Document:

Exhibit 10.1 A

     

    PROMISSORY
      NOTE

     

    October
      10, 2006

    Los
      Angeles, California 

     

    FOR
      VALUE
      RECEIVED, the undersigned, INVISA,
      INC.,
      a
      Nevada corporation (“Borrower”),
      promises to pay to the order of M.A.G.
      CAPITAL, LLC,
      a
      California limited liability company (together with its successors and assigns,
      “Lender”),
      at
      555 South Flower Street, Suite 4200, Los Angeles, California 90071, or such
      other place as the holder hereof may designate in writing, the principal sum
      of
      THIRTY SIX THOUSAND EIGHT HUNDRED TWENTY EIGHT United States Dollars (U.S.
      $36,828.00), with interest on the unpaid principal balance from the date of
      this
      Promissory Note (this “Note”),
      until
      paid, at the Interest Rate provided herein. 

     

    WHEREAS,
      (i) Borrower, Lender and Ocean Park Advisors, LLC, a California limited
      liability company (“Advisors”),
      have
      entered into that certain Letter Agreement, dated as of the date hereof (as
      amended, restated, supplemented or otherwise modified from time to time, the
      “Letter
      Agreement”),
      pursuant to which Advisors will receive each Borrowing Certificate (as
      hereinafter defined) and perform the services for Lender as set forth therein,
      (ii) Borrower has made (A) that certain promissory note dated as of the date
      hereof, payable to the order of Mercator Momentum Fund III, LP, a California
      limited partnership (as amended, restated, supplemented or otherwise modified
      from time to time, the “Mercator
      Note”)
      and (B)
      that certain promissory note dated as of the date hereof payable to the order
      of
      Monarch Pointe Fund, Ltd., a company organized under the laws of the British
      Virgin Islands (as amended, restated, supplemented or otherwise modified from
      time to time, the “Monarch
      Note”,
      and
      collectively with this Note and the Mercator Note, the “Subject
      Promissory Notes”,
      and
      each a “Subject
      Promissory Note”)
      and
      (iii) Borrower has granted to Advisors that certain Warrant to Purchase Common
      Stock, dated as of the date hereof (as amended, restated, supplemented or
      otherwise modified from time to time, the “Warrant”)
      as
      Advisors’ compensation under the Letter Agreement;

     

    NOW,
      THEREFORE, for and in consideration of the foregoing, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agrees as follows:

     

    

     

      Rate
      of Interest.
      The
      outstanding principal balance of this Note shall bear interest at ten percent
      (10%) per annum (the “Interest
      Rate”).
      

     

      Date
      and Time of Payment.
      The
      outstanding principal balance of this Note shall be repaid in full plus all
      accrued and unpaid interest on earlier to occur of (a) the Maturity Date or
      (b)
      the date of termination of this Note, whether by its terms, by prepayment,
      or by
      acceleration. All amounts outstanding hereunder shall constitute Borrower’s
      obligations hereunder, and such obligations include without limitation all
      principal, interest (including all interest which accrues after the commencement
      of any case or proceeding by or against Borrower in bankruptcy whether or not
      allowed in such case or proceeding), fees, indemnities, expenses, attorneys’
fees and any other sum chargeable to Borrower hereunder and owing to Lender
      (all
      such obligations and all other obligations of Borrower under this Note,
“Obligations”).
      No
      principal amount of this Note paid or prepaid may be reborrowed. 

     

      Default
      Rate.
      Notwithstanding Section
      1,
      after
      the occurrence of any Event of Default and for so long as such Event of Default
      continues, and in any event from and after the Maturity Date, all 

    
      
        
        

      

      
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      principal,
      interest and other amounts payable under this Note shall bear interest until
      paid in full at a rate of interest equal to four percent (4%) above the per
      annum rate otherwise applicable hereunder. 

     

      Computation
      of Interest.
      Interest on the principal amount hereof and all other Obligations shall be
      computed on the basis of a 360-day year, and shall be charged for the actual
      number of days elapsed during any month
      or
      other accrual period.

     

      Manner
      of Payment.
      All
      payments by Borrower in respect of any Obligations shall be made without
      deduction, defense, set off or counterclaim, free and clear of all taxes, and
      in
      immediately available funds delivered to Lender by wire transfer to the account
      set forth on Schedule
      1
      attached
      hereto, or to such other account(s) at such bank(s) as Lender may from time
      to
      time designate in writing to Borrower. 

     

      Maturity.
      To the
      extent not sooner due and payable in accordance with this Note, the outstanding
      principal balance of this Note, and all accrued and unpaid interest thereon,
      shall be due and payable on March
      1,
      2007 (the “Maturity
      Date”).
      

     

      Application
      of Payments.
      All
      payments shall be applied to amounts then due and payable in the following
      order: (a) to Lender’s costs and expenses reimbursable in connection herewith;
      (b) to interest accrued on the outstanding principal balance of this Note;
      (c)
      to the principal amount hereof; and (d) to all other Obligations.

     

      Borrowing
      and Use of Proceeds. 

     

      The
      proceeds of this Note shall be funded in multiple advances (each, an
“Advance”)
      by
      Lender to Borrower in the amounts and on such dates as set forth on Schedule
      2
      attached
      hereto under the heading “Schedule of Advances”. The initial Advance shall be
      made on the date hereof, subject to (i) the repayment of all outstanding
      principal, interest and other obligations under that certain Promissory Note
      dated September 19,
      2006,
      made by Borrower payable to the order of Lender (as
      amended, restated, or otherwise modified from time to time, the
      “Existing
      Note”),
      and
      (ii) the issuance of the Warrant by Borrower to Advisors. The obligation of
      Lender to make each subsequent Advance following
      the initial Advance hereunder
      is subject to the fulfillment, at or prior to the time of the making of such
      Loan, of each of the following conditions: (i) following each Advance, including
      without limitation the initial Advance, Borrower shall have delivered to
      Advisors, and Advisors shall have received, a Borrowing Certificate
      and any
      requested information in connection therewith
      pursuant
      to Section
      11
      hereof
      at least one (1) Business Day prior to the date of next scheduled Advance,
      and
      (ii) no Event of Default, or any event which, with the giving of notice or
      the
      lapse of time, or both, would constitute an Event of Default (any such event,
      a
“Default”),
      shall
      have occurred and be continuing. 

     

      On
      the
      date of the initial Advance, such Advance shall be applied (i) in the amount
      of
      27.19% of the outstanding amount owing under the Existing Note to the repayment
      of the Existing Note, and (ii) to the payment of Permitted Expenses in
      accordance with the terms of this Note. Each subsequent Advance shall be applied
      as set forth in clause
      (ii)
      of this
      Section 8(b).

