Document:

Exhibit 10.1

EXCHANGE AGREEMENT

                    THIS EXCHANGE AGREEMENT (the “Agreement”) is made as of the ___ day of _______, 2006, by and among LogicVision, Inc., a Delaware corporation (the “Company”) and the holder of the Additional Cash Exchange Rights (as such term is hereinafter defined) named on the signature page hereto (the “Holder”). Capitalized terms used and not defined herein having the meanings ascribed to such terms in the Agreement and Plan of Merger, dated October 13, 2004, among the Company, Signal Acquisition Corporation and SiVerion, Inc. (the “Merger Agreement”).

                    WHEREAS, pursuant to the Merger Agreement, each of the Company Shares held by the Securityholders and issued and outstanding as of the Effective Time was converted into the Merger Consideration, consisting in part of the right to receive, if and only if the Two Year Parent Trading Price is less than $3.00, cash per each Company Share equal to the Additional Cash Exchange Amount (such right with respect to each individual Company Share an “Additional Cash Exchange Right”);

                    WHEREAS, the Holder owns Additional Cash Exchange Rights in the amount set forth opposite the Holder’s name on Schedule A hereto;

                    WHEREAS, the parties desire to exchange the Additional Cash Exchange Rights held by the Holder for shares of common stock of the Company (“Common Stock”).

                    THE PARTIES HEREBY AGREE AS FOLLOWS:

          1.       Subject to the terms and conditions of this Agreement, Holder agrees to exchange at the Closing such Holder’s Additional Cash Exchange Rights set forth opposite such Holder’s name on Schedule A hereto for, and the Company agrees to issue to Holder in exchange for such Additional Cash Exchange Rights, that number of shares of Common Stock (the “Shares”) set forth opposite such Holder’s name on Schedule A hereto (the “Exchange”).

          2.       The Exchange shall take place at the offices of the Company, 25 Metro Drive, Third Floor, San Jose, California at 10:00 a.m., on _______ __, 2006, or at such other time and place as the Company and the Holder mutually agree upon (which time and place are designated as the “Closing”).  At the Closing, the Company shall deliver to the Holder a certificate representing the Common Stock for which Holder is exchanging such Holder’s Additional Cash Exchange Rights against cancellation of such Holder’s Additional Cash Exchange Rights.

          3.       The Company hereby represents and warrants to the Holder as follows:

          3.1     The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted. The Company is qualified to do business as a foreign corporation and is in good standing under the laws of each state or other jurisdiction in which the nature of its business requires such qualification, except where the failure to be so qualified or in good standing would not have a material adverse effect on the Company and its subsidiaries, taken as a whole.

          3.2     The Company has all requisite corporate power and authority to enter into this Agreement and to carry out and perform its obligations hereunder and consummate the transactions contemplated hereby. 

          3.3     The execution and delivery of this Agreement, the performance by the Company of its obligations hereunder and the consummation by the Company of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed and delivered on behalf of the Company and constitutes a legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights generally and

(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. The Shares, when issued in compliance with the provisions of the Agreement upon payment of the consideration provided for herein, will be duly and validly issued, fully paid and nonassessable.

          3.4     The execution, delivery and performance of this Agreement and the transactions contemplated hereby (a) will not result in any violation of, conflict with, constitute a breach, violation or default (with or without notice or lapse of time, or both) under, give rise to a right of termination, cancellation, forfeiture or acceleration of any obligation or loss of any benefit under, or result in the creation or encumbrance on any of the properties or assets of the Company or its subsidiaries, pursuant to (i) any provision of the Company’s Certificate of Incorporation or bylaws, or (ii) any contract to which the Company is a party and which is filed as a material contract with the Company’s SEC Filings (as defined below), or (b) to the knowledge of the Company after reasonable inquiry, conflict with or result in any breach or violation of any statute, judgment, decree,
order, rule or governmental regulation applicable to the Company or any of its subsidiaries or their respective properties or assets, except, in the case of clauses (a)(ii) and (b) for any of the foregoing that would not, individually or in the aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a whole, or that could not result in the creation of any material lien, charge or encumbrance upon any assets of the Company or any of its subsidiaries or that could not prevent, materially delay or materially burden the transactions contemplated by this Agreement.

