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Exhibit 10.5    
  

INVISION TECHNOLOGIES, INC.  

 
 

SENIOR MANAGEMENT KEY EMPLOYEE AGREEMENT
  for    
    
    Don Mattson    
  

        This SENIOR MANAGEMENT KEY EMPLOYEE AGREEMENT ("Agreement") is entered into as of the 4th day of
October 2002, by and between Mr. Don Mattson ("Executive") and INVISION TECHNOLOGIES, INC. (the "Company"). 

        WHEREAS, the Executive has been employed by the Company since November 27, 2000 ("Employment Date"); 

        Whereas, the Executive is currently serving as Senior Vice President & Chief Financial Officer for the Company and has so served
since November 27, 2000; 

        Whereas, the Company desires to retain Executive's services and wishes to provide Executive with certain compensation and benefits in
return for his services; and 

        WHEREAS, Executive wishes to be employed by the Company and provide personal services to the Company in return for certain compensation
and benefits; 

        NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is hereby agreed by and between the parties
hereto as follows: 

        1.    EMPLOYMENT BY THE COMPANY.

        1.1    Position.    Subject to terms set forth herein, the Company agrees to employ Executive in the position of
Senior Vice President & Chief OperatingOfficer and Executive hereby accepts such continued employment. During the term of his employment with the Company, Executive will devote his best efforts
and substantially all of his business time and attention (except for vacation periods and reasonable periods of illness or other incapacity permitted by the Company's general employment policies) to
the business of the Company. 

        1.2    Duties and Location.    Executive shall serve in an executive capacity and shall perform such duties as are
customarily associated with his then current title, consistent with the Bylaws of the Company and as required by the Company's Board of Directors (the "Board") or Chief Executive Officer ("CEO").
Executive will report to the Company's CEO. Executive's primary office location shall be the Company's corporate headquarters, currently located in Newark, California. The Company reserves the right
to reasonably require Executive to perform his duties at places other than its corporate headquarters from time to time, to require reasonable business travel, and to relocate Executive's primary
office location within the greater San Francisco Bay Area. 

        1.3    Policies and Procedures.    The employment relationship between the parties shall be governed by the general
employment policies and practices of the Company, which the Company may change from time to time, and Executive will be expected to abide by such Company policies and practices. 

        2.    COMPENSATION AND BENEFITS.

        2.1    Base Salary.    Executive shall receive, for services to be rendered hereunder, an annualized base salary of
$265,000.00 less standard payroll deductions and withholdings and payable in accordance with the Company's regular payroll schedule. Such compensation is subject to change from time to time in the
Company's discretion. 

 

        2.2    Bonus Potential.    Executive shall be eligible to receive an incentive bonus to be determined on an annual
basis, payable during the first quarter of the subsequent year, less standard payroll deductions and withholdings. The Company will determine whether Executive has earned the bonus based on the
Company's attainment of specific corporate objectives, as outlined in the executive compensation plan, and on Executive's attainment of personal objectives determined between Executive and the CEO. No
bonuses are earned until the Board confirms such bonuses in writing. If Executive is not employed at the time any bonus is to be paid due to his voluntary separation from the Company or involuntary
termination for Cause, he will not have earned the bonus and no partial or pro-rata bonus will be paid. Except as otherwise set forth herein, the Company shall have the sole discretion to
change or eliminate the annual bonus program at any time, to determine whether the corporate and personal objectives have been achieved, and to determine the amount of the bonus earned by Executive,
if any. 

        2.3    Stock Option Grant.    The Company granted to Executive (see Exhibit C) under the InVision
Technologies, Inc. 2000 Equity Incentive Plan ("the Plan") options to purchase shares of the Company's common stock at an exercise price equal to the fair market value of the Common Stock, as
determined by the Board, at the time of the Board's approval of the grant (the "Option"). Executive acknowledges that there are no further commitments on behalf of the Company to grant to Executive
any additional option grants. The Board may consider granting additional option grants at its sole discretion. 

        2.4    Change In Control Equity Acceleration Plan.    Executive will be eligible to participate in the Company's
Change In Control Equity Acceleration Plan ("Equity Acceleration Plan") (attached hereto as Exhibit A), which provides for accelerated vesting of equity awards in connection with a Change in
Control of the Company (as defined in the Equity Acceleration Plan), pursuant to the terms and conditions of the Equity Acceleration Plan, if the Equity Acceleration Plan is in effect as of the date
of any qualifying Change in Control. Executive will be eligible to participate in the Equity Acceleration Plan as a "member of the senior management group" of the Company. 

        2.5    Employee Benefits.    Executive shall be entitled to all benefits, including but not limited to health and
disability benefits, for which Executive is eligible under the terms and conditions of the standard Company benefits plans which may be in effect from time to time and provided by the Company to its
senior executive employees generally. Details about these benefits are set forth in summary plan descriptions and other materials to be provided to Executive after he commences employment. Executive
shall be entitled to participate in any deferred compensation, incentive compensation, retention or golden parachute plan available to the senior management group adopted by the Company at any time
after the date of this Agreement. 

        3.    PROPRIETARY INFORMATION.

        3.1    Proprietary Information Agreement.    As a condition of his employment, Executive agrees to execute and abide
by the Proprietary Information and Inventions Agreement (the "Proprietary Information Agreement") attached hereto as Exhibit B. 

        4.    OUTSIDE ACTIVITIES.

        4.1    Non-Company Activities.    Except with the prior written consent of the Board, Executive will not
during the term of this Agreement undertake or engage in any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor. Executive may engage in
civic and not-for-profit activities so long as such activities do not materially interfere with the performance of his duties hereunder. 

        4.2    No Adverse Interests.    Except as permitted by Section 4.3, during his employment Executive agrees not
to acquire, assume or participate in, directly or indirectly, any position, 

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investment or interest known by him to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise. 

        4.3    Noncompetition.    During the term of his employment by the Company, except on behalf of the Company, Executive
will not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever, engage in, become financially
interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which were known by him to compete directly with the
Company, anywhere throughout the world, in any line of business engaged in (or planned to be engaged in) by the Company; provided, however, that
anything above to the contrary notwithstanding, Executive may own, as a passive investor, securities of any competitor corporation, so long as his direct holdings in any one such corporation shall not
in the aggregate constitute more than one percent (1%) of the voting stock of such corporation. 

        5.    FORMER EMPLOYMENT.

        5.1    Prior Employee Agreements and Information.    Executive represents and warrants that his employment by the
Company will not conflict with and will not be constrained by any prior employment or consulting agreement or other relationship with any third party. Executive represents and warrants that Executive
does not possess confidential information arising out of prior employment, consulting, or other third party relationships, which would be utilized in connection with Executive's employment by the
Company, except as expressly authorized by that third party. 

        5.2    Use or Disclosure of Third Party Information.    If, in spite of the second sentence of Section 5.1,
Executive should find that confidential or proprietary information belonging to any third party might be usable in connection with the Company's business, he will not disclose it to the Company or use
it on behalf of the Company except as expressly authorized by such third party; but during his employment by the Company, Executive will use in the performance of his duties only information which is
generally known and used by persons with training and experience comparable to his own, common knowledge in the industry, otherwise legally in the public domain, or which is obtained or developed by
the Company or by Executive in the course of his work for the Company. 

        6.    TERMINATION OF EMPLOYMENT.

        6.1    At-Will Relationship.    Executive's employment relationship is at-will. Either
Executive or the Company may terminate the employment relationship at any time, with or without Cause (as defined herein) or advance notice. 

        6.2    Termination Without Cause.

        (a)  Termination Upon Notice.    The Company and Executive shall have the right to terminate Executive's employment
with the Company at any time without Cause, upon notice to the other party. 

        (b)  Severance Benefits.    In the event Executive's employment is terminated without Cause by the Company,
Executive shall receive the following as his sole severance benefits (collectively, the "Severance Benefits"): (i) Executive will continue to receive base salary at the same rate in effect as
of the termination effective date, paid on the Company's standard payroll dates for the Severance Period (as defined below), subject to standard payroll deductions and withholdings; and (ii) if
Executive timely elects to continue Executive's Company-provided group health insurance coverage pursuant to the federal COBRA law, through the end of the Severance Period or until such time as
Executive qualifies for health 

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insurance benefits through a new employer, whichever occurs first, the Company will reimburse Executive for the cost of such COBRA premiums to continue health insurance coverage at the same level of
coverage for Executive and Executive's dependents (if applicable) in effect as of the termination date. 