     

      Grant
      of Security.
      In order
      to secure prompt repayment of any and all of the Obligations in accordance
      with
      the terms and conditions of this Note, Borrower hereby grants to Lender, a
      continuing security interest in all of Borrower’s right, title, and interest in
      and to, all property of Borrower (the “Collateral”),
      whether now owned or existing or hereafter acquired or arising and wheresoever
      located, which Collateral shall include, without limitation, all of the
      following: accounts; books and records (including any information inscribed
      on
      any tangible medium or which is stored in an electronic 

     

    
      
        
        

      

      
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      or
      other
      medium and is retrievable in perceivable form) relating to its business
      operations or financial condition or the Collateral; commercial tort claims;
      deposit accounts; equipment; general intangibles; patents;
      patent applications; goods;
      instruments; inventory; investment property (including all securities and
      securities accounts); letters of credit; letter of credit rights; promissory
      notes; drafts; documents; chattel paper (including electronic chattel paper
      and
      tangible chattel paper); any and all supporting obligations; money, cash and
      cash equivalents; other personal property or other assets of Borrower which
      now
      or hereafter come into the possession, custody, or control of Lender (as each
      of
      the foregoing types of property are defined in the Uniform Commercial Code
      as,
      from time to time, enacted and in effect in the State of California (the
“Code”);
      together, in each instance, with all accessions and additions thereto,
      substitutions therefor, and replacements, products thereof and any other
      property receivable or received from or upon the sale, lease, license,
      collection, use, exchange or other disposition, whether voluntary or
      involuntary, of any of the foregoing, including without limitation any and
      all
“proceeds” as defined in the Code, whether cash or noncash, any and all proceeds
      of any insurance, indemnity, warranty or guaranty payable to or for the account
      of Borrower from time to time with respect to any of the foregoing, any and
      all
      payments (in any form whatsoever) made or due and payable to Borrower from
      time
      to time in connection with any requisition, confiscation, condemnation, seizure
      or forfeiture of all or any part of the Collateral by any governmental authority
      (or any person or entity acting under color of governmental authority), and
      any
      and all other amounts from time to time paid or payable under or in connection
      with any of the foregoing or for or on account of any damage or injury to or
      conversion of any of the foregoing by any person or entity. Any terms used
      in
      this Note which are defined in the Code shall be construed and defined as set
      forth in the Code unless otherwise defined herein.
      The
      patent/patent applications included in the Collateral include: US 5,337,039
      080994; US 7,023,222 B2 040406; US 2006 005534 A1 031606.

     

      Representations
      and Warranties.
      Borrower
      makes the following representations and warranties to Lender, which
      representations and warranties shall be true, correct, and complete as of the
      date hereof and shall survive the execution and delivery of this
      Note:

     

      Due
      Organization and Qualification.
      Borrower is duly organized and validly existing and in good standing under
      the
      laws of the jurisdiction of its organization and qualified to do business in
      any
      jurisdiction where it is required to be so qualified, and has all requisite
      power and authority to (i) own its assets and carry on its business, and (ii)
      execute, deliver and perform its Obligations. 

     

      Due
      Authorization; No Conflict.
      The
      execution, delivery, and performance by Borrower of this Note to which it is a
      party have been duly authorized by all necessary action on the part of Borrower.
      This Note has been duly executed and delivered by Borrower. The execution,
      delivery, and performance by Borrower of this Note, and the consummation of
      the
      transactions contemplated hereby, do not and will not (i) violate in any
      material respect any provision of federal, state, provincial or local law or
      regulation applicable to Borrower, its organizational documents, or any order,
      judgment, or decree of any court or other governmental authority, (ii) conflict
      with, result in a breach or termination of, or constitute (with due notice
      or
      lapse of time or both) a default under any material contractual obligation
      of
      Borrower, (iii) result in or require the creation or imposition of any lien
      of
      any nature whatsoever upon any properties or assets of Borrower, other than
      liens or security interests in favor of Lender, or (iv) require any approval
      of
      any of Borrower’s stockholders or any approval or consent of any other person or
      entity, other than consents or approvals that have been obtained and that are
      still in force and effect. The execution, delivery, and performance by Borrower
      of this Note do not and will not require any registration with, consent, or
      approval of, or notice to, or other action with or by, any governmental
      authority, other than consents or approvals that have been obtained and that
      are
      still in force and effect. This Note when executed and delivered by Borrower
      will be the legally valid and binding obligation of Borrower, enforceable
      against Borrower in accordance with its term, except as enforcement may be
      

     

    
      
        
        

      

      
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      limited
        by equitable principles or by bankruptcy, insolvency, reorganization,
        moratorium, or similar laws relating to or limiting creditors’ rights generally.
        The Lender’s security interest in the Collateral is a validly created,
        perfected, first priority security interest, subject only to Permitted
        Liens.

    

     

    Executive
      Offices; Collateral Locations; FEIN; Organizational Information; Trade
      Names.
      The
      current location of Borrower’s chief executive office, principal place of
      business, other offices, the warehouses and premises within which any Collateral
      is stored or located, and the location of its books and records is 6935 15th
      Street East, Suite 120, Sarasota, Florida 34243 (“Borrower’s
      Office”).
      Borrower has not used and does not presently use any fictitious or trade names
      which have been used by Borrower.

     

        Affirmative
      Covenants.
      For so
      long as there are any Obligations outstanding and until payment and performance
      in full thereof, Borrower hereby covenants to Lender as follows: (a) Borrower
      shall at all times preserve and keep in full force and effect Borrower’s and
      each of its subsidiaries’ valid existence and good standing and any rights and
      franchises material to their businesses; (b) (i) the amounts advanced to
      Borrower under this Note shall be used to pay Permitted Expenses (as
      defined below) of
      Borrower that have been invoiced to Borrower in the ordinary course of business
      by the applicable Permitted
      Payee (as defined below)
      to which
      any such Permitted Expense is owed
      and (ii)
      which payments of Permitted Expenses to any such Permitted Payee, plus any
      payments of such Permitted Expenses to such Permitted Payee with the proceeds
      of
      advances under the other Subject Promissory Notes, shall not exceed in the
      aggregrate the amounts specified therefor as set forth on Schedule 2 hereto
      for
      the periods listed thereon;
      (c) at
      least one (1) Business Day prior to each Advance (other than the initial
      Advance), Borrower shall deliver to Advisors, with a copy to Lender, and
      Advisors shall have received, (i)
      a
      certificate of the chief executive officer or chief financial officer of the
      Borrower substantially in the form of Exhibit
      A
      hereto
      (each such certificate, a “Borrowing
      Certificate”),
      which
      certificate shall set forth evidence of Borrower’s payment of the Permitted
      Expenses due and payable to a Permitted Payee prior to such Advance and the
      amount thereof, which Permitted Expenses shall have been paid with the proceeds
      of the Advances made prior to such Advance in accordance with Schedule
      2
      hereto
      (such payments, “Permitted
      Payments”),
      which
      evidence shall be in form and substance satisfactory to Lender in all respects,
      and (ii)
      such
      other information regarding Borrower and its business as Lender or Advisors
      may
      request in form and substance satisfactory to Lender or Advisors, as applicable,
      and (d)
      Borrower shall, at Borrower’s expense and upon the request of Lender, duly
      execute and deliver, or cause to be duly executed and delivered, to Lender
      such
      further instruments, and do and cause to be done such further acts, as may
      be
      necessary or proper in the reasonable opinion of Lender to carry out more
      effectively the provisions and purposes of this Note. As used in this Note,
      “Permitted
      Expenses”
      shall
      mean unpaid operating expenses of Borrower that are due and payable to the
      persons or entities set forth on Schedule
      2
      hereto
      (each a “Permitted
      Payee”),
      and
      which expenses shall be of the type set forth on such schedule.