          3.5     The Company has timely filed all required schedules, reports, proxy statements or information statements with the Securities and Exchange Commission (the “SEC”) since January 1, 2006, including, but not limited to, (a) the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, (b) the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, (c) the Company’s Proxy Statement for its Annual Meeting of Stockholders to be held on May 11, 2006, and (d) reports on Form 8-K filed within the meaning of the Securities Exchange Act of 1934 since January 1, 2006 (collectively, the “Company’s SEC Filings”). As of their respective filing dates, the Company’s SEC Filings complied in all material respects with the requirements of the Securities Exchange Act of 1934 and, as of
their respective filing dates, the Company’s SEC Filings did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading.

          3.6     No consent, approval, order or authorization of, or designation, declaration registration, qualification or filing with, any governmental authority on the part of the Company is required in connection with the valid execution and delivery of the Agreement, or the Exchange, except for (a) such consents, approvals, orders, authorizations, registrations, declarations, qualifications or filings as may be required under federal or state securities laws in connection with the transactions set forth herein or which the failure to obtain would not have a material adverse effect on the consummation by Company of the Exchange, and (b) the listing of the Shares to be issued pursuant hereto on The Nasdaq Stock Market.

          3.7     The Company has not engaged, in connection with the Exchange, any broker or finder for the purpose of soliciting the Exchange, and the Company has not paid or given any commission or other remuneration, either directly or indirectly, for soliciting the Exchange. 

          4.       In connection with the Exchange, the Holder hereby makes the representations set forth in this Section 4.  THE HOLDER EXPRESSLY ACKNOWLEDGES THAT THE COMPANY WILL BE RELYING ON THESE REPRESENTATIONS IN ESTABLISHING THE AVAILABILITY OF EXEMPTIONS FROM REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) AND APPLICABLE STATE SECURITIES LAWS.

          4.1     The Shares to be issued to the Holder pursuant to the Exchange will be acquired for investment for the Holder’s own account, not as a nominee or agent, and not with a view to or for sale in connection with any distribution or resale of any part thereof in violation of the Securities Act or any state securities laws, and the Holder has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Holder represents that the entire legal and beneficial interest of the Shares will be held for the Holder’s account only, and neither in whole or in part for any other person. The Holder further represents that it has no present contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any third person, with respect to any of the Shares.

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          4.2     The Holder understands and acknowledges that the Exchange is being effected on the basis that the issuance of the Shares is exempt from registration pursuant to Section 4(2) of the Securities Act and Rule 506 under Regulation D promulgated thereunder and that the Company’s reliance upon such exemptions is predicated in part upon the Holder’s representation in this Section 4.

          4.3     The Holder further represents that it, either acting alone or after consultation with the Holder’s professional advisors (including legal and tax):  (i) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the Holder’s prospective investment in the Shares; (ii) has received a copy of the Company’s SEC Filings; (iii) has received all the information that the Holder has requested from the Company that the Holder or its advisors considers necessary or appropriate in making the investment decision in connection with the Exchange; (iv) has the ability to bear the economic risks of the Holder’s prospective investment; (v) is able, without materially impairing its financial condition, to hold the Shares for an indefinite period of time and to suffer complete loss of the investment; (vi)
is an “accredited investor” as defined in Rule 501 under Regulation D of the Securities Act.

          4.4     Each certificate representing the Shares and any shares issued or issuable in respect of any such Shares upon any stock split, stock dividend, recapitalization, or similar event, shall be stamped or otherwise imprinted with legends in substantially the following form (in addition to any legend required under applicable state securities laws):

	
  
 
  	
  
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN   ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT   OF 1933 (“SECURITIES ACT”).  THESE   SECURITIES MAY NOT BE OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED   IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION UNDER THE SECURITIES ACT   OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO LOGICVISION, INC.   AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.
  

          4.5     The certificates evidencing the Shares shall also bear any legend required pursuant to any state, local or foreign law governing such securities.

