Document:

warrant - Monarch

    
      
        

      

    

    Exhibit 10.56

     

    

      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:

                 

              	
                Up
                  to 402,000 shares (subject to adjustment)

                 

              
	
                Warrant
                  Price:

                 

              	
                $0.30
                  per share

                 

              
	
                Issuance
                  Date:

                 

              	
                August
                  31, 2005

                 

              
	
                Expiration
                  Date:

                 

              	
                August
                  31, 2010

                 

              

      

      

      THIS
        WARRANT CERTIFIES THAT
        for
        value received, Monarch Pointe Fund, Ltd., or its registered assigns
        (hereinafter called the “Holder”)
        is
        entitled to purchase from Invisa, Inc. (hereinafter called the “Company”),
        the
        above referenced number of fully paid and nonassessable shares (the
“Shares”)
        of
        common stock (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. This Warrant is issued
        in
        connection with that certain Subscription Agreement dated as of August 31,
        2005,
        by and between the Company and Holder (the “Subscription
        Agreement”).
        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 after the date hereof
        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 described above. 

       

      1.3  Maximum
        Number of Shares.
        The
        maximum number of Shares of Common Stock exercisable pursuant to this Warrant
        is1,750,000 Shares. However, notwithstanding anything herein to the contrary,
        in
        no event shall the Holder be permitted to exercise this Warrant for a number
        of
        Shares greater than the number that would cause the aggregate beneficial
        ownership of the Company’s Common Stock (calculated pursuant to Rule 13d-3 of
        the Securities Exchange Act of 1934, as amended) of (a) the Holder and its
        affiliates or (b) Mercator Advisory Group, LLC, and its affiliates, to equal
        9.99% of
        the
        Company’s Common Stock then outstanding. 

       

      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
        fifteen (15) calendar 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 of stock evidenced by this certificate have not been registered under
        the
        U.S. Securities Act of 1933, as amended, and may not be offered, sold, pledged
        or otherwise transferred ("transferred") in the absence of such registration
        or
        an applicable exemption therefrom. In the absence of such registration, such
        shares may not be transferred unless, if the Company requests, the Company
        has
        received a written opinion from counsel in form and substance satisfactory
        to
        the Company stating that such transfer is being made in compliance with all
        applicable federal and state securities laws.

       

      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.
        In the event of a fractional interest, the number of Shares to be issued
        shall
        be rounded down to the nearest whole Share. 

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      1.8  Call.
        In
        the
        event that (i) the Market Price of the Common Stock for 20 consecutive trading
        days is equal to or greater than $.60 per share, (ii) the Registration Statement
        is effective, and (iii) the average daily trading volume of the Common Stock
        for
        the preceding 20 consecutive trading days is equal to or greater than 60,000
        shares, then the Company, in its sole discretion, may purchase the Warrant
        for
        an aggregate purchase price of $10,000.00 (i.e., $10,000.00 purchases all
        outstanding warrants). Holder may exercise the Warrant for 5 trading days
        following the written notice (a “Warrant Exercise Notice”). Notwithstanding the
        foregoing, the Company may not purchase the warrants to the extent that exercise
        of the warrants would cause the beneficial ownership of Purchaser and its
        affiliates to exceed 9.99% of the total shares of Common Stock outstanding
        providing that the Holder does not convert additional Preferred stock into
        common stock following the Call Notice and before the Call is
        completed.

       

      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 or Certificate of Determination, Bylaws
        and any resolutions of the Company’s Board of Directors or stockholders, 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. 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. 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, subject to the limitations set forth in Section 1.3
        hereto,
        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, subject to the limitations set forth in Section 1.3
        hereto, 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) and additional shares, other securities or property issued in connection
        with a Change (as defined below) (which shall be covered by the terms of
        Section
        3.4 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. 

       

       

      
        
          
          

        

        
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      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.  Miscellaneous
        Provisions.

