereto, or any of the Other Documents and all supplements thereto,
extend to and secure all of the obligations of Borrower to Agent and Lender, now
existing or hereafter arising including, without limitation, those arising in
connection with the Credit Agreement, as amended by this Amendment, upon the
terms set forth in such agreements, all of which security interests, liens,
pledges and mortgages are hereby ratified, reaffirmed, confirmed and approved.

      7. MISCELLANEOUS.

            7.1 Limited Nature of Amendment. The parties hereto acknowledge and
      agree that the terms and provisions of this Amendment amend, add to and
      constitute a part of the Credit Agreement. Except as expressly waived or
      modified and amended by the terms of this Amendment, all of the other
      terms and conditions of the Credit Agreement and all documents executed in
      connection therewith or referred to or incorporated therein remain in full
      force and effect and are hereby ratified, reaffirmed, confirmed and
      approved.

            7.2 Conflict. If there is an express conflict between the terms of
      this Amendment and the terms of the Credit Agreement, or any of the other
      agreements or documents executed in connection therewith or referred to or
      incorporated therein, the terms of this Amendment shall govern and
      control.

            7.3 Counterparts. This Amendment may be executed in one or more
      counterparts, each of which shall be deemed to be an original.

            7.4 Representations and Warranties. Borrower represents and warrants
      to Agent and Lender as follows: (A) Borrower has all necessary corporate
      power and authority to execute and deliver this Amendment and perform its
      obligations hereunder; (B) this Amendment and the Credit Agreement, as
      amended hereby, constitute the legal, valid and binding obligations of
      Borrower and are enforceable against Borrower in accordance with their
      terms; and (C) all representations and warranties of Borrower in all
      contained in the Credit Agreement, the Other Documents and all other
      agreements, instruments and other writings relating thereto are true and
      complete in all material respects as of the date hereof.

            7.5 Release and Waiver. Borrower hereby acknowledges and agrees that
      it has no defenses, offsets, recoupment, claims or counterclaims against
      or with respect to

                                       10
<PAGE>

      Agent or any Lender or against the enforcement of the Credit Agreement or
      any of the Other Documents, as modified hereby, and that the Agent and
      each Lender have not waived any of their respective rights or remedies
      under any such documents (individually and collectively "Defenses").
      Borrower hereby forever releases and discharges each Released Party
      (defined below), jointly and severally, from any and all claims, demands,
      controversies, actions, causes of action, obligations, liabilities, costs,
      expenses, fees (including attorneys' and other professionals' fees, costs
      and expenses), and damages of whatsoever character, nature and kind, at
      law or in equity, which Borrower may now have against the Released
      Parties, or any of them, or which Borrower ever had, or which Borrower,
      its respective representatives, successors or assigns hereafter can, shall
      or may have, arising from or related in any way to the Credit Agreement,
      this Amendment or any of the Other Documents, or for, upon, or by reason
      of any other matter, cause or thing whatsoever, whether or not related in
      any way to the Credit Agreement, this Amendment or any of the Other
      Documents, arising or relating to the period prior to the date hereof
      (individually and collectively "Liabilities"). It is the intention of the
      parties hereto that the foregoing acknowledgment and release shall be
      effective as a bar to all Defenses and Liabilities, past and present,
      known and unknown, suspected and unsuspected arising from or in any way
      related to any act or omission) of any kind whatsoever, by any Released
      Party in any capacity whatsoever, occurring or commencing prior to the
      date hereof, including without limitation any act or omission, or series
      of similar or related acts or omissions, commencing prior to the date
      hereof and continuing after the date hereof. "Released Party" means (i)
      Agent, (ii) each Lender, (iii) each direct and indirect member of each
      Lender, (iv) each direct and indirect affiliate of Agent, each Lender and
      each direct and indirect member of each Lender, (v) each officer,
      director, member, partner, equity owner, agent, servant, employee,
      attorney and other representative of each of the Released Parties
      identified in clauses (i) through (iv) of this sentence, and (vi) each
      successor and assign of each Released Party.

            7.6 Governing Law. This Amendment shall be governed by and construed
      in accordance with the internal laws (as opposed to conflicts of law
      provisions) of the State of New York.

                            [SIGNATURE PAGE FOLLOWS]

                                       11
<PAGE>

      IN WITNESS WHEREOF, each of the parties has signed this Amendment as of
the day and year first above written.

                                        BORROWER:

                                        ROBOTIC VISION SYSTEMS, INC.

                                        By:    /s/ Jeffrey P. Lucas
                                           -------------------------------
                                        Name:  Jeffrey P. Lucas
                                        Title: Chief Financial Officer

                                        AGENT:

                                        PNC BANK, NATIONAL ASSOCIATION, as Agent

                                        By:    /s/ Patrick McConnell
                                           -------------------------------
                                        Name:  Patrick McConnell
                                        Title: Vice President

                                        LENDER:

                                        RVSI INVESTORS, L.L.C., as Lender

                                        By:    EGI-FUND (02-04) INVESTORS,
                                               L.L.C., its Managing Member

                                               By:    /s/ William C. Pate
                                                  ------------------------------
                                               Name:  William C. Pate
                                               Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]