Document:

Exhibit 10.1 C

     

    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 Monarch
      Pointe Fund, Ltd.,
      a
      company organized under the laws of the British Virgin Islands (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
      EIGHTY NINE THOUSAND SEVEN HUNDRRED EIGHTY SEVEN United States Dollars (U.S.
      $89,787.00), 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
      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
      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
      66.29% 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.

     

      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 M.A.G. Capital, LLC; (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.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

      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
      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;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

      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 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]

     

    

     

    
      
        
          Promissory
            Note

        

        
        

      

      
        5

        
          

        

      

      
        
        

        
        

      

    

    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

        

        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    

    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 Monarch Pointe Fund Ltd account number
                38-C1845

            

    

    

    

    

    
      
        
          Schedule
            1 to Promissory Note

        

        
        

      

      
        7

        
          

        

      

      
        
        

        
        

      

    

    

    Schedule
      2

    

    
      	
              Schedule
                of Advances

               

            

    

    

    

    

    

    

    
      
        -
          -

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      
        -
          -

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    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.  

    
      
        -
          -

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    
      	
              Borrowing
                Certificate

               

            

    

    

    ___________,
      2006

    

    Ocean
      Park Advisors, LLC

    6033
      West
      Century Boulevard, Suite 850

    Los
      Angeles, California 90045

    Attention:
      Heng Chuk 

    

    Monarch
      Pointe Fund, Ltd.

    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]

    

    

    
      
        
          

        

        
        

      

      
        11

        
          

        

      

      
        
        

        
        

      

    

    

     

    Very
      truly yours, 

     

     

    

     

     

    INVISA,
      INC.

     

     

    

     

     

    By:
      ________________________

     

    Name:

     

     

    Title:
      Chief Financial Officer

     

    

     

    

     

    
      
        
          

        

        
        

      

      
        12

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      1 to Borrowing Certificate

     

    [Borrower
      to Attach Evidence of Permitted Payments]

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    
      
        
        

      

      
        14Exhibit 10.3

    THIS
      WARRANT AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY
      NOT
      BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE
      OF AN
      EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE STATE
      SECURITIES LAWS OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER
      SUCH
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

    
      	
              Number
                of Shares:

               

            	
              150,000
                Shares (subject to adjustment)

               

            
	
              Warrant
                Price:

               

            	
              $0.04
                per Share

               

            
	
              Issuance
                Date:

               

            	
              October
                10, 2006

               

            
	
              Expiration
                Date:

               

            	
              October
                10, 2016

               

            

    

    

    
      
        
          
            	 	
                    --

                  	 
	 	 	 

          

          

          |||

        

        
        

      

      
        1

        
          

        

      

      
        
        

        
        

      

    

    THIS
      WARRANT CERTIFIES THAT
      for
      value received, Ocean Park Advisors, LLC, or its registered assigns (hereinafter
      called the “Holder”)
      is
      entitled to purchase from Invisa, Inc., a Nevada corporation (hereinafter called
      the “Company”),
      the
      above referenced number of fully paid and nonassessable shares (the
“Shares”)
      of
      common stock, par value $0.001 per share (the “Common
      Stock”)
      of
      Company, at the Warrant Price per Share referenced above; the number of shares
      purchasable upon exercise of this Warrant referenced above being subject to
      adjustment from time to time as described herein. The exercise of this Warrant
      shall be subject to the provisions, limitations and restrictions contained
      herein.

     

    1.  Term
      and Exercise.

     

    1.1  Term.
      This
      Warrant is exercisable in whole or in part (but not as to any fractional share
      of Common Stock), at any time and from time to time on or after the Issuance
      Date set forth above, but prior to 6:00 p.m. on the Expiration Date set forth
      above. 

     

    1.2  Warrant
      Price.
      The
      Warrant shall be exercisable at the Warrant Price referenced above.

     

    1.3  Maximum
      Number of Shares.
      The
      maximum number of Shares of Common Stock exercisable pursuant to this Warrant
      is
      150,000 Shares. 