          4.6     The Holder understands and acknowledges that the Shares have not been registered under the Securities Act.  The Shares must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available.  The Holder further understands and acknowledges that the Company has no obligation to register the Shares except pursuant to the Registration Rights Agreement.

          4.7     The Holder acknowledges that the Shares shall not be transferable except upon the conditions specified in this Agreement and in any event only to a transferee that agrees in writing to be bound by the terms hereof; provided, however, that a transferee need not agree in writing to be bound by the terms hereof where the transfer to such transferee is pursuant to registration under the Securities Act or pursuant to Rule 144 promulgated under the Securities Act.

          4.8     Prior to any proposed transfer of any Shares, unless there is in effect a registration statement under the Securities Act covering the proposed transfer, the Holder shall give written notice to the Company of its intention to effect such transfer.  Each such notice shall describe the manner and circumstances of the proposed transfer in sufficient detail, and shall, if the Company so requests, be accompanied by either (i) a written opinion of legal counsel who shall be reasonably satisfactory to the Company, addressed to the Company and reasonably satisfactory in form and substance to the Company’s counsel, to the effect that the proposed transfer of the Shares may be effected without registration under the Securities Act, or the consent of or a permit from applicable state authorities, or (ii) a “no-action” letter from the SEC to the effect that the
transfer of such securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto, whereupon the holder of such Shares shall be entitled to transfer such Shares in accordance with the terms of the notice delivered by the holder to the Company.

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Each certificate evidencing the Shares transferred as above provided shall bear the appropriate restrictive legend set forth in Section 4.4 above, except that such certificate shall not bear such restrictive legend if in the opinion of counsel for the Company such legend is not required in order to establish compliance with any provisions of the Securities Act.  

          4.9     The Shares to be received by the Holder in the Exchange constitute “restricted securities” within the meaning of Rule 144 promulgated under the Securities Act.  The Holder is familiar with the provisions of Rule 144 which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof (or from an affiliate of such issuer) in a non-public offering subject to the satisfaction of certain conditions, including, among other things:  (i) a public trading market then exists for the Common Stock, (ii) the availability of certain public information about the Company, (iii) the resale occurring not less than one (1) year after the party has purchased, and made full payment for, within the meaning of Rule 144, the securities to be sold, and (iv) the sale being made through a broker in an
unsolicited “broker transaction” or in transactions directly with a market maker (as such term is defined under the Securities Exchange Act of 1934) and the amount of securities being sold during any three (3) month period not exceeding the specified limitations stated therein, if applicable.  The Holder further understands that at the time the Holder wishes to sell the Shares there may be no public market upon which to make such a sale, and that, even if such a public market then exists, the Company may not be satisfying the current public information requirements of Rule 144, and that, in such event, the Holder would be precluded from selling the Shares received from the Company under Rule 144 even if the one (1) year minimum holding period has been satisfied.  The Holder further understands that in the event all of the applicable requirements of Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other exemption from
registration under the Securities Act would be required to sell the Shares received from the Company.  

          4.10   The Holder is the sole owner of the amount of Additional Cash Exchange Rights as is set forth opposite the Holder’s name on Schedule A hereto.  Such Additional Cash Exchange Rights are not subject to any claim, lien, pledge, charge, security interest or other encumbrance or to any rights of first refusal of any kind, and the Holder has not granted any rights to purchase such Additional Cash Exchange Rights to any other person or entity.  The Holder has the sole right to transfer such Additional Cash Exchange Rights.  Such Additional Cash Exchange Rights constitute all of the Additional Cash Exchange Rights owned by the Holder.

          4.11   The Holder has had an opportunity to review with its own tax advisors the tax consequences to the Holder of the Exchange. The Holder understands that it must rely solely on its advisors and not on any statements or representations by the Company or any of their attorneys, investment advisors, accountants or other agents with respect to tax matters.

          5.       The Holder’s obligations to exchange such Holder’s Additional Cash Exchange Rights for, and the Company’s obligations to issue, Common Stock are subject to the fulfillment to their satisfaction on or prior to the Closing of the following conditions, the waiver of which shall not be effective against any party who does not consent thereto in writing:

          5.1     All authorizations, approvals, filings, or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the issuance of the Common Stock pursuant to the Exchange shall have been duly obtained and shall be effective on and as of the Closing.  At the time of the Closing, the exchange and issuance of the Shares shall be legally permitted by all laws and regulations to which the Holder and the Company are subject.