As
a condition of and prior to the receipt of all or any of the Severance Benefits, Executive shall provide the Company with a general release of known and unknown claims, in a form acceptable to the
Company. Executive shall notify the Company in writing immediately upon qualifying for health insurance benefits through a new employer. 

        (c)  Severance Period.    For purposes of this Agreement, the "Severance Period" is defined as: (i) six
(6) months if, as of the employment termination date, Executive has been employed by the Company in the position of Vice President or above for up to and including four (4) years;
(ii) nine (9) months if, as of the employment termination date, Executive has been employed by the Company in the position of Vice President or above for over four (4) years and
up to and including eight (8) years; or (iii) twelve (12) months if, as of the employment termination date, Executive has been employed by the Company in the position of Vice
President or above for more than eight (8) years. 

        6.3  Termination for Cause.

        (a)  No Severance.    In the event Executive's employment is terminated at any time for Cause, he will not be
entitled to the Severance Benefits, pay in lieu of notice or any other such compensation. 

        (b)  Cause Definition.    For purposes of this Agreement, "Cause" for termination shall mean any of the following:
(i) conviction of, a guilty plea with respect to, or a plea of nolo contendere to, a charge that Executive has committed a felony under the laws of the United States or of any state or a crime
involving moral turpitude, including, but not limited to, fraud, theft, embezzlement or any crime that results in or is intended to result in personal enrichment at the expense of the Company or any
Affiliate (as defined herein); (ii) material breach by Executive of any agreement entered into between the Executive and the Company or any Affiliate that impairs the Company's or Affiliate's
interests therein; (iii) Executive's willful misconduct, significant failure to perform his duties, or gross neglect by Executive of his duties, provided
that the Company first provides Executive with written notice of such conduct and a reasonable opportunity to cure such conduct, if such conduct is reasonably susceptible to
cure; (iv) Executive's engagement in any activity that constitutes a material conflict of interest with the Company or any Affiliate; and (v) any material breach by Executive of his
Proprietary Information Agreement. For purposes of this Agreement, "Affiliate" means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms
are defined in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended. 

        6.4  Voluntary or Mutual Termination.

        (a)  Notice of Resignation.    Executive may voluntarily terminate his employment with the Company upon ninety
(90) days written notice. Upon receipt of resignation notice from Executive, the Company, at its election, may require Executive to resign prior to the expiration of the ninety-day
notice period. 

        (b)  No Severance.    In the event Executive voluntarily terminates his employment, he will not be entitled to
Severance Benefits, pay in lieu of notice or any other such compensation. 

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        7.    NONINTERFERENCE.

        While
employed by the Company, and for two (2) years immediately following the employment termination date, Executive agrees not to interfere with the business of the Company by: 

        (a)  soliciting, attempting to solicit, inducing, encouraging, or otherwise causing any employee of the Company to terminate
his or her employment in order to become an employee, consultant or independent contractor to or for any other person or entity; or 

        (b)  directly or indirectly soliciting the business of any customer of the Company which at the time of termination or one
year immediately prior thereto was listed on the Company's customer list. 

        8.    GENERAL PROVISIONS.

        8.1    Notices.    Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of
personal delivery (including personal delivery by facsimile transmission), delivery by express delivery service (e.g. Federal Express), or the third day after mailing by certified or registered mail,
return receipt requested, to the Company at its primary office location and to Executive at his address as listed on the Company's payroll. 

        8.2    Severability.    Whenever possible, each provision of this Agreement will be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction,
such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, and such invalid, illegal or unenforceable provision will be reformed, construed and
enforced in such jurisdiction so as to render it valid, legal, and enforceable consistent with the general intent of the parties insofar as possible. 

        8.3    Waiver.    If either party should waive any breach of any provisions of this Agreement, he or it shall not
thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement. 

        8.4    Complete Agreement.    This Agreement, including all exhibits, constitutes the complete, final, and exclusive
embodiment of the entire agreement between Executive and the Company with regard to the subject matter hereof. This Agreement merges all previous discussions and negotiations between the parties and
supersedes and replaces any and every other agreement which may have existed between
the parties with respect to the subject matter hereof, including without limitation the Key Employee Agreement between the parties dated [date of existing agreement]. It is
entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in a written instrument signed by Executive and
a duly authorized officer or director of the Company. 

        8.5    Counterparts.    This Agreement may be executed in separate counterparts, any one of which need not contain
signatures of more than one party, but all of which taken together will constitute one and the same Agreement. Signatures transmitted via facsimile shall be deemed the equivalent of originals. 

        8.6    Headings.    The headings of the sections hereof are inserted for convenience only and shall not be deemed to
constitute a part hereof nor to affect the meaning thereof. 

        8.7    Successors and Assigns.    This Agreement is intended to bind and inure to the benefit of, and be enforceable
by, Executive and the Company, and their respective successors, assigns, heirs, executors and administrators; except that Executive may not assign any of his duties 

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hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld unreasonably. 

        8.8    Choice of Law.    All questions concerning the construction, validity and interpretation of this Agreement will
be governed by the law of the State of California as applied to contracts made and to be performed entirely within the State of California. 

        8.9    Right To Work.    As required by law, this Agreement is subject to satisfactory proof of Executive's right to
work in the United States. 

        8.10    Alternative Dispute Resolution.    To ensure rapid and economical resolution of any disputes which may arise
under this Agreement, Executive and the Company agree that any and all disputes or controversies of any nature whatsoever arising from or regarding Executive's employment or the interpretation,
performance, enforcement or breach of this Agreement shall be resolved, to the fullest extent allowed by law, by confidential, final and binding arbitration conducted before a single arbitrator with
Judicial Arbitration and Mediation Services, Inc. ("JAMS") in San Francisco, California, under the then-existing JAMS employment rules. The parties
acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute through a trial by jury, judge or administrative proceeding. The
arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a
written arbitration decision including the arbitrator's essential findings and conclusions and a statement of the award. The Company shall pay all JAMS' arbitration fees in excess of those which would
be required if the dispute were decided in a court of law. 

Nothing
in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.
Notwithstanding the foregoing, Executive and the Company each have the right to resolve any issue or dispute involving Company trade secrets, proprietary information or intellectual property rights by
court action instead of arbitration. The arbitrator, and not a court, shall be authorized to determine whether the provisions of this paragraph apply to a dispute, controversy or claim sought to be
resolved in accordance with these arbitration procedures. 

        IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. 

	INVISION TECHNOLOGIES, INC.	 	 	 	 
	

By:	
 	

/s/ SERGIO MAGISTRI
 Sergio Magistri

Chief Executive Officer	
 	

Date:	
 	

10/14/02

	
MR. DON MATTSON	
 	

 	
 	

 
	

 	
 	

/s/ DONALD MATTSON
 Signature	
 	

Date:	
 	

10/10/02

6

 
EXHIBIT A  

 CHANGE IN CONTROL EQUITY ACCELERATION PLAN  

7

   INVISION TECHNOLOGIES, INC.  

 CHANGE IN CONTROL EQUITY ACCELERATION PLAN  

Section 1.    INTRODUCTION.  

        The InVision Technologies, Inc. Change in Control Equity Acceleration Plan (the "Plan") was established effective May 21, 2002. The purpose of the
Plan is (i) to provide members of the senior management group of InVision Technologies, Inc. certain accelerated vesting with respect to such individuals' stock options in the event of a
Change in Control (as hereinafter defined), and (ii) to provide individuals who are employed at the vice president level at InVision Technologies, Inc. certain accelerated vesting with
respect to such individuals' stock options in the event that such individuals are subject to qualifying employment terminations in connection with a Change in Control. This Plan shall supersede any
change in control plan, policy or practice regarding stock option vesting acceleration previously maintained by InVision Technologies, Inc. 

Section 2.    DEFINITIONS.  

        For purposes of the Plan, the following terms are defined as follows: 

        (a)  "Affiliate" means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as
those terms are defined in Sections 424(e) and (f), respectively, of the Code. 