     

    1.4  Procedure
      for Exercise of Warrant.
      Holder
      may exercise this Warrant by delivering the following to the principal office
      of
      the Company in accordance with Section 5.1 hereof: (i) a duly executed Notice
      of
      Exercise in substantially the form attached as Schedule A, (ii) payment of
      the
      Warrant Price then in effect for each of the Shares being purchased, as
      designated in the Notice of Exercise, and (iii) this Warrant. Payment of the
      Warrant Price may be in cash, certified or official bank check payable to the
      order of the Company, or wire transfer of funds to the Company’s account (or any
      combination of any of the foregoing) in the amount of the Warrant Price for
      each
      share being purchased. 

     

    1.5  Delivery
      of Certificate and New Warrant.
      In the
      event of any exercise of the rights represented by this Warrant, a certificate
      or certificates for the shares of Common Stock so purchased, registered in
      the
      name of the Holder or such other name or names as may be designated by the
      Holder, together with any other securities or other property which the Holder
      is
      entitled to receive upon exercise of this Warrant, shall be delivered to the
      Holder hereof, at the Company’s expense, within a reasonable time, not exceeding
      five (5) trading days, after the rights represented by this Warrant shall have
      been so exercised; and, unless this Warrant has expired, a new Warrant
      representing the number of Shares (except a remaining fractional share), if
      any,
      with respect to which this Warrant shall not then have been exercised shall
      also
      be issued to the Holder hereof within such time. The person in whose name any
      certificate for shares of Common Stock is issued upon exercise of this Warrant
      shall for all purposes be deemed to have become the holder of record of such
      shares on the date on which the Warrant was surrendered and payment of the
      Warrant Price was received by the Company, irrespective of the date of delivery
      of such certificate, except that, if the date of such surrender and payment
      is
      on a date when the stock transfer books of the Company are closed, such person
      shall be deemed to have become the holder of such Shares at the close of
      business on the next succeeding date on which the stock transfer books are
      open.

     

    1.6  Restrictive
      Legend.
      Each
      certificate for Shares shall bear a restrictive legend in substantially the
      form
      as follows, together with any additional legend required by (i) any applicable
      state securities laws and (ii) any securities exchange upon which such Shares
      may, at the time of such exercise, be listed:

     

    “The
      shares represented by this certificate have not been registered under the
      Securities Act of 1933, as amended and may not be sold, offered for sale,
      transferred or pledged in the absence of such registration or an exemption
      therefrom under such Act.”

     

    Any
      certificate issued at any time in exchange or substitution for any certificate
      bearing such legend shall also bear such legend unless, in the opinion of
      counsel for the Holder thereof (which counsel shall be reasonably satisfactory
      to the Company), the securities represented thereby are not, at such time,
      required by law to bear such legend.

     

    1.7  Fractional
      Shares.
      No
      fractional Shares shall be issuable upon exercise or conversion of the Warrant
      and the number of Shares to be issued shall be rounded down to the nearest
      whole
      Share. If a fractional share interest arises upon any exercise or conversion
      of
      the Warrant, the Company shall eliminate such fractional share interest by
      paying to Holder an amount computed by multiplying the fractional interest
      by
      the Warrant Price of a full Share then in effect.

     

    1.8  Cashless
      Exercise.

     

    (a)  Holder
      may, at its option, in lieu of paying the Warrant Price upon exercise of this
      Warrant pursuant to Section 1.4 hereof, elect to receive instead a number of
      Shares computed using the following formula:

     

    X=Y(A-B)

    A

    

    Where
      X=
      the number of Shares issuable to Holder upon exercise of this Warrant under
      this
      Section 1.8, Y=the number of Shares being surrendered under this Warrant, A=the
      Fair Market Value (as defined below) of one Share of Common Stock as of the
      exercise date; and B=the Warrant Price of one Share of Common
      Stock.