     

      Negative
      Covenants.
      Without
      the prior written consent of Lender, Borrower shall not, and shall not cause
      or
      permit any of its subsidiaries to, (a) directly or indirectly, create, incur,
      assume or permit to exist any indebtedness for borrowed money, other than (i)
      indebtedness evidenced by this Note, (ii) Permitted Expenses and (iii) the
      indebtedness described in Part 1 of Schedule 3 hereto; (b) create, incur,
      assume or permit to exist any lien, security interest or other encumbrance
      on or
      with respect to the Collateral, except for the following liens and other
      encumbrances (“Permitted
      Liens”)
      (i)
      any liens, security interests or other encumbrances created in favor of Lender,
      Mercator Momentum Fund III, LP or Monarch Pointe Fund, Ltd.; (ii) liens or
      other
      encumbrances for taxes, assessments or other governmental charges which are
      not
      yet delinquent; (iii) liens or other encumbrances of landlords, carriers,
      warehousemen, mechanics, materialmen and other similar liens imposed by law
      and
      which are incurred in the ordinary course of business for sums not yet
      delinquent; and (iv) the liens created prior to the date 

     

    
      
        
        

      

      
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hereof
        as
        set forth in Part 2 of Schedule 3 hereto; (c) sell, transfer, convey or
        otherwise transfer any portion of the Collateral or otherwise materially
        modify
        or impair any portion of the Collateral, or any other assets of Borrower
        or any
        such subsidiary, other than (i) sales of inventory to buyers in the ordinary
        course of business or (ii) the use or transfer of money in a manner that
        is not
        otherwise prohibited by the terms hereof; (d) change (i) its corporate
        structure, legal name or organizational documents, (ii) its jurisdiction
        of
        organization, or (iii) its chief executive office, principal place of business,
        or any offices, warehouses or other premises where any Collateral is held
        or
        stored, or the location of its books and records; (e) directly or indirectly,
        enter into or permit to exist any transaction with, or make any payment or
        distribution to, any affiliate (other than Lender or any of its affiliates);
        (f)
        directly or indirectly, (i) merge with or consolidate with any entity, or
        (ii)
        liquidate, wind up, dissolve itself or sell or otherwise transfer any of
        its
        properties or assets outside the ordinary course of business;
        or (g)
        permit the amount of Borrower’s Working Capital as of the date hereof as
        determined by Lender to decline by an aggregate amount exceeding $25,000
        between
        the date hereof and the Maturity Date. As used in this Note, “Working Capital”
shall mean, for any period of determination and measured on a consolidated
        basis
        with any consolidated subsidiaries, the difference of (x) the sum of Borrower’s
        cash and cash equivalents plus the amount of Borrower’s accounts receivable plus
        the fair market value of Borrower’s inventory plus its prepaid expenses minus
        (y) the aggregate sum of Borrower’s accounts payables plus accrued
        expenses.

    

     

      Events
      of Default; Remedies; Acceleration.
      Upon
      and at any time following the occurrence of any Event of Default, Lender's
      obligations to make future advances shall terminate, and Lender
      may (i) proceed to protect and enforce Lender’s rights by suit in equity, action
      at law and/or other
      appropriate proceeding, either for specific performance of any covenant or
      condition contained in this Note or in any instrument or document delivered
      to
      Lender pursuant to this Note, or in aid of the exercise of any power granted
      in
      this Note or any such instrument or document, (ii) by notice in writing to
      Borrower declare all or any part of the unpaid balance of the Obligations then
      outstanding to be immediately due and payable, and/or (iii) proceed to enforce
      payment of the Obligations in such manner as Lender may elect,
      including the foreclosure of the Collateral and the sale of the assets in a
      public or private sale, and
      to
      realize upon any and all rights of Lender hereunder. To the extent not
      prohibited by applicable law which cannot
      be
      waived, all of Lender’s rights hereunder shall be cumulative. Lender shall have
      all other rights and remedies not inconsistent herewith as provided under
      applicable law or in equity, and no exercise by Lender of one right or remedy
      shall be deemed an election, and no waiver by Lender of any Event of Default
      shall be deemed a continuing waiver. No delay by Lender shall constitute a
      waiver, election or acquiescence by it. The occurrence of any one or more of
      the
      following events (regardless of the reason therefor) shall constitute an
“Event
      of Default”
      hereunder: 

     

    Borrower
      (i) fails to make any payment of outstanding principal balance of this Note,
      or
      interest thereon, or any of the other Obligation when due and payable, or (ii)
      fails to pay or reimburse Lender for any cost or expense reimbursable hereunder
      when due and payable;

     

    Borrower
      fails or neglects to perform, keep or observe any of the provisions of
Section
      11
      or
Section
      12,
      including without limitation any failure of Borrower to deliver any Borrowing
      Certificate in accordance with the terms of this Note;

     

    Any
      representation or warranty made in this Note or any other writing made by or
      on
      behalf of Borrower in connection herewith and the transactions contemplated
      hereby proves to have been false or incorrect in any material respect on the
      date as of which made;

     

    A
      case or
      proceeding is commenced against Borrower seeking a decree or order (i) under
      Title 11 of the United States Bankruptcy Code (11 U.S.C. §§101 et
      seq.,
      as
      amended, and any successor statute, the “Bankruptcy
      Code”),
      or
      any other applicable federal, state or foreign bankruptcy 

     

    
      
        
        

      

      
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      or
        other
        similar law, rule or regulation, (ii) appointing a custodian, receiver,
        liquidator, assignee, trustee or sequestrator (or similar official) for Borrower
        or for any substantial part of Borrower’s assets, or (iii) ordering the
        winding-up or liquidation of the affairs of s Borrower, and such case or
        proceeding shall remain undismissed or unstayed for sixty (60) days or more
        or a
        decree or order granting the relief sought in such case or proceeding shall
        be
        entered by a court of competent jurisdiction;Borrower
        (i) files a petition seeking relief under the Bankruptcy Code, or any other
        applicable federal, state or foreign bankruptcy or other similar law, rule
        or
        regulation, (ii) consents to or fails to contest in a timely and appropriate
        manner the institution of proceedings thereunder or the filing of any such
        petition or the appointment of or taking possession by a custodian, receiver,
        liquidator, assignee, trustee or sequestrator (or similar official) for Borrower
        or for any substantial part of Borrower’s assets, (iii) makes an assignment for
        the benefit of creditors, (iv) takes any action in furtherance of any of
        the
        foregoing; or (v) admits in writing its inability to, or is generally unable
        to,
        pay its debts as such debts become due; 

       

      If
        this
        Note or any financing statement, document or other instrument executed,
        delivered or filed in connection herewith or with the security interest granted
        to Lender hereunder, shall, for any reason, fail or cease to create a valid
        and
        perfected lien on or security interest in any or all of the
        Collateral.

