Document:

EXHIBIT
4(9)

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a  Purchaser under the Current Agreement as
      modified November 10, 2006, August 13, 2007, October 10, 2007, and
      January18, 2008 (said January 18 th
      modification only increased the limit of authorized notes outstanding from
      the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and all of the Purchasers
      currently holding Notes outstanding under the Current Agreement (except
      for Purchasers holding $ 100,000 face value of Class 3 Notes currently
      outstanding). The parties acknowledge that they have received a copy of
      the Fifth Amended Agreement together with a copy of the Collateral
      Assignment as amended March 5, 2008 and a copy of the separate Security
      Agreement as amended March 6, 2008 (said Security Agreement only applies
      to Class 2 Note Purchasers– providing such Class 2 Note Purchasers
      additional collateral.) [With Purchaser, Purchasers, Notes, Class 2 Note,
      Class 3 Notes and Warrants being defined in the Current
      Agreement.]

              

      

      

      
        	
                Agreement

              

      

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        	
                Dean
      Witter Reynolds

              	 
      	
                Industrial
      Boxboard Company

              
	
                Custodian
      for John N. Hunter

              	 
      	
                John
      N. Hunter, its General Partner

              
	
                Ira
      Rolover dtd 3-30-2000

              	 
      	
                2249
      Davis Court

              
	
                MSDW
      Account # 112-014301-004

              	 
      	
                Hayward,
      CA 94545

              
	
                245
      Lytton Avenue, Suite 200

              	 
      	 
      
	
                Palo
      Alto, CA 94301

              	 
      	 
      

      

      

      
        
          
            
              
                	
                        J.N.
      Hunter and J.A. Hunter, Trustees

                      	 
      	 
      
	
                        Industrial
      Boxboard Corporation

                      	 
      	 
      
	
                        Profit
      Sharing Plan and Trust

                      	 
      	by
      	

                        /s/
      J.N. Hunter

                      	
                          
      

                      
	
                        (July
      1, 1989 Restatement and

                      	 
      	
                        J.N.
      Hunter, in his capacities as

                      
	
                        subsequent
      restatements)

                      	 
      	
                        Beneficial
      Owner of IRA Rollover

                      
	
                        2249
      Davis Court

                      	 
      	
                        Trustee
      of the Profit Sharing Plan

                      
	
                        Hayward,
      CA 94545

                      	 
      	
                        General
      Partner of Company
(above)

                      

              

            

          

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a  Purchaser under the Current Agreement as
      modified November 10, 2006, August 13, 2007, October 10, 2007, and
      January18, 2008 (said January 18 th
      modification only increased the limit of authorized notes outstanding from
      the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and all of the Purchasers
      currently holding Notes outstanding under the Current Agreement (except
      for Purchasers holding $ 100,000 face value of Class 3 Notes currently
      outstanding). The parties acknowledge that they have received a copy of
      the Fifth Amended Agreement together with a copy of the Collateral
      Assignment as amended March 5, 2008 and a copy of the separate Security
      Agreement as amended March 6, 2008 (said Security Agreement only applies
      to Class 2 Note Purchasers– providing such Class 2 Note Purchasers
      additional collateral.) [With Purchaser, Purchasers, Notes, Class 2 Note,
      Class 3 Notes and Warrants being defined in the Current
      Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      Dale R.
Kehoe and

      

      
        
          	
                  Dale
      Renee Kehoe Trust

                	 
      
	 
      	 
      
	
                  /s/ Dale Renee Kehoe

                	 
      
	
                  By
      Dale Renee Kehoe

                	 
      
	
                  (in
      her respective
capacities)

                

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a  Purchaser under the Current Agreement as
      modified November 10, 2006, August 13, 2007, October 10, 2007, and
      January18, 2008 (said January 18 th
      modification only increased the limit of authorized notes outstanding from
      the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and all of the Purchasers
      currently holding Notes outstanding under the Current Agreement (except
      for Purchasers holding $ 100,000 face value of Class 3 Notes currently
      outstanding). The parties acknowledge that they have received a copy of
      the Fifth Amended Agreement together with a copy of the Collateral
      Assignment as amended March 5, 2008 and a copy of the separate Security
      Agreement as amended March 6, 2008 (said Security Agreement only applies
      to Class 2 Note Purchasers– providing such Class 2 Note Purchasers
      additional collateral.) [With Purchaser, Purchasers, Notes, Class 2 Note,
      Class 3 Notes and Warrants being defined in the Current
      Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      Edward J.
Carney, Trustee

      of The
Carney Trust, Dated March 22, 1994

      

      
        	
                By:

              	
                /s/ Edward J. Carney,
    Trustee

              	 
      
	
                Edward
      J. Carney, Trustee

              	 
      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      Maria P.
Kiely, Beneficiary

      TD
Waterhouse Securities, Inc. Custodian for the Individual Retirement Account of
Maria P. Kiely (Account number 370-91507)

      

      
        
          
            	

                    /s/ Maria P. Kiely

                  	
                     

                  
	
                    Maria
      P. Kiely

                  

          

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      Michael
H. Kiely (personally)

      30 Gladys
Drive

      Spring
Vallen, New York 10977

      

      Michael
H. Kiely, Beneficiary

      TD
Waterhouse Securities, Inc., Custodian for the Individual Retirement Account of
Michael H. Kiely (Account number 370-91506)

      

      and
Michael H. Kiely (as joint tenant with Inmay P. Kiely, Kotun C. Kiely, and Yung
Kwang J. Kiely)

      

      
        
          
            	

                    /s/ Michael H. Kiely

                  	
                     

                  
	
                    Michael
      H. Kiely (in his respective
capacaties)

                  

          

        

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        
          
            	
                    P.
      Robert Klonoff

                  	 
      	
                    Susan
      J. Klonoff

                  
	 
      	 
      	 
      
	
                    /s/ P. Robert Klonoff

                  	 
      	

                    /s/  Susan J.
    Klonoff

                  	
                     

                  
	
                    P.
      Robert Klonoff

                  	 
      	
                    Susan
      J. Klonoff

                  

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        	
                The
      Klonoff Company, Inc.

              	 
      
	 
      	 
      
	
                /s/ P. Robert Klonoff

              	 
      
	
                By
      P. Robert Klonoff,

              	 
      
	
                its
      President

              	 
      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        	
                Yung
      Kwang J. Kiely (as a joint tenant with Michael H.
Kiely)

              
	 
      	 
      
	
                /s/ Yung Kwang J. Kiely

              	 
      
	
                Yung
      Kwang J. Kiely

              	 
      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        	
                Ricardo
      L. Larrabure

              	 
      
	 
      	 
      
	
                /s/ Ricardo L. Larrabure

              	 
      
	
                Ricardo
      L. Larrabure

              	 
      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      CONSENT
TO AMEND and REPLACE AGREEMENTS

      

                This
Consent to Amend and Replace Agreements, dated March 12, 2008, is given by a
Purchaser under the Fourth Amended Note and Warrant Purchase Agreement (the
“Current Agreement”) as by and among the Purchasers, Integral Vision, Inc., a
Michigan corporation, (the “Company”) and J. M. Warren Law Offices, P.C., as
Agent.

      

      Factual
Statements

      

      
        	
                A.

              	
                The
      undersigned is a party to the Current Agreement as modified November 10,
      2006, August 13, 2007, October 10, 2007, and January18, 2008 (said January
      18
      th modification only increased the limit of authorized notes
      outstanding from the October 10
      th  modification of $3.5 Million to $3.7 million) dated
      effective as of the date of execution by such Purchasers, for the purchase
      of the Notes and Warrants of the
Company.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                B.

              	
                The
      parties wish to adopt a Fifth Amended and Restated Note and Warrant
      Purchase Agreement (“Fifth Amended Agreement”) which amends and completely
      replaces the Current Agreement, including modifications thereto. The
      parties also wish to amend to the Collateral Assignment of Proprietary
      Rights and Security Agreement dated as of March 29, 2001 (“Collateral
      Assignment”).

              

      

      
        	
                 

              	
                 

              

      

      
        	
                C.

              	
                The
      parties agree that this amendment will not be effective until it is agreed
      to in writing by the Company, the Agent, and 95% of all of the Purchasers
      currently holding Notes outstanding under the Current Agreement. The
      parties acknowledge that they have received a copy of the Fifth Amended
      Agreement together with a copy of the Collateral Assignment as amended
      March 5, 2008 and a copy of the separate Security Agreement as amended
      March 6, 2008 (said Security Agreement only applies to Class 2 Note
      Purchasers– providing such Class 2 Note Purchasers additional collateral.)
      [With Purchaser, Purchasers, Notes, Class 2 Note, Class 3 Notes and
      Warrants being defined in the Current
  Agreement.]

              

      

      

      Agreement

      

      
        	
                1.

              	
                Acceptance of Amended
      and Restated Agreement and Collateral Assignment. The undersigned
      agrees to accept the Fifth Amended Agreement and the Collateral Assignment
      as amended March 5, 2008.

              

      

      

      
        	
                2.

              	
                Voluntary and Informed
      Execution. THE PARTIES ACKNOWLEDGE THAT THEY HAVE HAD AN
      OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL WITH RESPECT TO THIS AGREEMENT
      AND THE TRANSACTIONS CONTEMPLATED HEREBY WERE KNOWINGLY AND VOLUNTARILY
      MADE.

              

      

      This
Consent to Amend and Replace Agreements is signed effective March 12,
2008.

      

      
        	
                Robert
      W. Collis

              	 
      
	 
      	 
      
	
                /s/ Robert W. Collis

              	 
      
	
                Robert
      W. CollisExecution
Copy

    

    WAIVER
AND AMENDMENT AGREEMENT

    

    This
Waiver and Amendment Agreement, dated as of September 15, 2008 (this “Agreement”),
is by and between INTEGRAL VISION, INC., a Michigan corporation
(the “Company”),
and each person or entity that is named on Schedule A
hereto.  Each such person or entity, together with its successors and
permitted assigns, is referred to herein as an “Investor”,
and all such persons and entities, together with their respective successors and
permitted assigns, are collectively referred to herein as the “Investors”.

    

    The
Company and the Investors are parties to a Securities Purchase Agreement, dated
as of April 12, 2005 (the “Securities
Purchase Agreement”), pursuant to which each Investor purchased from the
Company shares of preferred stock and a warrant (each, an “Old
Warrant” and, collectively, the “Old
Warrants”).

    

    The
Company wishes to effect the financing described on Schedule 4.13 hereof (the
“Financing”).