     

    (b)  For
      purposes of this Section 1.8, "Fair
      Market Value"
      of one
      Share of Common Stock as of a particular date shall be determined as follows:
      (i) if traded on a national securities exchange or through the Nasdaq Stock
      Market, the Fair Market Value shall be deemed to be the volume weighted average
      closing price of the Common Stock on such exchange for the five trading days
      immediately prior to the date the Holder delivers its Notice of Exercise to
      the
      Company (or if no reported sales took place on any of the five days, the last
      five trading days on which any such sales took place prior to the date of such
      notice); (ii) if traded over-the-counter but not on the Nasdaq Stock Market,
      the
      Fair Market Value shall be deemed to be the volume weighted average closing
      price of the Common Stock on such exchange for the five trading days immediately
      prior to the date the Holder delivers its Notice of Exercise to the Company
      (or
      if no reported sales took place on any of the five days, the last five trading
      days on which any such sales took place prior to the date of such notice);
      and
      (iii) if there is no active market public market, the Fair Market Value shall
      be
      the as mutually determined by the Holder and the Company or, if the Holder
      and
      the Company are unable to reach such agreement, as determined by a nationally
      recognized independent investment banker or valuation consultant (which has
      not
      been retained by the Company or any of its affiliates for the past two years
      preceding such determination) mutually acceptable to Holder and
      Company.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2.  Representations,
      Warranties and Covenants.

     

    2.1  Representations
      and Warranties.

     

    (a)  The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of its state of incorporation and has all necessary power and
      authority to perform its obligations under this Warrant;

     

    (b)  The
      execution, delivery and performance of this Warrant has been duly authorized
      by
      all necessary actions on the part of the Company and constitutes the legal,
      valid and binding obligation of the Company, enforceable against the Company
      in
      accordance with its terms; and

     

    (c)  This
      Warrant does not violate and is not in conflict with any of the provisions
      of
      the Company’s articles of incorporation, bylaws, certificate of designation, any
      resolutions of the Company’s Board of Directors or stockholders, any other
      organizational document of the Company, or any agreement of the Company, and
      no
      event has occurred and no condition or circumstance exists that might (with
      or
      without notice or lapse of time) constitute or result directly or indirectly
      in
      such a violation or conflict.

     

    2.2  Issuance
      of Shares.
      The
      Company covenants and agrees that all shares of Common Stock that may be issued
      upon the exercise of the rights represented by this Warrant will, upon issuance,
      be validly issued, fully paid and nonassessable, and free from all taxes, liens
      and charges with respect to the issue thereof and shall be listed on any
      exchanges on which the Common Stock is then listed. The Company further
      covenants and agrees that it will pay when due and payable any and all federal
      and state taxes which may be payable in respect of the issue of this Warrant
      or
      any Common Stock or certificates therefor issuable upon the exercise of this
      Warrant excluding the Holder's income and other taxes not directly relating
      to
      the issuance of the Warrant or Common Stock. The Company further covenants
      and
      agrees that the Company will at all times have authorized and reserved, free
      from preemptive rights, a sufficient number of shares of Common Stock to provide
      for the exercise in full of the rights represented by this Warrant. If at any
      time the number of authorized but unissued shares of Common Stock of the Company
      shall not be sufficient to effect the exercise of the Warrant in full, then
      the
      Company will take all such corporate action as may, in the opinion of counsel
      to
      the Company, be necessary or advisable to increase the number of its authorized
      shares of Common Stock as shall be sufficient to permit the exercise of the
      Warrant in full, including without limitation, using its best efforts to obtain
      any necessary stockholder approval of such increase. The Company further
      covenants and agrees that if any shares of capital stock to be reserved for
      the
      purpose of the issuance of shares upon the exercise of this Warrant require
      registration with or approval of any governmental authority under any federal
      or
      state law before such shares may be validly issued or delivered upon exercise,
      then the Company will in good faith and as expeditiously as possible endeavor
      to
      secure such registration or approval, as the case may be. If and so long as
      the
      Common Stock issuable upon the exercise of this Warrant is listed on any
      national securities exchange or the Nasdaq Stock Market, the Company will,
      if
      permitted by the rules of such exchange or market, list and keep listed on
      such
      exchange or market, upon official notice of issuance, all shares of such Common
      Stock issuable upon exercise of this Warrant.

     

    3.  Other
      Adjustments.

     

    3.1  Subdivision
      or Combination of Shares.
      In case
      the Company shall at any time subdivide its outstanding Common Stock into a
      greater number of shares, the Warrant Price in effect immediately prior to
      such
      subdivision shall be proportionately reduced, and the number of Shares subject
      to this Warrant shall be proportionately increased, and conversely, in case
      the
      outstanding Common Stock of the Company shall be combined into a smaller number
      of shares, the Warrant Price in effect immediately prior to such combination
      shall be proportionately increased, and the number of Shares subject to this
      Warrant shall be proportionately decreased.

