Document:

AMENDMENT
      NO. 1 TO CONVERTIBLE DEBENTURES

     

    THIS
      AMENDMENT NO. 1 TO CONVERTIBLE DEBENTURES dated
      of
      March 20, 2008, by and between
      INNOVA ROBOTICS AND AUTOMATION, INC.
      (the
“Company”),
      and
YA
      GLOBAL INVESTMENTS, L.P. (f/k/a Cornell Capital Partners L.P.),
a
      Cayman
      Island limited partnership (“YA
      Global”).
      All
      capitalized terms used herein shall have the respective meanings assigned
      thereto in the Transaction Documents (as defined below) unless otherwise defined
      herein.

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the
      Company and YA Global have entered into certain financing arrangements set
      forth
      on Schedule
      A
      attached
      hereto and referred to herein as the “Transaction
      Documents”
      pursuant to which, YA Global is the holder of the following secured convertible
      debentures (collectively, the “Debentures”)
      issued
      by the Company: 

     

    
      	
              Debenture,
                Number, Issue Date, Original Principal Amount

            
	 
	
              Secured
                Convertible Debenture due July 20, 2009 (#IVHG-2-1) issued on July
                20,
                2006, as amended in the original principal amount of
                US$1,250,000.

            
	 
	
              Secured
                Convertible Debenture due August 22, 2009 (#IVHG-2-2) issued on August
                22,
                2006, as amended in the original principal amount of
                US$575,000.

            
	 
	
              Secured
                Convertible Debenture due December 7, 2009, (#IVHG-2-3) issued on
                December
                7, 2006, as amended in the original principal amount of
                US$1,000,000.

            
	 
	
              Secured
                Convertible Debenture due November 2, 2010, (#INRA-1-1) issued on
                November
                2, 2007, as amended in the original principal amount of
                US$600,000.

            

    

     

    WHEREAS,
      the
      Company and YA Global wish to amend certain terms of the Debentures pursuant
      to
      this 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing, and the respective agreements, warranties and
      covenants contained herein, the parties hereto agree, covenant and warrant
      as
      follows: 

     

    	1.  	
            AMENDMENT
              OF DEBENTURES.
              Pursuant to the terms and conditions of this Agreement, contemporaneously
              with the execution and delivery of this Agreement, the Company will
              amend
              each of the Debentures by executing an amendment (the “Amendments”)
              in substantially the form attached hereto as Exhibit
              A
              for each Debenture. Pursuant to the Amendments, the following amendments
              will be made to each Debenture:

          

     

    	a.  	
            Interest
              will accrue on the outstanding principal balance of each of the Debentures
              at an annual rate equal to fourteen percent (14%) effective as of the
              date
              hereof; 

          

     

    	b.  	
            the
              Conversion Price shall be the lower of .02 or eighty-five percent (85%)
              of
              the lowest Volume Weighted Average Price in the thirty (30) trading
              days
              prior to the Conversion Date. 

          

     

    	2.  	
            PROVISIONS
              OF GENERAL APPLICATION

          

     

    	a.  	
            Effect
              of this Agreement.
              Except as modified pursuant hereto, no other changes or modifications
              to
              the Transaction Documents are intended or implied and in all other
              respects the Transaction Documents are hereby specifically ratified,
              restated and confirmed by all parties hereto as of the effective date
              hereof. To the extent of conflict between the terms of this Agreement
              and
              the other Transaction Documents, the terms of this Agreement shall
              control. The Transaction Documents and this Agreement shall be read
              and
              construed as one agreement.

          

     

    	b.  	
            Governing
              Law.
              This Agreement shall be interpreted according to the laws of the State
              of
              New Jersey and shall inure to the benefit of and be binding upon the
              parties hereto and their respective successors and assigns. Any notices,
              demands, consents, other writings or communications permitted or required
              by this Agreement shall be given in the manner and to the address as
              set
              forth in the Transaction Documents.

          

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    	c.  	
            Mutual
              Waiver of Jury Trial.
              BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS
              ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT
              PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY
              (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES
              BE
              RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE
              THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
              ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN
              ANY
              ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER
              ARISING
              IN CONTRACT, TORT OR OTHERWISE BETWEEN FACTOR AND CLIENT ARISING OUT
              OF,
              CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
              BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
              FACTORING DOCUMENTS OR THE TRANSACTIONS RELATED
              THERETO.

          

     

    [SIGNATURE
      PAGE IMMEDIATELY TO FOLLOW]

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      this
      Agreement is executed and delivered as of the day and year first above
      written.

     

    
      	
              Innova
                Robotics and Automation, Inc..

            
	 	 
	
              By:

            	
              /s/Lloyd
                Spencer

            
	
              Name:  
                Lloyd
                Spencer

            
	
              Title:   
                 Chief
                Executive Officer

            
	 	 
	
              YA
                Global Investments, L.P.