    

    In order
to induce the Investors to take certain actions to facilitate the consummation
of the Financing, on the terms and subject to the conditions set forth in this
Agreement, the Company wishes to (i) amend each Old Warrant so that the Exercise
Price (as defined therein, the “Old Warrant
Exercise Price”) shall be equal to $0.001 for all exercises occurring on
or after the effective date of this Agreement and (ii) issue to each Investor a
new warrant for the number of shares of the Company’s common stock (the “Common
Stock”) set forth next to such Investor’s name on Schedule A
hereto, each such warrant to have an exercise price of $0.001 and otherwise to
be in the form attached hereto as Annex I
(each, a “New
Warrant” and, collectively, the “New
Warrants”).

    

    Each
Investor wishes to amend such Investor’s Old Warrant and to accept a New Warrant
as an inducement, in each such case, to delete and/or amend certain provisions
of the Securities Purchase Agreement.

    

    In
consideration of the mutual covenants made herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

    

    1.           Amendment of Old Warrant
Exercise Price. As of the Effective Date, (i) the Old Warrant held by
each Investor shall be deemed amended so that the Old Warrant Exercise Price
therefor shall be equal to $0.001 for all exercises of such Old Warrant that are
effected on or after the Effective Date (as defined in Section 6); and (ii)
paragraph 3(b) of the Old Warrants (“Subsequent Equity Sales”) shall be deleted
in its entirety. Except as amended hereby, each Old Warrant shall continue in
full force and effect in accordance with its terms.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.           Issuance of New Warrants;
Registration Rights. On the Effective Date, the Company shall issue and
deliver to each Investor a New Warrant which will entitle such Investor to
purchase the number of shares of Common Stock set forth next to such Investor’s
name on Schedule A
hereto at an exercise price of $0.001.  The Company shall register the
shares of Common Stock issuable upon exercise of the New Warrants for resale by
the Investors pursuant to a Registration Rights Agreement in the form attached
hereto as Annex II
(the “Registration
Rights Agreement”).

    

    3.           Amendment of Securities
Purchase Agreement.

    

    3.1           As
of the Effective Date, Section 4.13 of the Securities Purchase Agreement will be
deemed amended and restated to read in its entirety as follows:

    

    
      4.13       
Right of First
Refusal.

    

    

    
      (a)          
If the
Company intends to effect a financing by issuing its Common Stock or Common
Stock Equivalents (“Subsequent
Financing”) at any time prior to September 15, 2010, each Investor shall
have the right (but not the obligation) to purchase, in accordance with this
Section
4.13 (the “ROFR”),
all (or less than all) of the Investors pro-rata portion of such
Common Stock or Common Stock Equivalents (“ROFR
Securities”) in
accordance with this Section
4.13.

    

    

    
      (b)          
If the
Company intends to effect such Subsequent Financing, at least 20 days prior to
the closing of the Subsequent Financing, the Company shall deliver to each
Investor a written notice of its intention to effect a Subsequent Financing
(“Pre-Notice”),
which Pre-Notice shall ask such Investor if it wants to review the details of
such financing (such additional notice, a “Subsequent
Financing Notice”).  Upon the request of an Investor, and only
upon a request by such Investor, for a Subsequent Financing Notice, the Company
shall promptly, but no later than 3 Trading Days after such request, deliver a
Subsequent Financing Notice to such Investor. The Subsequent Financing Notice
shall provide each Investor with a summary of the material terms for such
Subsequent Financing and the amount of such ROFR Securities that such Investor
is entitled to purchase.  The date on which a Subsequent Financing
Notice has been delivered to each Investor requesting it (a “Participating
Investor”) shall be deemed the “ROFR Notice
Date” for such Subsequent Financing Notice.  Upon delivery of a
Subsequent Financing Notice to the Participating Investors, each Participating
Investor may elect to exercise its ROFR with respect to the proposed Subsequent
Financing to which such Subsequent Financing Notice relates, which election
shall be deemed effective if (i) a notice (a “ROFR Election
Notice”) is delivered to the Company within 15 days from the applicable
ROFR Notice Date or prior to the date of the closing of the proposed Subsequent
Financing, whichever is earlier, and (ii) such ROFR Election Notice (x) states
that the Participating Investor has elected to exercise its ROFR with respect to
such proposed Subsequent Financing, and (y) is delivered by such Participating
Investor to the Company.  In the event that such Participating
Investor elects not to exercise its ROFR, the Company shall have 90 days
thereafter to sell the ROFR Securities for which the Participating Investors’
rights were not exercised, at a price and upon general terms and conditions that
are substantially similar to the price and general terms offered to the
Participating Investors as reflected in the Subsequent Financing
Notice.  If the Company has not sold such ROFR Securities within 90
days of the ROFR Notice Date, the Company shall not thereafter issue or sell
such ROFR Securities without first offering such securities to the Investors in
the manner provided in this Section
4.13.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      (c)         
The
provisions of this Section
4.13 will not apply to the transactions described on Schedule
4.13 annexed to the Waiver and Amendment Agreement dated September 15,
2008.

    

    

    3.2           As
of the Effective Date, Section 4.17 of the Securities Purchase Agreement is
deleted in its entirety.

    

    3.3           Except
as amended hereby, the Securities Purchase Agreement will continue in full force
and effect in accordance with its terms.

    

    4.           Representations of the
Company. The Company hereby represents and warrants to each Investor that
(i) the Company has the requisite corporate power and authority to enter into
this Agreement and the Registration Rights Agreement, to amend the Old Warrants
and to issue and deliver New Warrants as described herein; (ii) all corporate
action on the part of the Company by its officers, directors and shareholders
necessary for the authorization, execution and delivery of, and the performance
by the Company of its obligations in connection with, this Agreement and the
Registration Rights Agreement, including, without limitation, the amendment of
the Old Warrants and the issuance and delivery of the New Warrants, has been
taken; (iii) the New Warrants are duly authorized and, when issued and delivered
in accordance with the terms of this Agreement, will be duly and validly issued,
free and clear of any liens, claims or encumbrances imposed by or through the
Company; (iv) the shares of Common Stock issuable upon exercise of the New
Warrants, when issued and delivered in accordance with the terms of the New
Warrants, will be duly and validly issued, fully paid and non-assessable, free
and clear of any liens, claims or encumbrances imposed by or through the
Company; and (v) this Agreement and the Registration Rights Agreement each
constitutes the valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to (a) applicable
bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization or other
similar laws of general application relating to or affecting the enforcement of
creditors’ rights generally and (b) general principles of equity.

    

    5.           Representations of Each
Investor. Each Investor hereby represents and warrants to the Company
that (i) such Investor is an “accredited investor” as that term is defined in
Rule 501 of Regulation D under the Securities Act of 1933, as amended (the
“Securities
Act”), (ii) is acquiring the New Warrants solely for its own account and
not with a present view to the public resale or distribution of all or any part
thereof, except pursuant to sales that are registered under, or exempt from the
registration requirements of, the Securities Act and/or sales registered under
the Securities Act; and (iii) this Agreement constitutes such Investor’s valid
and legally binding obligation, enforceable in accordance with its terms,
subject to (a) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or other similar laws of general application relating
to or affecting the enforcement of creditors’ rights generally and (b) general
principles of equity.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    6.           Condition to
Effectiveness. This Agreement shall only become effective upon the
closing of the Financing on terms no less favorable to the Company than as
described in Schedule 4.13 to this Agreement.  The date this Agreement
becomes effective is referred to herein as the “Effective
Date”.

    

    7.           Successors and
Assigns.  The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
permitted assigns of the parties.  Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto
or their respective successors and permitted assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

    

    8.           No
Reliance.  Each party to this Agreement acknowledges that (i)
it has such knowledge in business and financial matters as to be fully capable
of evaluating this Agreement and the transactions contemplated hereby, (ii) it
is not relying on any advice or representation of any other party in connection
with entering into this Agreement or such transactions (other than the
representations made in this Agreement), (iii) it has not received from any
other party any assurance or guarantee as to the merits (whether legal,
regulatory, tax, financial or otherwise) of entering into this Agreement or the
consummation of the transactions contemplated hereby, and (iv) it has consulted
with its own legal, regulatory, tax, business, investment, financial and
accounting advisors to the extent that it has deemed necessary, and has entered
into this Agreement based on its own independent judgment and, if applicable, on
the advice of such advisors, and not on any view (whether written or oral)
expressed by any other party.

    

    9.           Independent Nature of
Investors’ Obligations and Rights.  The obligations of each
Investor hereunder are several and not joint with the obligations of the other
Investors hereunder, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor hereunder. The Company
acknowledges and agrees that nothing contained herein, and no action taken by
any Investor pursuant hereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or a
“group” as described in Section 13(d) of the Securities Exchange Act of 1934, as
amended, or to create a presumption that the Investors are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement.  Each Investor has been represented by its own
separate counsel in connection with the transactions contemplated hereby, shall
be entitled to protect and enforce its rights, including, without limitation,
rights arising out of this Agreement, individually, and shall not be required to
join any other Investor as an additional party in any proceeding for such
purpose.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    10.         Governing Law;
Jurisdiction.  This Agreement shall be governed by and
construed under the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.  Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City and County of New York for the adjudication
of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper.  Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law.

    

    11.         Notices. Any notice,
demand or request given by the Company or the Investor concerning this Agreement
shall be in writing and shall be deemed delivered (i) when delivered personally
or by verifiable facsimile transmission, unless such delivery is made on a day
that is not a Business Day, or after 5:00 p.m. (eastern time) on a Business Day,
in which case such delivery will be deemed to be made on the next succeeding
Business Day, (ii) on the next Business Day after timely delivery to an
overnight courier and (iii) on the Business Day actually received if deposited
in the U.S. mail (certified or registered mail, return receipt requested,
postage prepaid), addressed as follows:

    

    If to the
Company:

    

    Integral
Vision, Inc.

    49113
Wixom Tech Drive

    Wixom,
Michigan  48393

    
      	
               
      

            	
              Attn:

            	
              Mark
      R. Doede, President

            

    

    
      	
               
      

            	
              Tel:

            	
              (248)
      668-9230 x203

            

    

    
      	
               
      

            	
              Fax:

            	
              (248)
      668-9384

            

    

    

    With a copy (which shall not constitute
notice) to:

    

    Mazzeo
Song & Bradham LLP

    708 Third
Avenue

    New York,
New York 10017

    
      	
               
      

            	
              Attn:

            	
              David
      S. Song, Esq.