    

     

    (g) If
      under
      any of the other Subject Promissory Notes, an Event of Default (as defined
      in
      such other Subject Promissory Note) shall occur

     

      Certain Rights
      and Waivers.
      To the
      extent not prohibited by the provisions of applicable law, Borrower hereby
      expressly waives: (a) all presentments, demands for performance, notices of
      nonperformance (except to the extent required by this Note), protests, notices
      of protest and notices of dishonor; (b) any requirement of diligence or
      promptness on the part of Lender in the enforcement of its rights under this
      Note; (c) any and all notices of every kind and description which may be
      required to be given by any statute or rule of law; and (d) any defense (other
      than indefeasible payment in full) which it may now or hereafter have with
      respect to its liability under this Note.

     

      Assignments.
      Borrower may not assign or transfer any of its rights or obligations hereunder
      without the express, written consent of Lender. Any such purported assignment
      or
      transfer by Borrower without the express, written consent of Lender shall be
      null and void ab
      initio.
      

     

      Costs
      and Expenses.
      Borrower agrees to pay all costs and expenses of Lender, including without
      limitation all fees and disbursements of counsel, advisors, consultants,
      examiners and appraisers for Lender, in connection with (a) any enforcement
      (whether through negotiations, legal process or otherwise) of this Note, (b)
      any
      workout or restructuring of this Note during the pendency of one or more Events
      of Default, (c) any bankruptcy case or proceeding of Borrower or any appeal
      thereof, and (iv) upon the occurrence and during the continuance of an Event
      of
      Default, any efforts to verify, protect, evaluate, assess, appraise, collect,
      sell, liquidate or otherwise dispose of any of the Collateral.

     

      CHOICE
      OF LAW. THE
      VALIDITY OF THIS NOTE, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF,
      AND THE RIGHTS OF THE BORROWER AND LENDER WITH RESPECT TO ALL MATTERS ARISING
      HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
      CALIFORNIA, WITHOUT
      REFERENCE TO CONFLICTS OF LAW PRINCIPLES EXCEPT TO THE EXTENT NECESSARY TO
      ENFORCE THIS CHOICE OF LAW PROVISION.

     

    
      
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      Notices.
      All
      communications hereunder shall be in writing and shall be deemed to be duly
      given and received (a) upon delivery if delivered personally or upon confirmed
      transmittal if by facsimile, (b) on the next Business Day if
      sent
      by overnight courier, or (c) four (4) Business Days after mailing if mailed
      by
      prepaid registered mail, return receipt requested, in each case to the
      appropriate notice address or facsimile number set forth below or at such other
      address or facsimile number as any party listed below may have furnished to
      the
      other party listed below by giving such other party notice in the manner set
      forth in this Section
      18.
      If to
      Lender, at M.A.G. Capital, LLC, 555 South Flower Street, Suite 4200, Los
      Angeles, California 90071, Attention: Harry Aharonian, Fax: (213) 533-8285,
      and
      if to Borrower, at Invisa, Inc. 6935 15th Street East, Suite 120, Sarasota,
      Florida 34243, Attention: Ed King, Fax: (941) 355-9373.

     

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      of Page Intentionally Blank]

     

    

     

    
      
        
          Promissory
            Note

        

        
        

      

      
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    IN
      WITNESS WHEREOF, the undersigned has executed this Note as of the date first
      written above.

     

    
      	 	
              INVISA,
                INC.

               

              By:
                /s/ Edmund C. King______

              Name:Edmund
                C. King

              Title:
                Chief Financial Officer

            
	 	 

    

    

    

    
      
        
          Signature
            Page to Promissory Note

        

        
        

      

      
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    Schedule
      1

    

    
      	
              Lender’s
                Account

               

            

    

    

    Account
      Name:  Morgan
      Stanley

    

    Bank
      Name: Citibank
      NY

    

    Bank
      Routing Number: 021000089

    

    Account
      Number: 388-90774

    

    
      	
              Special
                Instructions:

            	
              For
                benefit of MAG Capital LLC account number
                38-C1844

            

    

    

    

    
      
        
          Schedule
            1 to Promissory Note

        

        
        

      

      
        9

        
          

        

      

      
        
        

        
        

      

    

    

    Schedule
      2

    

    
      	
              Schedule
                of Advances

               

            

    

    

    
 

    
 

    

    
      
        -
          -

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        -
          -

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      
        -
          -

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Schedule
      3

    

    
      	
              Permitted
                Indebtness and Liens

               

            

    

    Schedule
      3, Part 1

     

    Indebtedness
      in the amount of $6000.00 owing by Borrower to Express Systems Corporation
      ("Plaintiff") in accordance with that certain Settlement Agreement between
      Plaintiff and Borrower, as defendant (the "Settlement Agreement") in respect
      of civil action Case No. 2005-CA-10032-NC in the Circuit Court of the
      Twelfth Judicial Circuit in and for Sarasota County, Florida. 

     

    Schedule
      3, Part 2

     

    Permitted
      Liens:

     

    The
      lien
      or security interest in favor of Plaintiff (as defined above) created in
      connection with the Settlement Agreement (as defined above), which lien or
      security interest is referenced in a financing statement filing with
      the Florida Department of State.  

    

    
      
        -
          -

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    
      	
              Borrowing
                Certificate

               

            

    

    

    ___________,
      2006

    

    Ocean
      Park Advisors, LLC

    6033
      West
      Century Boulevard, Suite 850

    Los
      Angeles, California 90045

    Attention:
      Heng Chuk 

    

    M.A.G.
      Capital, LLC

    555
      South
      Flower Street, Suite 4200 

    Los
      Angeles, California 90071

    Attention:
      Harry Aharonian

    

    Dear
      Ladies and Gentlemen:

    

    Reference
      hereby is made to the Promissory Note dated as of October 10, 2006 (as amended,
      restated, supplemented or otherwise modified from time to time, the “Note”),
      made by Invisa, Inc., a Nevada corporation (“Borrower”),
      payable to the order of M.A.G. Capital, LLC, a California limited liability
      company (together with its successors and assigns, “Lender”).
      Capitalized terms used herein, and not otherwise defined herein, have their
      respective meanings given them in the Note.

     

    This
      Borrowing Certificate is delivered prior to the forthcoming Advance on
      ______________ as set forth on Schedule 2 of the Note (such, Advance, the
“Subject
      Advance”).

    

    1. I,
      _______________, am the duly elected, qualified and acting _______________
      of
      Borrower, and I hereby certify the following:

    

    (a) 
      Attached
      hereto as Exhibit
      1
      is a
      true, complete and correct schedule of Permitted Payments made to the Permitted
      Payees set forth therein, listing the dates and amounts of such Permitted
      Payments, and each such Permitted Payment has been made in strict accordance
      with Schedule 2 of the Note.

    

    (b) (i)
      As of
      the date hereof, (ii) as of the date for the Subject Advance, and (iii) after
      giving effect to the Subject Advance: 

    

    (A)
      the
      representations and warranties of Borrower contained in the Note are true and
      correct in all material respects on and as of the date of the Subject Advance
      as
      though made on and as of such date (except to the extent that such
      representations and warranties solely relate to an earlier date); and

    

    (B)
      no
      Default or Event of Default has occurred and is continuing on the date of the
      Subject Advance, or would result therefrom.

    

    [Remainder
      of Page Intentionally Blank]

    

    

    
      
        
          

        

        
        

      

      
        14

        
          

        

      

      
        
        

        
        

      

    

    

     

    Very
      truly yours, 

     

     

    

     

     

    INVISA,
      INC.