          5.2     All corporate and other proceedings in connection with the transactions contemplated hereunder and all documents and instruments incident to such transactions shall be reasonably satisfactory in substance and form to the Company and the Holder, and the Holders shall have received all such counterpart originals or certified or other copies of such documents as they may reasonably request.

          5.3     The Company shall have entered into the Registration Rights Agreement, substantially in the form attached hereto as Exhibit A.

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          6.       The Agreement shall be governed by, and construed under, the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California.

          7.       Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the respective successors, assigns, heirs, executors and administrators of the parties hereto.

          8.       The Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof.

          9.       Each of the parties hereto shall pay its own expenses (including attorneys’ fees) incurred in connection with the transactions contemplated by the Agreement.

          10.     The Agreement may be executed in counterparts, each of which shall be enforceable against the party actually executing such counterpart, and which together shall constitute one instrument.

          11.     In the event that any provision of the Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, the Agreement shall continue in full force and effect without said provision.

          12.     This Agreement may be amended only by the written consent of the Company and the Holder.

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EXCHANGE AGREEMENT

SIGNATURE PAGE

                    The foregoing Agreement is hereby executed as of the date first above written.

	
  
 
  	
  
LOGICVISION, INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
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SCHEDULE A

          Holder                    Additional Cash Exchange Rights                     SharesExhibit 10.2

REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of the 23rd day of June, 2006 by and among LogicVision, Inc., a Delaware corporation (“LogicVision”) and the persons listed on Schedule A hereto (the “Holders”).

          WHEREAS, LogicVision and the Holders have entered into that certain Exchange Agreement, dated as of the date hereof (the “Exchange Agreement”), pursuant to which the Holders will exchange the Additional Cash Exchange Rights held by each of them and receive pursuant to the Exchange shares (the “Shares”) of LogicVision common stock, $0.0001 par value per share (“Common Stock”); and

          WHEREAS, in connection with the issuance of the Shares in the Exchange, LogicVision and the Holders desire to provide for the rights of the Holders with respect to the registration of certain of the Shares according to the terms of this Agreement.

          NOW THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

          1.        Definitions.

          1.1      The term “Commission” means the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

          1.2      The term “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

          1.3      The term “Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 10 hereof;

          1.4      The terms “register,” “registered” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document;

          1.5      The term “Registrable Securities” means (i) the Shares held by each Holder (rounded up to the nearest whole share), and (ii) Common Stock issued prior to the Effective Date (as defined in Section 2.1 below) as a dividend or other distribution with respect to, or in exchange for or in replacement of, the Shares, excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which such person’s registration rights are not assigned; provided, however, that any Shares previously sold to the public pursuant to a registered public offering or pursuant to Rule 144 under the Securities Act shall cease to be Registrable Securities.

          1.6      The term “Securities Act” means the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

          1.7      All other capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Exchange Agreement to which this Exhibit A is attached.

          2.        Registration.

          2.1      Subject to Section 3.1 hereof, LogicVision shall prepare and file with the Commission a registration statement on Form S-3 for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act covering the then outstanding Registrable Securities then held by each Holder (the “Registration Statement”), and shall use all reasonable efforts to cause the Registration Statement to be declared effective as soon as practicable after the date which is six months following the Closing Date.  The date such Registration Statement is declared effective is hereinafter referred to as the “Effective Date.”

          2.2      A Holder may inform LogicVision in writing that such Holder wishes to exclude all or a portion of its Registrable Securities from the Registration Statement.