            

    

    
      	
               
      

            	
              Tel:

            	
              212-599-0700

            

    

    
      	
               
      

            	
              Fax:

            	
              212-599-8400

            

    

    

    and if to
any Investor, to such address for such Investor as shall appear next to such
Investor’s name on Schedule A
hereto, or as shall be designated by such Investor in writing to the Company in
accordance with this paragraph
11.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    12.         Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same
instrument.  This Agreement may be executed and delivered by facsimile
transmission or email of an electronic file.

    

    13.         Headings.  The
headings used in this Agreement are used for convenience only and are not to be
considered in construing or interpreting this Agreement.

    

    14.         Entire Agreement;
Amendments.  This Agreement constitutes the entire agreement
between the parties with regard to the subject matter hereof and thereof,
superseding all prior agreements or understandings, whether written or oral,
between or among the parties.  Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended except pursuant to a
written instrument executed by the Company and each Investor. Any waiver or
consent given by a party shall be in writing and shall be effective only in the
specific instance and for the specific purpose for which given.

    

    [Signature Page to
Follow]

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first-above written.

    

    
      
        	
                INTEGRAL
      VISION, INC.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ Mark Doede

              	 
      
	 
      	
                Name:
      Mark Doede

              	 
      
	 
      	
                Title:
      President

              	 
      
	 
      	 
      	 
      
	
                SPECIAL
      SITUATIONS CAYMAN FUND, L.P.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ David Greenhouse

              	 
      
	 
      	
                Name:  David
      Greenhouse

              	 
      
	 
      	
                Title:  General
      Partner

              	 
      
	 
      	 
      	 
      
	
                SPECIAL
      SITUATIONS PRIVATE EQUITY FUND, L.P.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ David Greenhouse

              	 
      
	 
      	
                Name:  David
      Greenhouse

              	 
      
	 
      	
                Title:  General
      Partner

              	 
      
	 
      	 
      	 
      
	
                SPECIAL
      SITUATIONS TECHNOLOGY FUND, L.P.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ David Greenhouse

              	 
      
	 
      	
                Name:  David
      Greenhouse

              	 
      
	 
      	
                Title:  General
      Partner

              	 
      
	 
      	 
      	 
      
	
                SPECIAL
      SITUATIONS TECHNOLOGY FUND II, L.P.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ David Greenhouse

              	 
      
	 
      	
                Name:  David
      Greenhouse

              	 
      
	 
      	
                Title:  General
      Partner

              	 
      

      

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first-above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        INTEGRAL
      VISION, INC.

                                      
	 
      	 
      	 
      
	
                                        By:

                                      	
                                        /s/ Mark Doede

                                      	 
      
	 
      	
                                        Name:
      Mark Doede

                                      	 
      
	 
      	
                                        Title:
      President

                                      	 
      
	 
      	 
      	 
      
	
                                        BONANZA
      MASTER FUND LTD.

                                      
	 
      	 
      	 
      
	
                                        By:

                                      	
                                        /s/ Bernay Box

                                      	 
      
	 
      	 
      	 
      
	
                                        By:

                                      	
                                        Bonanza
      Master Fund, Ltd.

                                      	 
      
	 
      	By:     
      Bonanza
      Capital, Ltd.
	 
      	
                                        As
      its general partner

                                      
	 
      	
                                        By:     
      Bonanza
      Fund Management, Inc.

                                      
	 
      	
                                        As
      its general partner

                                      
	 
      	
                                        By:     Bernay
      Box

                                      
	 
      	
                                        President

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first-above written.

    

    
      
        	
                INTEGRAL
      VISION, INC.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ Mark Doede

              	 
      
	 
      	
                Name:
      Mark Doede

              	 
      
	 
      	
                Title:
      President

              	 
      
	 
      	 
      	 
      
	
                SRB
      GREENWAY CAPITAL, L.P.

              
	
                By:

              	
                SRB
      Management, L.P., General Partner

              	 
      
	
                By:

              	
                BC
      Advisors, L.L.C., General Partner

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steven R. Becker

              	 
      
	 
      	
                Name:  Steven
      R. Becker

              	 
      
	 
      	
                Title:  Member

              	 
      
	 
      	 
      	 
      
	
                SRB
      GREENWAY CAPITAL (QP), L.P.

              
	
                By:

              	
                SRB
      Management, L.P., General Partner

              	 
      
	
                By:

              	
                BC
      Advisors, L.L.C., General Partner

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steven R. Becker

              	 
      
	 
      	
                Name:  Steven
      R. Becker

              	 
      
	 
      	
                Title:  Member

              	 
      
	 
      	 
      	 
      
	
                SRB
      GREENWAY OFFSHORE OPERATING FUND, L.P.

              
	
                By:

              	
                SRB
      Management, L.P., General Partner

              	 
      
	
                By:

              	
                BC
      Advisors, L.L.C., General Partner

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Steven R. Becker

              	 
      
	 
      	
                Name:  Steven
      R. Becker

              	 
      
	 
      	
                Title:  Member

              	 
      

      

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first-above written.

    

    
      
        	
                INTEGRAL
      VISION, INC.

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ Mark Doede

              	 
      
	 
      	
                Name:
      Mark Doede

              	 
      
	 
      	
                Title:
      President

              	 
      
	 
      	 
      	 
      
	
                KIRCHER
      FAMILY TRUST

              
	 
      	 
      	 
      
	
                By:

              	
                /s/ Stephen C. Kircher

              	 
      
	 
      	
                Name:  Stephen
      C. Kircher

              	 
      
	 
      	
                Title:

              	 
      

      

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Schedule
A to the

    Waiver
and Amendment Agreement

     

    SCHEDULE
OF INVESTORS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Investor

                                    Name

                                  	 	
                                    Address for Notices

                                  	 	
                                    Jurisdiction of

                                    Residence

                                  	 	
                                    Number of

                                    Warrant Shares

                                  	 
	
                                    Special
      Situations Cayman Fund, L.P.

                                  	 	
                                    527
      Madison Avenue, Suite 2600

                                    New
      York, NY 10022

                                    Attention: 
      Marianne Kelly

                                  	 	
                                    Delaware

                                  	 	 	681,081	 
	
                                    Special
      Situations Private Equity Fund, L.P.

                                  	 	
                                    527
      Madison Avenue, Suite 2600

                                    New
      York, NY 10022

                                    Attention: 
      Marianne Kelly

                                  	 	
                                    Delaware

                                  	 	 	1,459,459	 
	
                                    Special
      Situations Technology Fund, L.P.

                                  	 	
                                    527
      Madison Avenue, Suite 2600

                                    New
      York, NY 10022

                                    Attention: 
      Marianne Kelly

                                  	 	
                                    Delaware

                                  	 	 	204,325	 
	
                                    Special
      Situations Technology Fund II, L.P.

                                  	 	
                                    527
      Madison Avenue, Suite 2600

                                    New
      York, NY 10022

                                    Attention: 
      Marianne Kelly

                                  	 	
                                    Delaware

                                  	 	 	1,255,135	 
	
                                    Bonanza
      Master Fund Ltd.

                                  	 	
                                    300
      Crescent Court, Suite 1740

                                    Dallas,
      TX 75201

                                    Attention:
      Brian Ladin

                                  	 	 
      	 	 	3,000,000	 
	
                                    SRB
      Greenway Capital, L.P.

                                  	 	
                                    300
      Crescent Court, Suite 1111

                                    Dallas,
      TX 75201

                                    Attention:
      Joe Worsham

                                  	 	 
      	 	 	42,600	 
	
                                    SRB
      Greenway Capital (QP), L.P.

                                  	 	
                                    300
      Crescent Court, Suite 1111

                                    Dallas,
      TX 75201

                                    Attention:
      Joe Worsham

                                  	 	 
      	 	 	305,150	 
	
                                    SRB
      Greenway Offshore Operating Fund, L.P.

                                  	 	
                                    300
      Crescent Court, Suite 1111

                                    Dallas,
      TX 75201

                                    Attention:
      Joe Worsham

                                  	 	 
      	 	 	27,250	 
	
                                    Kircher
      Family Trust

                                  	 	
                                    6000
      Greystone Place

                                    Granite
      Bay, CA 95746

                                    Attention:
      Stephen C. Kircher

                                  	 	 
      	 	 	25,000	 
	 
      	 	 
      	 	 
      	 	 	 	 
	
                                    Total

                                  	 	 
      	 	 
      	 	 	7,000,000	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
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    Schedule
4.13

    

    The
Company intends to issue up to $3,950,000 of the Company’s 8% Secured
Convertible Notes which will be convertible into the Company’s common stock at a
minimum of $0.25 per share (subject to adjustments for stock splits, stock
dividends, and similar events) and have a maturity date of July 1, 2010 (the
“Exempt New
Notes”).  Said Exempt New Notes are to be issued (i) in exchange for
the Company’s Class 2 Notes as defined in the Company’s Fifth Amended and
Restated Note and Warrant Purchase Agreement as filed with the Securities and
Exchange Commission as an exhibit to the Company’s Form 10KSB on March 31, 2008
(the “Class
2 Notes”), including the accrued interest due thereon, except that
$1,437,000 of the Class 2 Notes issued by the Company and outstanding as of
December 1, 2007 (including accrued interest due on said $1,437,000 of Class 2
Notes) may not be exchanged for the Exempt New Notes or (ii) to new purchasers
of Exempt New Notes.

    

    The
Company has $373,000 of secured convertible notes issued and outstanding as of
June 25, 2008 (the “Old Convertible
Notes”). 
The Company may only issue Exempt New Notes if (i) the holders of $234,000 of
the Old Convertible Notes agree to amend the terms of said Old Convertible Notes
to conform to the terms of the Exempt New Notes (except that the holders of
$23,000 of these $234,000 of Old Convertible Notes may elect to have their notes
repaid rather than have the terms of said notes amended) and (ii) the holders of
$139,000 of the Old Convertible Notes agree to accept newly issued Class 2 Notes
(that are not eligible to be exchanged for Exempt New Notes and that only
entitle the holders thereof to receive interest on said notes) in exchange for
said $139,000 of Old Convertible Notes.

    
      
         

      

      
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    REGISTRATION
RIGHTS AGREEMENT

    

    This REGISTRATION RIGHTS AGREEMENT
(this “Agreement”),
dated as of September 15, 2008, is by and between INTEGRAL VISION, INC., a
Michigan corporation (the “Company”),
and each of the entities whose names appear on the signature pages
hereof.  Such entities are each referred to herein as an “Investor”
and, collectively, as the “Investors”.