        (b)  "Board" means the Board of Directors of the Company. 

        (c)  "Change in Control" means the occurrence, in a single transaction or in a series of related transactions, of any one or
more of the following events: 

          (i)  there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, outstanding
voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or more than fifty
percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction; 

        (ii)  there is consummated a sale, lease, license or other disposition of all or substantially all of the consolidated assets
of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity,
more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the
Company immediately prior to such sale, lease, license or other disposition; or 

      (iii)  the acquisition by any Person (other than any employee benefit plan, or related trust, sponsored or maintained by the
Company or any affiliate of the Company) as Beneficial Owner (as "Person" and "Beneficial Owner" are defined in the Securities Exchange Act of 1934, as amended, or the rules and regulations
thereunder), directly or indirectly, of securities of the Company representing 50 percent (50%) or more of the total voting power represented by the Company's then outstanding voting
securities. For purposes of this definition, the term "affiliate" shall mean any Person that controls the Company, is controlled by the Company, or is under common control with the Company within the
meaning of Rule 405 promulgated under the Securities Act of 1933, as amended. 

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        (d)  "Code" means the Internal Revenue Code of 1986, as amended. 

        (e)  "Company" means InVision Technologies, Inc. or, following a Change
in Control, the surviving entity resulting from such transaction. 

        (f)    "Constructive Termination" means a voluntary termination of employment by
an Eligible Employee after one of the following is undertaken without the Eligible Employee's express written consent: 

          (i)  the assignment to the Eligible Employee of any duties or responsibilities that results in any material diminution or
material adverse change in the Eligible Employee's position, status or circumstances of service when compared to the highest level of authority and responsibility assigned to the Eligible Employee at
any time during the six (6) month period prior to the Change in Control, or a material diminution in the Eligible Employee's titles or offices when compared to the most senior title or office
assigned to the Eligible Employee at any time during the six (6) month period prior to the Change in Control, or any removal of the Eligible Employee from or any failure to reelect the Eligible
Employee to any of such positions, except in connection with the termination of the Eligible Employee's employment on account of death, disability, retirement, for Cause (as described in subsection
(j)(i)-(v) below), or any voluntary termination by the Eligible Employee other than a Constructive Termination; 

        (ii)  a material reduction by the Company in the Eligible Employee's annual base salary, except if all other executive
officers incur a substantially proportionate reduction; 

      (iii)  any material failure by the Company to continue in effect any benefit plan or arrangement, including incentive plans or
plans to receive securities of the Company, in which the Eligible Employee is participating at the time of a Change in Control (the "Benefit Plans"), or the taking of any action by the Company that
would materially and adversely affect the Eligible Employee's participation in or materially reduce the Eligible Employee's benefits under any Benefit Plans or deprive the Eligible Employee of any
material fringe benefit enjoyed by the Eligible Employee at the time of a Change in Control, provided, however, that the Eligible Employee may not incur a Constructive Termination for the foregoing
reason following a Change in Control if the Company offers a range of benefit plans and programs that, taken as a whole, are comparable to the Benefit Plans; 

        (iv)  a relocation of the Company's offices to which the Eligible Employee is assigned to a location outside of the greater
San Francisco Bay Area, except for required travel by the Eligible Employee on the Company's or any Affiliate's business to an extent substantially consistent with his or her business travel
obligations at the time of a Change in Control; 

        (v)  any material breach by the Company of the terms of the Eligible Employee's Options or any provision of any employment or
other agreement between the Eligible Employee and the Company; or 

        (vi)  any failure by the Company to obtain the assumption of the Plan by any successor or assign of the Company. 

        (g)  "Covered Termination" means an Involuntary Termination Without Cause that
occurs within three (3) months before or thirteen (13) months following the effective date of a Change in Control or a Constructive Termination that occurs within thirteen
(13) months following the effective date of a Change in Control. In no event shall a termination of employment on account of death or Disability constitute a Covered Termination. 

        (h)  "Disability" means the permanent and total disability of a person within
the meaning of Section 22(e)(3) of the Code. 

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        (i)    "Eligible Employee" means an executive employee of the Company who has
been designated by the Board as an eligible employee and who has not entered into an individual severance benefit or change in control agreement with the Company relating to the acceleration of stock
option vesting. 

        (j)    "Involuntary Termination Without Cause" means an involuntary termination
of an Eligible Employee's employment by the Company other than for one of the following reasons (which shall constitute Cause): 

          (i)  the Eligible Employee's conviction of or plea of guilty or nolo contendere with respect to a felony under the laws of
the United States or of any state or a crime involving moral turpitude, including, but not limited to, fraud, theft, embezzlement or any crime that results in or is intended to result in personal
enrichment at the expense of the Company or any Affiliate; 

        (ii)  a material breach by the Eligible Employee of any agreement entered into between the Eligible Employee and the Company
or any Affiliate that impairs the Company's or Affiliate's interest therein; 

      (iii)  the Eligible Employee's willful misconduct, significant failure to perform his duties, or gross neglect by Eligible
Employee of his duties, provided that the Company first provides Eligible Employee with written notice of such conduct and a reasonable opportunity to
cure such conduct, if such conduct is reasonably susceptible to cure; 

        (iv)  the Eligible Employee's engagement in any activity that constitutes a material conflict of interest with the Company or
any Affiliate; or 

        (v)  any breach by the Eligible Employee of the Proprietary Information and Invention Agreement between the Eligible Employee
and the Company. 

        (k)  "Options" shall mean an Eligible Employee's stock options and restricted
stock granted or held pursuant to the Company's 1991 Stock Option Plan, 2000 Equity Incentive Plan, or other stock option
or equity incentive plan adopted by the Board, or any such options and restricted stock that are assumed or substituted by the surviving or acquiring corporation upon a Change in Control. 

Section 3.    ELIGIBILITY FOR BENEFITS.  

        (a)  General Rules.    Subject to the requirement set forth in this Section, the Company will provide the benefits
described in Section 4(a) or 4(b) of the Plan, as applicable, to Eligible Employees. In order to be eligible to receive benefits under the Plan, an Eligible Employee must execute and provide to
the Company a general waiver and release in substantially the form attached hereto as Exhibit A, Exhibit B or Exhibit C, as appropriate, and such release must become effective in
accordance with its terms. The Company, in its sole discretion, may modify the form of the required release to comply with applicable state or federal law and shall determine the form of the required
release. 

        (b)  Exceptions to Benefit Entitlement.    In no event shall an employee, whether or not otherwise an Eligible
Employee, receive benefits under the Plan in any of the following circumstances, as determined by the Company in its sole discretion: 

          (i)  The employee has executed an individually negotiated employment contract or agreement with the Company relating to
option acceleration benefits in the event of a change in control that is in effect on his or her termination date. 

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        (ii)  The employee's employment with the Company is terminated other than in a Covered Termination. 

      (iii)  The employee voluntarily terminates employment with the Company in order to accept employment with another entity that
is wholly or partly owned (directly or indirectly) by the Company or an Affiliate. 

        (iv)  The employee is offered immediate reemployment by a successor to the Company or by a purchaser of its assets, as the
case may be, following the Change in Control. For purposes of the foregoing, "immediate reemployment" means that the employee's employment with the successor to the Company or the purchaser of its
assets, as the case may be, results in uninterrupted employment such that the
employee does not suffer a significant lapse in pay as a result of the change in ownership of the Company or the sale of its assets. 

Section 4.    OPTION ACCELERATION.  

        (a)  Senior Management Level.    If an Eligible Employee is notified by the Company in writing that he or she is a
member of the senior management group of the Company for the purposes of this Plan, then, effective as of the date of the Change in Control, the Options then held by such Eligible Employee shall
become fully vested and exercisable, regardless of whether or not the Eligible Employee's employment with the Company terminates due to a Covered Termination. 

        (b)  Vice President Level.    If an Eligible Employee is notified by the Company in writing that he or she is a vice
president of the Company for the purposes of this Plan, and such Eligible Employee's employment with the Company terminates due to a Covered Termination, then, effective as of the date of the Covered
Termination, the Options then held by such Eligible Employee shall become fully vested and exercisable. 

