Document:

Subscription Agreement-8.31.05

    
      

    

    Exhibit 10.52

     

    

    INVISA,
      Inc.

    Shares
      of Series B Convertible Preferred Stock and Common Stock
      Warrants

     

    SUBSCRIPTION
      AGREEMENT

     

    August
      31, 2005

    

     

    

    M.A.G.
      Capital, LLC

    Mercator
      Momentum Fund III, LP

    Monarch
      Pointe Fund, Ltd.

    Asset
      Managers International, Ltd. 

    555
      South
      Flower Street, Suite 4200

    Los
      Angeles, California 90071

    

    Ladies
      and Gentlemen:

     

    
      Invisa,
        Inc. a Nevada corporation (the
“Company”), hereby confirms its agreement with the
        entities set forth on the signature page hereto (collectively, the
“Purchasers”) and M.A.G. CAPITAL, LLC
        (“MAG”), as set forth below.

      
        1.  The
        Securities. Subject to the terms and conditions herein contained, the
        Company proposes to issue and sell to the Purchasers an aggregate of: (a)
        Ten
        Thousand (10,000) shares of its Series B Convertible Preferred Stock (the
        “Series B Stock”), which shall be convertible into
        shares (the “Conversion Shares”) of the Company’s
        Common Stock (the “Common Stock”) in accordance with
        the formula set forth in the Certificate of Designations further described
        below
        and (b) Two Million Five Hundred Thousand (2,500,000) warrants, substantially
        in
        the form attached hereto at Exhibit A (the
“Warrants”), to acquire up to Two Million Five
        Hundred
        Thousand (2,500,000) shares of Common Stock (the “Warrant
        Shares”). The rights, preferences and privileges of the Series B
        Stock are as set forth in the Certificate of Designations of Series B Preferred
        Stock as filed with the Secretary of State of the State of Nevada (the
“Certificate of Designations”) in the form attached
        hereto as Exhibit B. The number of Conversion Shares and Warrant Shares
        that any Purchaser may acquire at any time are subject to limitation in the
        Certificate of Designations and in the Warrants, respectively, so that the
        aggregate number of shares of Common Stock of which such Purchaser and all
        persons affiliated with such Purchaser have beneficial ownership (calculated
        pursuant to Rule 13d-3 of the Securities Exchange Act of 1934, as amended)
        does
        not at any time exceed 9.99% of the Company’s then outstanding Common
        Stock.

     

    
      The
        Series B Stock and the Warrants are sometimes herein collectively referred
        to as
        the “Securities.” This Agreement, the Certificate of
        Designations, Registration Rights Agreement and the Warrant Agreements are
        sometimes herein collectively referred to as the “Transaction
        Documents.”

       

      
        
           

        

        
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      The
        Securities will be offered and sold to the Purchasers without such offers
        and
        sales being registered under the Securities Act of 1933, as amended (together
        with the rules and regulations of the Securities and Exchange Commission
        (the
“SEC”) promulgated thereunder, the
“Securities Act”), in reliance on
        exemptions
        therefrom.

       

      In
        connection with the sale of the Securities, the Company has made available
        (including electronically via the SEC’s EDGAR system) to Purchasers its periodic
        and current reports, forms, schedules, proxy statements and other documents
        (including exhibits and all other information incorporated by reference)
        filed
        with the SEC under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). These reports, forms, schedules,
        statements, documents, filings and amendments, are collectively referred
        to as
        the “Disclosure Documents.” All references in this
        Agreement to financial statements and schedules and other information which
        is
“contained,”“included” or “stated” in the Disclosure Documents (or other
        references of like import) shall be deemed to mean and include all such
        financial statements and schedules, documents, exhibits and other information
        which is incorporated by reference in the Disclosure Documents.

       

      2.    Representations
        and Warranties of the Company. Except as set forth on the Disclosure
        Schedule (the “Disclosure Schedule”) delivered by the
        Company to Purchasers on the Closing Date (as defined in Section 3 below),
        or in
        the Disclosure Documents the Company represents and warrants to and agrees
        with
        Purchasers and MAG as follows: 

       

      (a)  The
        Disclosure Documents as of their respective dates did not, and will not (after
        giving effect to any updated disclosures therein) as of the Closing Date,
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements therein, in the light of the circumstances
        under which they were made, not misleading. The Disclosure Documents and
        the
        documents incorporated or deemed to be incorporated by reference therein,
        at the
        time they were filed or hereafter are filed with the SEC, complied and will
        comply, at the time of filing, in all material respects with the requirements
        of
        the Securities Act and/or the Exchange Act, as the case may be, as
        applicable.

       

      (b)  Schedule
        A attached hereto sets forth a complete list of the subsidiaries of the
        Company (the “Subsidiaries”). Each of the Company and
        its Subsidiaries has been duly incorporated and each of the Company and the
        Subsidiaries is validly existing in good standing as a corporation under
        the
        laws of its jurisdiction of incorporation, with the requisite corporate power
        and authority to own its properties and conduct its business as now conducted
        as
        described in the Disclosure Documents and is duly qualified to do business
        as a
        foreign corporation in good standing in all other jurisdictions where the
        ownership or leasing of its properties or the conduct of its business requires
        such qualification, except where the failure to be so qualified would not,
        individually or in the aggregate, have a material adverse effect on the
        business, condition (financial or other), properties, prospects or results
        of
        operations of the Company and the Subsidiaries, taken as a whole (any such
        event, a “Material Adverse Effect”); as of the Closing
        Date, the Company will have the authorized, issued and outstanding
        capitalization set forth in on Schedule B attached hereto (the
“Company Capitalization”); except as set forth in the
        Disclosure Documents or on Schedule A, the Company does not have any
        subsidiaries or own directly or indirectly any of the capital stock or other
        equity or long-term debt securities of or have any equity interest in any
        other
        person; all of the  outstanding
        shares of capital stock of the Company and the Subsidiaries have been duly
        authorized and validly issued, are fully paid and nonassessable and were
        not
        issued in violation of any preemptive or similar rights and are owned free
        and
        clear of all liens, encumbrances, equities, and restrictions on transferability
        (other than those imposed by the Securities Act and the state securities
        or
“Blue Sky” laws) or voting; except as set forth in the Disclosure Documents, all
        of the outstanding shares of capital stock of the Subsidiaries are owned,
        directly or indirectly, by the Company; except as set forth in the Disclosure
        Documents, no options, warrants or other rights to purchase from the Company
        or
        any Subsidiary, agreements or other obligations of the Company or any Subsidiary
        to issue or other rights to convert any obligation into, or exchange any
        securities except for the $150,000 line of credit for, shares of capital
        stock
        of or ownership interests in the Company or any Subsidiary are outstanding;
        and
        except as set forth in the Disclosure Documents or on Schedule C, there
        is no agreement, understanding or arrangement among the Company or any
        Subsidiary and each of their respective stockholders or any other person
        relating to the ownership, registration other than piggy back rights or
        disposition of any capital stock of the Company or any Subsidiary or the
        election of directors of the Company or any Subsidiary or the governance
        of the
        Company’s or any Subsidiary’s affairs, and, if any, such agreements,
        understandings and arrangements will not be breached or violated as a result
        of
        the execution and delivery of, or the consummation of the transactions
        contemplated by, the Transaction Documents.