       

      5.1  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 88 Baker Street,
        London,
        W1 U 6TQ, UK, Attention: Lewis Chester; With a copy to: Asset Managers Int’l
        Ltd., c/o Olympia Capital (Ireland) Limited, Harcourt Center, 6th Floor,
        Block
        3, Harcourt Road, Dublin 2, Ireland Facsimile: 44(207) 299-9988 , or to such
        other address or number as shall have been furnished to the Company in writing
        by the Holder,. 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, Sarasota, FL 34243 with
        a
        copy to Ed King, CFO, 4153 North Dover Lane, Provo, UT 84604 - (fax
        941-355-9373) , Attention: Ed King (Facsimile No. 801-764-9177), or to such
        other address or number as shall have been furnished to Holder in writing
        by the
        Company. 

       

      5.2  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.

       

      5.3  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.

       

      5.4  Governing
        Law.
        This
        Warrant shall be governed by and construed in accordance with the laws of
        the
        State of California as applied to agreements among California residents made
        and
        to be performed entirely within the State of California, without giving effect
        to the conflict of law principles thereof.

       

      5.5  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.

       

      5.6  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. 

       

      5.7  Jurisdiction.
        Each of
        the parties irrevocably agrees that any and all suits or proceedings based
        on or
        arising under this Agreement may be brought only in and shall be resolved
        in the
        federal or state courts located in the City of Los Angeles, California
        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 9 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 either party
        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. 

       

      5.8  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. 

       

      

      
        
          
          

        

        
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IN
        WITNESS WHEREOF,
        the
        Company has caused this Warrant to be signed by its duly authorized officer
        this
        31 day of August, 2005.

       

      

      
        
          	 	 	 
	COMPANY: 	INVISA,
                  INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                  
Print
                  Name
	 	Title 

        

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

          
          

        

      

      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
        August 31, 2005, 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:

      

      
        

      

       

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      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 ________ _________, 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.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      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.Registration Rights Agreement

    
      

    

     

    Exhibit 10.57

     

    

      EXHIBIT
        D

      to
        Subscription Agreement

       

      REGISTRATION
        RIGHTS AGREEMENT

       

      AGREEMENT
        dated as
        of August
        31,
        2005,
        between the entities set forth on the signature page hereto (collectively,
        the
“Funds”)
        and
        M.A.G. Capital, LLC (“MAG”)
        (the
        Funds and MAG are referred to individually as a “Holder” and collectively as the
“Holders”),
        and
        Invisa, Inc., a Nevada corporation (the “Company”).

       

      WHEREAS,
        the
        Funds have purchased, for an aggregate of $1,000,000, an aggregate of 10,000
        shares of Series B Convertible Preferred Stock (the “Series
        B Stock”)
        from
        the Company, and have the right to cause their Series B Stock to be converted
        into shares of Common Stock, $.001 par value (the “Common
        Stock”),
        of
        the Company, pursuant to the conversion formula set forth in the Series B
        Certificate of Designations;

       

      WHEREAS,
        each
        Fund and MAG have acquired Warrants (together, the “Warrants”)
        from
        the Company, pursuant to which the Holders have the right to purchase in
        the
        aggregate up to 2,500,000 shares of the Common Stock through the exercise
        of the
        Warrants; 

       

      WHEREAS,
        the
        Company may, as provided in the Certificate of Designations issue shares
        of
        Common Stock for payment of the dividend due to the holders of the Series
        B
        Stock (the “Dividend”); 

       

      WHEREAS,
        the
        Company has agreed to register an additional 3,815,790 shares of Common Stock
        issuable upon conversion of the Series A Preferred Stock (the “Additional Series
        A Conversion Shares”) pursuant to the formula set forth in the Amendment to the
        Series A Certificate of Designations; 

       

      WHEREAS,
        the
        Company desires to grant to the Holders the registration rights set forth
        herein
        with respect to the shares of Common Stock issuable upon the conversion of
        the
        Series B Stock and the exercise of the Warrants. 