Section 5.    LIMITATION ON BENEFITS.  

        (a)  Parachute Payments.    If the aggregate value of the accelerated Option vesting under Section 4 and any
other payments or benefits that the Eligible Employee would receive pursuant to a Change in Control from the Company or otherwise, including, but not limited to, any payments or benefits under any
employment or key employee agreements (collectively, "Payment"), would constitute a "parachute payment" within the meaning of Section 280G of the Code that is subject to the excise tax imposed
by Section 4999 of the Code (the "Excise Tax"), then such Payment shall be equal to the Reduced Amount. 

          (i)  The "Reduced Amount" shall be either (x) the largest portion of the Payment that would result in no portion of
the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state
and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Eligible Employee's receipt, on an after-tax basis, of
the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting "parachute payments" is
necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless the Eligible Employee elects in writing a different order (provided, however, that such
election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment):
reduction of cash payments; cancellation of accelerated vesting of Options; reduction of employee benefits. In the event that acceleration of vesting of Options is to be reduced, such acceleration of
vesting shall be cancelled in the reverse order of the date of grant of such Options (i.e., earliest granted Option cancelled last) unless the Eligible Employee elects in writing a different order for
cancellation. 

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        (ii)  The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the
Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the
Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the
determinations by such accounting firm required to be made hereunder. 

      (iii)  The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed
supporting documentation, to the Eligible Employee and the Company within fifteen (15) calendar days after the date on which the Eligible Employee's right to a Payment is triggered (if
requested at that time by the Eligible Employee or the Company) or such other time as requested by the Eligible Employee or the Company. If the accounting firm determines that no Excise Tax is payable
with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Eligible Employee and the Company with an opinion reasonably acceptable to the Eligible
Employee that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Eligible
Employee and the Company. 

Section 6.    RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.  

        (a)  Exclusive Discretion.    The Company shall have the exclusive
discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact,
interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate in the Plan and the
acceleration of Option vesting pursuant to the Plan. The rules, interpretations, computations and other actions of the Company shall be binding and conclusive on all persons. 

        (b)  Amendment or Termination.    The Company reserves the right to
amend or terminate this Plan or the benefits provided hereunder at any time; provided, however, that no such amendment or termination shall occur
following a Change in Control if such amendment or termination would adversely affect the
rights of any persons who were employed by the Company prior to the Change in Control. Any action amending or terminating the Plan shall be in writing and executed by an individual duly appointed by
the Board of Directors of the Company. 

Section 7.    NO IMPLIED EMPLOYMENT CONTRACT.  

        The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of the Company or (ii) to interfere
with the right of the Company to discharge any employee or other person at any time, with or without cause, which right is hereby reserved. 

Section 8.    CHOICE OF LAW.  

        The law of the State of California shall govern all questions concerning the construction, validity and interpretation of the Plan, without regard to such state's
conflict of laws rules. 

5

 

Section 9.    EXECUTION.  

        To record the adoption of the Plan as set forth herein, effective as of May 21, 2002, InVision Technologies, Inc. has caused its duly authorized
officer to execute the same this 2nd day of October, 2002. 

	 	 	INVISION TECHNOLOGIES, INC.
	

 	
 	

By:	
 	

/s/ SERGIO MAGISTRI

	

 	
 	

Title:	
 	

President & Chief Executive Officer

6

   EXHIBIT A  

 RELEASE

(Individual Termination, California Employee, age 40 and older)  

        I understand and agree completely to the terms set forth in the InVision Technologies, Inc. Change in Control Equity Acceleration Plan (the "Plan"). I
understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 

        I
hereby confirm my obligations under the Company's proprietary information and inventions agreement. 

        Except
as otherwise set forth in this Release, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, causes of action, and obligations of every kind and nature, in law, equity, or otherwise,
known and unknown, suspected and unsuspected, arising out of or in any way related to agreements, events, acts or conduct at any time up to and including the date I execute this Release, including,
but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment; claims or
demands related to salary, bonuses, commissions, stock, stock options, or any other equity interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any form
of compensation; claims pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended ("ADEA"); the federal Employee Retirement Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; the California Fair
Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; discrimination; harassment; retaliation; fraud; defamation; emotional distress; and breach of the implied covenant
of good faith and fair dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its
obligation to indemnify me pursuant to agreement or applicable law. 

        I
acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA, and that the consideration given under the Plan for the waiver and release in
the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that:
(A) my waiver and release do not apply to any rights or claims that may arise after the date I execute this Release; (B) I should consult with an attorney prior to executing this Release
(although I may choose voluntarily not do so); (C) I have twenty-one (21) days to consider this Release (although I may choose voluntarily to execute this Release earlier);
(D) I have seven (7) days following my execution of this Release to revoke the Release by providing written notice to an officer of the Company; and (E) this Release shall not be
effective until the date upon which the revocation period has expired, which shall be the eighth day after I execute this Release. 

1

 

        I
acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."  I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims
hereunder. 

	 	 	EMPLOYEE
	

 	
 	

By:	
 	

    

	

 	
 	

Name:	
 	

    

	

 	
 	

Title:	
 	

    

	

 	
 	

 	
 	

    

2

   EXHIBIT B  

 RELEASE

(Individual and Group Termination, California Employee, under age 40)  

        I understand and agree completely to the terms set forth in the InVision Technologies, Inc. Change in Control Equity Acceleration Plan (the "Plan"). I
understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 

        I
hereby confirm my obligations under the Company's proprietary information and inventions agreement. 

        Except
as otherwise set forth in this Release, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, causes of action, and obligations of every kind and nature, in law, equity, or otherwise,
known and unknown, suspected and unsuspected, arising out of or in any way related to agreements, events, acts or conduct at any time up to and including the date I execute this Release, including,
but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment; claims or
demands related to salary, bonuses, commissions, stock, stock options, or any other equity interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any form
of compensation; claims pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Employee Retirement
Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; the California Fair Employment and Housing Act, as amended; tort law; contract law; wrongful discharge;
discrimination; harassment; retaliation; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair dealing; provided,
however, that nothing in this paragraph shall be construed in any way to release the Company from its obligation to indemnify me pursuant to agreement or applicable law. 

        I
acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor." I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any
claims hereunder. 

	 	 	EMPLOYEE
	

 	
 	

Name:	
 	

    

	

 	
 	

Date:	
 	

    

1

EXHIBIT C  

 RELEASE

(Group Termination, California Employee, age 40 and older)  

        I understand and agree completely to the terms set forth in the InVision Technologies, Inc. Change in Control Equity Acceleration Plan (the "Plan"). I
understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter
hereof. I am not relying on any promise or representation by the Company that is not expressly stated therein. Certain capitalized terms used in this Release are defined in the Plan. 

        I
hereby confirm my obligations under the Company's proprietary information and inventions agreement. 

        Except
as otherwise set forth in this Release, I hereby release, acquit and forever discharge the Company, its parents and subsidiaries, and their officers, directors, agents, servants,
employees, shareholders, successors, assigns and affiliates, of and from any and all claims, liabilities, causes of action, and obligations of every kind and nature, in law, equity, or otherwise,
known and unknown, suspected and unsuspected, arising out of or in any way related to agreements, events, acts or conduct at any time up to and including the date I execute this Release, including,
but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment; claims or
demands related to salary, bonuses, commissions, stock, stock options, or any other equity interests in the Company, vacation pay, fringe benefits, expense reimbursements, severance pay, or any form
of compensation; claims pursuant to any federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination
in Employment Act of 1967, as amended ("ADEA"); the federal Employee Retirement Income Security Act of 1974, as amended; the federal Americans with Disabilities Act of 1990; the California Fair
Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; discrimination; harassment; retaliation; fraud; defamation; emotional distress; and breach of the implied covenant
of good faith and fair dealing; provided, however, that nothing in this paragraph shall be construed in any way to release the Company from its
obligation to indemnify me pursuant to agreement or applicable law. 