       

       

      
        
           

        

        
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      (c)    The
        Company
        has the requisite corporate power and authority to execute, deliver and perform
        its obligations under the Transaction Documents. Each of the Transaction
        Documents has been duly and validly authorized by the Company and, when executed
        and delivered by the Company, will constitute a valid and legally binding
        agreement of the Company, enforceable against the Company in accordance with
        its
        terms except as the enforcement thereof may be limited by (A) bankruptcy,
        insolvency, reorganization, fraudulent conveyance, moratorium or other similar
        laws now or hereafter in effect relating to or affecting creditors’ rights
        generally or (B) general principles of equity and the discretion of
        the
        court before which any proceeding therefore may be brought (regardless of
        whether such enforcement is considered in a proceeding at law or in equity)
        (collectively, the “Enforceability
        Exceptions”).

       

      (d)    The
        Series B
        Stock and the Warrants have been duly authorized and, when issued upon payment
        thereof in accordance with this Agreement, will have been validly issued,
        fully
        paid and non-assessable. The Conversion Shares issuable have been duly
        authorized and validly reserved for issuance, and when issued upon conversion
        of
        the Series B Stock in accordance with the terms of the Certificate of
        Designations, will have been validly issued, fully paid and non-assessable.
        The
        Warrant Shares have been duly authorized and validly reserved for issuance,
        and
        when issued upon exercise of the Warrants in accordance with the terms thereof,
        will have been validly issued, fully paid and non-assessable. The Common
        Stock
        of the Company conforms to the description thereof contained in the Disclosure
        Documents. The stockholders of the Company have no preemptive or similar
        rights
        with respect to the Common Stock.

       

      (e)    No
        consent,
        approval, authorization, license, qualification, exemption or order of any
        court
        or governmental agency or body or third party is required for the performance
        of
        the Transaction Documents by the Company or for the consummation by the Company
        of any of the transactions contemplated thereby, or the application of the
        proceeds of the issuance of the Securities as described in this Agreement,
        except for such consents, approvals, authorizations, licenses, qualifications,
        exemptions or orders (i) as have been obtained on or prior to the
        Closing
        Date, (ii) as are not required to be obtained on or prior to the Closing
        Date that will be obtained when required, or (iii) the failure to
        obtain
        which would not, individually or in the aggregate, have a Material Adverse
        Effect.

       

      (f)    Except
        as set
        forth on Schedule D, none of the Company or the Subsidiaries is (i) in
        material violation of its articles of incorporation or bylaws (or similar
        organizational document), (ii) in breach or violation of any statute, judgment,
        decree, order, rule or regulation applicable to it or any of its properties
        or
        assets, which breach or violation would, individually or in the aggregate,
        have
        a Material Adverse Effect, or (iii) except as described in the Disclosure
        Documents, in default (nor has any event occurred which with notice or passage
        of time, or both, would constitute a default) in the performance or observance
        of any obligation, agreement, covenant or condition contained in any contract,
        indenture, mortgage, deed of trust, loan agreement, note, lease, license,
        franchise agreement, permit, certificate or agreement or instrument to which
        it
        is a party or to which it is subject, which default would, individually or
        in
        the aggregate, have a Material Adverse Effect.

       

    

     

    
      
         

      

      
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      (g)    The
        execution, delivery and performance by the Company of the Transaction Documents
        and the consummation by the Company of the transactions contemplated thereby
        and
        the fulfillment of the terms thereof will not (a) violate, conflict
        with or
        constitute or result in a breach of or a default under (or an event that,
        with
        notice or lapse of time, or both, would constitute a breach of or a default
        under) any of (i) the terms or provisions of any contract, indenture,
        mortgage, deed of trust, loan agreement, note, lease, license, franchise
        agreement, permit, certificate or agreement or instrument to which any of
        the
        Company or the Subsidiaries is a party or to which any of their respective
        properties or assets are subject, (ii) the Certificate of Incorporation
        or
        bylaws of any of the Company or the Subsidiaries (or similar organizational
        document) or (iii) any statute, judgment, decree, order, rule or regulation
        of any court or governmental agency or other body applicable to the Company
        or
        the Subsidiaries or any of their respective properties or assets or
        (b) result in the imposition of any lien upon or with respect to any
        of the
        properties or assets now owned or hereafter acquired by the Company or any
        of
        the Subsidiaries; which violation, conflict, breach, default or lien would,
        individually or in the aggregate, have a Material Adverse Effect.

       

      (h)    The
        audited
        consolidated financial statements included in the Disclosure Documents present
        fairly the consolidated financial position, results of operations, cash flows
        and changes in shareholders’ equity of the entities, at the dates and for the
        periods to which they relate and have been prepared in accordance with generally
        accepted accounting principles applied on a consistent basis; the interim
        un-audited consolidated financial statements included in the Disclosure
        Documents present fairly the consolidated financial position, results of
        operations and cash flows of the entities, at the dates and for the periods
        to
        which they relate subject to year-end audit adjustments and have been prepared
        in accordance with generally accepted accounting principles applied on a
        consistent basis with the audited consolidated financial statements included
        therein; the selected financial and statistical data included in the Disclosure
        Documents present fairly the information shown therein and have been prepared
        and compiled on a basis consistent with the audited financial statements
        included therein, except as otherwise stated therein; and each of the auditors
        previously engaged by the Company or to be engaged in the future by the Company
        is an independent certified public accountant as required by the Securities
        Act
        for an offering registered thereunder.

