Document:

Execution Copy

AMENDMENT AGREEMENT

This Amendment Agreement, dated as of April 22, 2010 (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”.

Each of the Investors is the holder of a warrant dated as of September 15, 2008, as identified on Schedule A (each, a “Warrant” and, collectively, the “Warrants”).  The Parties wish to amend the Warrants.

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 Warrants.

1.1           As of the date of this Agreement, paragraph 6(c) of each of the Warrants shall be deemed amended by the insertion of the following sentence at the end of such Warrant:

Upon a reverse stock split, stock combination or similar transaction that results in a decrease in the number of outstanding shares of the Company’s capital stock, the number of shares of Common Stock for which this Warrant is exercisable shall also be proportionately reduced so that the percentage of the Company’s outstanding capital stock for which this Warrant is exercisable will remain unchanged.

 

1.2           Except as amended hereby, each Warrant shall continue in full force and effect in accordance with its terms.

2.           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 to amend the Warrants as described herein; and (ii) this Agreement 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.

3.           Representations of Each Investor. Each Investor hereby represents and warrants to the Company that 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.

  

  

  

 

4.           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.

5.           Governing Law.  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.

6.           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 Section 6.

  

  

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7.           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.

8.           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]

 

  

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 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, COO, CFO

	  
	  	  	  	  
	
BONANZA MASTER FUND LTD.

	  
	  	  
	
By:

	  	
/s/ Brian Ladin 

	  
	  	  	
Name:  Brian Ladin

	  
	  	  	
Title:  Managing Director

	  

  

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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, CFO, COO	  
	  	  
	
SRB GREENWAY OPPORTUNITY 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	  
	  	  
	
SRB GREENWAY OPPORTUNITY FUND (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	  

  

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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, CFO, COO	  
	  	  
	
KIRCHER FAMILY TRUST

	  
	  	  
	
By:

	/s/ Stephen C. Kircher	  
	  	Name:  Stephen C. Kircher	  
	  	Title:	  

  

  

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Schedule A

SCHEDULE OF INVESTORS

	
Investor 

Name

	  	
 

 

Address for Notices

	  	
 

 

Jurisdiction of

Residence

	  	
 

Number of 

Warrant Shares

in  Warrant

	
Bonanza Master Fund Ltd.

	  	
300 Crescent Court, Suite 1740

Dallas, TX 75201

Attention: Brian Ladin

 

	  	  	  	
3,000,000

	
SRB Greenway Opportunity Fund, L.P.

	  	
300 Crescent Court, Suite 1111

Dallas, TX 75201

Attention: Joe Worsham

 

	  	  	  	
42,600

	
SRB Greenway Opportunity Fund (QP), L.P.

	  	
300 Crescent Court, Suite 1111

Dallas, TX 75201

Attention: Joe Worsham

 

	  	  	  	
305,150

and

27,250

	
Kircher Family Trust

	  	
6000 Greystone Place

Granite Bay, CA 95746

Attention: Stephen C. Kircher

	  	  	  	
25,000

  

  

7Execution Copy

AMENDMENT AGREEMENT

This Amendment Agreement, dated as of April 22, 2010 (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”.

Each of the Investors is the holder of a warrant dated as of September 15, 2008, as identified on Schedule A (each, a “Warrant” and, collectively, the “Warrants”).  The Parties wish to amend the Warrants.

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 Warrants.

1.1          As of the date of this Agreement, paragraph 5(c) of each of the Warrants shall be deemed amended by the insertion of the following sentence at the end of such Warrant:

Upon a reverse stock split, stock combination or similar transaction that results in a decrease in the number of outstanding shares of the Company’s capital stock, the number of shares of Common Stock for which this Warrant is exercisable shall also be proportionately reduced so that the percentage of the Company’s outstanding capital stock for which this Warrant is exercisable will remain unchanged.

 

1.2          Except as amended hereby, each Warrant shall continue in full force and effect in accordance with its terms.

2.           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 to amend the Warrants as described herein; and (ii) this Agreement 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.

 

  

  

  

3.           Representations of Each Investor. Each Investor hereby represents and warrants to the Company that 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.

4.           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.

5.           Governing Law.  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.

6.           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 Section 6.

 

  

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7.           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.

8.           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]

 

  

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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, CFO, COO

	
 

	  	  
	
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

	
 

 

  

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Schedule A

SCHEDULE OF INVESTORS

 

	
 

 

Investor 

Name

	
 

 

Address for Notices

	
 

 

Jurisdiction of Residence

	
 

Number of 

Warrant Shares

in  Warrant

	
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

 

  

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