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EXHIBIT 10.3    
  

THIS WARRANT CERTIFICATE IS EXERCISABLE ON OR BEFORE,

AND VOID AFTER,5:00 P.M. MINNEAPOLIS TIME, JUNE 30, 2003

WARRANTS TO PURCHASE COMMON STOCK OF  

 PPT VISION, INC.  

 INCORPORATED UNDER THE LAWS OF THE STATE OF MINNESOTA  

	NO. W-	 	CERTIFICATE FOR                          WARRANTS

	 	 	

	 	 	CUSIP	 	 
	 	 	

THIS
CERTIFIES THAT 

or
assigns, is the owner of the number of Warrants set forth above, each of which represents the right to purchase from PPT Vision, Inc., a Minnesota corporation (the "Company"), at any time on
or before 5:00 P.M. Minneapolis time, June, 30, 2003, upon compliance with and subject to the conditions set forth herein and in the Warrant Agreement hereinafter referred to, shares (subject
to adjustments referred to below) of the Common Stock of the Company (such shares or other securities or property purchasable upon exercise of the Warrants being herein called the "Shares"), by
surrendering this Warrant Certificate, with the Purchase Form on the reverse side duly executed, at the principal office of Wells Fargo Bank MN, N.A. in South St. Paul, or its successor, as warrant
agent (the "Warrant Agent"), and by paying in full, in cash or by certified or official bank check payable to the order of the Company, the exercise price of $            per share.

        Upon
any exercise of less than all the Warrants evidenced by this Warrant Certificate, there shall be issued to the holder a new Warrant Certificate in respect of the Warrants as to
which this Warrant Certificate was not exercised. 

        Upon
the surrender for transfer or exchange of any Warrant Certificates, properly endorsed, to the Warrant Agent, the Warrant Agent at the Company's expense will issue and deliver to the
order of the holder hereof, a new Warrant Certificate or Warrant Certificates of like tenor, in the name of such holder or as such holder (upon payment by such holder of any applicable transfer taxes)
may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face hereof. 

        The
Warrant Certificates are issued only as registered Warrant Certificates. Until this Warrant Certificate is transferred in the Warrant Register, the Company and the Warrant Agent may
treat the person in whose name this Warrant Certificate is registered as the absolute owner hereof and of the Warrants represented hereby for all purposes, notwithstanding any notice to the contrary. 

        This
Warrant Certificate is issued under the Warrant Agreement dated as of                        , 2002 between the Company and the
Warrant Agent. The Warrant Agreement is hereby incorporated
by reference into this Warrant Certificate and this Warrant Certificate is subject to the terms and provisions contained in said Warrant Agreement, to all of which terms and provisions the registered
holder of this Warrant Certificate consents by acceptance hereof. Copies of said Warrant Agreement are on file at the office of the Warrant Agent in South St. Paul, Minnesota, and may be obtained by
writing to the Warrant Agent. 

        The
number of Shares receivable upon the exercise of the Warrants represented by this Warrant Certificate and the exercise price per share are subject to adjustment upon the happening of
certain events specified in the Warrant Agreement. 

 

        No
fractional Shares of the Company's Common Stock will be issued upon the exercise of the Warrants. As to any final fraction of a share which a holder of Warrants exercised in the same
transaction would otherwise be entitled to purchase on such exercise, the Company shall pay a cash adjustment in lieu of any fractional Share determined as provided in the Warrant Agreement. 

        The
Warrants may be redeemed at the option of the Company, at any time commencing after                        , 2002, and following a
period of            consecutive trading days where
the per share closing bid price of the Common Stock exceeds $            , on notice as set forth in the Warrant Agreement, and at a redemption price equal to $.01 per Warrant. If notice of
redemption shall have been given as provided in the Warrant Agreement and cash sufficient for the redemption be deposited by the Company for that purpose, the exercise rights of the Warrants
identified for redemption shall expire at the close of business on such date of redemption unless extended by the Company. 

        This
Warrant Certificate shall not entitle the holder hereof to any of the rights of a holder of Common Stock of the Company, including, without limitation, the right to vote, to receive
dividends and other distributions, to exercise any preemptive right, or to receive any notice of, or to attend meetings of holders of Common Stock or any other proceedings of the Company. 

        This
Warrant Certificate shall be void and the Warrants and any rights represented hereby shall cease unless exercised on or before 5:00 P.M. Minneapolis time on June 30,
2003, unless extended by the Company. 

        This
Warrant Certificate shall not be valid for any purpose until it shall have been countersigned by the Warrant Agent. 

        WITNESS
the facsimile signatures of the Company's duly authorized officers. 

	 	 	 	PPT VISION, INC.
	

Dated:	

 	
 	

 	

 
	

COUNTERSIGNED AND REGISTERED:	
 	

 	

 
	

WELLS FARGO BANK MN, N.A.