       

      (i)    Except
        as
        described in the Disclosure Documents, there is not pending or, to the knowledge
        of the Company, threatened any action, suit, proceeding, inquiry or
        investigation, governmental or otherwise, to which any of the Company or
        the
        Subsidiaries is a party, or to which their respective properties or assets
        are
        subject, before or brought by any court, arbitrator or governmental agency
        or
        body, that, if determined adversely to the Company or any such Subsidiary,
        would, individually or in the aggregate, have a Material Adverse Effect or
        that
        seeks to restrain, enjoin, prevent the consummation of or otherwise challenge
        the issuance or sale of the Securities to be sold hereunder or the application
        of the proceeds therefrom or the other transactions described in the Disclosure
        Documents.

       

      (j)    The
        Company
        and the Subsidiaries own or possess adequate licenses or other rights to
        use all
        patents, trademarks, service marks, trade names, copyrights and know-how
        that
        are necessary to conduct their businesses as described in the Disclosure
        Documents. None of the Company or the Subsidiaries has received any written
        notice of infringement of (or knows of any such infringement of) asserted
        rights
        of others with respect to any patents, trademarks, service marks, trade names,
        copyrights or know-how that, if such assertion of infringement or conflict
        were
        sustained, would, individually or in the aggregate, have a Material Adverse
        Effect.

       

    

     

    
      
         

      

      
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      (k)    Each
        of the
        Company and the Subsidiaries possesses all licenses, permits, certificates,
        consents, orders, approvals and other authorizations from, and has made all
        declarations and filings with, all federal, state, local and other governmental
        authorities, all self-regulatory organizations and all courts and other
        tribunals presently required or necessary to own or lease, as the case may
        be,
        and to operate its respective properties and to carry on its respective
        businesses as now or proposed to be conducted as set forth in the Disclosure
        Documents (“Permits”), except where the failure to
        obtain such Permits would not, individually or in the aggregate, have a Material
        Adverse Effect and none of the Company or the Subsidiaries has received any
        notice of any proceeding relating to revocation or modification of any such
        Permit, except as described in the Disclosure Documents and except where
        such
        revocation or modification would not, individually or in the aggregate, have
        a
        Material Adverse Effect.

       

      (l)    Subsequent
        to
        the respective dates as of which information is given in the Disclosure
        Documents and except as described therein, (i) the Company and the
        Subsidiaries have not incurred any material liabilities or obligations, direct
        or contingent, or entered into any material transactions not in the ordinary
        course of business or (ii) the Company and the Subsidiaries have not
        purchased any of their respective outstanding capital stock, or declared,
        paid
        or otherwise made any dividend or distribution of any kind on any of their
        respective capital stock or otherwise (other than, with respect to any of
        such
        Subsidiaries, the purchase of capital stock by the Company), (iii) there
        has not been any material increase in the long-term indebtedness of the Company
        or any of the Subsidiaries, (iv) there has not occurred any event
        or
        condition, individually or in the aggregate, that has a Material Adverse
        Effect,
        and (v) the Company and the Subsidiaries have not sustained any material
        loss or interference with respect to their respective businesses or properties
        from fire, flood, hurricane, earthquake, accident or other calamity, whether
        or
        not covered by insurance, or from any labor dispute or any legal or governmental
        proceeding.

       

      (m)    There
        are no
        material legal or governmental proceedings nor are there any material contracts
        or other documents required by the Securities Act to be described in a
        prospectus that are not described in the Disclosure Documents. Except as
        described in the Disclosure Documents, none of the Company or the Subsidiaries
        is in default under any of the contracts described in the Disclosure Documents,
        has received a notice or claim of any such default or has knowledge of any
        breach of such contracts by the other party or parties thereto, except for
        such
        defaults or breaches as would not, individually or in the aggregate, have
        a
        Material Adverse Effect.

       

      (n)    Each
        of the
        Company and the Subsidiaries has good and marketable title to all real property
        described in the Disclosure Documents as being owned by it and good and
        marketable title to the leasehold estate in the real property described therein
        as being leased by it, free and clear of all liens, charges, encumbrances
        or
        restrictions, except, in each case, as described in the Disclosure Documents
        or
        such as would not, individually or in the aggregate, have a Material Adverse
        Effect. All material leases, contracts and agreements to which the Company
        or
        any of the Subsidiaries is a party or by which any of them is bound are valid
        and enforceable against the Company or any such Subsidiary, are, to the
        knowledge of the Company, valid and enforceable against the other party or
        parties thereto and are in full force and effect.

       

       

      
        
           

        

        
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      (o)    Each
        of the
        Company and the Subsidiaries has filed all necessary federal, state and foreign
        income and franchise tax returns, except where the failure to so file such
        returns would not, individually or in the aggregate, have a Material Adverse
        Effect, and has paid all taxes shown as due thereon; and other than tax
        deficiencies which the Company or any Subsidiary is contesting in good faith
        and
        for which adequate reserves have been provided in accordance with generally
        accepted accounting principles, there is no tax deficiency that has been
        asserted against the Company or any Subsidiary that would, individually or
        in
        the aggregate, have a Material Adverse Effect.

       

      (p)    None
        of the
        Company or the Subsidiaries is, or immediately after the Closing Date will
        be,
        required to register as an “investment company” or a company “controlled by” an
“investment company” within the meaning of the Investment Company Act of 1940,
        as amended (the “Investment Company
        Act”).

       

      (q)    None
        of the
        Company or the Subsidiaries or, to the knowledge of any of such entities’
        directors, officers, employees, agents or controlling persons, has taken,
        directly or indirectly, any action designed, or that might reasonably be
        expected, to cause or result in the stabilization or manipulation of the
        price
        of the Common Stock.

       

      (r)    None
        of the
        Company, the Subsidiaries or any of their respective Affiliates (as defined
        in
        Rule 501(b) of Regulation D under the Securities Act) directly,
        or
        through any agent, engaged in any form of general solicitation or general
        advertising (as those terms are used in Regulation D under the Securities
        Act) in connection with the offering of the Securities or engaged in any
        other
        conduct that would cause such offering to be constitute a public offering
        within
        the meaning of Section 4(2) of the Securities Act. Assuming the accuracy
        of
        the representations and warranties of the Purchasers in Section 6
        hereof,
        it is not necessary in connection with the offer, sale and delivery of the
        Securities to the Purchasers in the manner contemplated by this Agreement
        to
        register any of the Securities under the Securities Act.

       

      (s)    There
        is no
        strike, labor dispute, slowdown or work stoppage with the employees of the
        Company or any of the Subsidiaries which is pending or, to the knowledge
        of the
        Company or any of the Subsidiaries, threatened.