     

    3.2  Dividends
      in Common Stock, Other Stock or Property.
      If at
      any time or from time to time the holders of Common Stock (or any shares of
      stock or other securities at the time receivable upon the exercise of this
      Warrant) shall have received or become entitled to receive, without payment
      therefor:

     

    (a)  Common
      Stock, options or any shares or other securities which are at any time directly
      or indirectly convertible into or exchangeable for Common Stock, or any rights
      or options to subscribe for, purchase or otherwise acquire any of the foregoing
      by way of dividend or other distribution;

     

    (b)  any
      cash
      paid or payable otherwise than as a regular cash dividend; or

     

    (c)  Common
      Stock or additional shares or other securities or property (including cash)
      by
      way of spin-off, split-up, reclassification, combination of shares or similar
      corporate rearrangement (other than Common Stock issued as a stock split or
      adjustments in respect of which shall be covered by the terms of Section 3.1
      above) or additional shares, other securities or property issued in connection
      with a Change (as defined below) (which shall be covered by the terms of Section
      3.3 below), then and in each such case, the Holder hereof shall, upon the
      exercise of this Warrant, be entitled to receive, in addition to the number
      of
      shares of Common Stock receivable thereupon, and without payment of any
      additional consideration therefor, the amount of stock and other securities
      and
      property (including cash in the cases referred to in clause (b) above and this
      clause (c)) which such Holder would hold on the date of such exercise had such
      Holder been the holder of record of such Common Stock as of the date on which
      holders of Common Stock received or became entitled to receive such shares
      or
      all other additional stock and other securities and property.

     

    3.3  Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      If
      any
      recapitalization, reclassification or reorganization of the share capital of
      the
      Company, or any consolidation or merger of the Company with another corporation,
      or the sale of all or substantially all of its shares and/or assets or other
      transaction (including, without limitation, a sale of substantially all of
      its
      assets followed by a liquidation) shall be effected in such a way that holders
      of Common Stock shall be entitled to receive shares, securities or other assets
      or property (a “Change”),
      then,
      as a condition of such Change, lawful and adequate provisions shall be made
      by
      the Company whereby the Holder hereof shall thereafter have the right to
      purchase and receive (in lieu of the Common Stock of the Company immediately
      theretofore purchasable and receivable upon the exercise of the rights
      represented hereby) such shares, securities or other assets or property as
      may
      be issued or payable with respect to or in exchange for the number of
      outstanding Common Stock which such Holder would have been entitled to receive
      had such Holder exercised this Warrant immediately prior to the consummation
      of
      such Change. The Company or its successor shall promptly issue to Holder a
      new
      Warrant for such new securities or other property. The new Warrant shall provide
      for adjustments which shall be as nearly equivalent as may be practicable to
      give effect to the adjustments provided for in this Section 3 including, without
      limitation, adjustments to the Warrant Price and to the number of securities
      or
      property issuable upon exercise of the new Warrant. The provisions of this
      Section 3.3 shall similarly apply to successive Changes.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    4.  Ownership
      and Transfer.

     

    4.1  Ownership
      of This Warrant.
      The
      Company may deem and treat the person in whose name this Warrant is registered
      as the holder and owner hereof (notwithstanding any notations of ownership
      or
      writing hereon made by anyone other than the Company) for all purposes and
      shall
      not be affected by any notice to the contrary until presentation of this Warrant
      for registration of transfer as provided in this Section 4.

     

