INTERCREDITOR AGREEMENT RELATING TO THE OFFERING OF 12% SECURED CONVERTIBLE NOTES DUE 2006 OF SHEERVISION, INC

                                                                        EX-10.17

                                                                  EXECUTION COPY
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                             INTERCREDITOR AGREEMENT

                           RELATING TO THE OFFERING OF

                     12% SECURED CONVERTIBLE NOTES DUE 2006

                                       OF

                                SHEERVISION, INC.

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                         DATED AS OF SEPTEMBER 13, 2005


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       INTERCREDITOR AGREEMENT (this "AGREEMENT"),  dated as of September
       13, 2005, between SHEERVISION, INC., a California corporation with
       offices  located  at 4040 Palos  Verdes  Drive  North,  Suite 105,
       Rolling Hills Estates,  California  90274 (the  "COMPANY") and THE
       HOLDERS (the "INVESTORS") of the 12% Secured Convertible Notes due
       2006 of the COMPANY (the "NOTES").


                                  INTRODUCTION

       In accordance with the Confidential Private Placement  Memorandum,  dated
August 24, 2005, of the Company and the documents  attached thereto,  including,
without   limitation,   the   Subscription   Package   attached   thereto   (the
"SUBSCRIPTION"),  the  Investors  have agreed to  purchase  from the Company the
Notes,  each dated as of the date  hereof,  and  delivered  respectively  to the
Investors  pursuant to the  Subscription,  dated as of the date  hereof,  by and
between  the  Company  and  each  of  the  Investors.  Pursuant  to  Notes,  the
obligations  of the Company under the Notes are secured by a security  interest,
granted  in favor of the  Investors  in and to all  property  and  assets of the
Company (the "SECURITY INTEREST").  The Company's  obligations,  as set forth in
the Notes, are sometimes referred to herein as the "COMPANY'S OBLIGATIONS".  The
Investors  desire to enter  into  this  Agreement  in order to set  forth  their
understanding with respect to several matters pertaining to the servicing of the
Loan (as  hereinafter  defined) and the enforcement of their  respective  rights
with  respect to the  Notes,  as well as  matters  related to the  subordination
thereof.

       NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
promises,  representations,  warranties, and covenants hereinafter set forth and
for other good and valuable consideration,  the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

       1.     Loan Advance.

              The Investors have advanced,  pursuant to the terms and conditions
set forth in the  Transaction  Documents (as defined in the Notes),  the amounts
set forth in Exhibit A attached hereto (in the aggregate,  the "LOAN").  For the
purposes of this  Agreement,  the amount of  principal,  plus  interest  accrued
thereon,  owed to each Investor under its respective Note as a proportion of the
aggregate amount of the Loan, shall be referred to as such Investor's respective
percentage interest (the "PERCENTAGE INTERESTS").

       2.     Ownership Interest.

              Each  Investor  shall  own an  interest  in the Loan  equal to its
Percentage  Interest as described on Exhibit A and each  Investor  shall own its
interest the  Company's  Obligations.  Except as otherwise  stated  herein,  the
Investor  shall own,  PARI PASSU to each of the other  Investors,  an  undivided
fractional  interest equal to such  Investor's  Percentage  Interest in: (a) the

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Loan;  (b) all payments made on or in respect of the Loan; (c) all recoveries or
distributions  in  connection  with the Loan;  and (d) all  present  and  future
collateral (and all proceeds in connection therewith) securing the same.

       3.     No Representation or Warranty Relating to Loan.

              3.1.   No Investor has made any warranty or  representation to any
other Investor,  expressed or implied, with respect to the Loan, the adequacy of
security for the Loan, the existing or future solvency or financial worth of the
Company,  and the  ability of the  Company  to repay the Loan and the  Company's
Obligations.  Each  Investor  acknowledges  that  the  Loan  and  the  Company's
Obligations  carry a high  degree of risk;  that the  Company may default on the
Loan, which may result in a bankruptcy filing and/or foreclosure action and/or a
deterioration  of the  collateral  for the Loan; and that it may not be possible
for the Investors to collect the full principal  balance of the Loan, any or all
of the accrued  interest on the Loan,  and/or any or all other  amounts due with
respect to the Loan.

              3.2.   Any  information,  data,  projections  and other  materials
heretofore  supplied  to each  Investor  has  been  extrapolated  from  material
supplied by the Company or due diligence.  Each Investor acknowledges and agrees
that no  Investor  makes any  representation  or  warranty  as to the nature and
quality of such information.  Each Investor  acknowledges and agrees that it has
had ample opportunity to make and have made such investigations as it has deemed
necessary under the circumstances.

       4.     Expenses.

              All expenses including, but not limited to, counsel fees and court
costs paid or incurred by any Investor (an  "OBLIGATED  PARTY") in any action to
collect or foreclose on any of the Company's Obligations,  the Security Interest
or the Loan, shall be borne by the Investors in accordance with their respective
Percentage  Interests  at the time of the default or the failure of  performance
giving  rise to the action to collect  or  enforce  the rights of the  Investors
under  the  Noteor  the  Company's  Obligations.  Payment  shall be made by each
Investor to the Obligated  Party within five (5) days after receipt of notice of
demand for the payment of such Investor's PRO RATA share. If such payment is not
made when due,  the  Obligated  Party may make such  payment  on the  defaulting
Participant's  behalf,  such  payment  shall  bear  interest  at the rate of ten
percent (10%) PER ANNUM and shall be automatically repaid to the Obligated Party
out of the first funds received on behalf of the defaulting  Participant from or
on behalf of the Company.

       5.     Distribution of Sale or Refinance Proceeds.

              5.1.   If Company repays or refinances the Loan, or if the Company
is in default of the Company's Obligations and any Investor sells or disposes of
any  Collateral for the Loan or any Investor  otherwise  recovers all or part of
the  principal  and interest and other amounts due and owing under the Company's
Obligations,  the net  proceeds  of said  refinances  or sale or the  amount  of
principal,  interest  and  other  amounts  repaid  shall be  distributed  in the
following order of priority:

                     (a)    First,   repayment  of  each   Investor's   expenses
described above in Section 4;

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                     (b)    Second,   repayment  of  remaining   principal   and
interest (exclusive of default interest and late charges to each Investor);

                     (c)    Third, repayment of default interest,  late charges,
and any other  amounts  to each  Investor  PARI PASSU in  accordance  with their
respective Percentage Interests;

              5.2.   The priorities of allocation set forth in Section 5.1 shall
apply in all  circumstances,  including with respect to any distribution made in
any  case or  proceeding  under  Title 11 of  United  States  Code or any  other
proceeding  relating  to  the  Company  under  any