        I
acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under ADEA, and that the consideration given under the Plan for the waiver and release in
the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that:
(A) my waiver
and release do not apply to any rights or claims that may arise after the date I execute this Release; (B) I should consult with an attorney prior to executing this Release (although I may
choose voluntarily not to do so); (C) I have forty-five (45) days to consider this Release (although I may choose voluntarily to execute this Release earlier); (D) I
have seven (7) days following my execution of this Release to revoke the Release by providing written notice to an office of the Company; (E) this Release shall not be effective until
the date upon which the revocation period has expired, which shall be the eighth day after I execute this Release; and (F) I have received with this Release a detailed list of the job titles
and ages of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification or organizational unit who were not terminated. 

 

        I
acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: "A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."  I hereby expressly waive and
relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims
hereunder. 

	 	 	EMPLOYEE
	

 	
 	

Name:	
 	

    

	

 	
 	

Date:	
 	

    

2

EXHIBIT B  

 EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT  

   INVISION TECHNOLOGIES, INC.  

PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT  

In
consideration of my employment or continued employment by InVision Technologies, Inc. (the "Company"), and the compensation now and hereafter paid to me, I hereby agree as follows: 

	1.
	Recognition of the Company's Rights; Nondisclosure. At all times during the term of my employment and thereafter, I will hold in
strictest confidence and will not disclose, use, lecture upon or publish any of the Company's Proprietary Information (defined below), except as such disclosure, use or publication may be required in
connection with my work for the Company, or unless an officer of the Company expressly authorizes such in writing. I will obtain the Company's prior written approval before publishing or submitting
for publication any material (written, verbal, or otherwise) that relates to my work at the Company and/or incorporates Propriatary Information. I hereby assign to the Company any rights I may have or
acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns and the Company and its assigns shall be the sole owner
of all trade secret rights, patent rights, copyrights, mask work rights and all other rights throughout the world (collectively, "Proprietary Rights") in connection therewith. 

The
term "Proprietary Information" shall mean trade secrets, confidential knowledge, data or any other proprietary information of the Company. By way of illustration but not limitation, "Proprietary
Information" includes (a) algorithms, trade secrets, inventions, mask works, ideas, processes, formulas, source and object codes, data, programs, other works of authorship,
know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively referred to as "Inventions"); and (b) information regarding plans for research,
development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (c) information
regarding the skills and compensation of other employees of the Company. 

	2.
	Third Party Information. I understand, in addition, that the Company has received and in the future will receive from third parties
confidential or proprietary information ("Third Party Information") subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited
purposes. During the term of my employment and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose (to anyone other than Company personnel who need to
know such information in connection with their work for the Company) or use, except in connection with my work for the Company, Third Party Information unless expressly authorized by an officer of the
Company in writing. 

Assignment of Inventions; Work for Hire.  

	3.1
	Assignment; Work for Hire. I acknowledge and agree that any copyrightable works prepared by me within the scope of my employment are
"works for hire" under the Copyright Act and that the Company will be considered the author and owner of such copyrightable works. I agree that all Inventions that (i) are developed using
equipment, supplies, facilities or trade secrets of the Company, (ii) result from work performed by me for the Company, or (iii) relate to the Company's business or current or
anticipated research and development (the "Company Inventions"), will be the sole and exclusive property of the Company and are hereby irrevocably assigned by me to the Company. 

1

 
	3.2
	Labor Code Section 2870. I recognize that this Agreement does not require assignment of any invention which qualifies fully for
protection under Section 2870 of the California Labor Code (hereinafter "Section 2870"), which provides as follows:

	"(i)
	Any
provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not
apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions
that either:

	(1)
	Relate
at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer.

	(2)
	Result
from any work performed by the employee for the employer. 

	(ii)
	To
the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision
(i), the provision is against the public policy of this state and is unenforceable." 

	3.3.
	Government. I also assign to or as directed by the Company all my right, title and interest in and to any and all Inventions, full
title to which is required to be in the United States by a contract between the Company and the United States or any of its agencies.

	3.4
	Assignment of Other Rights. In addition to the foregoing assignment of Company Inventions to the Company, I hereby irrevocably transfer
and assign to the Company: (i) all worldwide patents, patent applications, copyrights, mask works, trade secrets and other intellectual property rights, including but not limited to rights in
databases, in any Company Inventions, along with any registrations of or applications to register such rights; and (ii) any and all "Moral Rights" (as defined below) that I may have in or with
respect to any Company Inventions. I also hereby forever waive and agree never to assert any and all Moral Rights I may have in or with respect to any Company Inventions, even after termination of my
work on behalf of the Company. "Moral Rights" mean any rights to claim authorship of or credit on a Company Inventions, to object to or prevent the modification or destruction of any Company
Inventions or Prior Inventions licensed to the Company under Section 6, or to withdraw from circulation or control the publication or distribution of any Company Inventions or Prior Inventions
licensed to the Company under Section 6, and any similar right, existing under judicial or statutory law of any country or subdivision thereof in the world, or under any treaty, regardless of
whether or not such right is denominated or generally referred to as a "moral right."

	4.
	Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain and from time to time enforce United States
and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances
as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In
addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to
such Company Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the time
actually spent by me at the Company's request on such assistance. 

In
the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby
irrevocably designate and appoint the Company and its duly authorized officers and agents 

2

 

as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts
to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever,
which I
now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company. 

	5.
	Obligation to Keep the Company Informed. During the period of my employment and for six (6) months after termination of my
employment with the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice by me, either alone or jointly with others. In
addition, I will promptly disclose to the Company all patent applications filed by me or on my behalf within a year after termination of employment. At the time of each such disclosure, I will advise
the Company in writing of any Inventions that I believe fully qualify for protection under Section 2870; and I will at that time provide to the Company in writing all evidence necessary to
substantiate that belief. The Company will keep in confidence and will not disclose to third parties without my consent any proprietary information disclosed in writing to the Company pursuant to this
Agreement relating to Inventions that qualify fully for protection under the provisions of Section 2870. I will preserve the confidentiality of any Invention that does not fully qualify for
protection under Section 2870. 

I
agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all Proprietary Information developed
by me and all Inventions made by me during the period of my employment at the Company, which records shall be available to and remain the sole property of the Company at all times. 

	6.
	Prior Inventions. Inventions, if any, patented or unpatented, which I made prior to the commencement of my employment with the Company
are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit A attached hereto a complete list of all Inventions that I have, alone or
jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the Company, that I
consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as "Prior Inventions"). If disclosure of any
such Invention on Exhibit A would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Inventions in Exhibit A but am only to disclose a
cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason. A space is provided on
Exhibit A for such purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If, in the course of my employment with the Company, I incorporate a Prior
Invention into a Company product, process or machine, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be
incorporated, Prior Inventions in any Company Inventions without the Company's prior written consent.

	7.
	Additional Activities. I agree that during the period of my employment by the Company I will not, without the Company's express written
consent, engage in any employment or business activity other than with the Company. I agree further that for the period of my employment by the Company and for one (1) year after the date of
termination of my employment by the Company I will not (i) induce any employee of the Company to leave the employ of the Company, or (ii) solicit the business of any client or customer
of the Company (other than on behalf of the Company). 

3

 
	8.
	No Improper Use of Materials. During my employment by the Company I will not improperly use or disclose any confidential information or
trade secrets, if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or
any property belonging to any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that former employer or person. 

I
will use in the performance of my duties only information which is generally known and used by persons with training and experience comparable to my own, which is common knowledge in the industry or
otherwise legally in the public domain, or which is otherwise provided or developed by the Company. 

	9.
	No Conflicting Obligation. I represent that my performance of all the terms of this Agreement and as an employee of the Company does not
and will not breach any agreement to keep in confidence information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not
enter into, any agreement either written or oral in conflict herewith.

	10.
	Return of Company Documents. When I leave the employ of the Company, I will deliver to the Company any and all drawings, notes,
memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Company Inventions, Third Party Information or
Proprietary Information of the Company. I further agree that any property situated on the Company's premises and owned by the Company, including disks and other storage media, filing cabinets or other
work areas, is subject to inspection by Company personnel at any time with or without notice. Prior to leaving, I will cooperate with the Company in completing and signing the Company's termination
statement for technical and management personnel.

	11.
	Legal and Equitable Remedies. Because my services are personal and unique and because I may have access to and become acquainted with
the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without
bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

	12.
	Notices. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such
other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail, three days after
the date of mailing.