       

      NOW,
        THEREFORE,
        the
        parties hereto mutually agree as follows: 

       

      1.    Registrable
        Securities. As used herein the terms “Registrable Security”
        means each of the shares of Common Stock (i) issued upon the conversion of
        the
        Series B Stock (the “Conversion Shares”), (ii) upon exercise of the
        Warrants (the “Warrant Shares”), (iii) issued to pay the Dividend, or
        (iv) issued as Additional Series A Conversion Shares, provided, however,
        that
        with respect to any particular Registrable Security, such security shall
        cease
        to be a Registrable Security when, as of the date of determination that
        (a) it has been effectively registered under the Securities Act of
        1933, as
        amended (the “Securities Act”), and disposed of pursuant thereto, or
        (b) registration under the Securities Act is no longer required for
        the
        immediate public distribution of such security. The term “Registrable
        Securities” means any and/or all of the securities falling within the
        foregoing definition of a “Registrable Security.” In the event of any merger,
        reorganization, consolidation, recapitalization or other change in corporate
        structure affecting the Common Stock, such adjustment shall be made in the
        definition of “Registrable Security” as is appropriate in order to prevent any
        dilution or enlargement of the rights granted pursuant to this Section 1.
        

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      2.  Registration.
        

       

      (a)   The
        Company shall file a
        registration statement (the “Registration Statement”) with the Securities
        and Exchange Commission (the “SEC”) within thirty (30) days after the
        date of this Agreement in order to register the resale of the Registrable
        Securities under the Securities Act. Once effective, the Company shall maintain
        the effectiveness of the Registration Statement until the earlier of
        (i) the date that all of the Registrable Securities have been sold,
        or
        (ii) the date that the Company receives an opinion of counsel to the
        Company that all of the Registrable Securities may be freely traded without
        registration under the Securities Act, under Rule 144 promulgated
        under the
        Securities Act or otherwise. 

       

      (b)  The
        Company
        will initially include in the Registration Statement as Registrable Securities
        Fifteen
        Million One Hundred Forty-Nine Thousand One Hundred Twenty-Three (15,149,123)
        shares of Common Stock. 

       

      3.    Covenants
        of the Company with Respect to Registration.

       

      The
        Company covenants and agrees as follows: 

       

      (a)    The
        Company shall use best efforts to cause the Registration Statement to become
        effective with the SEC as promptly as possible and in no event more than
        100 days after initial filing of the Registration Statement with the
        SEC.
        Upon effectiveness and in no event more than 100 days after the initial filing
        of the Registration Statement with the SEC, the Company shall file the final
        prospectus with the SEC pursuant to Rule 424(b) and provide copies to Purchaser
        and MAG. If any stop order shall be issued by the SEC in connection therewith,
        the Company shall use best efforts to obtain promptly the removal of such
        order.
        Following the effective date of the Registration Statement, the Company shall,
        upon the request of any Holder, forthwith supply such reasonable number of
        copies of the Registration Statement, preliminary prospectus and prospectus
        meeting the requirements of the Securities Act, and any other documents
        necessary or incidental to the public offering of the Registrable Securities,
        as
        shall be reasonably requested by the Holder to permit the Holder to make
        a
        public distribution of the Holder's Registrable Securities. The obligations
        of
        the Company hereunder with respect to the Holder's Registrable Securities
        are
        subject to the Holder's furnishing to the Company such appropriate information
        concerning the Holder, the Holder's Registrable Securities and the terms
        of the
        Holder's offering of such Registrable Securities as the Company may reasonably
        request in writing. 

       

      (b)  The
        Company shall pay all
        costs, fees and expenses in connection with the Registration Statement filed
        pursuant to Section 2 hereof including, without limitation, the Company's
        legal and accounting fees, printing expenses, and blue sky fees and expenses;
        provided, however, that each Holder shall be solely responsible for the fees
        of
        any counsel retained by the Holder in connection with such registration and
        any
        transfer taxes or underwriting discounts, commissions or fees applicable
        to the
        Registrable Securities sold by the Holder pursuant thereto. 