       

      (t)    Each
        of the
        Company and the Subsidiaries carries general liability insurance coverage
        comparable to other companies of its size and similar business.

       

      (u)    Each
        of the
        Company and the Subsidiaries maintains internal accounting controls which
        provide reasonable assurance that (A) transactions are executed in
        accordance with management’s authorization, (B) transactions are recorded
        as necessary to permit preparation of its financial statements and to maintain
        accountability for its assets, and (C) access to its material assets
        is
        permitted only in accordance with management’s authorization and (D) the
        values and amounts reported for its material assets are compared with its
        existing assets at reasonable intervals.

       

       

      
        
           

        

        
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      (v)    Except
        for a
        fee payable to MAG, the Company does not know of any claims for services,
        either
        in the nature of a finder’s fee or financial advisory fee, with respect to the
        offering of the Securities and the transactions contemplated by the Transaction
        Documents for which MAG is the payor or payee.

       

      (w)    The
        Common
        Stock is traded on the Over the Counter Bulletin Board_ (the “OTC:BB”). Except
        as described in the Disclosure Documents, the Company currently is not in
        violation of, and the consummation of the transactions contemplated by the
        Transaction Documents will not violate, any rule of the National Association
        of
        Securities Dealers. 

       

      (x)    The
        Company
        is eligible to use SB-2 for the resale of the Conversion Shares and the Warrant
        Shares by Purchasers or their transferees and the Warrant Shares by Purchasers,
        MAG or their transferees. The Company has no reason to believe that it is
        not
        capable of satisfying the registration or qualification requirements (or
        an
        exemption therefrom) necessary to permit the resale of the Conversion Shares
        and
        the Warrant Shares under the securities or “blue sky” laws of any jurisdiction
        within the United States. 

       

      (y)  Set
        forth on Schedule E is the Company’s intended use of the proceeds from
        this transaction. 

       

      (z)    Except
        as set
        forth on Schedule F, none of the officers or directors of the Company (i)
        has
        been convicted of any crime (other than  traffic
        violations  or misdemeanors not involving
        fraud) or is currently under investigation or indictment for any
        such crime, (ii) has been found by a court or governmental agency
        to have
        violated any securities or commodities law or to have committed fraud
        or is
        currently a party to any legal proceeding in which either is alleged, (iii)
        has been the subject of a proceeding under the bankruptcy laws
        or any
        similar state laws, or (iv) has been an officer, director, general
        partner,
        or managing member of an entity which has been the subject of such
        a
        proceeding. 

       

      (aa)  The
        Company’s most recent SEC review commenced on approximately June 25, 2003 and
        was concluded in approximately 2003. 

       

      (bb)  The
        Company’s CUSIP number is 461850109.

       

      3.  Purchase,
        Sale and Delivery of the Securities. 

       

      (a)  Issuance
        of Series B Stock and Warrants. On the basis of the representations,
        warranties, agreements and covenants herein contained and subject to the
        terms
        and conditions herein set forth, the Company agrees to issue and sell to
        the
        Purchasers, and Purchasers agree to purchase from the Company, 10,000 shares
        of
        Series B Stock at $100.00 per share in the amounts shown on the signature
        page
        hereto. In connection with the purchase and sale of Series B Stock, for no
        additional consideration, the Purchasers will receive Warrants to purchase
        up to
        an aggregate of 2,500,000 shares of Common Stock, and MAG will receive Warrants
        to purchase up to an aggregate of 2,500,000 shares of Common Stock, subject
        to
        adjustment as set forth in the Warrants. 

       

    

     

    
      
         

      

      
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      (b)    Closing.
        The
        closing of the transactions described herein (the
“Closing”) shall take place at a time and on a date
        (the “Closing Date”) to be specified by the parties,
        which will be no later than 5:00 p.m. (Pacific time) on August 31, 2005.
        On the
        Closing Date, the Company shall deliver (a) certificates in definitive form
        for
        the Series B Stock in the names and amounts set forth on the signature page
        hereto, (b) Warrants, in the names and amounts set forth on the signature
        page
        hereto, (c) the Subscription Agreement, Certificate of Designation and
        Registration Rights Agreement, each duly executed on behalf of the Company,
        and
        (d) the Opinion of Counsel in the form attached hereto as Exhibit C. On
        the Closing Date, Purchasers shall deliver (i) 50% of the Purchase Price
        or
        $500,000 by wire transfer of immediately available funds to an escrow account
        mutually acceptable to the parties, and (ii) the Subscription Agreement and
        Registration Rights Agreement, each duly executed on behalf of the Purchasers
        and MAG. The Closing will occur when all documents and instruments necessary
        or
        appropriate to effect the transactions contemplated herein are exchanged
        by the
        parties and all actions taken at the Closing will be deemed to be taken
        simultaneously. 

       

      (c)    Release
        from Escrow. Upon receipt of written confirmation from MAG that all
        documents and instruments have been duly executed and delivered, the escrow
        holder shall release (a) to the Company, the sum of $455,000 and (b) to MAG,
        the
        Due Diligence Fee in the amount of $40,000, and the legal fees in the amount
        of
        $5,000.

       

      (d)    Conditions
        to Final Funding. Provided that no Event of Default (as that term is defined
        in Section 10 below) has occurred, within two trading days after Company
        (i)
        files the Registration Statement and (ii) delivers to MAG and Purchaser a
        certificate executed on behalf of the Company by its Chief Financial Officer
        certifying that all representations and warranties made by the Company herein
        are true and correct as of the date of the Registration Statement, the Purchaser
        covenants and agrees to deliver to the Company the balance of the Purchase
        Price
        or $500,000. 

       

      (e)    In
        the event
        that on or before 40 days after the Closing Date, the conditions to funding
        the
        balance of the Purchase Price have not been satisfied by Company or waived
        in
        writing by Purchaser and MAG, then (a) the Purchaser’s obligation to fund the
        balance of the Purchase Price shall terminate, and (b) the number of shares
        Series B Stock issued to Purchaser in excess of the Purchaser Price actually
        paid by Purchaser shall automatically cancel. The Warrants shall be remain
        in
        full force and effect as originally issued. 

       

      4.    Certain
        Covenants of the Company. The Company covenants and agrees with each
        Purchaser as follows:

       

      (a)    None
        of the
        Company or any of its Affiliates will sell, offer for sale or solicit offers
        to
        buy or otherwise negotiate in respect of any “security” (as defined in the
        Securities Act) which could be integrated with the sale of the Securities
        in a
        manner which would require the registration under the Securities Act of the
        Securities.