     

     

    

     

     

    By:
      /s/
      Edmund C. King______________________

     

     

    Name:
      Edmund C. King

     

     

    Title:
      Chief Financial Officer

     

    

     

    

     

    
      
        
          

        

        
        

      

      
        15

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      1 to Borrowing Certificate

     

    [Borrower
      to Attach Evidence of Permitted Payments]Exhibit 10.1B

     

    PROMISSORY
      NOTE

     

    October
      10, 2006

    Los
      Angeles, California 

     

    FOR
      VALUE
      RECEIVED, the undersigned, INVISA,
      INC.,
      a
      Nevada corporation (“Borrower”),
      promises to pay to the order of Mercator
      Momentum Fund III, LP,
      a
      California limited partnership (together with its successors and assigns,
“Lender”),
      at
      555 South Flower Street, Suite 4200, Los Angeles, California 90071, or such
      other place as the holder hereof may designate in writing, the principal sum
      of
      EIGHT THOUSAND EIGHT HUNDRED THIRTY ONE United States Dollars (U.S. $8,831.00),
      with interest on the unpaid principal balance from the date of this Promissory
      Note (this “Note”),
      until
      paid, at the Interest Rate provided herein. 

     

    WHEREAS,
      (i) Borrower, Lender and Ocean Park Advisors, LLC, a California limited
      liability company (“Advisors”),
      have
      entered into that certain Letter Agreement, dated as of the date hereof (as
      amended, restated, supplemented or otherwise modified from time to time, the
      “Letter
      Agreement”),
      pursuant to which Advisors will receive each Borrowing Certificate (as
      hereinafter defined) and perform the services for Lender as set forth therein,
      (ii) Borrower has made (A) that certain promissory note dated as of the date
      hereof, payable to the order of M.A.G. Capital, LLC, a California limited
      liability company (as amended, restated, supplemented or otherwise modified
      from
      time to time, the “M.A.G.
      Note”)
      and (B)
      that certain promissory note dated as of the date hereof payable to the order
      of
      Monarch Pointe Fund, Ltd., a company organized under the laws of the British
      Virgin Islands (as amended, restated, supplemented or otherwise modified from
      time to time, the “Monarch
      Note”,
      and
      collectively with this Note and the Mercator Note, the “Subject
      Promissory Notes”,
      and
      each a “Subject
      Promissory Note”)
      and
      (iii) Borrower has granted to Advisors that certain Warrant to Purchase Common
      Stock, dated as of the date hereof (as amended, restated, supplemented or
      otherwise modified from time to time, the “Warrant”)
      as
      Advisors’ compensation under the Letter Agreement;

     

    NOW,
      THEREFORE, for and in consideration of the foregoing, and for other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto hereby agrees as follows:

     

    

     

      Rate
      of Interest.
      The
      outstanding principal balance of this Note shall bear interest at ten percent
      (10%) per annum (the “Interest
      Rate”).
      

     

      Date
      and Time of Payment.
      The
      outstanding principal balance of this Note shall be repaid in full plus all
      accrued and unpaid interest on earlier to occur of (a) the Maturity Date or
      (b)
      the date of termination of this Note, whether by its terms, by prepayment,
      or by
      acceleration. All amounts outstanding hereunder shall constitute Borrower’s
      obligations hereunder, and such obligations include without limitation all
      principal, interest (including all interest which accrues after the commencement
      of any case or proceeding by or against Borrower in bankruptcy whether or not
      allowed in such case or proceeding), fees, indemnities, expenses, attorneys’
fees and any other sum chargeable to Borrower hereunder and owing to Lender
      (all
      such obligations and all other obligations of Borrower under this Note,
“Obligations”).
      No
      principal amount of this Note paid or prepaid may be reborrowed. 

     

      Default
      Rate.
      Notwithstanding Section
      1,
      after
      the occurrence of any Event of Default and for so long as such Event of Default
      continues, and in any event from and after the Maturity Date, all principal,
      interest and other amounts payable under this Note shall bear interest until
      paid in full at a rate of interest equal to four percent (4%) above the per
      annum rate otherwise applicable hereunder. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

     

      Computation
      of Interest.
      Interest on the principal amount hereof and all other Obligations shall be
      computed on the basis of a 360-day year, and shall be charged for the actual
      number of days elapsed during any month
      or
      other accrual period.

     

      Manner
      of Payment.
      All
      payments by Borrower in respect of any Obligations shall be made without
      deduction, defense, set off or counterclaim, free and clear of all taxes, and
      in
      immediately available funds delivered to Lender by wire transfer to the account
      set forth on Schedule
      1
      attached
      hereto, or to such other account(s) at such bank(s) as Lender may from time
      to
      time designate in writing to Borrower. 

     

      Maturity.
      To the
      extent not sooner due and payable in accordance with this Note, the outstanding
      principal balance of this Note, and all accrued and unpaid interest thereon,
      shall be due and payable on March
      1,
      2007 (the “Maturity
      Date”).
      

     

      Application
      of Payments.
      All
      payments shall be applied to amounts then due and payable in the following
      order: (a) to Lender’s costs and expenses reimbursable in connection herewith;
      (b) to interest accrued on the outstanding principal balance of this Note;
      (c)
      to the principal amount hereof; and (d) to all other Obligations.

     

      Borrowing
      and Use of Proceeds. 

     

      The
      proceeds of this Note shall be funded in multiple advances (each, an
“Advance”)
      by
      Lender to Borrower in the amounts and on such dates as set forth on Schedule
      2
      attached
      hereto under the heading “Schedule of Advances”. The initial Advance shall be
      made on the date hereof, subject to (i) the repayment of all outstanding
      principal, interest and other obligations under that certain Promissory Note
      dated September 19,
      2006,
      made by Borrower payable to the order of Lender (as
      amended, restated, or otherwise modified from time to time, the
      “Existing
      Note”),
      and
      (ii) the issuance of the Warrant by Borrower to Advisors. The obligation of
      Lender to make each subsequent Advance following
      the initial Advance hereunder
      is subject to the fulfillment, at or prior to the time of the making of such
      Loan, of each of the following conditions: (i) following each Advance, including
      without limitation the initial Advance, Borrower shall have delivered to
      Advisors, and Advisors shall have received, a Borrowing Certificate
      and any
      requested information in connection therewith
      pursuant
      to Section
      11
      hereof
      at least one (1) Business Day prior to the date of next scheduled Advance,
      and
      (ii) no Event of Default, or any event which, with the giving of notice or
      the
      lapse of time, or both, would constitute an Event of Default (any such event,
      a
“Default”),
      shall
      have occurred and be continuing. 

     

      On
      the
      date of the initial Advance, such Advance shall be applied (i) in the amount
      of
      6.52% of the outstanding amount owing under the Existing Note to the repayment
      of the Existing Note, and (ii) to the payment of Permitted Expenses in
      accordance with the terms of this Note. Each subsequent Advance shall be applied
      as set forth in clause
      (ii)
      of this
      Section 8(b).