    

    The Company has agreed, on the terms
and subject to the conditions set forth in the Waiver and Amendment Agreement,
dated as of September 15, 2008 (the “Waiver
Agreement”), to issue and deliver to each Investor named therein a
Warrant (each, a “Warrant”
and, collectively, the “Warrants”)
that is exercisable into shares (the “Warrant
Shares”) of the Company’s common stock, no par value (the “Common
Stock”).

    

    In order to induce each Investor to
enter into the Waiver Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended (the “Securities
Act”), and under applicable state securities laws.

    

    In consideration of each Investor
entering into the Waiver Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

    

    
      	
              1.

            	
              DEFINITIONS.

            

    

    

    For purposes of this Agreement, the
following terms shall have the meanings specified:

    

    “Affiliate”
means, as to any person (the “subject
person”), any other person (a) that directly or indirectly through
one or more intermediaries controls or is controlled by, or is under direct or
indirect common control with, the subject person, (b) that directly or
indirectly beneficially owns or holds ten percent (10%) or more of any class of
voting equity of the subject person, or (c) ten percent (10%) or more of
the voting equity of which is directly or indirectly beneficially owned or held
by the subject person. For the purposes of this definition, “control”
when used with respect to any person means the power to direct the management
and policies of such person, directly or indirectly, whether through the
ownership of voting securities, through representation on such person’s board of
directors or other management committee or group, by contract or
otherwise.

    

    “Business
Day” means any day other than a Saturday, a Sunday or a day on which the
Commission is closed or on which banks in the City of New York are authorized by
law to be closed.

    
      
         

      

      
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    “Commission”
means the Securities and Exchange Commission.

    

    “Filing
Deadline” means the ninetieth (90th)
calendar day following the date of the Waiver Agreement.

    

    “Holder”
means any person (i) owning or having the right to acquire, through exercise of
the Warrants or otherwise, Registrable Securities, including initially each
Investor and thereafter any permitted assignee thereof or (ii) who has included
shares of Common Stock (including shares issuable upon exercise of warrants or
conversion of notes) on a Registration Statement upon exercise of such person’s
registration rights.

    

    “Registrable
Securities” means (i) the Warrant Shares and any other shares of Common
Stock issuable pursuant to the terms of the Warrants, (ii) any shares of capital
stock issued or issuable from time to time (with any adjustments) in replacement
of, in exchange for or otherwise in respect of the Warrant Shares and (iii) any
shares of Common Stock (including shares issuable upon exercise of warrants or
conversion of notes) included on a Registration Statement upon exercise of such
person’s  registration rights.

    

    “Registration
Deadline” means the one hundred and twentieth (120th)
calendar day following the date of the Waiver Agreement.

    

    “Registration
Period” has the meaning set forth in paragraph 2(c) below.

    

    “Registration
Statement” means a registration statement or statements prepared in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act (“Rule
415”) or any successor rule providing for the offering of securities on a
continuous or delayed basis, and filed by the Company pursuant to the terms of
this Agreement.

    

    “SEC
Guidance” means any publicly-available written or oral guidance,
comments, requirements, interpretations or requests of the Commission
staff.

    

    “Trading
Day” means any day on which the Common Stock is purchased and sold on the
Principal Market.

    

    Capitalized terms used herein and not
otherwise defined shall have the respective meanings specified in the Waiver
Agreement or the Warrants, as the case may be.

    
      
         

      

      
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    2.            REGISTRATION.

    

    (a)           Filing of Registration
Statement.  On or before the Filing Deadline, the Company shall
prepare and file with the Commission a Registration Statement on such form as
the Company is then eligible to use as a “shelf” registration statement under
Rule 415 covering the resale of all or such portion of the number of shares of
Common Stock issuable upon exercise of the Warrants (such number to be
determined without regard to any restriction on such exercise) as permitted by
SEC Guidance. Such Registration Statement shall state, to the extent permitted
by Rule 416 under the Securities Act, that it also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon the
exercise of the Warrants in order to prevent dilution resulting from stock
splits, stock dividends or similar events.

    

    (b)           Effectiveness.  The
Company shall use reasonable best efforts to cause the Registration Statement to
become effective as soon as practicable following the filing thereof, but in no
event later than the Registration Deadline.  The Company shall respond
promptly to any and all comments made by the staff of the Commission on with
respect to the Registration Statement, and shall submit to the Commission,
within two (2) Business Days after the Company learns that no review of such
Registration Statement will be made by the staff of the Commission or that the
staff of the Commission has no further comments on such Registration Statement,
as the case may be, a request for acceleration of the effectiveness of such
Registration Statement to a time and date not later than two (2) Business Days
after the submission of such request.  The Company will maintain the
effectiveness of the Registration Statement until the earlier to occur of (i)
the date on which all of the Registrable Securities eligible for resale
thereunder have been publicly sold pursuant to either the Registration Statement
or Rule 144, and (ii) the date on which all of the Registrable Securities
remaining to be sold under such Registration Statement (in the reasonable
opinion of counsel to the Company) may be immediately sold to the public
pursuant to Rule 144 under the Securities Act or any successor provision without
regard to volume or manner of sale restrictions (the period beginning on the
Filing Deadline and ending on the earliest to occur of (i) and (ii) above being
referred to herein as the “Registration
Period”).

    

    (c)           Allocation of Warrant
Shares. The initial number of Warrant Shares included in any Registration
Statement and each increase in the number thereof included therein shall be
allocated pro rata
among the Holders based on the aggregate number of Registrable Securities held
by or issuable to each Holder at the time the Registration Statement covering
such initial number of Registrable Securities or increase thereof is declared
effective by the Commission (such number to be determined using the Exercise
Price in effect at such time and without regard to any restriction on the
ability of a Holder to exercise such Holder’s Warrant as of such
date).  In the event that a Holder sells or otherwise transfers any of
such Holder’s Registrable Securities, each transferee shall be allocated the
portion of the then remaining number of Registrable Securities included in such
Registration Statement allocable to the transferor.

    
      
         

      

      
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    (d)           Registration
Default.  If (A) the Registration Statement is not declared
effective by the Commission on or before the Registration Deadline, (B) after
the Registration Statement has been declared effective by the Commission and
during a period in which an Allowed Delay is not in effect, sales of Registrable
Securities cannot be made by a Holder under the Registration Statement for any
reason not within the exclusive control of such Holder (other than such
Registrable Securities as are then freely saleable pursuant to Rule 144 or any
successor provision without regard to volume or manner of sale restrictions), or
(C) an amendment to the Registration Statement, or a new registration statement,
required to be filed pursuant to the terms of Section 3(j) below is not filed on
or before the date required by such Section 3(j), (each of the foregoing clauses
(A), (B) and (C) being referred to herein as a “Registration
Default”), the Company shall make payments to each Holder party hereto
equal to such Holder’s pro
rata share (based on the aggregate number of shares of Common Stock
constituting Registrable Securities held by or issuable to such Holder as of the
Registration Deadline) of 0.5% of the Market Price (as defined below) of such
Common Stock for each thirty (30) day period in which a Registration Default
exists (prorated for any period of less than thirty days); provided, however,
that the maximum aggregate percentage represented by such payments shall be
capped at five percent (5%) of such Market Price. Each such payment shall be
made within five (5) Business Days following the last day of the calendar month
in which a Registration Default occurs. Any such payment shall be in addition to
any other remedies available to each Holder at law or in equity, or otherwise.
Notwithstanding the foregoing, if any SEC Guidance sets forth a limitation on
the number of shares of Common Stock permitted to be registered on the
Registration Statement (and notwithstanding that the Company used reasonable
efforts to advocate with the Commission for the registration of all or a greater
number of such shares), such limitation shall not constitute a Registration
Default and, in such event, the number of shares of Common Stock to be
registered on such Registration Statement will be reduced, first, by shares of
Common Stock owned by Holders who are not Affiliates of the Company (applied, in
the event that some of such shares may be registered, to the Holders on a pro
rata basis based on the total number of unregistered shares held by such
Holders) and, second, by shares of Common Stock owned by Holders who are
Affiliates of the Company (applied, in the event that some of such shares may be
registered, to the Holders on a pro rata basis based on the total number of
unregistered shares held by such Holders). “Market
Price” means, as of a particular date, the highest daily VWAP for the
Common Stock during the period of twenty (20) consecutive Trading Days occurring
immediately prior to (but not including) such date as reported in the Principal
Market.  If the Market Price cannot be calculated because the Common
Stock is no longer publicly traded or otherwise, then the Company shall submit
such calculation to an independent investment banking firm of national
reputation reasonably acceptable to the Holders of a majority of Registrable
Securities, and shall cause such investment banking firm to perform such
determination and notify the Company and each Holder of the results of
determination no later than five (5) Business Days from the time such
calculation was submitted to it by the Company.

    
      
         

      

      
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     (e)           Allowed
Delay.  The Company may delay the disclosure of material
non-public information, and suspend the availability of the Registration
Statement, for no more than twenty (20) calendar days in any twelve (12) month
period, in the event of a proposed merger, reorganization or similar transaction
involving the Company, as long as its board of directors (A) has determined,
upon the advice of counsel, that such information would be required to be
disclosed in an offering registered under the Securities Act and (B) reasonably
deems it in the Company’s best interests not to disclose such information
publicly (an “Allowed
Delay”). In addition, until the Company becomes eligible to file a
registration statement on Form S-3, each time the Company files a post-effective
amendment to the Registration Statement for the purpose of updating the
Registration Statement in connection with the public filing by the Company of
any report or other document with the Commission (such post-effective amendment,
an “Updating
Amendment”), the Company may also suspend the availability of the
Registration Statement until such Updating Amendment is declared effective and
any such suspension shall also be deemed an Allowed Delay for all purposes under
this Agreement as long as such Updating Amendment is filed within five (5)
Business Days following the event or circumstance requiring such amendment and
the Company promptly responds to any comments made thereon by the staff of the
Commission. The Company shall promptly (i) notify each Holder in writing of the
existence of material non-public information giving rise to an Allowed Delay
(but in no event, without the prior written consent of such Holder, shall the
Company disclose to such Holder any of the facts or circumstances regarding any
material non-public information), (ii) advise each Holder in writing to cease
all sales under the Registration Statement until the termination of the Allowed
Delay and (iii) notify each Holder in writing immediately upon the termination
or expiration of an Allowed Delay.