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      (c)  The
        Company will take all
        actions which may be required to qualify or register the Registrable Securities
        included in the Registration Statement for the offer and sale under the
        securities or blue sky laws of such states as are reasonably requested by
        each
        Holder of such securities, provided that the Company shall not be obligated
        to
        execute or file any general consent to service of process or to qualify as
        a
        foreign corporation to do business under the laws of any such jurisdiction.
        

       

      4.    Additional
        Terms.

       

      (a)   The
        Company shall
        indemnify and hold harmless the Holders and each underwriter, within the
        meaning
        of the Securities Act, who may purchase from or sell for any Holder, any
        Registrable Securities, from and against any and all losses, claims, damages
        and
        liabilities caused by any untrue statement of a material fact contained in
        the
        Registration Statement, any other registration statement filed by the Company
        under the Securities Act with respect to the registration of the Registrable
        Securities, any post-effective amendment to such registration statements,
        or any
        prospectus included therein or caused by any omission to state therein a
        material fact required to be stated therein or necessary to make the statements
        therein not misleading, except insofar as such losses, claims, damages or
        liabilities are caused by any such untrue statement or omission based upon
        information furnished or required to be furnished in writing to the Company
        by
        the Holders or underwriter expressly for use therein, which indemnification
        shall include each person, if any, who controls any Holder or underwriter
        within
        the meaning of the Securities Act and each officer, director, employee and
        agent
        of each Holder and underwriter; provided, however, that the indemnification
        in
        this Section 4(a) with respect to any prospectus shall not inure to
        the
        benefit of any Holder or underwriter (or to the benefit of any person
        controlling any Holder or underwriter) on account of any such loss, claim,
        damage or liability arising from the sale of Registrable Securities by the
        Holder or underwriter, if a copy of a subsequent prospectus correcting the
        untrue statement or omission in such earlier prospectus was provided to such
        Holder or underwriter by the Company prior to the subject sale and the
        subsequent prospectus was not delivered or sent by the Holder or underwriter
        to
        the purchaser prior to such sale and provided further, that the Company shall
        not be obligated to so indemnify any Holder or any such underwriter or other
        person referred to above unless the Holder or underwriter or other person,
        as
        the case may be, shall at the same time indemnify the Company, its directors,
        each officer signing the Registration Statement and each person, if any,
        who
        controls the Company within the meaning of the Securities Act, from and against
        any and all losses, claims, damages and liabilities caused by any untrue
        statement of a material fact contained in the Registration Statement, any
        registration statement or any prospectus required to be filed or furnished
        by
        reason of this Agreement or caused by any omission to state therein a material
        fact required to be stated therein or necessary to make the statements therein
        not misleading, insofar as such losses, claims, damages or liabilities are
        caused by any untrue statement or omission based upon information furnished
        in
        writing to the Company by the Holder or underwriter expressly for use therein.
        

       

      (b)  If
        for any reason the
        indemnification provided for in the preceding section is held by a court
        of
        competent jurisdiction to be unavailable to an indemnified party with respect
        to
        any loss, claim, damage, liability or expense referred to therein, then the
        indemnifying party, in lieu of indemnifying such indemnified party
        thereunder, shall contribute to the amount paid or payable by the indemnified
        party as a result of such loss, claim, damage or liability in such proportion
        as
        is appropriate to reflect the relative fault of the indemnified party and
        the
        indemnifying party, as well as any other relevant equitable considerations.
        

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      (c)  Neither
        the filing of a
        Registration Statement by the Company pursuant to this Agreement nor the
        making
        of any request for prospectuses by the Holder shall impose upon any Holder
        any
        obligation to sell the Holder's Registrable Securities. 

       

      (d)  Each
        Holder, upon receipt
        of notice from the Company that an event has occurred which requires a
        Post-Effective Amendment to the Registration Statement or a supplement to
        the
        prospectus included therein, shall promptly discontinue the sale of Registrable
        Securities until the Holder receives a copy of a supplemented or amended
        prospectus from the Company, which the Company shall provide as soon as
        practicable after such notice. 