     

      Grant
      of Security.
      In order
      to secure prompt repayment of any and all of the Obligations in accordance
      with
      the terms and conditions of this Note, Borrower hereby grants to Lender, a
      continuing security interest in all of Borrower’s right, title, and interest in
      and to, all property of Borrower (the “Collateral”),
      whether now owned or existing or hereafter acquired or arising and wheresoever
      located, which Collateral shall include, without limitation, all of the
      following: accounts; books and records (including any information inscribed
      on
      any tangible medium or which is stored in an electronic or other medium and
      is
      retrievable in perceivable form) relating to its business operations or
      financial condition or the Collateral; commercial tort
      claims; deposit accounts; equipment; general intangibles; patents;
      patent applications; goods;
      instruments; inventory; investment property (including all securities and
      securities accounts); letters of credit; letter
      of
      credit rights; promissory notes; drafts; documents; chattel paper (including
      electronic chattel paper and tangible chattel paper); any and all
      supporting obligations; money, cash and cash equivalents; other personal
      property or other assets of Borrower which now or hereafter come into the
      possession, custody, or control of Lender (as each of the foregoing types of
      property are defined in the Uniform Commercial Code as, from time to time,
      enacted and in effect in the State of California (the “Code”);
      together, in each instance, with all accessions and additions thereto,
      substitutions therefor, and replacements, products thereof and any other
      property receivable or received from or upon the sale, lease, license,
      collection, use, exchange or other disposition, whether voluntary or
      involuntary, of any of the foregoing, including without limitation any and
      all
“proceeds” as defined in the Code, whether cash or noncash, any and all proceeds
      of any insurance, indemnity, warranty or guaranty payable to or for the account
      of Borrower from time to time with respect to any of the foregoing, any and
      all
      payments (in any form whatsoever) made or due and payable to Borrower from
      time
      to time in connection with any requisition, confiscation, condemnation, seizure
      or forfeiture of all or any part of the Collateral by any governmental authority
      (or any person or entity acting under color of governmental authority), and
      any
      and all other amounts from time to time paid or payable under or in connection
      with any of the foregoing or for or on account of any damage or injury to or
      conversion of any of the foregoing by any person or entity. Any terms used
      in
      this Note which are defined
      in the Code shall be construed and defined as set forth in the Code unless
      otherwise defined herein. The
      patent/patent applications included in the Collateral include: US 5,337,039
      080994; US 7,023,222 B2 040406; US 2006 005534 A1 031606.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

      Representations
      and Warranties.
      Borrower
      makes the following representations and warranties to Lender, which
      representations and warranties shall be true, correct, and complete as of the
      date hereof and shall survive the execution and delivery of this
      Note:

     

      Due
      Organization and Qualification.
      Borrower is duly organized and validly existing and in good standing under
      the
      laws of the jurisdiction of its organization and qualified to do business in
      any
      jurisdiction where it is required to be so qualified, and has all requisite
      power and authority to (i) own its assets and carry on its business, and (ii)
      execute, deliver and perform its Obligations. 

     

      Due
      Authorization; No Conflict.
      The
      execution, delivery, and performance by Borrower of this Note to which it is
      a
      party have been duly authorized by all necessary action on the part of Borrower.
      This Note has been duly executed and delivered by Borrower. The execution,
      delivery, and performance by Borrower of this Note, and the consummation of
      the
      transactions contemplated hereby, do not and will not (i) violate in any
      material respect any provision of federal, state, provincial or local law or
      regulation applicable to Borrower, its organizational documents, or any order,
      judgment, or decree of any court or other governmental authority, (ii) conflict
      with, result in a breach or termination of, or constitute (with due notice
      or
      lapse of time or both) a default under any material contractual obligation
      of
      Borrower, (iii) result in or require the creation or imposition of any lien
      of
      any nature whatsoever upon any properties or assets of Borrower, other than
      liens or security interests in favor of Lender, or (iv) require any approval
      of
      any of Borrower’s stockholders or any approval or consent of any other person or
      entity, other than consents or approvals that have been obtained and that are
      still in force and effect. The execution, delivery, and performance by Borrower
      of this Note do not and will not require any registration with, consent, or
      approval of, or notice to, or other action with or by, any governmental
      authority, other than consents or approvals that have been obtained and that
      are
      still in force and effect. This Note when executed and delivered by Borrower
      will be the legally valid and binding obligation of Borrower, enforceable
      against Borrower in accordance with its term, except as enforcement may be
      limited by equitable principles or by bankruptcy, insolvency, reorganization,
      moratorium, or similar laws relating
      to or limiting creditors’ rights generally. The Lender’s security interest in
      the Collateral is a validly created, perfected, first priority security
      interest, subject only to Permitted Liens.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

      Executive
      Offices; Collateral Locations; FEIN; Organizational Information; Trade
      Names.
      The
      current location of Borrower’s chief executive office, principal place of
      business, other offices, the warehouses and premises within which any Collateral
      is stored or located, and the location of its books and records is 6935 15th
      Street East, Suite 120, Sarasota, Florida 34243 (“Borrower’s
      Office”).
      Borrower has not used and does not presently use any fictitious or trade names
      which have been used by Borrower.

     

      Affirmative
      Covenants.
      For so
      long as there are any Obligations outstanding and until payment and performance
      in full thereof, Borrower hereby covenants to Lender as follows: (a) Borrower
      shall at all times preserve and keep in full force and effect Borrower’s and
      each of its subsidiaries’ valid existence and good standing and any rights and
      franchises material to their businesses; (b) (i) the amounts advanced to
      Borrower under this Note shall be used to pay Permitted Expenses (as
      defined below) of
      Borrower that have been invoiced to Borrower in the ordinary course of business
      by the applicable Permitted
      Payee (as defined below)
      to which
      any such Permitted Expense is owed
      and (ii)
      which payments of Permitted Expenses to any such Permitted Payee, plus any
      payments of such Permitted Expenses to such Permitted Payee with the proceeds
      of
      advances under the other Subject Promissory Notes, shall not exceed in the
      aggregrate the amounts specified therefor as set forth on Schedule 2 hereto
      for
      the periods listed thereon;
      (c) at
      least one (1) Business Day prior to each Advance (other than the initial
      Advance), Borrower shall deliver to Advisors, with a copy to Lender, and
      Advisors shall have received, (i)
      a
      certificate of the chief executive officer or chief financial officer of the
      Borrower substantially in the form of Exhibit
      A
      hereto
      (each such certificate, a “Borrowing
      Certificate”),
      which
      certificate shall set forth evidence of Borrower’s payment of the Permitted
      Expenses due and payable to a Permitted Payee prior to such Advance and the
      amount thereof, which Permitted Expenses shall have been paid with the proceeds
      of the Advances made prior to such Advance in accordance with Schedule
      2
      hereto
      (such payments, “Permitted
      Payments”),
      which
      evidence shall be in form and substance satisfactory to Lender in all respects,
      and (ii)
      such
      other information regarding Borrower and its business as Lender or Advisors
      may
      request in form and substance satisfactory to Lender or Advisors, as applicable,
      and (d)
      Borrower shall, at Borrower’s expense and upon the request of Lender, duly
      execute and deliver, or cause to be duly executed and delivered, to Lender
      such
      further instruments, and do and cause to be done such further acts, as may
      be
      necessary or proper in the reasonable opinion of Lender to carry out more
      effectively the provisions and purposes of this Note. As used in this Note,
      “Permitted
      Expenses”
      shall
      mean unpaid operating expenses of Borrower that are due and payable to the
      persons or entities set forth on Schedule
      2
      hereto
      (each a “Permitted
      Payee”),
      and
      which expenses shall be of the type set forth on such schedule.