    4.2  Transfer
      and Replacement.
      This
      Warrant and all rights hereunder are transferable in whole or in part upon
      the
      books of the Company by the Holder hereof in person or by duly authorized
      attorney, and a new Warrant or Warrants, of the same tenor as this Warrant
      but
      registered in the name of the transferee or transferees (and in the name of
      the
      Holder, if a partial transfer is effected) shall be made and delivered by the
      Company upon surrender of this Warrant duly endorsed, at the office of the
      Company in accordance with Section 5.1 hereof. Upon receipt by the Company
      of
      evidence reasonably satisfactory to it of the loss, theft or destruction, and,
      in such case, of indemnity or security reasonably satisfactory to it, and upon
      surrender of this Warrant if mutilated, the Company will make and deliver a
      new
      Warrant of like tenor, in lieu of this Warrant; provided that if the Holder
      hereof is an instrumentality of a state or local government or an institutional
      holder or a nominee for such an instrumentality or institutional holder an
      irrevocable agreement of indemnity by such Holder shall be sufficient for all
      purposes of this Warrant, and no evidence of loss or theft or destruction shall
      be necessary. This Warrant shall be promptly cancelled by the Company upon
      the
      surrender hereof in connection with any transfer or replacement. Except as
      otherwise provided above, in the case of the loss, theft or destruction of
      a
      Warrant, the Company shall pay all expenses, taxes and other charges payable
      in
      connection with any transfer or replacement of this Warrant, other than income
      taxes and stock transfer taxes (if any) payable in connection with a transfer
      of
      this Warrant, which shall be payable by the Holder. Holder will not transfer
      this Warrant and the rights hereunder except in compliance with federal and
      state securities laws and except after providing evidence of such compliance
      reasonably satisfactory to the Company.

     

    5.  Registration
      Rights for Shares.

     

    5.1 Registration
      Rights for Shares.
      (a) If
      at any time beginning after the date that is 180 days from the date hereof
      the
      Holder provides a written request to the Company (a "Demand
      Notice")
      that
      the Company file a registration statement covering at least 75,000 of the
      shares of Common Stock issuable upon exercise of this Warrant (the "Registrable
      Securities")
      then
      the Company shall prepare and file a registration statement (the "Registration
      Statement")
      on
      Form SB-2 or Form S-3 or other form of registration statement available for
      the
      registration of Registrable Securities under the Securities Act of 1933 (the
      "Securities
      Act")
      with
      the Securities and Exchange Commission (the "SEC")
      no
      later than the date that is ninety (90) days from the date of such Demand Notice
      in order to register the resale to the public of the Registrable Securities
      identified in the Demand Notice under the Securities Act. The Company shall
      use
      its commercially reasonable efforts to cause the Registration Statement to
      be
      declared effective no later than the date that is 60 days after the first filing
      thereof with the SEC (the "Filing
      Date")
      if the
      SEC has no comments on the Registration Statement or by the date that is 120
      days after the Filing Date if the SEC has comments on the Registration
      Statement. Once effective, the Company shall use its commercially reasonable
      efforts to maintain the effectiveness of the Registration Statement until
      earlier of the date that all of the Registrable Securities identified in the
      Demand Notice have been sold and the third anniversary of the effectiveness
      date
      of such Registration Statement (such date, the "Expiration
      Date").

     

    (b)
      If
      the Company at any time after the date of this Warrant proposes to register
      any
      of its securities under the Securities Act for sale to the public, whether
      for
      its own account or for the account of other security holders or both, except
      with respect to registration statements on Form S-4, Form S-8 or another form
      not available for registering the Registrable Securities for sale to the public,
      then each such time it will give at least fifteen (15) days' prior written
      notice to the Holder of its intention to do so. If within ten (10) days of
      receipt of any such notice the Holder provides a written request to the Company
      that the Company register its Registrable Securities not previously registered
      pursuant to an effective registration statement (a "Piggyback
      Notice"),
      the
      Company will cause the Registrable Securities identified in the Piggyback Notice
      to be included with the securities to be covered by the registration statement
      proposed to be filed by the Company in order to in order to register the
      resale to the public of the Registrable Securities identified in
      the Piggyback Notice under the Securities Act.

     

    6.  Miscellaneous
      Provisions.

     

    6.1  Notices.
      Any
      notice or other document required or permitted to be given or delivered to
      the
      Holder shall be delivered or forwarded to the Holder at c/o Ocean Park Advisors,
      LLC, 6033 West Century Blvd., Suite 850, Los Angeles, California 90045,
      Attention: Heng Chuk (Facsimile No. 310/670-4107), or to such other address
      or
      number as shall have been furnished to the Company in writing by the Holder,
      with a copy to Sidley Austin LLP, 555 West Fifth Street, Suite 4000, Los
      Angeles, California 90013 Attention Stephen Blevit (Facsimile No. 213/896-6600).
      Any notice or other document required or permitted to be given or delivered
      to
      the Company shall be delivered or forwarded to the Company at 6935 15th Street
      East, Suite 120, Sarasota, Florida 34243 (facsimile
      No. (941)
      355-9373),
      or to
      such other address or number as shall have been furnished to Holder in writing
      by the Company or to the Company by Holder.