     

    3.           
OBLIGATIONS OF THE
COMPANY.

    

    In addition to performing its
obligations hereunder, including without limitation those pursuant to Section 2
above, the Company shall, with respect to each Registration Statement filed
hereunder:

    

    (a)           prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection with such
Registration Statement as may be necessary to comply with the provisions of the
Securities Act or to maintain the effectiveness of such Registration Statement
during the Registration Period, or as may be reasonably requested by a Holder in
order to incorporate information concerning such Holder or such Holder’s
intended method of distribution;

    

    (b)           at
such time following the Closing that the Company is eligible to do so, use
commercially reasonable efforts to secure the listing of all Registrable
Securities on the principal market on which the Common Stock is then listed or
quoted, and at any Holder’s request, provide such Holder with reasonable
evidence thereof;

    

    (c)           so
long as a Registration Statement is effective covering the resale of the
applicable Registrable Securities owned by a Holder, furnish to each Holder such
number of copies of the prospectus included in such Registration Statement,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as such Holder may reasonably request
in order to facilitate the disposition of such Holder’s Registrable
Securities;

    
      
         

      

      
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    (d)           use
commercially reasonable efforts to register or qualify the Registrable
Securities under the securities or “blue sky” laws of such jurisdictions within
the United States as shall be reasonably requested from time to time by a
Holder, and do any and all other acts or things which may reasonably be
necessary or advisable to enable such Holder to consummate the public sale or
other disposition of the Registrable Securities in such jurisdictions; provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such jurisdiction;

    

    (e)           notify
each Holder immediately after becoming aware of the occurrence of any event (but
shall not, without the prior written consent of such Holder, disclose to such
Holder any facts or circumstances constituting material non-public information)
as a result of which the prospectus included in such Registration Statement, as
then in effect, contains an untrue statement of material fact or omits to state
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, and as promptly as practicable prepare and file with the
Commission and furnish to each Holder a reasonable number of copies of a
supplement or an amendment to such prospectus as may be necessary so that such
prospectus does not contain an untrue statement of material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then
existing;

    

    (f)           use
commercially reasonable efforts to prevent the issuance of any stop order or
other order suspending the effectiveness of such Registration Statement and, if
such an order is issued, to use commercially reasonable efforts obtain the
withdrawal thereof at the earliest possible time and to notify each Holder in
writing of the issuance of such order and the resolution thereof;

    

    (g)           furnish
to each Holder, on the date that such Registration Statement, or any successor
registration statement, becomes effective, a letter, dated such date, signed by
an officer of or counsel to the Company and addressed to such Holder, confirming
such effectiveness and, to the knowledge of  such counsel, the absence
of any stop order;

    

    (h)           provide
to each Holder and its representatives the reasonable opportunity to conduct a
reasonable inquiry of the Company’s financial and other records during normal
business hours and make available during normal business hours and with
reasonable advance notice its officers, directors and employees for questions
regarding information which such Holder may reasonably request in order to
fulfill any due diligence obligation on its part;

    

    (i)           permit
counsel for each Holder to review such Registration Statement and all amendments
and supplements thereto, and any comments made by the staff of the Commission
concerning such Holder and the Company’s responses thereto, within a reasonable
period of time prior to the filing thereof with the Commission (or, in the case
of comments made by the staff of the Commission, within a reasonable period of
time following the receipt thereof by the Company); and

    
      
         

      

      
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    (j)           in
the event that, at any time, the number of shares available under the
Registration Statement is insufficient to cover all of the Registrable
Securities issuable under the Warrants (such number to be determined without
regard to any restriction on the ability of any Holder to exercise such Holder’s
Warrant), except where such deficiency is as a result of SEC Guidance, the
Company shall promptly amend such Registration Statement or file a new
registration statement, in any event as soon as practicable, but not later than
the tenth (10th) day
following notice from a Holder of the occurrence of such event, so that such
Registration Statement or such new registration statement, or both, covers no
less than the Registrable Securities eligible for resale thereunder and issuable
under the Warrants (such number to be determined using the Exercise Price in
effect at the time of such amendment or filing and without regard to any
restriction on the ability of any Holder to exercise such Holder’s Warrant). The
Company shall use its reasonable best efforts to cause such amendment and/or new
Registration Statement to become effective as soon as practicable following the
filing thereof. Any Registration Statement filed pursuant to this paragraph 3(j)
shall state that, to the extent permitted by Rule 416 under the Securities Act,
such Registration Statement also covers such indeterminate number of additional
shares of Common Stock as may become issuable upon exercise of the Warrant in
order to prevent dilution resulting from stock splits, stock dividends or
similar events.

    

    4.           
OBLIGATIONS OF EACH
HOLDER.

    

    In connection with the registration of
Registrable Securities pursuant to the Registration Statement, each Holder
shall:

    

    (a)  timely furnish to the
Company (i) a completed Shareholder Questionnaire in the form supplied to such
Holder by the Company and (ii) such information in writing regarding itself and
the intended method of disposition of such Registrable Securities as the Company
shall reasonably request in order to effect the registration
thereof;

    

    (b)  upon receipt of any
notice from the Company of the happening of any event of the kind described in
paragraphs 3(e) or 3(f), immediately discontinue any sale or other disposition
of such Registrable Securities pursuant to such Registration Statement until the
filing of an amendment or supplement as described in paragraph 3(e) or
withdrawal of the stop order referred to in paragraph 3(f), and use commercially
reasonable efforts to maintain the confidentiality of such notice and its
contents;

    

    (c)  to the extent required
by applicable law, deliver a prospectus to the purchaser of such Registrable
Securities; provided that the Company shall notify such Holder promptly in the
event that it no longer meets the conditions of Rule 172(c);

    

    (d)  notify the Company when
it has sold all of the Registrable Securities held by it; and

    
      
         

      

      
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    (e)  notify
the Company in the event that any information supplied by such Holder in writing
for inclusion in such Registration Statement or related prospectus is untrue or
omits to state a material fact required to be stated therein or necessary to
make such information not misleading in light of the circumstances then
existing; immediately discontinue any sale or other disposition of such
Registrable Securities pursuant to such Registration Statement until the filing
of an amendment or supplement to such prospectus as may be necessary so that
such prospectus does not contain an untrue statement of material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing;
and use commercially reasonable efforts to assist the Company as may be
appropriate to make such amendment or supplement effective for such
purpose.

     

    5.           INDEMNIFICATION.

    

    In the event that any Registrable
Securities are included in a Registration Statement under this
Agreement:

    

    (a)           To
the extent permitted by law, the Company shall indemnify and hold harmless each
Holder, the officers, directors, employees, agents and representatives of such
Holder, and each person, if any, who controls such Holder within the meaning of
the Securities Act or the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”), against any losses, claims, damages, liabilities or reasonable
out-of-pocket expenses (whether joint or several) (collectively, including
reasonable legal expenses or other expenses reasonably incurred in connection
with investigating or defending same, “Losses”),
insofar as any such Losses arise out of or are based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in such
Registration Statement under which such Registrable Securities were registered,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, or (ii) the 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.  Subject to the provisions of paragraph 5(c)
below, the Company will reimburse such Holder, and each such officer, director,
employee, agent, representative or controlling person, for any reasonable legal
expenses or other out-of-pocket expenses as reasonably incurred by any such
entity or person in connection with investigating or defending any Loss; provided, however, that the
foregoing indemnity shall not apply to amounts paid in settlement of any Loss if
such settlement is effected without the consent of the Company (which consent
shall not be unreasonably withheld), nor shall the Company be obligated to
indemnify any person for any Loss to the extent that such Loss arises out of or
is based upon (i) any disclosure or any omission or alleged omission (to state a
material fact required to be stated therein or necessary to make statements
therein not misleading) that is based upon or in conformity with written
information furnished (or not furnished, in the case of an omission) by such
person expressly for use in such Registration Statement or (ii) a failure of
such person to deliver or cause to be delivered the final prospectus contained
in the Registration Statement and made available by the Company, if such
delivery is required by applicable law.

    
      
         

      

      
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    (b)           To
the extent permitted by law, each Holder who is named in such Registration
Statement as a selling shareholder, acting severally and not jointly, shall
indemnify and hold harmless the Company, the officers, directors, employees,
agents and representatives of the Company, and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act,
against any Losses to the extent (and only to the extent) that any such Losses
arise out of or are based upon (i) any disclosure or any omission or alleged
omission (to state a material fact required to be stated therein or necessary to
make statements therein not misleading) that is based upon or in conformity with
written information furnished (or not furnished, in the case of an omission) by
such person expressly for use in such Registration Statement, or (ii) a failure
of such Holder to deliver or cause to be delivered the final prospectus
contained in the Registration Statement and made available by the Company, if
such delivery is required under applicable law. Subject to the provisions of
paragraph 5(c) below, such Holder will reimburse any legal or other expenses as
reasonably incurred by the Company and any such officer, director, employee,
agent, representative, or controlling person, in connection with investigating
or defending any such Loss; provided, however, that the
foregoing indemnity shall not apply to amounts paid in settlement of any such
Loss if such settlement is effected without the consent of such Holder (which
consent shall not be unreasonably withheld); and provided, further, that, in
no event shall any indemnity under this paragraph 5(b) exceed the net proceeds
resulting from the sale of the Registrable Securities sold by such Holder under
such Registration Statement.

    

    (c)           Promptly
after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 5, promptly deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have
the right to participate in and to assume the defense thereof with counsel
selected by the indemnifying party and reasonably acceptable to the indemnified
party; provided,
however, that an indemnified party shall have the right to retain its own
counsel, with the reasonably incurred fees and expenses of one such counsel for
all indemnified parties to be paid by the indemnifying party, if representation
of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate under applicable standards of professional conduct due to
actual or potential conflicting interests between such indemnified party and any
other party represented by such counsel in such proceeding.  The
failure to deliver written notice to the indemnifying party within a reasonable
time of the delivery of notice of any such action, to the extent prejudicial to
its ability to defend such action, shall relieve such indemnifying party of any
liability to the indemnified party under this Section 5 with respect to such
action, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 5 or with respect to any other action unless
the indemnifying party is materially prejudiced as a result of not receiving
such notice.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    (d)           In
the event that the indemnity provided in paragraph (a) or (b) of this Section 5
is unavailable or insufficient to hold harmless an indemnified party for any
reason, the Company and each Holder agree, severally and not jointly, to
contribute to the aggregate Losses to which the Company or such Holder may be
subject in such proportion as is appropriate to reflect the relative fault of
the Company and such Holder in connection with the statements or omissions which
resulted in such Losses; provided, however, that in no
case shall such Holder be responsible for any amount in excess of the net
proceeds resulting from the sale of the Registrable Securities sold by it under
the Registration Statement.  Relative fault shall be determined by
reference to whether any alleged untrue statement or omission relates to
information provided by the Company or by such Holder.  The Company
and each Holder agree that it would not be just and equitable if contribution
were determined by pro
rata allocation or any other method of allocation which does not take
account of the equitable considerations referred to
above.  Notwithstanding the provisions of this paragraph (d), no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who is not guilty of such fraudulent misrepresentation.  For purposes
of this Section 5, each person who controls a Holder within the meaning of
either the Securities Act or the Exchange Act and each officer, director,
employee, agent or representative of such Holder shall have the same rights to
contribution as such Holder, and each person who controls the Company within the
meaning of either the Securities Act or the Exchange Act and each officer,
director, employee, agent or representative of the Company shall have the same
rights to contribution as the Company, subject in each case to the applicable
terms and conditions of this paragraph (d).