     

      Negative
      Covenants.
      Without
      the prior written consent of Lender, Borrower shall not, and shall not cause
      or
      permit any of its subsidiaries to, (a) directly or indirectly, create, incur,
      assume or permit to exist any indebtedness for borrowed money, other than (i)
      indebtedness evidenced by this Note (ii) Permitted Expenses and (iii) the
      indebtedness described in Part 1 of Schedule 3 hereto; (b) create, incur,
      assume or permit to exist any lien, security interest or other encumbrance
      on or
      with respect to the Collateral, except for the following liens and other
      encumbrances (“Permitted
      Liens”)
      (i)
      any liens, security interests or other encumbrances created in favor of Lender,
      M.A.G. Capital, LLC or Monarch Pointe Fund, Ltd.; (ii) liens or other
      encumbrances for taxes, assessments or other governmental charges which are
      not
      yet delinquent; (iii) liens or other encumbrances of landlords, carriers,
      warehousemen, mechanics, materialmen and other similar liens imposed by law
      and
      which are incurred in the ordinary course of business for sums not yet
      delinquent; and (iv) the liens created prior to the date hereof as set forth
      in
      Part 2 of Schedule 3 hereto; (c) sell, transfer, convey or otherwise transfer
      any portion of the Collateral or otherwise materially modify or impair any
      portion of the Collateral, or any other assets of Borrower
      or any such subsidiary, other than (i) sales of inventory to buyers in the
      ordinary course of business or (ii) the use or transfer of money in a manner
      that is not otherwise prohibited by the terms hereof; (d) change (i) its
      corporate structure, legal name or organizational documents, (ii) its
      jurisdiction of organization, or (iii) its chief executive office, principal
      place of business, or any offices, warehouses or other premises where any
      Collateral is held or stored, or the location of its books and records; (e)
      directly or indirectly, enter into or permit to exist any transaction with,
      or
      make any payment or distribution to, any affiliate (other than Lender or any
      of
      its affiliates); (f)
      directly or indirectly, (i) merge with or consolidate with any entity, or (ii)
      liquidate, wind up, dissolve itself or sell or otherwise transfer any of its
      properties or assets outside the ordinary course of business;
      or (g)
      permit the amount of Borrower’s Working Capital as of the date hereof as
      determined by Lender to decline by an aggregate amount exceeding $25,000 between
      the date hereof and the Maturity Date. As used in this Note, “Working Capital”
shall mean, for any period of determination and measured on a consolidated
      basis
      with any consolidated subsidiaries, the difference of (x) the sum of Borrower’s
      cash and cash equivalents plus the amount of Borrower’s accounts receivable plus
      the fair market value of Borrower’s inventory plus its prepaid expenses minus
      (y) the aggregate sum of Borrower’s accounts payables plus accrued
      expenses.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

      Events
      of Default; Remedies; Acceleration.
      Upon
      and at any time following the occurrence of any Event of Default, Lender's
      obligations to make future advances shall terminate, and Lender
      may (i) proceed to protect and enforce Lender’s
      rights
      by suit in equity, action at law and/or other appropriate proceeding, either
      for
      specific performance of any covenant or condition contained in this Note or
      in
      any instrument or document delivered to Lender pursuant to this Note, or in
      aid
      of the exercise of any power granted in this Note or any such instrument or
      document, (ii) by notice in writing to Borrower declare all or any part of
      the
      unpaid balance of the Obligations then outstanding to be immediately due and
      payable, and/or (iii) proceed to enforce payment of the Obligations in such
      manner as Lender may elect,
      including the foreclosure of the Collateral and the sale of the assets in a
      public or private sale,
      and to
      realize upon any and all rights of Lender hereunder. To the extent not
      prohibited by applicable law which cannot
      be
      waived, all of Lender’s rights hereunder shall be cumulative. Lender shall have
      all other rights and remedies not inconsistent herewith as provided under
      applicable law or in equity, and no exercise by Lender of one right or remedy
      shall be deemed an election, and no waiver by Lender of any Event of Default
      shall be deemed a continuing waiver. No delay by Lender shall constitute a
      waiver, election or acquiescence by it. The occurrence of any one or more of
      the
      following events (regardless of the reason therefor) shall constitute an
“Event
      of Default”
      hereunder: 

     

      Borrower
      (i) fails to make any payment of outstanding principal balance of this Note,
      or
      interest thereon, or any of the other Obligation when due and payable, or (ii)
      fails to pay or reimburse Lender for any cost or expense reimbursable hereunder
      when due and payable;

     

      Borrower
      fails or neglects to perform, keep or observe any of the provisions of
Section
      11
      or
Section
      12,
      including without limitation any failure of Borrower to deliver any Borrowing
      Certificate in accordance with the terms of this Note;

     

      Any
      representation or warranty made in this Note or any other writing made by or
      on
      behalf of Borrower in connection herewith and the transactions contemplated
      hereby proves to have been false or incorrect in any material respect on the
      date as of which made;

     

      A
      case or
      proceeding is commenced against Borrower seeking a decree or order (i) under
      Title 11 of the United States Bankruptcy Code (11 U.S.C. §§101 et
      seq.,
      as
      amended, and any successor statute, the “Bankruptcy
      Code”),
      or
      any other applicable federal, state or foreign bankruptcy or other similar
      law,
      rule or regulation, (ii) appointing a custodian, receiver, liquidator, assignee,
      trustee or sequestrator (or similar official) for Borrower or for any
      substantial part of Borrower’s assets, or (iii) ordering the winding-up or
      liquidation of the affairs of s Borrower, and such case or proceeding shall
      

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    remain
      undismissed or unstayed for sixty (60) days or more or a decree or order
      granting the relief sought in such case or proceeding shall be entered by a
      court of competent jurisdiction;

     

      Borrower
      (i) files a petition seeking relief under the Bankruptcy Code, or any other
      applicable federal, state or foreign bankruptcy or other similar law, rule
      or
      regulation, (ii) consents to or fails to contest in a timely and appropriate
      manner the institution of proceedings thereunder or the filing of any such
      petition or the appointment of or taking possession by a custodian, receiver,
      liquidator, assignee, trustee or sequestrator (or similar official) for Borrower
      or for any substantial part of Borrower’s assets, (iii) makes an assignment for
      the benefit of creditors, (iv) takes any action in furtherance of any of the
      foregoing; or (v) admits in writing its inability to, or is generally unable
      to,
      pay its debts as such debts become due; 

     

      If
      this
      Note or any financing statement, document or other instrument executed,
      delivered or filed in connection herewith or with the security interest granted
      to Lender hereunder, shall, for any reason, fail or cease to create a valid
      and
      perfected lien on or security interest in any or all of the
      Collateral.