	13.
	General Provisions.

	13.1
	Governing Law. This Agreement will be governed by and construed according to the laws of the State of California.

	13.2
	Entire Agreement. This Agreement and the attached addendum is the final, complete and exclusive agreement of the parties with respect
to the subject matter hereof and supercedes and merges all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be
effective unless in writing and signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. As
used in this Agreement, the period of my employment includes any time during which I may be retained by the Company as a consultant. 

4

 

	13.3
	Severability. If one or more of the provisions in this Agreement are deemed unenforceable by law, then such provision will be deemed
stricken from this Agreement and the remaining provisions will continue in full force and effect.

	13.4
	Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and
will be for the benefit of the Company, its successors, and its assigns.

	13.5
	Survival. The provisions of this Agreement shall survive the termination of my employment and the assignment of this Agreement by the
Company to any successor in interest or other assignee.

	13.6
	Employment. I agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by
the Company, nor shall it interfere in any way with my right or the Company's right to terminate my employment at any time, with or without cause.

	13.7
	Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by
the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this
Agreement. 

        I
HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. 

	Dated:	 	    
	 	 
	

/s/ DONALD MATTSON
 Mr. Don Mattson

Senior Vice President & Chief Financial Officer	
 	

 
	

ACCEPTED AND AGREED TO:	
 	

 
	

INVISION TECHNOLGIES, INC.	
 	

 
	

/s/ SERGIO MAGISTRI
 Sergio Magistri

President	
 	

 

5

EXHIBIT A  

InVision
Technologies, Inc.

7151 Gateway Blvd.

Newark, CA 94560 

Gentlemen:

	1.
	The
following is a complete list of all inventions or improvements relevant to the subject matter of my employment by InVision Technologies, Inc. (the "Company") that have been
made or conceived or first reduced to practice by me alone or jointly with others prior to my engagement by the Company:

	ý
	No
inventions or improvements.

	o
	See
below: 

	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 

	o
	Additional
sheets attached.

	o
	Due
to confidentiality agreements with prior employer, I cannot complete the disclosure under Section 1 above with respect to
inventions or improvements generally listed below, the proprietary rights and duty of confidentiality with respect to which I owe the following party(ies): 

	 
	 	Invention or Improvement
 
	 	Party(ies)
 
	 	Relationship
 

	

1.	
 	

    
	
 	

    
	
 	

    

	

2.	
 	

    
	
 	

    
	
 	

    

	

3.	
 	

    
	
 	

    
	
 	

    

	o
	Additional
sheets attached. 

 

	2.
	I
propose to bring to my employment the following devices, materials and documents of a former employer or other person to whom I have an obligation of confidentiality that are not
generally available to the public, which materials and documents may be used in my employment pursuant to the
express written authorization of my former employer or such other person (a copy of which is attached hereto):

	ý
	No
material.

	o
	See
below:

	o
	Additional
sheets attached. 

	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 
	

    
	
 	

 

	

Date:	
 	

    
	
 	

 
	

Very truly yours,	
 	

 
	

Donald Mattson
 Employee Name (please print)	
 	

 
	

/s/ DONALD MATTSON
 Employee Signature	
 	

 

2

EXHIBIT C  

 EMPLOYEE STOCK OPTION GRANTS  

 

	GRANT DATE
	 	GRANT TYPE
	 	GRANT NO
	 	LAST EXER
	 	EXP DATE
	 	SHARES
	 	PRICE
	 	VEST FROM

	12/1/2000	 	ISO	 	2K-38	 	11/30/2010	 	12/1/2010	 	100000.00	 	1.81300000	 	12/1/2000
	2/8/2001	 	ISO	 	2K-58	 	2/7/2011	 	2/8/2011	 	6300.00	 	2.31300000	 	2/8/2001
	2/5/2002	 	ISO	 	2K-155	 	2/4/2012	 	2/5/2012	 	6947.00	 	43.34000000	 	2/5/2002
	2/5/2002	 	NQ	 	2K-155A	 	2/4/2012	 	2/5/2012	 	57053.00	 	43.34000000	 	2/5/2002

1

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Exhibit 10.5

SENIOR MANAGEMENT KEY EMPLOYEE AGREEMENT for Don MattsonQuickLinks
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Exhibit 10.6    
  

Silicon Valley Bank  

 
  Amendment to Loan Documents    
  

	Borrower:	 	InVision Technologies, Inc.
	

Date:	
 	

July 19, 2002

        THIS AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley Bank ("Silicon") and the borrower named above ("Borrower"). 

        The
Parties agree to amend the Loan and Security Agreement between them, dated November 8, 2000 (as otherwise amended, if at all, the "Loan Agreement"), as follows, effective as
of the date hereof. (Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.) 

        1.    Amended Schedule.    The Schedule to the Loan Agreement is hereby amended in its entirety to read as set forth
in the Amended and Restated Schedule to Loan and Security Agreement of even date herewith. 

        2.    Certain Provisions Only Applicable on Event of Default.    The provisions of Sections 4.3, 4.4 and 4.5 of the
Loan Agreement shall only be applicable after the occurrence and during the continuance of an Event of Default. 

        3.    Delete Termination Fee.    The second and third sentences of Section 6.2 of the Loan Agreement, which
provide for a termination fee, are hereby deleted from the Loan Agreement. 

        4.    Modified Negative Covenant Regarding Acquisitions.    Subclause (ii) of Section 5.5 of the Loan
Agreement is hereby amended to read as follows: 

(ii)    acquire
any assets, except in the ordinary course of business; provided, however, if
no Default or Event of Default has occurred and is continuing (and also subject to the remaining terms of this Section 5.5), Borrower will be permitted to acquire assets outside the ordinary
course of business provided further that the amount of cash expenditures with respect to such acquisitions do not exceed $25,000,000 in the aggregate
during the period from July 19, 2002 and July 19, 2003 and each anniversary year thereafter and provided Borrower promptly notifies Silicon in writing of any such requests; 

        5.    Modified Negative Covenant Regarding Transactions Outside the Ordinary Course of Business.    Subclause
(iii) of Section 5.5 of the Loan Agreement is hereby amended to read as follows: 

(iii)    enter
into any other transaction outside the ordinary course of business; provided,  however, if no Default or Event of Default has occurred and is continuing
(and also subject to the remaining terms of this Section 5.5), Borrower
will be permitted to enter into transactions outside the ordinary course of business provided further that the amount of cash expenditures with respect
to such transactions do not exceed $25,000,000 in the aggregate during the period from July 19, 2002 and July 19, 2003 and each anniversary year thereafter and provided Borrower promptly
notifies Silicon in writing of any such requests; 

        6.    Additional Definitions.    The definitions on Exhibit A hereto are hereby added to Section 8 of
the Loan Agreement in alphabetical order. 

        7.    Representations True.    Borrower represents and warrants to Silicon that all representations and warranties set
forth in the Loan Agreement, as amended hereby, are true and correct. 

1

 

        8.    General Provisions.    This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement
signed by Silicon and Borrower, and the other written documents and agreements between Silicon and Borrower set forth in full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly
amended, all of the terms and provisions of the Loan Agreement, and all other documents and agreements between Silicon and Borrower shall continue in full force and effect and the same are hereby
ratified and confirmed. 

	Borrower:	 	Silicon:
	

INVISION TECHNOLOGIES, INC.	
 	

SILICON VALLEY BANK
	

By	
 	

/s/ Ross Mulholland
	
 	

By	
 	

/s/ Quentin Falconer

	 	 	President or Vice President	 	Title	 	Senior VP

	

By	
 	

    
	
 	

 	
 	

 
	 	 	Secretary or Ass't Secretary	 	 	 	 

2

   Exhibit A  

 Additional Definitions  

        "Closing Date" is the date of this Amendment. 

        "Investment" is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance
or capital contribution to any Person. 

        "Loan Documents" means, collectively, the Loan Agreement, the Representations, and all other present and future documents, instruments and
agreements between Silicon and Borrower, including, but not limited to those relating to the Loan Agreement, and all amendments and modifications thereto and replacements therefor. 