    

    (e)           The
obligations of the Company and each Holder under this Section 5 shall
survive the exercise of the Warrants in full, the completion of any offering or
sale of Registrable Securities pursuant to a Registration Statement under this
Agreement, or otherwise.

    

    6.           REPORTS.

    

    With a view to making available to each
Holder the benefits of Rule 144 and any other similar rule or regulation of the
Commission that may at any time permit such Holder to sell securities of the
Company to the public without registration, the Company agrees to:

    

    (a)           make
and keep public information available, as those terms are understood and defined
in Rule 144;

    

    (b)           file
with the Commission in a timely manner all reports and other documents required
of the Company under the Exchange Act; and

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    (c)           furnish
to such Holder, so long as such Holder owns any Registrable Securities, promptly
upon written request (i) a written statement by the Company, if true, that it
has complied with the reporting requirements of Rule 144 and the Exchange Act,
(ii) to the extent not publicly available through the Commission’s EDGAR
database, a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company with the
Commission, and (iii) such other information as may be reasonably requested by
such Holder in connection with such Holder’s compliance with any rule or
regulation of the Commission which permits the selling of any such securities
without registration.

    

    7.           MISCELLANEOUS.

    

    (a)           Expenses of
Registration.  Except as otherwise provided in the Waiver
Agreement, all reasonable expenses, other than underwriting discounts and
commissions and fees and expenses of counsel and other advisors to each Holder,
incurred in connection with the registrations, filings or qualifications
described herein, including (without limitation) all registration, filing and
qualification fees, printers’ and accounting fees, the fees and disbursements of
counsel for the Company, and the fees and disbursements incurred in connection
with the opinion and letter described in paragraph 3(g) hereof, shall be borne
by the Company.

    

    (b)           Amendment;
Waiver.  Except as expressly provided herein, neither this
Agreement nor any term hereof may be amended or waived except pursuant to a
written instrument executed by the Company and the Holders party hereto of at
least two-thirds (2/3) of the Registrable Securities into which all of the
Warrants then outstanding are exercisable (without regard to any limitation on
such exercise). Any amendment or waiver effected in accordance with this
paragraph shall be binding upon each Holder, each future Holder and the
Company.  The failure of any party to exercise any right or remedy
under this Agreement or otherwise, or the delay by any party in exercising such
right or remedy, shall not operate as a waiver thereof.

    

    (c)           Notices.  Any
notice, demand or request required or permitted to be given by the Company or a
Holder pursuant to the terms of this Agreement shall be in writing and shall be
deemed delivered (i) when delivered personally or by verifiable facsimile
transmission, unless such delivery is made on a day that is not a Business Day,
in which case such delivery will be deemed to be made on the next succeeding
Business Day and (ii) on the next Business Day after timely delivery to a
reputable overnight courier, addressed as follows:

    

    If to the
Company:

    

    Integral
Vision, Inc.

    49113
Wixom Tech Drive

    Wixom,
Michigan  48393

    Attn:      Mark
R. Doede, President

    Tel:        (248)
668-9230 x203

    Fax:      
 (248) 668-9384

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    With
a copy (which shall not constitute notice) to:

    

    Mazzeo
Song & Bradham LLP

    708 Third
Avenue

    New York,
New York 10017

    Attn:     David
S. Song, Esq.

    Tel:        212-599-0700

    Fax:        212-599-8400

    

    and if to
a Holder, to such address as shall be designated by such Holder in writing to
the Company.

    

    (d)           Assignment.  Upon
the transfer of any Warrant or Registrable Securities by a Holder, the rights of
such Holder hereunder with respect to such securities so transferred shall be
assigned automatically to the transferee thereof, and such transferee shall
thereupon be deemed to be a “Holder” for purposes of this Agreement, as long as:
(i) the Company is, within a reasonable period of time following such transfer,
furnished with written notice of the name and address of such transferee, (ii)
the transferee agrees in writing with the Company to be bound by all of the
provisions hereof, and (iii) such transfer is made in accordance with the
applicable requirements of the Waiver Agreement or the Warrants, as
applicable.

     

    (e)           Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an
original, and all of which together shall be deemed one and the same
instrument.  This Agreement, once executed by a party, may be
delivered to any other party hereto by facsimile transmission.

     

    (f)           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.

    

    (g)           Holder of
Record.  A person is deemed to be a Holder whenever such person
owns or is deemed to own of record such Registrable Securities.  If
the Company receives conflicting instructions, notices or elections from two or
more persons with respect to the same Registrable Securities, the Company shall
act upon the basis of instructions, notice or election received from the record
owner of such Registrable Securities.

    

    (h)           Entire Agreement.
This Agreement, the Waiver Agreement and the Warrants constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof.  There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and
therein.  This Agreement, the Waiver Agreement and the Warrants
supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    (i)           Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

     

    (j)           Third Party
Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other
person.

    

    [Signature
Pages to Follow]

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the undersigned
have executed this Registration Rights Agreement as of the date first-above
written.

    

    
      
        
          
            	
                    INTEGRAL
      VISION, INC.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Mark Doede

                  
	 
      	
                    Name:
      Mark Doede

                  
	 
      	
                    Title:
      President

                  
	 
      	 
      
	
                    SPECIAL
      SITUATIONS CAYMAN FUND, L.P.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ David Greenhouse

                  
	 
      	
                    Name:  David
      Greenhouse

                  
	 
      	
                    Title:  General
      Partner

                  
	 
      	 
      
	
                    SPECIAL
      SITUATIONS PRIVATE EQUITY FUND, L.P.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ David Greenhouse

                  
	 
      	
                    Name:  David
      Greenhouse

                  
	 
      	
                    Title:  General
      Partner

                  
	 
      	 
      
	
                    SPECIAL
      SITUATIONS TECHNOLOGY FUND, L.P.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ David Greenhouse

                  
	 
      	
                    Name:  David
      Greenhouse

                  
	 
      	
                    Title:  General
      Partner

                  
	 
      	 
      
	
                    SPECIAL
      SITUATIONS TECHNOLOGY FUND II, L.P.

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ David Greenhouse

                  
	 
      	
                    Name:  David
      Greenhouse

                  
	 
      	
                    Title:  General
      Partner

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the undersigned
have executed this Registration Rights Agreement as of the date first-above
written.

    

    
      
        
          
            
              
                	
                        BONANZA
      MASTER FUND LTD.

                      
	 
      	 
      	 
      	 
      
	
                        By:

                      	
                        /s/
      Bernay Box

                      
	 
      	 
      	 
      	 
      
	By:	
                        Bonanza
      Master Fund, Ltd.

                      
	 
      	
                        By:

                      	
                        Bonanza
      Capital, Ltd.

                      
	 
      	 
      	
                        As
      its general partner

                      
	 
      	 
      	
                        By:

                      	
                        Bonanza
      Fund Management, Inc.

                      
	 	 
      	 
      	

                        As
      its general partner

                      
	 
      	 
      	 
      	
                        By:

                      	
                        Bernay
      Box

                      
	 
      	 
      	 
      	 
      	
                        President

                      

              

            

          

        

      

    

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the undersigned
have executed this Registration Rights Agreement as of the date first-above
written.

    

    
      
        
          
            	
                    SRB
      GREENWAY CAPITAL, L.P.

                  
	
                    By:

                  	
                    SRB
      Management, L.P., General Partner

                  
	
                    By:

                  	
                    BC
      Advisors, L.L.C., General Partner

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Steven R. Becker

                  
	 
      	
                    Name:  Steven
      R. Becker

                  
	 
      	
                    Title:  Member

                  
	 
      	 
      
	
                    SRB
      GREENWAY CAPITAL (QP), L.P.

                  
	
                    By:

                  	
                    SRB
      Management, L.P., General Partner

                  
	
                    By:

                  	
                    BC
      Advisors, L.L.C., General Partner

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Steven R. Becker

                  
	 
      	
                    Name:  Steven
      R. Becker

                  
	 
      	
                    Title:  Member

                  
	 
      	 
      
	
                    SRB
      GREENWAY OFFSHORE OPERATING FUND, L.P.

                  
	
                    By:

                  	
                    SRB
      Management, L.P., General Partner

                  
	
                    By:

                  	
                    BC
      Advisors, L.L.C., General Partner

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Steven R. Becker

                  
	 
      	
                    Name:  Steven
      R. Becker

                  
	 
      	
                    Title:  Member

                  

          

        

      

    

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the undersigned
have executed this Registration Rights Agreement as of the date first-above
written.

    

    
      
        
          
            
              	
                      KIRCHER
      FAMILY TRUST

                    
	 
      	 
      
	
                      By:

                    	
                      /s/ Stephen C. Kircher

                    
	 
      	
                      Name:  Stephen
      C. Kircher

                    
	 
      	
                      Title:

                    

            

          

        

      

    

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

    Annex
I to

    Waiver
and Amendment Agreement

    

    THIS WARRANT (THIS “WARRANT”)
AND THE
SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE OR SOLD UNLESS A REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS SHALL BE EFFECTIVE
WITH RESPECT THERETO, OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION WITH SUCH OFFER
OR SALE.  THIS WARRANT AND THE SECURITIES ISSUABLE UPON
EXERCISE HEREOF MAY NOT BE TRANSFERRED OR
ASSIGNED TO ANY PERSON EXCEPT IN COMPLIANCE WITH APPLICABLE SECURITIES
LAWS.

     

    WARRANT

     

    TO
PURCHASE COMMON STOCK

    

    OF

     

    INTEGRAL
VISION, INC.