            
	 	 
	
              By:

            	
              Yorkville
                Advisors, LLC

            
	
              Its:

            	
              Investment
                Manager

            
	 	 
	
              By:

            	 
	
              Name:

            
	
              Title:

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    INNOVA
      ROBOTICS AND AUTOMATION, INC.

    

    AMENDMENT

    to

    SECURED
      CONVERTIBLE DEBENTURE DUE JULY 20, 2009

    

    THIS
      DEBENTURE AMENDMENT SHOULD BE ATTACHED TO THE

    ORIGINAL
      DEBENTURE CERTIFICATE

    

    This
      Amendment to Secured Convertible Debenture (this “Amendment”)
      is
      issued in connection with Secured Convertible Debenture (the “Debenture”)
      issued
      by Innova Robotics and Automation, Inc. (the “Company”)
      to YA
      Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P. (the
“Holder”)
      in the
      original principal amount of One Million Two Hundred Fifty Thousand Dollars
      ($1,250,000). Capitalized terms used but not defined herein have the meaning
      given thereto in the Debenture. 

     

    THIS
      CERTIFIES THAT,
      the
      following amendments are hereby made to the Debenture:

     

    	·  	
            Interest
              will accrue on the outstanding principal balance of each of the Debentures
              at an annual rate equal to fourteen percent (14%) effective as of the
              date
              hereof; and

          

     

    	·  	
            the
              Conversion Price shall be the lower of .02 or eighty-five percent (85%)
              of
              the lowest Volume Weighted Average Price in the thirty (30) trading
              days
              prior to the Conversion Date. 

          

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Amendment to be signed by its duly authorized
      officer.

     

    
      	
              Innova
                Robotics and Automation, Inc.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

    Dated:
      March __, 2008

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    INNOVA
      ROBOTICS AND AUTOMATION, INC.

    

    AMENDMENT

    to

    SECURED
      CONVERTIBLE DEBENTURE DUE AUGUST 22, 2009

    

    THIS
      DEBENTURE AMENDMENT SHOULD BE ATTACHED TO THE

    ORIGINAL
      DEBENTURE CERTIFICATE

    

    This
      Amendment to Secured Convertible Debenture (this “Amendment”)
      is
      issued in connection with Secured Convertible Debenture (the “Debenture”)
      issued
      by Innova Robotics and Automation, Inc. (the “Company”)
      to YA
      Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P. (the
“Holder”)
      in the
      original principal amount of Five Hundred Seventy-Five Thousand Dollars
      ($575,000). Capitalized terms used but not defined herein have the meaning
      given
      thereto in the Debenture. 

     

    THIS
      CERTIFIES THAT,
      the
      following amendments are hereby made to the Debenture:

     

    	·  	
            Interest
              will accrue on the outstanding principal balance of each of the Debentures
              at an annual rate equal to fourteen percent (14%) effective as of the
              date
              hereof; and

          

     

    	·  	
            the
              Conversion Price shall be the lower of .02 or eighty-five percent (85%)
              of
              the lowest Volume Weighted Average Price in the thirty (30) trading
              days
              prior to the Conversion Date. 

          

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Amendment to be signed by its duly authorized
      officer.

     

    
      	
              Innova
                Robotics and Automation, Inc.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

    Dated:
      March __, 2008

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    INNOVA
      ROBOTICS AND AUTOMATION, INC.

    

    AMENDMENT

    to

    SECURED
      CONVERTIBLE DEBENTURE DUE DECEMBER 7, 2009

    

    THIS
      DEBENTURE AMENDMENT SHOULD BE ATTACHED TO THE

    ORIGINAL
      DEBENTURE CERTIFICATE

    

    This
      Amendment to Secured Convertible Debenture (this “Amendment”)
      is
      issued in connection with Secured Convertible Debenture (the “Debenture”)
      issued
      by Innova Robotics and Automation, Inc. (the “Company”)
      to YA
      Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P. (the
“Holder”)
      in the
      original principal amount of One Million Dollars ($1,000,000). Capitalized
      terms
      used but not defined herein have the meaning given thereto in the Debenture.
      

     

    THIS
      CERTIFIES THAT,
      the
      following amendments are hereby made to the Debenture:

     

    	·  	
            Interest
              will accrue on the outstanding principal balance of each of the Debentures
              at an annual rate equal to fourteen percent (14%) effective as of the
              date
              hereof; and

          

     

    	·  	
            the
              Conversion Price shall be the lower of .02 or eighty-five percent (85%)
              of
              the lowest Volume Weighted Average Price in the thirty (30) trading
              days
              prior to the Conversion Date. 

          

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Amendment to be signed by its duly authorized
      officer.

     

    
      	
              Innova
                Robotics and Automation, Inc.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

    Dated:
      March __, 2008

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    INNOVA
      ROBOTICS AND AUTOMATION, INC.