          2.3      The registration of the Registrable Securities provided for in this Section 2 shall not be underwritten.

          3.        Obligations of LogicVision.  LogicVision shall, as expeditiously as reasonably possible:

          3.1      Prepare and file with the Commission the Registration Statement and use its reasonable efforts to cause the Registration Statement to become effective on or prior to the the six-month anniversary of the Closing Date, and keep the Registration Statement continuously effective under the Securities Act until the earlier of the expiration of two years after the date of the Closing of the Exchange (the “Closing Date”) or the date on which this Agreement has terminated with respect to all the Holders of Registrable Securities (such period is hereinafter referred to as the “Effectiveness Period”).  In the event that, in the reasonable judgment of LogicVision, it is advisable to postpone the filing or effectiveness of the Registration Statement or, if effective, to suspend use of the prospectus relating to the Registration Statement for
a discrete period of time, but not in excess of 60 days, (a “Deferral Period”) due to pending material corporate developments or similar material events that have not yet been publicly disclosed and as to which LogicVision believes public disclosure will be prejudicial to LogicVision, LogicVision shall deliver a certificate in writing, signed by its Chief Executive Officer or Chief Financial Officer, to each Holder, to the effect of the foregoing and, upon receipt of such certificate, each Holder agrees not to dispose of such Holder’s Registrable Securities covered by the Registration Statement (other than in transactions exempt from the registration requirements under the Securities Act) until such Holders are advised in writing by LogicVision that use of the prospectus may be resumed; provided, however, that executive officers and directors of LogicVision shall be prohibited from selling shares of LogicVision Common Stock during the Deferral Period and there shall be no
more than one Deferral Period prior to the Effectiveness Period and the aggregate number of days included in all Deferral Periods during the Effectiveness Period shall not exceed 120 days.  Subject to the last clause of the first sentence of this Section 3.1, the Effectiveness Period shall be extended for a period of time equal to any Deferral Period that occurs during the Effectiveness Period.

          3.2      Prepare and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection with the Registration Statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by the Registration Statement.

          3.3      Furnish to the Holders covered by the Registration Statement such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of such Registrable Securities.

          3.4      Use all reasonable efforts to register and qualify the securities covered by the Registration Statement under such other securities or Blue Sky laws of such United States jurisdictions as shall be reasonably requested by the Holders thereof and keep such registrations and qualifications in effect during the Effectiveness Period, provided  that LogicVision 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 states or jurisdictions.

          4.        Obligations of the Holders; Procedures for Sales of Shares Under the Registration Statement.

          4.1      It shall be a condition precedent to the obligations of LogicVision to take any action pursuant to this Agreement that the selling Holders shall furnish to LogicVision such information regarding themselves, the Registrable Securities held by them, and the intended method of disposition of such securities as shall be required to effect the registration of the Registrable Securities.  LogicVision agrees to permit all customary methods of disposition (other than underwritten offerings) to be included in the plan of distribution described in the Registration Statement and, to the extent permitted by law and reasonably concurred with by counsel for LogicVision, the plan of distribution for any Holder that is a partnership may include distributions to partners of such partnership.

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          4.2      For any offer or sale of any of the Registrable Securities under the Registration Statement by a Holder in a transaction that is not exempt under the Securities Act, the Holder, in addition to complying with any other federal securities laws, shall deliver a copy of the final prospectus (together with any amendment of or supplement to such prospectus) of LogicVision covering the Registrable Securities, in the form furnished to the Holder by LogicVision, to the purchaser of any of the Registrable Securities on or before the settlement date for the purchase of such Registrable Securities.

          4.3      Upon the receipt by a Holder of any notice from LogicVision of (1) the existence of any fact or the happening of any event as a result of which the prospectus included in the Registration Statement, as the Registration Statement is then in effect, contains an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (2) the issuance by the Commission of any stop order or injunction suspending or enjoining the use or the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose, or the taking of any similar action by the securities regulators of any state or other jurisdiction, or (3) the request by the Commission or any other federal or state governmental agency for amendments or
supplements to the Registration Statement or related prospectus or for additional information related thereto, such Holder shall forthwith discontinue disposition of such Holder’s Registrable Securities covered by the Registration Statement or related prospectus (other than in transactions exempt from the registration requirements under the Securities Act) until such Holder’s receipt of the supplemented or amended prospectus or until such Holder is advised in writing by LogicVision that the use of the applicable prospectus may be resumed.  In such a case, LogicVision shall as promptly as practicable (i) prepare an amendment to correct or update the prospectus, (ii) use its reasonable efforts to remove the impediments referred to in subclause (ii) above, or (iii) comply with the requests referred to in subclause (3) above, and the Effectiveness Period shall be extended by the number of days from and including the date of the giving of such notice to and including the
date when each Holder shall have received a copy of the supplemented or amended prospectus or when such Holder is advised in writing by LogicVision that the use of the applicable prospectus may be resumed.