       

      (e)  If
        the Company fails to
        keep the Registration Statement referred to above continuously effective
        during
        the requisite period, then the Company shall, promptly upon the request of
        any
        Holder, use best efforts to update the Registration Statement or file a new
        registration statement covering the Registrable Securities remaining unsold,
        subject to the terms and provisions hereof. 

       

      (f)  Each
        Holder agrees to
        provide the Company with any information or undertakings reasonably requested
        by
        the Company in order for the Company to include any appropriate information
        concerning the Holder in the Registration Statement or in order to promote
        compliance by the Company or the Holder with the Securities Act. 

       

      (g)  The
        Company agrees that it shall cause each of its directors, officers and
        shareholders owning ten percent (10%) or more of the Company’s outstanding
        Common Stock to refrain from selling any shares of the Company’s Common Stock
        except under pre-existing filed plans until the Registration Statement has
        been
        declared effective.

       

      (h)  Commencing
        on the date hereof and continuing until such time as the Series B Stock and
        Warrants are no longer outstanding
        each
        Holder, on behalf of itself and its affiliates, hereby covenants and agrees
        not
        to offer to "short sell", or contract to "short sell" the securities of the
        Company against the unconverted Series B Stock or the un-exercised Warrants.
        In
        the event that the Registration Statement is not deemed effective within
        5
        months after the Closing Date or if at anytime after initial effectiveness
        the
        Registration Statement is ineffective, then this covenant shall toll until
        such
        time as the Registration Statement is effective. 

      

      (i)  Except
        as
        set forth on Exhibit
        “A”
        attached hereto and incorporated herein by reference, other than the Registrable
        Securities, the Company shall not include any other securities for registration
        in the Registration Statement or file any other registration statement unless
        the Registration Statement is effective. 

      

      5.    Governing
        Law. The Registrable Securities will be, if and when issued,
        delivered in California. This Agreement shall be deemed to have been made
        and
        delivered in the State of California and shall be governed as to validity,
        interpretation, construction, effect and in all other respects by the internal
        substantive laws of the State of California, without giving effect to the
        choice
        of law rules thereof. 

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      6.  Amendment.
        This
        Agreement may only be amended by a written instrument executed by the Company
        and the Holders. 

       

      7.  Entire
        Agreement.
        This
        Agreement constitutes the entire agreement of the parties hereto with respect
        to
        the subject matter hereof, and supersedes all prior agreements and
        understandings of the parties, oral and written, with respect to the subject
        matter hereof. 

       

      8.  Execution
        in
        Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        document. 

       

      9.  Notices.
        All
        communications hereunder shall be in writing and shall be hand delivered,
        mailed
        by first-class mail, couriered by next-day air courier or by facsimile at
        the
        addresses set forth below. 

       

      

        
          	
                  If
                    to the Holders

                	
                  M.A.G.
                    Capital, LLC

                
	 	
                  555
                    South Flower Street, Suite 4200

                
	 	
                  Los
                    Angeles, Ca 90071

                
	 	
                  Attention:
                    David Firestone

                
	 	 
	
                  With
                    a copy to:

                	
                  Sheppard
                    Mullin Richter & Hampton, LLP

                
	 	
                  333
                    South Hope Street

                
	 	
                  48th
                    Floor

                
	 	
                  Los
                    Angeles, CA 90071-1448

                
	 	
                  Telephone
                    No.: (213) 620-1780

                
	 	
                  Facsimile
                    No.: (213) 620-1398

                
	 	
                  Attention:
                    David C. Ulich

                
	 	 
	 	
                  Asset
                    Managers International, Ltd.