    

    AMENDMENT

    to

    SECURED
      CONVERTIBLE DEBENTURE DUE NOVEMBER 2, 2010

    

    THIS
      DEBENTURE AMENDMENT SHOULD BE ATTACHED TO THE

    ORIGINAL
      DEBENTURE CERTIFICATE

    

    This
      Amendment to Secured Convertible Debenture (this “Amendment”)
      is
      issued in connection with Secured Convertible Debenture (the “Debenture”)
      issued
      by Innova Robotics and Automation, Inc. (the “Company”)
      to YA
      Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P. (the
“Holder”)
      in the
      original principal amount of Six Hundred Thousand Dollars ($600,000).
      Capitalized terms used but not defined herein have the meaning given thereto
      in
      the Debenture. 

     

    THIS
      CERTIFIES THAT,
      the
      following amendments are hereby made to the Debenture:

     

    	·  	
            Interest
              will accrue on the outstanding principal balance of each of the Debentures
              at an annual rate equal to fourteen percent (14%) effective as of the
              date
              hereof; and

          

     

    	·  	
            the
              Conversion Price shall be the lower of .02 or eighty-five percent (85%)
              of
              the lowest Volume Weighted Average Price in the thirty (30) trading
              days
              prior to the Conversion Date. 

          

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Amendment to be signed by its duly authorized
      officer.

     

    
      	
              Innova
                Robotics and Automation, Inc.

            
	 	 
	
              By:

            	 
	
              Name:

            	 
	
              Title:

            	 

    

     

    Dated:
      March __, 2008

     

    
      
         

      

      
        8LOAN
      AGREEMENT

    

    THIS
      LOAN AGREEMENT (the “Agreement”) dated this
      19th day of March,
      2008

    

    BETWEEN:

    

    Lorraine
      DiPaolo of 47 Plaza Street West Apartment 16C, Brooklyn, NY 11217

    (the
      “Lender”)

    

    AND

    

    SheerVision,
      Inc. of 4030 Palos Verdes Drive North, Suite 104, Rolling Hills, CA
      90278

    (the
      “Borrower”)

    

    IN
      CONSIDERATION OF the Lender loaning certain monies (the “Loan”) to the
      Borrower and the Borrower repaying the Loan to the Lender, both parties agree
      to
      keep, perform and fulfill the promises and conditions set out in this
      Agreement:

    

    Loan
      Amount &
Interest

    

    1.
      The
      Lender promises to loan up to three hundred thousand ($300,000) USD to  the
      Borrower and the Borrower promises to repay the principal amount to the
 Lender, at such address as may be provided in writing, with interest
      payable on  the unpaid principal at the rate of 9.00 percent per annum.
      Borrower may request  advances against the Loan periodically.

    

    Payment

    

    2.
      The
      loan will be repaid in full (both principal and interest) 9 months from the
       execution of this Agreement or earlier upon an Event of Default (as
      defined  below) (the “Term”).

    

    3.
      At any
      time while not in default under this Agreement, the Borrower may pay  the
      outstanding balance then owing under this Agreement to the Lender without
 penalty.

    

    Representations
      and
      Covenants of the Borrower

    

    4.
      The
      Borrower represents and warrants to the Lender that:

    

    (a)
      this
      Agreement constitutes the legal, valid, and binding obligation of the
 Borrower, enforceable against the Borrower in accordance with its terms,
      subject  to applicable bankruptcy, insolvency, reorganization or similar
      laws generally  affecting the enforcement of the rights of creditors.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (b)
      it
      will not create, incur, assume or suffer to exist, contingently or otherwise,
       any indebtedness for borrowed money that is either pari passu or
      senior in right of  payment to this Loan.

    

    (c)
      it is
      the legal and beneficial owner and will continue to be the legal and
 beneficial owner of all of the Collateral (as defined below) free of all
      liens,  charges, security interests, mortgages and other encumbrances and
      it shall defend  the Collateral against all claims and demands of all
      persons at any time charging  the same or any interest therein;

    

    (d)
      it
      shall not, without the prior written consent of the Lender, create, permit,
       assume, have outstanding or suffer to exist, any assignment, mortgage,
      lien,  charge, security interest or other encumbrance on the Collateral, or
      any part  thereof, ranking or purporting to rank prior to or pari
      passu with the charge and  security interest created by this
      Agreement.

    

    Default

    

    5.
      Notwithstanding anything to the contrary in this Agreement, upon the
 occurrence or during the continuance of an Event of Default, then the
      Lender may  declare the principal amount owing and interest due under this
      Agreement at that  time to be immediately due and payable.