     

    6.2  All
      notices, requests and approvals required by this Warrant shall be in writing
      and
      shall be conclusively deemed to be given (i) when hand-delivered to the other
      party, (ii) when received if sent by facsimile at the address and number set
      forth above; provided that notices given by facsimile shall not be effective,
      unless either (a) a duplicate copy of such facsimile notice is promptly given
      by
      depositing the same in the mail, postage prepaid and addressed to the party
      as
      set forth below or (b) the receiving party delivers a written confirmation
      of
      receipt for such notice by any other method permitted under this paragraph;
      and
      further provided that any notice given by facsimile received after 5:00 p.m.
      (recipient’s time) or on a non-business day shall be deemed received on the next
      business day; (iii) five (5) business days after deposit in the United States
      mail, certified, return receipt requested, postage prepaid, and addressed to
      the
      party as set forth below; or (iv) the next business day after deposit with
      an
      international overnight delivery service, postage prepaid, addressed to the
      party as set forth below with next business day delivery guaranteed; provided
      that the sending party receives confirmation of delivery from the delivery
      service provider.

     

    6.3  No
      Rights as Shareholder; Limitation of Liability.
      This
      Warrant shall not entitle the Holder to any of the rights of a shareholder
      of
      the Company except upon exercise in accordance with the terms hereof. No
      provision hereof, in the absence of affirmative action by the Holder to purchase
      shares of Common Stock, and no mere enumeration herein of the rights or
      privileges of the Holder, shall give rise to any liability of the Holder for
      the
      Warrant Price hereunder or as a shareholder of the Company, whether such
      liability is asserted by the Company or by creditors of the
      Company.

     

    6.4  Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York.

     

    6.5  Binding
      Effect on Successors.
      This
      Warrant shall be binding upon any corporation succeeding the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s assets
      and/or securities. All of the obligations of the Company relating to the Shares
      issuable upon the exercise of this Warrant shall survive the exercise and
      termination of this Warrant. All of the covenants and agreements of the Company
      shall inure to the benefit of the successors and assigns of the
      Holder.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6.6  Waiver,
      Amendments and Headings.
      This
      Warrant and any provision hereof may be changed, waived, discharged or
      terminated only by an instrument in writing signed by both parties (either
      generally or in a particular instance and either retroactively or
      prospectively). The headings in this Warrant are for purposes of reference
      only
      and shall not affect the meaning or construction of any of the provisions
      hereof. 

     

    6.7  Jurisdiction.
      Each of
      the parties irrevocably agrees that any and all suits or proceedings based
      on or
      arising under this Agreement may be brought in the federal or state courts
      located in the City of New York, New York and consents to the jurisdiction
      of
      such courts for such purpose. Each of the parties irrevocably waives the defense
      of an inconvenient forum to the maintenance of such suit or proceeding in any
      such court. Each of the parties further agrees that service of process upon
      such
      party mailed by first class mail to the address set forth in Section 5.1 shall
      be deemed in every respect effective service of process upon such party in
      any
      such suit or proceeding. Nothing herein shall affect the right of a Holder
      to
      serve process in any other manner permitted by law. Each of the parties agrees
      that a final non-appealable judgment in any such suit or proceeding shall be
      conclusive and may be enforced in other jurisdictions by suit on such judgment
      or in any other lawful manner.

     

    6.8  Attorneys'
      Fees and Disbursements.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party or parties shall be entitled to receive
      from the other party or parties reasonable attorneys’ fees and disbursements in
      addition to any other relief to which the prevailing party or parties may be
      entitled. 

     

    

     

    

     

    
      
        
          
            	 	
                    --

                  	 
	 	 	 

          

          

          |||

        

        
        

      

      
        5

        
          

        

      

      
        
        

        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed by its duly authorized officer
      this 10th day of October
      ,
      2006.

     

    

    
      	
              COMPANY:

               

            	
               

               

              INVISA,
                INC. 