          5.        Expenses.  LogicVision shall bear and pay all expenses incurred by LogicVision in connection with any registration, filing or qualification of Registrable Securities with respect to the Registration Statement for each Holder thereof (which right may be assigned as provided in Section 8 hereof), including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees relating or apportionable thereto, fees and disbursements of counsel for LogicVision, blue sky fees and expenses, including fees and disbursements of counsel related to all blue sky matters, the expenses of providing materials pursuant to Section 3.3 hereof, but excluding the fees and disbursements of any counsel for the selling Holders, stock transfer taxes that may be payable by the selling Holders, and all underwriting, brokerage or
other discounts and commissions relating to Registrable Securities, which shall be borne by the Holders.

          6.        Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying the Registration Statement as the result of any controversy that might arise with respect to the interpretation or implementation of this Agreement.

          7.        Indemnification.  In the event any Registrable Securities are included in the Registration Statement under this Agreement:

          7.1      To the extent permitted by law, LogicVision will indemnify and hold harmless each Holder of such Registrable Securities, the officers and directors of each such Holder, and each person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”):  (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, including any preliminary prospectus or final prospectus contained therein
or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by LogicVision of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and LogicVision will reimburse each such Holder, officer or director, or controlling person

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for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement contained in this Section 7.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of LogicVision (which consent shall not be unreasonably withheld), nor shall LogicVision be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, officer, director, or controlling person.

          7.2      To the extent permitted by law, each selling Holder will indemnify and hold harmless LogicVision, each of its directors, each of its officers who have signed the Registration Statement, each person, if any, who controls LogicVision within the meaning of the Securities Act, and any other Holder selling securities in the Registration Statement or any of its directors or officers or any person who controls such Holder, against any losses, claims, damages or liabilities (joint or several) to which LogicVision or any such director, officer or controlling person, or other such Holder or director, officer or controlling person may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will reimburse any legal or other expenses reasonably incurred by LogicVision or any such director, officer, controlling person, or other Holder, director, officer or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 7.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, that in no event shall any indemnity under this Section 7.2 exceed the gross proceeds received by such Holder from the sale of Registrable Securities as contemplated hereunder.

          7.3      Promptly after receipt by an indemnified party under this Section 7 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 7, 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 the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party
would be inappropriate due to actual or potential differing 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 commencement of any such action, if materially prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 7, 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 7.

          7.4      The obligations of LogicVision and the Holders under this Section 7 shall survive the completion of any offering of Registrable Securities in the Registration Statement under this Agreement, and otherwise.

          8.        Assignment of Registration Rights.  The rights to cause LogicVision to register Registrable Securities pursuant to this Agreement may be assigned by any Holder (i) who transfers Registrable Securities with a value (based on the closing price of the Common Stock as of the trading day immediately prior to the date of transfer) of at least $250,000 or, if less, all of his, her or its shares of Registrable Securities or (ii) in a transfer that does not require the amendment or supplement of the Registration Statement and prospectus; provided, in each case, LogicVision is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; and provided, further, that such assignment shall
be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act.  Notwithstanding the foregoing, a Holder that is a partnership may assign its rights hereunder to its partners in connection with a distribution of Registrable Securities to such partners without limitation on the amount of Registrable Securities being transferred.

- 4 -

For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of a partnership who are partners or retired partners of such partnership (including spouses and ancestors, lineal descendants and siblings of such partners or spouses who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership; provided that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this Section 8.

          9.        Termination of Registration Rights.  LogicVision’s obligations pursuant to this Agreement (other than those in Section 7) shall terminate as to any Holder of Registrable Securities on the earlier of (i) when the Holder can sell all of such Holder’s Registrable Securities pursuant to Rule 144 under the Securities Act during any 90-day period or (ii) on expiration of the Effectiveness Period.