     

    Issue
Date:  September __, 2008

     

    

    THIS CERTIFIES that
____________________or any subsequent holder hereof (the “Holder”),
has the right to purchase from INTEGRAL VISION, INC., a Michigan corporation
(the “Company”),
up to _____ duly authorized, validly issued, fully paid and nonassessable shares
of the Company’s outstanding common stock, no par value (the “Common
Stock”), subject to adjustment as provided herein, at a price per share
equal to the Exercise Price (as defined below), at any time and from time to
time beginning on the Issue Date specified above (the “Issue
Date”) and ending at 5:00 p.m., New York City time, on September __, 2013
or, if such day is not a Business Day, on the next succeeding Business Day (the
“Expiration
Date”).

    

     This
Warrant is issued pursuant to a Waiver and Amendment Agreement, dated as of
September __, 2008 (the “Waiver
Agreement”), and this Warrant and the other New Warrants (as defined in
the Waiver Agreement) issued pursuant to the Waiver Agreement are collectively
referred to herein as the “Warrants”.
Any warrant issued to the Holder (or its successor or assign) pursuant to the
Securities Purchase Agreement, dated as of April 12, 2005, is referred to herein
as an “Old
Warrant” and, collectively with the other warrants issued pursuant to
such agreement, the “Old
Warrants”.

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

    

    1.           DEFINITIONS.

    

    (a)           Defined
Terms.  The following terms shall apply to this
Warrant:

    

    “Business
Day” means any day other than a Saturday, a Sunday or a day on which the
Principal Market is closed or on which banks in the City of New York are
required or authorized by law to be closed.

    

    “Exercise
Price” has the meaning specified in Section 2(a)
below.

    

    “Governmental
Authority” means any nation or government, any state, provincial or
political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
including, without limitation, any stock exchange, securities market or
self-regulatory organization.

    

    “Issue
Date” means the Issue Date set forth on the front page of this
Warrant.

    

    “Major
Transaction” means the existence, occurrence or public announcement of,
or entering into an agreement contemplating, a merger, consolidation, business
combination, tender offer, exchange of shares, recapitalization, reorganization,
redemption or other similar event, as a result of which shares of Common Stock
shall be changed into, or exchanged or tendered for, the same or a different
number of shares of the same or another class or classes of stock or securities
or other assets of the Company or another entity.

    

    “Market
Price” means, as of a particular date, the highest daily VWAP for the
Common Stock during the period of twenty (20) consecutive Trading Days occurring
immediately prior to (but not including) such date as reported in the Principal
Market.  If the Market Price cannot be calculated because the Common
Stock is no longer publicly traded or otherwise, then the Company shall submit
such calculation to an independent investment banking firm of national
reputation reasonably acceptable to the Holder, and shall cause such investment
banking firm to perform such determination and notify the Company and the Holder
of the results of determination no later than five (5) Business Days from the
time such calculation was submitted to it by the Company.

    

    “Person”
means any individual, corporation, trust, association, company, partnership,
joint venture, limited liability company, joint stock company, Governmental
Authority or other entity.

    
      
         

      

      
        -31-

        
          

        

      

      
         

      

    

    

    “Principal
Market” means the principal exchange, market or quotation system on which
the Common Stock is listed, traded or quoted.

    

    “Rule 144”
means Rule 144 under the Securities Act or any successor provision.

    

    “Securities
Act” means the Securities Act of 1933, as amended.

    

    “Trading
Day” means any day on which shares of Common Stock are purchased and sold
on the Principal Market.

    

    “VWAP” on a
Trading Day means the volume weighted average price of the Common Stock for such
Trading Day on the Principal Market as reported by Bloomberg Financial Markets
or, if Bloomberg Financial Markets is not then reporting such prices, by a
comparable reporting service of national reputation selected by the Holders and
reasonably satisfactory to the Company.

    

    (b)           Usage.    All
definitions contained in this Warrant are equally applicable to the singular and
plural forms of the terms defined.  The words “hereof”, “herein” and
“hereunder” and words of similar import refer to this Warrant as a whole and not
to any particular provision of this Warrant.

    

    2.           EXERCISE.

    

    (a)           Right to Exercise; Exercise
Price.  The Holder shall have the right to exercise this
Warrant at any time and from time to time during the period beginning on the
Issue Date and ending at 5 p.m., New York City time, on the Expiration Date as
to all or any part of the shares of Common Stock covered hereby (the “Warrant
Shares”).  The “Exercise
Price” for each Warrant Share purchased by the Holder upon the exercise
of this Warrant shall be $0.001, subject to adjustment for the events specified
in Section
6 of this Warrant.

    

    (b)           Exercise
Notice.  In order to exercise this Warrant, the Holder shall
(i) send by facsimile transmission, at any time prior to 5:00 p.m., New York
City time, on the Business Day on which the Holder wishes to effect such
exercise (the “Exercise
Date”), to the Company an executed copy of the notice of exercise in the
form attached hereto as Exhibit A
(the “Exercise
Notice”) and (ii) in the case of a Cash Exercise, deliver the Exercise
Price to the Company by wire transfer of immediately available
funds.  The Holder shall promptly thereafter deliver the original
Warrant to the Company for cancellation (and replacement with a new Warrant if
exercised in part) pursuant to Section
2(d) of this Warrant.  The
Exercise Notice shall also state the name or names in which the Warrant Shares
issuable on such exercise shall be issued if other than the
Holder.

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

    (c)           Holder of
Record.  The Holder shall, for all purposes, be deemed to have
become the holder of record of the Warrant Shares specified in an Exercise
Notice on the Exercise Date specified therein, irrespective of the date of
delivery of such Warrant Shares. Except as specifically provided herein, nothing
in this Warrant shall be construed as conferring upon the Holder hereof any
rights as a stockholder of the Company prior to the Exercise Date.

    

    (d)           Cancellation of
Warrant.  This Warrant shall be canceled upon its exercise and,
if this Warrant is exercised in part, the Company shall, at the time that it
delivers Warrant Shares to the Holder pursuant to such exercise as provided
herein, issue a new warrant, and deliver to the Holder a certificate
representing such new warrant, with terms identical in all respects to this
Warrant (except that such new warrant shall be exercisable into the number of
shares of Common Stock with respect to which this Warrant shall remain
unexercised); provided,
however, that the Holder shall be entitled to exercise all or any portion
of such new warrant at any time following the time at which this Warrant is
exercised, regardless of whether the Company has actually issued such new
warrant or delivered to the Holder a certificate therefor.

    

    3.           DELIVERY
OF WARRANT SHARES UPON EXERCISE.

    

    (a)           Exercise and
Delivery. Upon receipt of an Exercise Notice pursuant to Section 2
of this Warrant, the Company shall, (A) in the case of a Cash Exercise no later
than the close of business on the later to occur of (i) the third (3rd) Business
Day following the Exercise Date set forth in such Exercise Notice and (ii) the
date on which the Company has received payment of the Exercise Price, and (B) in
the case of a Cashless Exercise, no later than the close of business on the
third (3rd) Business Day following the Exercise Date set forth in such Exercise
Notice (each of the dates specified in the foregoing clauses (A)
or (B) being
referred to as a “Delivery
Date”), issue and deliver or cause to be delivered to the Holder the
number of Warrant Shares as shall be determined as provided herein. The Company
shall effect delivery of Warrant Shares to the Holder by delivering to the
Holder or its nominee physical certificates representing such Warrant Shares, no
later than the close of business on such Delivery Date.  If the
transfer agent for the Company’s Common Stock participates in the Depository
Trust Company (“DTC”) Fast
Automated Securities Transfer program (“FAST”),
and as long as the Warrant Shares being delivered upon the exercise hereof are
registered for resale by the Holder, have been sold pursuant to Rule 144 or are
freely tradable pursuant to Rule 144(b)(1), the Company shall effect delivery of
Warrant Shares by crediting the account of the Holder or its nominee at DTC (as
specified in the applicable Exercise Notice) with the number of Warrant Shares
required to be delivered, no later than the close of business on such Delivery
Date.  If any exercise would create a fractional Warrant Share, such
fractional Warrant Share shall be disregarded and the number of Warrant Shares
issuable upon such exercise, in the aggregate, shall be the nearest whole number
of Warrant Shares.  Warrant Shares delivered to the Holder shall not
contain any restrictive legend unless such legend is required by applicable
securities laws.

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

    

    (b)           Failure to Deliver Warrant
Shares. In the event that the Holder has not received certificates
representing the number of Warrant Shares specified in the applicable Exercise
Notice on or before the second (2nd)
Business Day following the Delivery Date therefor (an “Exercise
Default”), and the Holder purchases shares of Common Stock in order to
make delivery on a sale effected in anticipation of receiving Warrant Shares
upon such exercise, the Holder shall have the right to receive from the Company
an amount equal to (A) the aggregate amount paid by the Holder for shares of
Common Stock so purchased by the Holder minus (B) the
aggregate Exercise Price for such Warrant Shares (which payment shall not
relieve the Company from its obligation to deliver such Warrant Shares to the
Holder); provided, that
if, in lieu of or in addition to purchasing shares of Common Stock for the
purpose of making delivery on such sale, the Holder borrows shares of Common
Stock in order to make such delivery, the Holder shall have the additional right
to be reimbursed by the Company for all costs associated with effecting such
borrowing transaction. The Holder’s rights and remedies hereunder are
cumulative, and no right or remedy is exclusive of any other.  In
addition to the amounts specified herein, the Holder shall have the right to
pursue all other remedies available to it at law or in equity (including,
without limitation, a decree of specific performance and/or injunctive relief).
The amounts specified herein shall be paid to the Holder in immediately
available funds on or before the fifth (5th) Business Day following written
notice thereof from the Holder.