               

              By:/s/Edmund
                C. King

              Print
                Name: Edmund C. King

              Title:
                Chief Financial Officer 

               

            

    

    

    
      
        
          
            	 	
                    --

                  	 
	 	 	 

          

          

          |||

        

        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    SCHEDULE
      A

    

    FORM
      OF NOTICE OF EXERCISE

    

    [To
      be signed only upon exercise of the Warrant]

    

    TO
      BE EXECUTED BY THE REGISTERED HOLDER

    TO
      EXERCISE THE WITHIN WARRANT

    

    

    The
      undersigned hereby elects to purchase _____________ shares of Common Stock
      (the
“Shares”)
      of
      Invisa, Inc. under the Warrant to Purchase Common Stock dated [ ], 2006, which
      the undersigned is entitled to purchase pursuant to the terms of such Warrant.
      The undersigned has delivered $________________, the aggregate Warrant Price
      for
      _____________ Shares purchased herewith, in full in cash or by certified or
      official bank check or wire transfer. 

    

    Please
      issue a certificate or certificates representing such shares of Common Stock
      in
      the name of the undersigned or in such other name as is specified below and
      in
      the denominations as is set forth below:

     

     

     

    [Type
      Name of Holder as it should appear on the stock certificate]

     

     

     

    [Requested
      Denominations - if no denomination is specified, a single certificate will
      be
      issued]

     

    The
      initial address of such Holder to be entered on the books of Company shall
      be:

     

     

     

     

     

     

     

    The
      undersigned hereby represents and warrants that the undersigned is acquiring
      such shares for his own account for investment purposes only, and not for resale
      or with a view to distribution of such shares or any part thereof.

     

    

     

    By:  

     

    Print
      Name: 

     

    Title: 

     

    Dated: 

     

    

     

    

    

    

    
      
        
          	 	 	 
	 	 	 

        

        ||

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    FORM
      OF ASSIGNMENT

    (ENTIRE)

    

    [To
      be signed only upon transfer of entire Warrant]

    

    TO
      BE EXECUTED BY THE REGISTERED HOLDER

    TO
      TRANSFER THE WITHIN WARRANT

    

    

     

    FOR
      VALUE RECEIVED
      ___________________________ hereby sells, assigns and transfers unto
      _______________________________ all rights of the undersigned under and pursuant
      to the within Warrant, and the undersigned does hereby irrevocably constitute
      and appoint _____________________ Attorney to transfer the said Warrant on
      the
      books of Invisa, Inc., with full power of substitution.

    

    

    

    

     

     

    [Type
      Name of Holder]

     

    

     

    By:
       

     

    Title:
       

     

    

     

    Dated:
       

     

    

    

    

    NOTICE

     

    The
      signature to the foregoing Assignment must correspond exactly to the name as
      written upon the face of the within Warrant, without alteration or enlargement
      or any change whatsoever.

    

    

    
      
        
          
            	 	 	 
	 	 	 

          

          ||

        

        
        

      

      
        8

        
          

        

      

      
        
        

        
        

      

    

    FORM
      OF ASSIGNMENT

    (PARTIAL)

    

    [To
      be signed only upon partial transfer of Warrant]

    

    TO
      BE EXECUTED BY THE REGISTERED HOLDER

    TO
      TRANSFER THE WITHIN WARRANT

    

    

     

    FOR
      VALUE
      RECEIVED ___________________________ hereby sells, assigns and transfers unto
      ____________________________ (i) the rights of the undersigned to purchase
      ____________________ shares of Common Stock under and pursuant to the within
      Warrant, and (ii) on a non-exclusive basis, all other rights of the undersigned
      under and pursuant to the within Warrant, it being understood that the
      undersigned shall retain, severally (and not jointly) with the transferee(s)
      named herein, all rights assigned on such non-exclusive basis. The undersigned
      does hereby irrevocably constitute and appoint __________________________
      Attorney to transfer the said Warrant on the books of Invisa, Inc., with full
      power of substitution.

    

     

     

    [Type
      Name of Holder]

     

    By:
       

     

    Title:
       

     

    

     

    Dated:
       

     

    

    

    NOTICE

     

    The
      signature to the foregoing Assignment must correspond exactly to the name as
      written upon the face of the within Warrant, without alteration or enlargement
      or any change whatsoever.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]