          10.      Miscellaneous.

          10.1    Successors and Assigns.  Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and 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 assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

          10.2    Notices.  Unless otherwise provided, any notice, request, demand or other communication required or permitted under this Agreement shall be given in writing and shall be deemed effectively given upon personal delivery to the party to be notified, or when sent by telex, telecopier (with receipt confirmed), or overnight courier service, or upon deposit with the United States Post Office, by registered or certified mail, postage prepaid and addressed as follows (or at such other address as a party may designate by notice to the other):

	
  
 
  	
  
If to LogicVision:
  	
  
LogicVision, Inc.
  
	
  
 
  	
  
 
  	
  
25 Metro Drive
  
	
  
 
  	
  
 
  	
  
San Jose, CA
  
	
  
 
  	
  
 
  	
  
Attention:    Chief Executive Officer
  
	
  
 
  	
  
 
  	
  
Telecopier:    (408) 573-7640
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
with a copy to:
  	
  
Pillsbury Winthrop LLP
  
	
   
  	
  
 
  	
  
50 Fremont Street
  
	
  
 
  	
  
 
  	
  
San Francisco, CA 94105
  
	
  
 
  	
  
 
  	
  
Attention:    Stanton D. Wong, Esq.
  
	
  
 
  	
  
 
  	
  
Telecopier:    (415) 983-1200
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
If to the Holders:
  	
  
to their respective addresses shown on the signature   pages hereto
  

          10.3    Waivers.  The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the party against whom such waiver is sought to be enforced.  No waiver by either party of any default with respect to any provision, condition or requirement hereof shall be deemed to be a continuing waiver in the future thereof or a waiver of any other provision, condition or requirement hereof; nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

          10.4    Severability.  If one or more provisions of this Agreement are held to be unenforceable, invalid or void by a court of competent jurisdiction, such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

- 5 -

          10.5    Entire Agreement; Amendments.

          (a)  Except as otherwise provided herein, this Agreement contains the entire understanding of the parties with respect to the matters covered herein and supersedes all prior agreements and understandings, written or oral, between the parties relating to the subject matter hereof.

          (b)  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of LogicVision and the holders of a majority of the Registrable Securities then outstanding.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Registrable Securities then outstanding, each future holder of all such Registrable Securities, and LogicVision.

          10.6    Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Delaware (irrespective of its choice of law principles).

          10.7    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

          10.8    Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  Any reference in this Agreement to a statutory provision or rule or regulation promulgated thereunder shall be deemed to include any similar successor statutory provision or rule or regulation promulgated thereunder.

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

	
  
 
  	
  
LOGICVISION, INC.:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Bruce M. Jaffe
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Bruce M. Jaffe
  
	
   
  	
  
Title:
  	
  
Chief Financial Officer
  

- 6 -

REGISTRATION RIGHTS AGREEMENT

COUNTERPART SIGNATURE PAGE

	
  
 
  	
  
HOLDER:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
VALLEY VENTURES II, L.P.
  
	
  
 
  	
  
VALLEY VENTURES III, L.P.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Gregg E. Adkin
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Gregg E. Adkin
  
	
  
 
  	
  
Title:
  	
  
Managing Member
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Address:
  	
  
80 East Rio Salado Parkway, Suite 705
  
	
  
 
  	
  
 
  	
  
Tempe, AZ    85281
  

REGISTRATION RIGHTS AGREEMENT

COUNTERPART SIGNATURE PAGE

	
  
 
  	
  
HOLDER:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
GRAYHAWK VENTURE FUND I, L.P.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Brian N. Burns
  
	
   
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Brian N. Burns
  
	
  
 
  	
  
Title:
  	
  
Manager
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Address:
  	
  
5050 N. 40th Street
  
	
  
 
  	
  
 
  	
  
Phoenix, AZ    85018
  

Schedule A

Holders

Valley Ventures II, L.P.

Valley Ventures III, L.P.

Grayhawk Venture Fund I, L.P.

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