                
	 	
                  88
                    Baker Street,

                
	 	
                  London,
                    W1 U 6TQ, UK,

                
	 	
                  Attention:
                    Lewis Chester;

                
	 	 
	
                  With
                    a copy to:

                	
                  Asset
                    Managers Int’l Ltd.,

                
	 	
                  c/o
                    Olympia Capital (Ireland) Limited,

                
	 	
                  Harcourt
                    Center, 6th Floor,

                
	 	
                  Block
                    3, Harcourt Road,

                
	 	
                  Dublin
                    2, Ireland

                
	 	
                  Facsimile:
                    44(207) 299-9988

                
	 	 
	
                  If
                    to the Company

                	
                  Invisa,
                    Inc.

                
	 	
                  6935
                    15th
                    Street East, Suite 120

                
	 	
                  Sarasota,
                    FL 34243

                
	 	
                  Telephone
                    No.: 941-355-9361

                
	 	
                  Facsimile
                    No.: 941-355-9373

                
	 	
                  Attention:
                    Carl Parks

                
	 	 
	
                  With
                    a copy to:

                	
                  Ed
                    King

                
	 	
                  4153
                    North Dover Lane

                
	 	
                  Provo,
                    UT 84604

                
	 	
                  Telephone
                    No.: 801-764-9265

                
	 	
                  Facsimile
                    No.: 801-764-9177

                
	 	
                  Attention:
                    Ed King, CFO

                

        

         

         

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      All
        such
        notices and communications shall be deemed to have been duly given: (i) three
        (3) days after it is 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; (ii) 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 (iii) 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. 

      

      10.    Binding
        Effect; Benefits. Any Holder may assign its rights hereunder. This
        Agreement shall inure to the benefit of, and be binding upon, the parties
        hereto
        and their respective heirs, legal representatives, successors and assigns.
        Nothing herein contained, express or implied, is intended to confer upon
        any
        person other than the parties hereto and their respective heirs, legal
        representatives and successors, any rights or remedies under or by reason
        of
        this Agreement. 

       

      11.  Headings.
        The
        headings contained herein are for the sole purpose of convenience of reference,
        and shall not in any way limit or affect the meaning or interpretation of
        any of
        the terms or provisions of this Agreement. 

       

      12.  Severability.
        Any
        provision of this Agreement which is held by a court of competent jurisdiction
        to be prohibited or unenforceable in any jurisdiction(s) shall be, as to
        such
        jurisdiction(s), ineffective to the extent of such prohibition or
        unenforceability without invalidating the remaining provisions of this Agreement
        or affecting the validity or enforceability of such provision in any other
        jurisdiction. 

       

      13.  Jurisdiction.
        Each
        of
        the parties irrevocably agrees that any and all suits or proceedings based
        on or
        arising under this Agreement may be brought only in and shall be resolved
        in the
        federal or state courts located in the City of Los Angeles, California
        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 9 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 either party
        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

          
            

          

        

        
          
          

        

      

       

      14.  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. 

       

          IN
        WITNESS
        WHEREOF,
        this
        Agreement has been executed and delivered by the parties hereto as of the
        date
        first above written.

       

      
        
          	 	 	 
	 	INVISA,
                  INC.
	 
 	 
 	 
 
	 	By:  	/s/ Stephen
                  A. Michael
	 	
                  
Stephen
                  A. Michael
	 	Its:
                  President

        

      

        
          	
                  M.A.G.
                    Capital, LLC

                   

                   

                  By:_____________________

                  Name:
                    David Firestone

                  Its:
                    Managing Member

                	
                  Mercator
                    Momentum Fund III, LP

                   

                  By:    M.A.G.
                    Capital, LLC

                  Its:    General
                    Partner

                   

                        _____________________

                         David
                    Firestone

                         Managing
                    Member

                   

                
	
                   

                  Asset
                    Managers International, Ltd.

                  a
                    British Virgin Islands international business company

                   

                   

                  By:
                    ______________________________

                  Print
                    Name: _______________________

                  Title:
                    _____________________________

                   

                	
                   

                  Monarch
                    Pointe Fund, Ltd.

                   

                   

                  By:_____________________

                  Name:
                    David Firestone

                  Its:
                    President

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