    

    4.           EXERCISE
LIMITATION.

    

    The Holder shall not be permitted to
exercise this Warrant, or part thereof, if, upon such exercise, the number of
shares of Common Stock beneficially owned by the Holder (other than shares which
may be deemed beneficially owned except for being subject to a limitation on
exercise or exercise analogous to the limitation contained in this Section
4), would exceed [9.9][4.9]% of the number of shares of Common Stock then
issued and outstanding, it being the intent of the Company and the Holder that
the Holder not be deemed at any time to have the power to vote or dispose of
greater than [9.9][4.9]% of the number of shares of Common Stock issued and
outstanding at any time. Nothing contained herein shall be deemed to restrict
the right of the Holder to exercise this Warrant at such time as such exercise
will not violate the provisions of this Section
4.  As used herein, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act.  The holders of
Common Stock are to be deemed third-party beneficiaries of the limitation
imposed hereby and, accordingly, this Section 4
may not be amended without the consent of the holders of a majority of the
shares of Common Stock then outstanding; provided, however, that the Holder
shall have the right, upon sixty one (61) days’ prior written notice to the
Company, to waive the provisions of this Section 4
without obtaining such consent. [This Section
4 may be omitted at the
request of any Holder prior to the issuance of this Warrant]

    

    5.           PAYMENT
OF THE EXERCISE PRICE; CASHLESS EXERCISE.

    

    The Holder may pay the Exercise Price
through a cash exercise (a “Cash
Exercise”) by delivering immediately available funds on the Exercise
Date, or if all or some of the Warrant Shares may not be sold pursuant to an
effective registration statement, the Holder may elect to pay the Exercise Price
through a cashless exercise (a “Cashless
Exercise”), whether exclusively or in combination with a Cash Exercise.
The Holder shall effect a Cashless Exercise by surrendering this Warrant to the
Company and noting on the Exercise Notice that the Holder wishes to effect a
Cashless Exercise, upon which the Company shall issue to the Holder a number of
Warrant Shares determined as follows:

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

    

    X = Y x
(A-B)/A

    

    
      	
              where:

            	
              X =
      the number of Warrant Shares to be issued to the
  Holder;

            

    

    

    
      	
               
      

            	
              Y =
      the number of Warrant Shares with respect to which this Warrant is being
      exercised;

            

    

    

    
      	
               
      

            	
              A =
      the VWAP on the Trading Day immediately preceding the date of such
      election; and

            

    

    

    
      	
               
      

            	
              B =
      the Exercise Price.

            

    

    

    It is
intended and acknowledged that the Warrant Shares issued in a Cashless Exercise
transaction shall be deemed to have been acquired by the Holder, and the holding
period for the Warrant Shares required by Rule 144 shall be deemed to have been
commenced, on the Issue Date.

    

    6.           ANTI-DILUTION
ADJUSTMENTS; DISTRIBUTIONS; OTHER EVENTS.

    

    The Exercise Price and the number of
Warrant Shares issuable hereunder shall be subject to adjustment from time to
time as provided in this Section
6.

    

    (a)           Stock Splits, Stock
Interests, Etc.  If, at any time on or after the Issue Date,
the number of outstanding shares of Common Stock is increased by a stock split,
stock dividend, reclassification or other similar event, the Exercise Price
shall be proportionately reduced, or if the number of outstanding shares of
Common Stock is decreased by a reverse stock split, combination,
reclassification or other similar event, the Exercise Price shall be
proportionately increased.

     

    (b)           Major
Transactions.  If, at any time after the Issue Date, any Major
Transaction shall occur, then the Holder shall thereafter have the right to
exercise this Warrant in whole or in part at any time prior to, on or after the
record date for the receipt of the consideration payable to the holders of
Common Stock and shall be entitled to receive, in lieu of the shares of Common
Stock otherwise issuable upon exercise of this Warrant, such shares of stock,
securities and/or other assets as would have been issued or payable upon such
Major Transaction with respect to or in exchange for the number of shares of
Common Stock which would have been issuable upon exercise of this Warrant had
such Major Transaction not taken place (without giving effect to any limitations
on such exercise contained in this Warrant).  The Company shall not
effect any Major Transaction unless (1) subsequent to the
public disclosure by the Company of such Major Transaction, the Holder has been
given written notice of such transaction by the earlier of (A) the date that is
thirty (30) days (sixty one (61) days if, without giving effect to the
limitation on exercise contained in Section 4,
the Holder would beneficially own more than [9.9][4.9]% of the Common Stock then
outstanding) prior to the date on which such transaction is consummated, and (B)
the date that is fifteen (15) days prior to the record date for the
determination of the Company’s stockholders entitled to vote with respect to
such transaction, and (2) the resulting successor or acquiring entity (if not
the Company) assumes by written instrument the obligations of the Company under
this Warrant, with such adjustments to the Exercise Price and the securities
covered hereby as may be necessary in order to preserve the economic benefits of
this Warrant to the Holder.  The above provisions shall apply
regardless of whether or not there would have been a sufficient number of shares
of Common Stock authorized and available for issuance upon exercise of this
Warrant as of the date of such transaction, and shall similarly apply to
successive Major Transactions.

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

    

     

    (c)           Adjustments; Additional
Shares, Securities or Assets.  In the event that at any time,
as a result of an adjustment made pursuant to this Section 6,
the Holder of this Warrant shall, upon exercise of this Warrant, become entitled
to receive securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Section
6.  Any adjustment made herein that results in a decrease in
the Exercise Price shall also effect a proportional increase in the number of
shares of Common Stock into which this Warrant is exercisable so that the
aggregate Exercise Price that the Holder must pay in order to exercise this
Warrant in full shall remain unchanged immediately before and after such
adjustment.

     

    7.           MISCELLANEOUS.

     

    (a)           Failure to Exercise Rights
not Waiver.  No failure or delay on the part of the Holder in
the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude any other or further exercise thereof. All rights
and remedies of the Holder hereunder are cumulative and not exclusive of any
rights or remedies otherwise available. In the event that the Company breaches
any of its obligations hereunder to issue Warrant Shares or pay any amounts as
and when due, the Company shall bear all costs incurred by the Holder in
collecting such amount, including without limitation reasonable legal fees and
expenses.

     

    (b)           Notices. Any notice,
demand or request required or permitted to be given by the Company or the Holder
pursuant to the terms of this Warrant shall be in writing and shall be deemed
delivered (i) when delivered personally, against written receipt therefor, or by
verifiable facsimile transmission, unless such delivery is made on a day that is
not a Business Day, in which case such delivery will be deemed to be made on the
next succeeding Business Day, (ii) on the next Business Day after timely
delivery to a nationally recognized overnight courier and (iii) on the Business
Day actually received if deposited in the U.S. mail (certified or registered
mail, return receipt requested, postage prepaid), addressed as
follows:

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

    

    If to the
Company:

    

    Integral
Vision, Inc.

    49113
Wixom Tech Drive

    Wixom,
Michigan  48393

    Attn:     Mark
R. Doede, President

    Tel:        (248)
668-9230 x203

    Fax:        (248)
668-9384

    

    With
a Copy to:

    

    Mazzeo
Song & Bradham LLP

    708 Third
Avenue, 19th
Floor

    New York,
New York 10017

    Attn:     David
S. Song, Esq.

    Tel:        (212)
599-0700

    Fax:        (212)
599-8400

    

    and if to
the Holder, to such address as shall appear on the books of the Company; or as
shall otherwise be designated by such party in writing to the other parties
hereto in accordance this Section
7(b).  Written confirmation of receipt generated by the
sender’s facsimile machine containing the time, date, recipient facsimile number
and an image of the first page of such transmission shall be rebuttable evidence
of receipt by facsimile in accordance with clause (i) above.

    

    (c)           Amendments and
Waivers.  No (i) amendment to this Warrant or (ii) waiver of
any agreement or other obligation of the Company under this Warrant may be made
or given except pursuant to a written instrument executed by the Company and the
Holder.  No waiver of any provision of this Warrant applicable to the
Holder may be made except pursuant to a written instrument executed by the
Holder and the Company.  Any waiver given pursuant hereto shall be
effective only in the specific instance and for the specific purpose for which
given.

     

    (d)           Transfer of
Warrant.  The Holder may sell, transfer or otherwise dispose of
all or any part of this Warrant (including without limitation pursuant to a
pledge) to any Person as long as such sale, transfer or disposition is the
subject of an effective registration statement under the Securities Act and
applicable state securities laws, or is exempt from registration
thereunder.  From and after the date of any such sale, transfer or
disposition, the transferee hereof shall be deemed to be the holder of the
portion of this Warrant acquired by such transferee, and the Company shall, as
promptly as practicable (but in no event later than three (3) Business Days from
the date it receives notice thereof), issue and deliver to such transferee a new
Warrant identical in all respects to this Warrant, in the name of such
transferee.  The Company shall be entitled to treat the original
Holder as the holder of this entire Warrant unless and until it receives written
notice of the sale, transfer or disposition hereof.

     

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

     

    (e)           Lost or Stolen
Warrant.  Upon receipt by the Company of evidence of the loss,
theft, destruction or mutilation of this Warrant, and (in the case of loss,
theft or destruction) of indemnity or security reasonably satisfactory to the
Company, and upon surrender and cancellation of this Warrant, if mutilated, the
Company shall execute and deliver to the Holder a new Warrant identical in all
respects to this Warrant.

     

    (f)           Governing
Law.  This Warrant shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York.

     

    (g)           Successors and
Assigns.  The terms and conditions of this Warrant shall inure
to the benefit of and be binding upon the respective successors (whether by
merger or otherwise) and permitted assigns of the Company and the Holder. The
Company may not assign its rights or obligations under this Warrant except as
specifically required or permitted pursuant to the terms hereof.

    

     

    [Signature
Page to Follow]

     

    
      
        
        

      

      
        -38-

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Company has duly executed and delivered this Warrant as of
the Issue Date.

    

    
      
        
          
            
              	
                      INTEGRAL
      VISION, INC.

                    
	 
      	 
      
	
                      By:

                    	 
      
	 
      	
                      Mark
      R. Doede

                    
	 
      	
                      President

                    

            

          

        

      

    

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

     

    EXHIBIT A
to WARRANT

    

    EXERCISE
NOTICE

    

    The undersigned Holder hereby
irrevocably exercises the right to purchase   of the shares
of Common Stock (“Warrant Shares”) of
INTEGRAL VISION, INC. evidenced by the attached Warrant (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

    

    1.           Form of Exercise
Price.  The Holder intends that payment of the Exercise Price
shall be made as:

    

    ______ a Cash Exercise with
respect to _________________ Warrant Shares; and/or

    

    ______ a Cashless Exercise
with respect to _________________ Warrant Shares.

    

    2.           Payment of Exercise
Price.  In the event that the Holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the Holder shall pay the sum of $________________ to the Company in
accordance with the terms of the Warrant.

    

    
      
        
          
            
              
                
                  	

                          Date:
      

                        	 	 

                

              

            

          

        

      

      

      
        
          
            
              
                
                  	
                           

                        
	
                          Name
      of Registered Holder

                        
	 
      	 
      
	
                          By:

                        	
                           

                        
	 
      	
                          Name:

                        
	 
      	
                          Title:

                        

                

              

            

             

            Holder Requests Delivery to
be made: (check one)

          

        

      

    

    

    
      	
              o

            	
              By
      Delivery of Physical Certificates to the Above
  Address

            

    

    

    
      	
              o

            	
              Through
      Depository Trust Corporation

              (Account                                            
      )

            

    

     

    
      
         

      

      
        -40-

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