     

    (g) If
      under
      any of the other Subject Promissory Notes, an Event of Default (as defined
      in
      such other Subject Promissory Note) shall occur

     

      Certain Rights
      and Waivers.
      To the
      extent not prohibited by the provisions of applicable law, Borrower hereby
      expressly waives: (a) all presentments, demands for performance, notices of
      nonperformance (except to the extent required by this Note), protests, notices
      of protest and notices of dishonor; (b) any requirement of diligence or
      promptness on the part of Lender in the enforcement of its rights under this
      Note; (c) any and all notices of every kind and description which may be
      required to be given by any statute or rule of law; and (d) any defense (other
      than indefeasible payment in full) which it may now or hereafter have with
      respect to its liability under this Note.

     

      Assignments.
      Borrower may not assign or transfer any of its rights or obligations hereunder
      without the express, written consent of Lender. Any such purported assignment
      or
      transfer by Borrower without the express, written consent of Lender shall be
      null and void ab
      initio.
      

     

      Costs
      and Expenses.
      Borrower agrees to pay all costs and expenses of Lender, including without
      limitation all fees and disbursements of counsel, advisors, consultants,
      examiners and appraisers for Lender, in connection with (a) any enforcement
      (whether through negotiations, legal process or otherwise) of this Note, (b)
      any
      workout or restructuring of this Note during the pendency of one or more Events
      of Default, (c) any bankruptcy case or proceeding of Borrower or any appeal
      thereof, and (iv) upon the occurrence and during the continuance of an Event
      of
      Default, any efforts to verify, protect, evaluate, assess, appraise, collect,
      sell, liquidate or otherwise dispose of any of the Collateral.

     

      CHOICE
      OF LAW. THE
      VALIDITY OF THIS NOTE, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF,
      AND THE RIGHTS OF THE BORROWER AND LENDER WITH RESPECT TO ALL MATTERS ARISING
      HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
      CALIFORNIA, WITHOUT
      REFERENCE TO CONFLICTS OF LAW PRINCIPLES EXCEPT TO THE EXTENT NECESSARY TO
      ENFORCE THIS CHOICE OF LAW PROVISION.

     

      Notices.
      All
      communications hereunder shall be in writing and shall be deemed to be duly
      given and received (a) upon delivery if delivered personally or upon confirmed
      transmittal if by facsimile, (b) on the next Business Day if
      sent
      by overnight courier, or (c) four (4) Business Days after 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    mailing
      if mailed by prepaid registered mail, return receipt requested, in each case
      to
      the appropriate notice address or facsimile number set forth below or at such
      other address or facsimile number as any party listed below may have furnished
      to the other party listed below by giving such other party notice in the manner
      set forth in this Section
      18.
      If to
      Lender, at M.A.G. Capital, LLC, 555 South Flower Street, Suite 4200, Los
      Angeles, California 90071, Attention: Harry Aharonian, Fax: (213) 533-8285,
      and
      if to Borrower, at Invisa, Inc. 6935 15th Street East, Suite 120, Sarasota,
      Florida 34243, Attention: Ed King, Fax: (941) 355-9373.

     

    [Remainder
      of Page Intentionally Blank]

     

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Note as of the date first
      written above.

     

    
      	 	
              INVISA,
                INC.

               

              By:
                /s/
                Edmund C. King

              Name:
                Edmund
                C. King

              Title:
                Chief
                Financial Officer

            
	 	 

    

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    Schedule
      1

    

    
      	
              Lender’s
                Account

               

            

    

    

    Account
      Name:  Morgan
      Stanley

    

    Bank
      Name: Citibank
      NY

    

    Bank
      Routing Number: 021000089

    

    Account
      Number: 388-90774

    

    
      	
              Special
                Instructions:

            	
              For
                benefit of Mercator Momentum Fund III LP account number
                38-C1846

            

    

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    Schedule
      2

    

    
      	
              Schedule
                of Advances

               

            

    

    

    
 

    

    

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Schedule
      3

    

    
      	
              Permitted
                Indebtness and Liens

               

            

    

    Schedule
      3, Part 1

     

    Indebtedness
      in the amount of $6000.00 owing by Borrower to Express Systems Corporation
      ("Plaintiff") in accordance with that certain Settlement Agreement between
      Plaintiff and Borrower, as defendant (the "Settlement Agreement") in respect
      of civil action Case No. 2005-CA-10032-NC in the Circuit Court of the
      Twelfth Judicial Circuit in and for Sarasota County, Florida. 

    Schedule
      3, Part 2

     

    Permitted
      Liens:

     

    The
      lien
      or security interest in favor of Plaintiff (as defined above) created in
      connection with the Settlement Agreement (as defined above), which lien or
      security interest is referenced in a financing statement filing with
      the Florida Department of State.  

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    
      	
              Borrowing
                Certificate

               

            

    

    

    ___________,
      2006

    

    Ocean
      Park Advisors, LLC

    6033
      West
      Century Boulevard, Suite 850

    Los
      Angeles, California 90045

    Attention:
      Heng Chuk 

    

    Mercator
      Momentum Fund III, LP

    555
      South
      Flower Street, Suite 4200 

    Los
      Angeles, California 90071

    Attention:
      Harry Aharonian

    

    Dear
      Ladies and Gentlemen:

    

    Reference
      hereby is made to the Promissory Note dated as of October 10, 2006 (as amended,
      restated, supplemented or otherwise modified from time to time, the “Note”),
      made by Invisa, Inc., a Nevada corporation (“Borrower”),
      payable to the order of M.A.G. Capital, LLC, a California limited liability
      company (together with its successors and assigns, “Lender”).
      Capitalized terms used herein, and not otherwise defined herein, have their
      respective meanings given them in the Note.

     

    This
      Borrowing Certificate is delivered prior to the forthcoming Advance on
      ______________ as set forth on Schedule 2
      of the
      Note (such, Advance, the “Subject
      Advance”).

    

    1. I,
      _______________, am the duly elected, qualified and acting _______________
      of
      Borrower, and I hereby certify the following:

    

    (a) 
      Attached
      hereto as Exhibit
      1
      is a
      true, complete and correct schedule of Permitted Payments made to the Permitted
      Payees set forth therein, listing the dates and amounts of such Permitted
      Payments, and each such Permitted Payment has been made in strict accordance
      with Schedule 2 of the Note.

    

    (b) (i)
      As of
      the date hereof, (ii) as of the date for the Subject Advance, and (iii) after
      giving effect to the Subject Advance: 

    

    (A)
      the
      representations and warranties of Borrower contained in the Note are true and
      correct in all material respects on and as of the date of the Subject Advance
      as
      though made on and as of such date (except to the extent that such
      representations and warranties solely relate to an earlier date); and

    

    (B)
      no
      Default or Event of Default has occurred and is continuing on the date of the
      Subject Advance, or would result therefrom.

    

    [Remainder
      of Page Intentionally Blank]

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    Very
      truly yours, 

     

     

    

     

     

    INVISA,
      INC.

     

     

    

     

     

    By:
      ________________________

     

     

    Name:

     

     

    Title:
      Chief Financial Officer

     

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    

     

    Exhibit
      1 to Borrowing Certificate

     

    [Borrower
      to Attach Evidence of Permitted Payments]

     

     

     

    
 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

     

    
      
        
        

      

      
        15

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