    (            , Minnesota)	
 	

By	

/s/  JOSEPH C. CHRISTENSON      
 President
	 	as Warrant Agent	 	 	 
	

By	

 	
 	

Attest	

/s/
	 	
 Authorized Officer	 	 	
 Secretary

2

 

THE CORPORATION WILL FURNISH ANY SHAREHOLDER UPON REQUEST AND WITHOUT CHARGE, A COPY OF THE ARTICLES OF INCORPORATION AND A FULL STATEMENT OF THE DESIGNATIONS, PREFERENCES,
LIMITATIONS, AND RELATIVE RIGHTS OF THE SHARES OF EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED, SO FAR AS THEY HAVE BEEN DETERMINED, AND THE AUTHORITY OF THE BOARD TO DETERMINE THE RELATIVE RIGHTS AND
PREFERENCES OF SUBSEQUENT CLASSES OR SERIES. 

	To:	PPT Vision, Inc.

c/o Wells Fargo Bank MN, N.A.

Warrant Agent

PURCHASE FORM

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO EXERCISE

WARRANT CERTIFICATES)  

        The undersigned hereby irrevocably elects to exercise the Warrants represented by the Warrant Certificate and to purchase for
cash                        Shares*
issuable upon the exercise of said Warrants and requests that certificates for such Shares shall be issued in the name of 

	PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF

REGISTERED HOLDER OF CERTIFICATE	 	 	 	 
	 	 	 	 	 
	
	 	 	 	 
	

 	
 	

 	
 	

 
	
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	
 (Print Name)
	 	 	 	 	 
	 	 	 	 	
 (Address)
	 	 	 	 	 
	 	 	 	 	
 (Address)
	 	 	 	 	 	 	 
	

Dated:	
 	

 	
 	

Signature:	
 	

 
	 	 	
	 	 	 	

	*
	Insert
here the number of shares issuable upon the exercise of this Warrant, equal to half the number of Warrants evidenced on the face of this Warrant Certificate (or, in the case of a
partial exercise, the portion thereof being exercised), in either case without making any adjustment for additional Common Stock or any other securities or property or cash which, pursuant to the
adjustment provisions referred to in this Warrant Certificate, may be deliverable upon exercise. 

3

 
ASSIGNMENT FORM

(TO BE EXECUTED BY THE REGISTERED HOLDER IN ORDER TO TRANSFER WARRANT

CERTIFICATES)  

	PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE	 	FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers                        of the
Warrants to purchase shares of Common Stock represented by this Warrant Certificate unto
	
	 	 	 	 
	 	 	 	 	 
	
	 	 	 	 
	 
	
 (Please print or typewrite name and address, including postal zip code, of assignee)
	 
	

	 
	

	and does hereby irrevocably constitute and appoint                        Attorney to
transfer this Warrant Certificate on the records of the Company with full power of substitution in the premises.
	

Dated:	
 	

 	
 	

Signature(s)	
 	

 
	 	 	
	 	 	 	

	

SIGNATURE(S) GUARANTEED:	
 	

 	
 	

 
	 	 	 	 	 	 	 
	
	 	 	 	 

NOTICE:  

THE
SIGNATURE(S) TO THE PURCHASE FORM OR THE ASSIGNMENT FORM MUST CORRESPOND TO THE NAME(S) AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT
OR ANY CHANGE WHATSOEVER. 

4

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EXHIBIT 10.3EXHIBIT 10.4  

March    , 2002                          

Dear
Shareholder: 

        I
have enclosed a copy of the Prospectus dated                        , 2002 describing a Rights Offering by which PPT Vision, Inc.
(the "Company") offers its shareholders the rights to purchase
2,800,000 Units (the "Rights"). 

	•
	Each
Unit is comprised of one share of the Company's Common Stock and a Warrant to purchase an additional one-half share of Common Stock (the "Units").

	•
	The
Warrants will be exercisable for $2.00 per share, and the right to exercise the Warrants will expire on June 30, 2003.

	•
	Each
shareholder of the Company is being issued the Rights to purchase one unit for every two shares held as of                        ,
 2002 (the "Record Date").

	•
	Shareholders
exercising all of their Rights may subscribe for additional Units up to one times the number of Rights exercised. For example, a shareholder
that owns 5,000 shares will have the Rights to purchase 2,500 Units and the Oversubscription Privilege to purchase another 2,500 Units to the extent other shareholders do not exercise their Rights.

	•
	As
an alternative to exercising the basic Rights and Oversubscription Privilege, and because a number of the Company's shareholders own a limited number of
shares, each shareholder is given the right to purchase up to 1,000 Units (the "1,000 Unit Right").

	•
	Regardless
of which Rights are exercised, all Units must be purchased in even numbers. An uneven number of Units will not be issued.

	•
	Rights
may be exercised by completing the enclosed Rights Certificate and sending the Certificate to Wells Fargo Bank MN, N.A. at the address provided on the
Certificate. 

        The
terms and conditions of this offering are set forth in the Prospectus. 

        I
have also enclosed a Rights Certificate by which you may exercise your rights. The rights expire at 5:00 P.M., Minneapolis time,
on                        , 2002, and the Rights Certificates
must be received at the address given by that time. We encourage you to read the enclosed Prospectus carefully so that you can become familiar with the terms and conditions of the Rights Offering and
other facts about the Company. 

	 	 	 
	 	 	Very truly yours,
	

 	
 	

Joseph C. Christenson

President

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