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    
      (b)    The
        Company
        will not become, at any time prior to the expiration of three years after
        the
        Closing Date, an open-end investment company, unit investment trust, closed-end
        investment company or face-amount certificate company that is or is required
        to
        be registered under the Investment Company Act.

       

      (c)    None
        of the
        proceeds of the Series B Stock will be used to reduce or retire any insider
        note
        or convertible debt held by an officer or director of the Company.

       

      (d)    Subject
        to
        Section 10 of this Agreement, the Conversion Shares and the Warrant Shares
        will
        be eligible for trading on the Over-the-Counter Bulletin Board, or such market
        on which the Company’s shares are subsequently listed or traded, immediately
        following the effectiveness of the Registration Statement. 

       

      (e)    The
        Company
        will use best efforts to do and perform all things required to be done and
        performed by it under this Agreement and the other Transaction Documents
        and to
        satisfy all conditions precedent on its part to the obligations of the
        Purchasers to purchase and accept delivery of the Securities. 

       

      (f)    Commencing
        on
        the Closing Date and continuing until the Registration Statement is declared
        effective, Company shall not file a registration statement with the SEC to
        register any shares other than the shares of Common Stock issuable to Purchasers
        and MAG upon conversion of the Series B Preferred Stock and exercise of the
        Warrants, up to 500,000 shares of Common Stock for payment of Dividends on
        the
        Series B Preferred Stock, and the shares of Common Stock issuable to the
        persons
        and entities set forth on Exhibit C. 

       

      5.    Conditions
        of the Purchasers’ Obligations. The obligation of each Purchaser to purchase
        and pay for the Securities is subject to the following conditions unless
        waived
        in writing by the Purchaser:

       

      (a)    The
        representations and warranties of the Company contained in this Agreement
        shall
        be true and correct in all material respects (other than representations
        and
        warranties with a Material Adverse Effect qualifier, which shall be true
        and
        correct as written) on and as of the Closing Date; the Company shall have
        complied in all material respects with all agreements and satisfied all
        conditions on its part to be performed or satisfied hereunder at or prior
        to the
        Closing Date.

      
                                (b)    None
          of the issuance
          and sale of the Securities pursuant to this Agreement or any of the transactions
          contemplated by any of the other Transaction Documents shall be enjoined
          (temporarily or permanently) and no restraining order or other injunctive
          order
          shall have been issued in respect thereof; and there shall not have been
          any
          legal action, order, decree or other administrative proceeding instituted
          or, to
          the Company’s knowledge, threatened against the Company or against any Purchaser
          relating to the issuance of the Securities or any Purchaser’s activities in
          connection therewith or any other transactions contemplated by this Agreement,
          the other Transaction Documents or the Disclosure Documents

      

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

     

    

      (c)    The
        Purchasers shall have received certificates, dated the Closing Date and signed
        by the Chief Executive Officer and the Chief Financial Officer of the Company,
        to the effect of paragraphs 5(a) and (b). 

       

      (d)    The
        Purchasers shall have received an opinion of counsel selected by the Company
        with respect to the authorization of the Series B Stock, the Conversion Shares,
        the Warrants and the Warrant Shares and other customary matters in the form
        attached hereto as Exhibit C. 

       

      6.    Representations
        and Warranties of the Purchasers.

       

      (a)    Each
        Purchaser and MAG represents and warrants to the Company that the Securities
        to
        be acquired by it hereunder (including the Conversion Shares and the Warrant
        Shares that it may acquire upon conversion or exercise thereof, as the case
        may
        be) are being acquired for its own account for investment and with no intention
        of distributing or reselling such Securities (including the Conversion Shares
        and the Warrant Shares that it may acquire upon conversion or exercise thereof,
        as the case may be) or any part thereof or interest therein in any transaction
        which would be in violation of the securities laws of the United States of
        America or any State. Nothing in this Agreement, however, shall prejudice
        or
        otherwise limit a Purchaser’s right to sell or otherwise dispose of all or any
        part of such Conversion Shares or Warrant Shares under an effective registration
        statement under the Securities Act and in compliance with applicable state
        securities laws or under an exemption from such registration. By executing
        this
        Agreement, each Purchaser further represents that such Purchaser does not
        have
        any contract, undertaking, agreement or arrangement with any person to sell,
        transfer or grant participation to any Person with respect to any of the
        Securities.

       

      (b)    Each
        Purchaser and MAG understands that the Securities (including the Conversion
        Shares and the Warrant Shares that it may acquire upon conversion or exercise
        thereof, as the case may be) have not been registered under the Securities
        Act
        and may not be offered, resold, pledged or otherwise transferred except
        (a) pursuant to an exemption from registration under the Securities
        Act
        (and, if requested by the Company, based upon an opinion of counsel acceptable
        to the Company) or pursuant to an effective registration statement under
        the
        Securities Act and (b) in accordance with all applicable securities
        laws of
        the states of the United States and other jurisdictions.

       

      Each
        Purchaser and MAG agrees to the imprinting, so long as appropriate, of the
        following legend on the Securities (including the Conversion Shares and the
        Warrant Shares that it may acquire upon conversion or exercise thereof, as
        the
        case may be):

       

      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.

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

         

      

    

    
      The
        legend set forth above may be removed if and when the Conversion Shares or
        the
        Warrant Shares, as the case may be, are disposed of pursuant to an effective
        registration statement under the Securities Act or in the opinion of counsel
        to
        the Company experienced in the area of United States Federal securities laws
        such legends are no longer required under applicable requirements of the
        Securities Act. The Series B Stock, the Warrants, the Conversion Shares and
        the
        Warrant Shares shall also bear any other legends required by applicable Federal
        or state securities laws, which legends may be removed when in the opinion
        of
        counsel to the Company experienced in the applicable securities laws, the
        same
        are no longer required under the applicable requirements of such securities
        laws. The Company agrees that it will provide each Purchaser, upon request,
        with
        a substitute certificate, not bearing such legend at such time as such legend
        is
        no longer applicable. Each Purchaser agrees that, in connection with any
        transfer of the Conversion Shares or the Warrant Shares by it pursuant to
        an
        effective registration statement under the Securities Act, such Purchaser
        will
        comply with all prospectus delivery requirements of the Securities Act. The
        Company makes no representation, warranty or agreement as to the availability
        of
        any exemption from registration under the Securities Act with respect to
        any
        resale of the Series B Stock, the Warrants, the Conversion Shares or the
        Warrant
        Shares.