        "Permitted Investments" are: (a) Investments shown on the Schedule and existing on the Closing Date; and (b) (i) marketable
direct obligations issued or unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing no
more than 1 year after its creation and having the highest rating from either Standard & Poor's Corporation or Moody's Investors Service, Inc., and (iii) Silicon's
certificates of deposit issued maturing no more than 1 year after issue. 

        "Representations" means the written Representations and Warranties provided by Borrower to Silicon referred to in the Schedule. 

        "Subsidiary" is for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is owned
or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 

1

Silicon Valley Bank  

Amended and Restated Schedule to  

 Loan and Security Agreement  

	Borrower:	 	InVision Technologies, Inc.
	

Address:	
 	

7151 Gateway Blvd.

Newark, California 94560
	

Date:	
 	

July 19, 2002

This
Amended and Restated Schedule forms an integral part of the Loan and Security Agreement between Silicon Valley Bank and the above-borrower dated
November 8, 2000, and amends and restates in its entirety the prior Schedule to Loan and Security Agreement (as previously amended, the "Original Schedule"), effective on the date hereof. 

	

	
1.	
 	

CREDIT LIMIT

(Section 1.1):	
 	

An amount equal to the sum of (A) and (B) below:
	

 	
 	

 	
 	

 	
 	

B.	
 	

Revolving Loans. An amount not to exceed $25,000,000 at any one time outstanding (the "Maximum Revolving Credit Limit"), plus
	

 	
 	

 	
 	

 	
 	

C.	
 	

Term Loans. An amount equal to the unpaid principal balance from time to time outstanding of Term Loan #1 (as defined in the Existing Loan Documents) (the "Term Loans"). The current unpaid principal balance outstanding of Term Loan #1 is
$132,501.04.
	

 	
 	
Letter of Credit Sublimit

(Section 1.5):	
 	
$25,000,000.
	

 	
 	
Foreign Exchange

Contract Sublimit:	
 	

$25,000,000.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

Borrower may enter into foreign exchange forward contracts with Silicon, on its standard forms, under which Borrower commits to purchase from or sell to Silicon a set amount of foreign currency more than one business day after the contract date (the
"FX Forward Contracts"); provided that: (1) at the time the FX Forward Contract is entered into Borrower has Revolving Loans available to it under this Agreement in an amount at least equal to 10% of the amount of the FX Forward Contract; (2) the
total FX Forward Contracts at any one time outstanding may not exceed 10 times the amount of the Foreign Exchange Contract Sublimit set forth above; and (3) each FX Forward Contract shall have an expiry date no later than thirty days prior to the
Maturity Date, provided that an FX Forward Contract may have an expiry date later than thirty days prior to the Maturity Date if and only if Borrower's Obligations with respect to such FX Forward Contract are secured by specifically pledged
unencumbered cash account, in an amount equal to 10% of such FX Forward Contract, on terms acceptable to Silicon in its sole discretion. Silicon shall have the right to withhold, from the Revolving Loans otherwise available to Borrower under this
Agreement, a reserve (which shall be in addition to all other reserves regarding Letters of Credit and Cash Management Services) in an amount equal to 10% of the total FX Forward Contracts from time to time outstanding. Silicon may, in its discretion,
 terminate the FX Forward Contracts at any time that an Event of Default occurs and is continuing. Borrower shall execute all standard form applications and agreements of Silicon in connection with the FX Forward Contracts, and without limiting any
of the terms of such applications and agreements, Borrower shall pay all standard fees and charges of Silicon in connection with the FX Forward Contracts.
	

 	
 	
Cash Management

Services and Reserves:	
 	

Borrower may use up to $25,000,000 of Revolving Loans available hereunder for Silicon's cash management services, including, merchant services, business credit card, ACH and other services identified in the cash management services agreement related
to such service (collectively, the "Cash Management Services"). Silicon will reserve against Revolving Loans which would otherwise be available hereunder such sums as Silicon shall determine is appropriate in its sole discretion in connection with
the Cash Management Services, and Silicon may charge to Borrower's Revolving Loan account any amounts that may become due or owing to Silicon in connection with the Cash Management Services. Borrower agrees to execute and deliver to Silicon all
standard form applications and agreements of Silicon in connection with the Cash Management Services, and, without limiting any of the terms of such applications and agreements, Borrower will pay all standard fees and charges of Silicon in connection
with the Cash Management Services. The Cash Management Services shall terminate on the Maturity Date.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

Additionally, Borrower covenants and agrees that if at any time the value of the Collateral, as determined by Silicon in its discretion, is less than the aggregate amount of the outstanding Letters of Credit FX Forward Contracts and the Cash
Management Services utilization (the difference between the value of the Collateral and the aggregate outstanding Letters of Credit, FX Forward Contracts and the Cash Management Services utilization is hereinafter referred to as the "Collateral
Shortfall"), Borrower shall provide Silicon cash collateral in an amount equal to the Collateral Shortfall to secure all of the Obligations relating to said Letters of Credit, FX Forward Contracts and Cash Management Services utilization, pursuant to
Silicon's then standard form cash pledge agreement.
	

 	
 	
Exim Agreement;

Cross-Collateralization;

Cross-Default:	
 	

Silicon and the Borrower are parties to that certain Loan and Security Agreement (Exim Program) dated November 8, 2000 (as amended from time to time, the "Exim Agreement"). This Agreement and the Exim Agreement shall continue in full force and effect,
 and all rights and remedies under this Agreement and the Exim Agreement are cumulative. The term "Obligations" as used in this Agreement and the Exim Agreement shall include without limitation the obligation to pay when due all Loans made pursuant
to this Agreement (the "Non-Exim Loans") and all interest thereon and the obligation to pay when due all Loans made pursuant to the Exim Agreement (the "Exim Loans") and all interest thereon. Without limiting the generality of the foregoing, all
"Collateral" as defined in this Agreement and as defined in the Exim Agreement shall secure all Non-Exim Loans and all Exim Loans and all interest thereon, and all other Obligations relating thereto. Any Event of Default under this Agreement shall
also constitute an Event of Default under the Exim Agreement and any Event of Default under the Exim Agreement shall also constitute an Event of Default under this Agreement. In the event Silicon assigns its rights under this Agreement and/or under
any Note evidencing Non-Exim Loans, and/or its rights under the Exim Agreement and/or under any Note evidencing Exim Loans to any third party, including without limitation the Export-Import Bank of the United States ("Exim Bank"), whether before or
after the occurrence of any Event of Default, Silicon shall have the right (but not any obligation), in its sole discretion, to allocate and apportion Collateral to the Agreement and/or Note assigned and to specify the priorities of the respective
security interests in such Collateral between itself and the assignee, all without notice to or consent of the Borrower.
	

	
2.	
 	

INTEREST.	
 	

 	
 	

 	
 	

 
	

 	
 	
Interest Rate
 (Section 1.2):	
 	

A rate equal to the "Prime Rate" in effect from time to time, minus 0.50% per annum. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. "Prime Rate" means
the rate announced from time to time by Silicon as its "prime rate;" it is a base rate upon which other rates charged by Silicon are based, and it is not necessarily the best rate available at Silicon. The interest rate applicable to the Obligations
shall change on each date there is a change in the Prime Rate.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

With respect to each of Term Loan #1, the interest rate shall be a rate equal to the Prime Rate in effect from time to time, plus 1.0% per annum. Interest shall be calculated on the basis of a 360-day
year for the actual number of days elapsed. The interest rate applicable to the Obligations pertaining to the Term Loans shall change on each date there is a change in the Prime Rate.
	

 	
 	
Minimum Monthly

Interest (Section 1.2):	
 	

Not Applicable.
	

	
3.	
 	

FEES (Section 1.4):	
 	

 	
 	

 	
 	

 
	

 	
 	

Loan Fee:	
 	

$62,500, payable on the anniversary of this Agreement (July 19, 2003) and on each subsequent anniversary of this Agreement thereafter, if, in each case, this Agreement has been extended pursuant to the provisions set forth in the Maturity
Date.
	

	
4.	
 	

MATURITY DATE

(Section 6.1):	
 	

With respect to the Revolving Loans: July 19, 2004; provided, however, prior to July 19, 2003 (and each anniversary date of this Agreement thereafter, if any), Silicon will review this Agreement and
determine, in its sole discretion, whether or not to offer Borrower (on terms acceptable to Silicon in its sole discretion and to Borrower in its sole discretion) a one year extension of the then applicable Maturity Date, which extension, if any, to
be effective only upon execution by each of Silicon and Borrower of a written agreement evidencing such extension.
	