    

    Unless
      the parties otherwise agree in writing, each of the following events shall
      be
 an “Event of Default” hereunder:

    

    (a)
      Borrower fails to pay timely any of the amounts due under this Agreement on
       the date the same becomes due and payable; 

    

    (b)
      Borrower is in breach of any of the representations, warranties or covenants
       herein applicable to it; 

    

    (c)
      if an
      encumbrancer, whether permitted or otherwise, takes possession of any  part
      of the Collateral, or if any process of a court, execution, distress, or
 analogous process becomes enforceable or is enforced against any of the
 Collateral, the  validity of which is not being diligently contested
      in good faith at  the time by Borrower by proper legal proceedings provided
      that such  proceedings effectively postpone enforcement of same and
      provided further  that same is vacated or lifted  within 30 days of
      Borrower becoming aware of or  receiving notice thereof; or

    

    (d)
      Borrower shall commence, or have commenced involuntarily against it, any
 case, proceeding or other action seeking to have an order for relief
      entered on its  behalf as debtor or to adjudicate it a bankrupt or
      insolvent, or seeking  reorganization, liquidation or dissolution under any
      law relating to bankruptcy,  insolvency, reorganization or relief of
      debtors or seeking an appointment of a  receiver, trustee, custodian or
      other similar official for it or for all or any  substantial part of its
      property.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Additional
      Clauses

    

    6.
      It is
      acknowledged that at Lender’s option, at the end of Term of this
 Agreement, Lender may elect to receive additional consideration in
      warrants in  the amount of 50% of the principal amount loaned at a warrant
      price of $0.25.

    

    7.
      It is
      acknowledged that at Lender’s option, Lender or Lender’s representative
 may have access to SheerVision’s board of directors meetings and other
      actions  brought to the board of directors.

    

    8.
      Borrower hereby covenants and agrees with Lender that it shall insure and
 keep insured all insurable property included in the Collateral against
      loss or  damage by fire and all other perils covered by a policy with an
      extended coverage  endorsement, in an amount not less than the full
      replacement value of the  Collateral, and will maintain general business
      insurance satisfactory to the  Lender.

    

    Security

    

    9.
      Borrower hereby grants Lender a first position security interest and lien in
      and
 to the Collateral. Such security interest in the Collateral shall secure
      all of  Borrower’s obligations to Lender hereunder (the “Obligations”),
      including, but  not limited to, the payment of the principal amount of the
      loan and any interest  thereon. Borrower agrees to execute and deliver to
      Lender a Financing Statement  on Form UCC-1 in order to perfect the
      security interest granted hereunder.  Borrower shall not, without the prior
      written consent of Lender: (i) sell, lease or  otherwise dispose of the
      Collateral or any part thereof; or (ii) release, surrender or  abandon
      possession of the Collateral or any part thereof.

    

    Governing
      Law

    

    10.
      This
      agreement will be construed in accordance with and governed by the  laws of
      the State of New York.

    

    Notice

    

    11.
      Any
      demand, notice or other communication to Borrower in connection with  this
      Agreement will be deemed to be made, given and received:

    

    (a)
      if
      mailed by prepaid registered mail addressed to Borrower at the address for
       notice set forth on the signature page hereof, on the day following the
      day on  which it was mailed, during a period of uninterrupted mail service,
      whether or not  the same be returned undelivered; or

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (b)
      if
      delivered to Borrower at, or sent by prepaid courier service to the address
       for notice set forth on the signature page hereof, or personally served
      upon any  director, officer, servant, employee or partner of Borrower, at
      the time of such  delivery or service; or

    

    (c)
      if
      sent prepaid by telecopier, telefax or other similar means of electronic
 communication, to the number set forth on the signature page hereof or
      where  Borrower has the facilities to receive such communication, provided
      that a copy  thereof is sent on the same day by prepaid mail, at the time
      of such sending.

    

    Binding
      Effect

    

    12.
      This
      agreement will pass to the benefit of and be binding upon the respective
 heirs, executors, administrators, successors and permitted assigns of the
      Borrower  and Lender.

    

    Amendments

    

    13.
      This
      agreement may only be amended or modified by a written instrument  executed
      by both the Borrower and Lender.

    

    Entire
      Agreement

    

    This
      agreement constitutes the entire agreement between the parties and there are
       no further items or provisions, either oral or otherwise.

    

    IN
      WITNESS WHEREOF, the parties have duly affixed their signatures under
      hand and seal the 19th day of March, 2008.

    

    

      
        	
                SIGNED,
                  SEALED AND DELIVERED

              	
                ]

              	 
	
                this
                  19th day of March, 2008

              	
                ]

              	
                  
                  

              
	 	 	
                Lorraine
                  DiPaolo

              
	 	 	 
	 	 	 
	 	 	 
	
                SIGNED,
                  SEALED AND DELIVERED

              	
                ]

              	 
	
                this
                  19th day of March, 2008

              	
                ]

              	
                  
                  

              
	 	 	
                SheerVision,
                  Inc.

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