       

      (c)    Each
        Purchaser and MAG is an “accredited investor” within the meaning of Rule 501(a)
        of Regulation D under the Securities Act. Neither Purchaser nor MAG learned
        of
        the opportunity to acquire Securities or any other security issuable by the
        Company through any form of general advertising or public
        solicitation.

       

      (d)    Each
        Purchaser and MAG represents and warrants to the Company that it has such
        knowledge, sophistication and experience in business and financial matters
        so as
        to be capable of evaluating the merits and risks of the prospective investment
        in the Securities, having been represented by counsel, and has so evaluated
        the
        merits and risks of such investment and is able to bear the economic risk
        of
        such investment and, at the present time, is able to afford a complete loss
        of
        such investment.

       

      (e)    Each
        Purchaser represents and warrants to the Company that (i) the purchase of
        the
        Securities to be purchased by it has been duly and properly authorized and
        this
        Agreement has been duly executed and delivered by it or on its behalf and
        constitutes the valid and legally binding obligation of the Purchaser,
        enforceable against the Purchaser in accordance with its terms, subject to
        bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
        similar laws of general applicability relating to or affecting creditors’ rights
        generally and to general principles of equity; (ii) the purchase of
        the
        Securities to be purchased by it does not conflict with or violate its charter,
        by-laws or any law, regulation or court order applicable to it; and
        (iii) the purchase of the Securities to be purchased by it does not
        impose
        any penalty or other onerous condition on the Purchaser under or pursuant
        to any
        applicable law or governmental regulation.

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      

        (f)    Each
          Purchaser and MAG represents and warrants to the Company that neither it
          nor any
          of its directors, officers, employees, agents, partners, members, controlling
          persons or shareholders holding 5% or more of the Common Stock outstanding
          on
          the Closing Date, has taken or will take, directly or indirectly, any actions
          designed, or might reasonably be expected to cause or result in the
          stabilization or manipulation of the price of the Common Stock.

         

        (g)    Each
          Purchaser and MAG acknowledges it or its representatives have reviewed
          the
          Disclosure Documents and further acknowledges that it or its representatives
          have been afforded (i) the opportunity to ask such questions as it has
          deemed
          necessary of, and to receive answers from, representatives of the Company
          concerning the terms and conditions of the offering of the Securities and
          the
          merits and risks of investing in the Securities; (ii) access to information
          about the Company and the Company’s financial condition, results of operations,
          business, properties, management and prospects sufficient to enable it
          to
          evaluate its investment in the Securities; and (iii) the opportunity to
          obtain
          such additional information which the Company possesses or can acquire
          without
          unreasonable effort or expense that is necessary to verify the accuracy
          and
          completeness of the information contained in the Disclosure
          Documents.

         

        (h)    Each
          Purchaser and MAG represents and warrants to the Company that it has based
          its
          investment decision solely upon the information contained in the Disclosure
          Documents and such other information as may have been provided to it or
          its
          representatives by the Company in response to their inquiries, and has
          not based
          its investment decision on any research or other report regarding the Company
          prepared by any third party (“Third Party Reports”).
          Each Purchaser understands and acknowledges that (i) the Company does not
          endorse any Third Party Reports and (ii) its actual results may differ
          materially from those projected in any Third Party Report.

         

        (i)    Each
          Purchaser and MAG understands and acknowledges that (i) any forward-looking
          information included in the Disclosure Documents supplied to Purchaser
          by the
          Company or its management is subject to risks and uncertainties, including
          those
          risks and uncertainties set forth in the Disclosure Documents; and (ii)
          the
          Company’s actual results may differ materially from those projected by the
          Company or its management in such forward-looking information.

         

        (j)    Each
          Purchaser and MAG understands and acknowledges that (i) the Securities
          are
          offered and sold without registration under the Securities Act in a private
          placement that is exempt from the registration provisions of the Securities
          Act
          and (ii) the availability of such exemption depends in part on,
          and that
          the Company and its counsel will rely upon, the accuracy and truthfulness
          of the
          foregoing representations and Purchaser hereby consents to such
          reliance.

         

        7.    Covenants
          of Purchasers Not to Short Stock. Commencing on the date hereof and
          continuing until such time as the Series B Stock and Warrants are no longer
          outstanding Purchasers, on behalf of themselves and their affiliates, hereby
          covenant and agree 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.

         

         

        
          
             

          

          
            12

            
              

            

          

          
             

          

        

      

    

     

    
      8.    Termination.

       

      (a)    This
        Agreement may be terminated in the sole discretion of the Company by notice
        to
        each Purchaser if at the Closing Date: 

       

      (i)    the
        representations and warranties made by any Purchaser in Section 6 are not
        true
        and correct in all material respects; or

       

      (ii)    as
        to the
        Company, the sale of the Securities hereunder (i) is prohibited or enjoined
        by
        any applicable law or governmental regulation or (ii) subjects the Company
        to
        any penalty, or in its reasonable judgment, other onerous condition under
        or
        pursuant to any applicable law or government regulation that would materially
        reduce the benefits to the Company of the sale of the Securities to such
        Purchaser, so long as such regulation, law or onerous condition was not in
        effect in such form at the date of this Agreement.

       

      (b)    This
        Agreement may be terminated by any Purchaser or MAG by notice to the Company
        given in the event that the Company shall have failed, refused or been unable
        to
        satisfy all material conditions on its part to be performed or satisfied
        hereunder on or prior to the Closing Date, or if after the execution and
        delivery of this Agreement and immediately prior to the Closing Date, trading
        in
        securities of the Company on the OTCBB shall have been suspended. 

       

      (c)    This
        Agreement may be terminated by mutual written consent of all
        parties.

       

      9.    Registration.
        Within 30 days after the Closing Date, the Company shall prepare and file
        with
        the SEC a Registration Statement covering the resale of the maximum number
        of
        Conversion Shares issuable upon conversion of the Series B Stock and the
        Warrant
        Shares (collectively, the “Registrable Securities”),
        as set forth in the Registration Rights Agreement attached hereto as Exhibit
        D.
        Within 100 days after filing the Registration Statement, such Registration
        Statement must be declared effective by the SEC and the final prospectus
        must be
        filed with the SEC pursuant to Rule 424(b) with copies provided to Purchaser
        and
        MAG. 