 	
 	

 	
 	

With respect to the Term Loans: The outstanding principal balance of Term Loan #1 will continue to be repaid in monthly principal payments of $11,041.72 each in accordance with the terms of the Existing Loan Documents until the earlier of: (i) June
29, 2003, (ii) all Obligations related to Term Loan #1 have been indefeasibly paid in full to Silicon or (iii) the date this Agreement terminates by its terms or is terminated by either party in accordance with its terms. Interest on Term Loan #1
shall be payable monthly as provided for in Section 1.2 of this Agreement.
	

	
5.	
 	

FINANCIAL COVENANTS

(Section 5.1):	
 	

Borrower shall comply with each of the following covenant(s). Compliance shall be determined as of the end of each fiscal quarter, except as otherwise specifically provided below:
	

 	
 	
Minimum Tangible

Net Worth:	
 	

Borrower shall maintain a Tangible Net Worth of not less than the following:
	

 	
 	

 	
 	

For the fiscal quarter ending June 30, 2002: $140,000,000;
	

 	
 	

 	
 	

For the fiscal quarter ending September 30, 2002: $160,000,000;
	

 	
 	

 	
 	

For the fiscal quarter ending December 31, 2002: $190,000,000; and
	

 	
 	

 	
 	

For the fiscal quarter ending March 31, 2003: $210,000,000.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

Borrower covenants that by December 31, 2002, Borrower shall provide Silicon with financial projections setting forth Borrower's forecasted quarterly net income through at least the fiscal quarter ending December 31, 2003, and based upon such
projections, Silicon will establish the Minimum Tangible Net Worth financial covenant for, at a minimum, the fiscal quarters ending after March 31, 2003 set forth on such projections. Borrower covenants that by December 31 of each calendar year
ending thereafter, Borrower will provide Silicon with financial projections setting forth Borrower's forecasted quarterly net income through at least the fiscal quarter ending the following December 31, and based upon such projections, Silicon will
establish the Minimum Tangible Net Worth financial covenant for, at a minimum, the fiscal quarters set forth on such projections.
	

 	
 	
Definitions.	
 	

For purposes of the foregoing financial covenants, the following term shall have the following meaning:
	

 	
 	

 	
 	

"Current assets", "current liabilities" and "liabilities" shall have the meaning ascribed thereto by generally accepted accounting principles.
	

 	
 	

 	
 	

"Tangible Net Worth" shall mean the excess of total assets over total liabilities, determined in accordance with generally accepted accounting principles, with the following adjustments:
	

 	
 	

 	
 	

 	
 	

(A) there shall be excluded from assets: (i) notes, accounts receivable and other obligations owing to the Borrower from its officers or other Affiliates, and (ii) all assets which would be classified as intangible assets under generally accepted
accounting principles, including without limitation goodwill, licenses, patents, trademarks, trade names, copyrights, capitalized software and organizational costs, licenses and franchises
	

 	
 	

 	
 	

 	
 	

(B) there shall be excluded from liabilities: all indebtedness which is subordinated to the Obligations under a subordination agreement in form specified by Silicon or by language in the instrument evidencing the indebtedness which is acceptable to
Silicon in its discretion ("Subordinated Debt").
	

	
6.	
 	

REPORTING.

(Section 5.3):	
 	

Borrower shall provide Silicon with the following:
	

 	
 	

 	
 	

1.	
 	

Monthly unaudited financial statements, as soon as available, and in any event within thirty days after the end of each month.
	

 	
 	

 	
 	

2.	
 	

Quarterly Compliance Certificates, within thirty days after the end of each fiscal quarter, in such form as Silicon shall reasonably specify, signed by the Chief Financial Officer of Borrower, certifying that as of the end of such fiscal quarter
Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Silicon shall reasonably
request.
	

 	
 	

 	
 	

3.	
 	

Within 5 days of filing, copies of all reports on Form 10-Q and 10-K filed by Borrower with the Securities and Exchange Commission.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

4.	
 	

Annual financial statements, as soon as available, and in any event within 120 days following the end of Borrower's fiscal year, certified by independent certified public accountants acceptable to Silicon.
	

	
7.	
 	

COMPENSATION

(Section 5.5):	
 	

Not Applicable.
	
8.	
 	

BORROWER INFORMATION:	
 	

 	
 	

 	
 	

 
	

 	
 	
Prior Names of

Borrower
 (Section 3.2):	
 	

See Representations and Warranties dated January 17, 2002.
	

 	
 	
Prior Trade

Names of Borrower
 (Section 3.2):	
 	

See Representations and Warranties dated January 17, 2002.
	

 	
 	
Existing Trade

Names of Borrower

(Section 3.2):	
 	

See Representations and Warranties dated January 17, 2002.
	

 	
 	
Other Locations and

Addresses (Section 3.3):	
 	

See Representations and Warranties dated January 17, 2002.
	

 	
 	
Material Adverse

Litigation (Section 3.10):	
 	

None.
	

	
9.	
 	

OTHER COVENANTS

(Section 5.1):	
 	

Borrower shall at all times comply with all of the following additional covenants:
	

 	
 	

 	
 	
(1)	
 	

Banking Relationship. Borrower shall at all times maintain its primary banking relationship with Silicon. Without limiting the generality of the foregoing, Borrower shall, at all times, maintain not less than 25% of its total
cash and investments on deposit with Silicon. As to any Deposit Accounts and investment accounts maintained with another institution, Borrower shall cause such institution, within 30 days after the date of this Agreement, to enter into a control
agreement in form acceptable to Silicon in its good faith business judgment in order to perfect Silicon's first-priority security interest in said Deposit Accounts and investment accounts.
	
 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

 	
 	

(a)	
 	
Subordination of Inside Debt. All present and future indebtedness of the Borrower to its officers, directors and shareholders ("Inside Debt") shall, at all times, be subordinated to the
Obligations pursuant to a subordination agreement on Silicon's standard form. Borrower represents and warrants that there is no Inside Debt presently outstanding, except for the following: NONE. Prior to incurring any Inside Debt in the future,
Borrower shall cause the person to whom such Inside Debt will be owed to execute and deliver to Silicon a subordination agreement on Silicon's standard form.
	

 	
 	

 	
 	

 	
 	

(b)	
 	
Copyright Filings. Within 60 days after the date hereof, Borrower shall (i) execute and deliver to Silicon an Intellectual Property Security Agreement between Borrower and Silicon (the
"Intellectual Property Agreement") on Silicon's standard form, (ii) cause all of its computer software and copyrights, the licensing of which results in Accounts, or which is material to its business to be registered with the United States Copyright
Office, (ii) complete the Exhibits to the Intellectual Property Agreement with all of the information called for with respect to such software and other intellectual property, (iii) cause the Intellectual Property Agreement to be recorded in the
United States Copyright Office, and (iv) provide evidence of such recordation to Silicon.
	

 	
 	

 	
 	

 	
 	

(c)	
 	
Transactions with Subsidiaries. Borrower agrees that the aggregate amount of all expenses Borrower incurs on behalf of its Subsidiaries plus the aggregate amount of money or other assets
Borrower loans and/or transfers to its Subsidiaries shall not at anytime exceed $1,000,000 during the term of this Agreement. The preceding shall not include any such expenses, loans and/or transfers incurred or made prior to the date of this
Agreement.
	

 	
 	

 	
 	

 	
 	

(d)	
 	
Investments. Borrower shall not directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to
do so.

	

 	
 	

 	
 	

 	
 	

 
	

Borrower:	
 	

Silicon:
	

INVISION TECHNOLOGIES, INC.	

 	

SILICON VALLEY BANK
	

By	
 	

/s/ Ross Mulholland
 President or Vice President	
 	

By	
 	

/s/ Quentin Falconer

	

 	
 	

 	
 	

Title	
 	

Senior VP

	

By	
 	

    
 Secretary or Ass't Secretary	
 	

 	
 	

 

QuickLinks

Exhibit 10.6

Amendment to Loan Documents

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