       

      10.    Event
        of
        Default. If an Event of Default (as defined below) occurs, the Purchasers
        and MAG shall have the right to exercise any or all of the rights given to
        the
        Purchasers and MAG relating to the Securities, as further described in the
        Certificate of Designations. In addition, the price at which the shares of
        Series B Stock may be converted into Common Stock shall be reduced from 80%
        of
        the Market Price (as defined in the Certificate of Designations) to 70% of
        the
        Market Price, subject to the Ceiling Price and Floor Price as those terms
        are
        defined in the Certificate of Designations. 

       

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      
        An
          “Event of Default” shall include (a) the commencement
          by the Company of a voluntary case or proceeding under the bankruptcy laws,
          (b)
          the breach by Company of any of the covenants or representations made herein,
          or
          (c) the Company’s failure to: (i) discharge or stay a bankruptcy proceeding
          within 60 days of such action being taken against the Company, (ii) file
          the
          Registration Statement with the SEC within 30 days after the Closing Date,
          (iii)
          have the Registration Statement deemed effective by the SEC within 100
          days
          after the date of filing of the Registration Statement and maintain the
          effectiveness thereafter; (iv) file the final prospectus with the SEC pursuant
          to Rule 424(b) within 100 days after the date of filing of the Registration
          Statement and deliver copies thereof to Purchaser and MAG, (v) maintain
          trading
          of the Company’s Common Stock on the OTCBB except for any periods when the stock
          is listed on the NASDAQ Small Stock Market, the NASDAQ National Stock Market,
          the AMEX or the NYSE, (vi) pay the expenses referred to below or the Due
          Diligence Fee within three (3) days after the Closing; (vii) deliver to
          Purchasers, or Purchasers’ broker, as directed, Common Stock that Purchasers
          have converted within five (5) business days of such conversions; (viii)
          pay any
          Dividend (as defined in the Certificate of Designations) when due. 

         

        IN
          THE EVENT THAT (A) THE COMPANY FAILS TO FILE THE REGISTRATION STATEMENT
          WITH THE
          SEC WITHIN 30 DAYS AFTER THE CLOSING DATE (B) THE REGISTRATION STATEMENT
          IS NOT
          DEEMED EFFECTIVE BY THE SEC WITHIN 90 DAYS AFTER INITIAL FILING, (C) THE
          FINAL
          PROSPECTUS IS NOT FILED WITH THE SEC WITHIN 100 DAYS AFTER THE REGISTRATION
          STATEMENT IS INITIALLY FILED, OR (D) THE COMPANY FAILS TO MAINTAIN THE
          EFFECTIVENESS OF THE REGISTRATION STATEMENT ONCE DEEMED EFFECTIVE, AS A
          REMEDY
          FOR SUCH AN EVENT OF DEFAULT, COMPANY SHALL PAY TO PURCHASERS, IN CASH,
          $667 FOR
          EACH DAY THAT SUCH AN EVENT OF DEFAULT REMAINS UNCURED. PAYMENT PURSUANT
          TO THIS
          PARAGRAPH SHALL BE DUE ON THE LAST DAY OF EACH MONTH DURING WHICH SUCH
          DEFAULT
          OCCURS. ANY PAYMENT NOT RECEIVED ON OR BEFORE THE
          3RD DAY OF THE FOLLOWING MONTH
          SHALL ACCRUE INTEREST AT THE RATE OF 10% PER ANNUM. PURCHASERS AND COMPANY
          ACKNOWLEDGE AND AGREE THAT THEY HAVE MUTUALLY DISCUSSED THE IMPRACTICALITY
          AND
          EXTREME DIFFICULTY OF FIXING THE ACTUAL DAMAGES PURCHASERS WOULD INCUR
          IN THE
          CASE OF SUCH AN EVENT OF DEFAULT, AND THAT AS A RESULT OF SUCH DISCUSSION
          THE
          PARTIES AGREE THAT $667 FOR EACH DAY THAT THE REGISTRATION STATEMENT FILING
          IS
          DELAYED REPRESENTS A REASONABLE ESTIMATE OF THE ACTUAL DAMAGES WHICH PURCHASERS
          WOULD INCUR IN THE CASE OF SUCH AN EVENT OF DEFAULT. PURCHASERS AND COMPANY
          SPECIFICALLY AND EXPRESSLY AGREE TO ABIDE BY THE TERMS AND PROVISIONS OF
          THIS
          PARAGRAPH CONCERNING LIQUIDATED DAMAGES. 

         

      

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

    

     

    11.    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 and
      confirmed in writing (i) if to the Company, at the addresses set forth below,
      or
      (ii) if to a Purchaser or MAG, to the address set forth for such party on the
      signature page hereto.

     

    If
      to the
      Company:

    Invisa,
      Inc. 

    6935
      15th Street East

    Sarasota,
      Florida 34243

    Attention:
      Ed King, CFO

    Telephone:
      941-355-9361

    Facsimile:
      941-355-9373

     

    with
      a
      copy to:

    Barry
      I.
      Grossman, Esq.

    Ellenoff
      Grossman & Schole LLP

    370
      Lexington Avenue

    New
      York,
      NY  10017

    Business: +1
      (212) 370-1300

    Business
      Fax: +1 (212) 370-7889

     

    Communications
      shall be deemed to be 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.

     

    12.    Survival
      Clause. The respective representations, warranties, agreements and covenants
      of the Company and the Purchasers set forth in this Agreement shall survive
      until the first anniversary of the Closing.

     

    13.    Fees
      and
      Expenses. Within three (3) days of Closing, the Company agrees to pay
      Purchasers' legal expenses incurred in connection with the preparation and
      negotiation of the Transaction Documents up to $5,000. 

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

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

     

    15.    8K
      Filing
      and Press Releases. The Company shall file a Form 8K with the SEC within 5
      trading days after the Closing Date setting forth the general terms of the
      transaction. Neither party shall issue any press release relating to this
      transaction without the prior written consent of the other party, which consent
      shall not be unreasonably withheld or delayed.

     

    16.    Successors.
      This Agreement shall inure to the benefit of and be binding upon Purchasers,
      MAG
      and the Company and their respective successors and legal representatives,
      and
      nothing expressed or mentioned in this Agreement is intended or shall be
      construed to give any other person any legal or equitable right, remedy or
      claim
      under or in respect of this Agreement, or any provisions herein contained;
      this
      Agreement and all conditions and provisions hereof being intended to be and
      being for the sole and exclusive benefit of such persons and for the benefit
      of
      no other person. Neither the Company nor any Purchaser may assign this Agreement
      or any rights or obligation hereunder without the prior written consent of
      the
      other party.

     

    17.    No
      Waiver;
      Modifications in Writing. No failure or delay on the part of the Company,
      MAG or any Purchaser in exercising any right, power or remedy hereunder shall
      operate as a waiver thereof, nor shall any single or partial exercise of any
      such right, power or remedy preclude any other or further exercise thereof
      or
      the exercise of any other right, power or remedy. The remedies provided for
      herein are cumulative and are not exclusive of any remedies that may be
      available to the Company, MAG or any Purchaser at law or in equity or otherwise.
      No waiver of or consent to any departure by the Company, MAG or any Purchaser
      from any provision of this Agreement shall be effective unless signed in writing
      by the party entitled to the benefit thereof, provided that notice of any such
      waiver shall be given to each party hereto as set forth below. Except as
      otherwise provided herein, no amendment, modification or termination of any
      provision of this Agreement shall be effective unless signed in writing by
      or on
      behalf of each of the Company, MAG and the Purchasers. Any amendment, supplement
      or modification of or to any provision of this Agreement, any waiver of any
      provision of this Agreement, and any consent to any departure by the Company,
      MAG or any Purchaser from the terms of any provision of this Agreement shall
      be
      effective only in the specific instance and for the specific purpose for which
      made or given. Except where notice is specifically required by this Agreement,
      no notice to or demand on the Company in any case shall entitle the Company
      to
      any other or further notice or demand in similar or other
      circumstances.

     

    18.     Entire
      Agreement. This Agreement, together with Transaction Documents, constitutes
      the entire agreement among the parties hereto and supersedes all prior
      agreements, understandings and arrangements, oral or written, among the parties
      hereto with respect to the subject matter hereof and thereof.

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    19.    Severability.
      If any provision of this Agreement is held to be invalid or unenforceable in
      any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired
      thereby.

     

    20.    APPLICABLE
      LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND
      CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
      WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO PROVISIONS
      RELATING TO CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF
      ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. THE PARTIES HEREBY IRREVOCABLY
      AND UNCONDITIONALLY AGREE THAT ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF
      OR
      RELATING TO THIS AGREEMENT MAY BE BROUGHT ONLY IN STATE OR FEDERAL COURTS
      LOCATED IN THE CITY OF LOS ANGELES, CALIFORNIA AND HEREBY SUBMIT TO
      THE
      EXCLUSIVE JURISDICTION OF SUCH COURTS FOR SUCH PURPOSE. 

     

    21.    Counterparts.
      This Agreement may be executed in two or more counterparts and may be delivered
      by facsimile transmission, each of which shall be deemed an original, but all
      of
      which together shall constitute one and the same instrument. 

     

    22.    If
      the
      foregoing correctly sets forth our understanding, please indicate your
      acceptance thereof in the space provided below for that purpose, whereupon
      this
      Agreement shall constitute a binding agreement among the Company, the Purchasers
      and MAG.

     

    
      	 	 	 
	 	
              Very
                truly yours,

              INVISA,
                INC.

            
	 
 	 
 	 
 
	 	By:  	/s/ Stephen
              A. Michael
	 	
              

              Stephen A. Michael
	 	Acting
              President

    

     

     

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
 

    
      	
              Asset
                Managers International, Ltd.

              a
                British Virgin Islands international business company

               

               

               

              By:
                ______________________________

              Print
                Name: _______________________

              Title:
                _____________________________

            	
              Address
                for notice to Asset Managers:

               

              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

            
	 	 
	
              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

               

              Monarch
                Pointe Fund, Ltd.

               

               

              By:_____________________

              Name:
                David Firestone

              Its:
                President

               

            	
              Addresses
                for Notice to MAG, Mercator 

              Momentum
                Fund III, LP and Monarch Pointe Fund, Ltd.:

               

              M.A.G.
                CAPITAL, LLC

              555
                South Flower Street, Suite 4200

              Los
                Angeles, California 90071

              Attention:
                David Firestone

              Facsimile:
                (213) 533-8285

               

              with
                copy to:

               

              David
                C. Ulich, Esq.

              Sheppard,
                Mullin, Richter & Hampton LLP

              333
                South Hope Street, 48th Floor

              Los
                Angeles, California 90071

              Facsimile:
                (213) 620-1398

               

            

    

    

    
      	
               

            	 	
              Mercator
                Momentum Fund III, LP

            	 	
              Monarch
                Pointe Fund, Ltd.

            	 	
              Asset
                Managers International, Ltd. 

            	 	
              M.A.G.
                CAPITAL, LLC

            	 	
              Total

            	 
	
              Purchase
                Price 

            	 	
              $

            	
              100,000

            	 	
              $

            	
              200,000

            	 	
              $

            	
              700,000

            	 	
              $

            	
              -

            	 	
              $

            	
              1,000,000

            	 
	
              Series
                B Stock

            	 	 	
              1,000
                

            	 	 	
              2,000
                

            	 	 	
              7,000
                

            	 	 	
              -
                

            	 	 	
              10,000
                

            	 
	
              Warrants
                @ $0.30

            	 	 	
              198,000
                

            	 	 	
              402,000
                

            	 	 	
              1,750,000
                

            	 	 	
              150,000
                

            	 	 	
              2,500,000
                

            	 

    

    

     

    

    
      
         

      

      
        18

        
          

        

      

       

    

    
       

       

      Schedule
        A

    

     

    Direct
      and Indirect Subsidiaries of INVISA, INC.

     

    
                                                NONE

     

    

    

    

    
       

      
        
        

        
          

        

      

      
         

         

      

       

    

    Schedule
      B

     

    Company
      Capitalization

    Authorized:

    Preferred-
      5,000,000 shares

    Common-
      95,000,000 shares

    

    Outstanding
      at June 30, 2005:

    Preferred

    Series
      A
      14,500 shares

    Common

    23,399,272
      shares

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        
        

      

    

    

    Schedule
      C

     

    Piggy
      back registration rights, convertible line of credit

     

    

      

        
          	
                  Name

                	
                  Dollar
                    Amount

                	
                  Shares
                    of Common Stock Issuable

                
	
                  Chris
                    Maggiore

                	
                  $50,000/$50,000
                    option

                	
                  666,666
                    shares and 666,666 option shares

                
	
                  Friday
                    Harbour, LLC

                	
                  $150,000
                    line of credit

                	
                  1,999,980
                    conversion
                    shares

                

        

      

     

    Other
      Arrangements

    None

    

    

    
       

      
        
        

        
          

        

      

      
 

    

    Schedule
      D

    

    Violations

    

    None

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    Schedule
      E

    

    Use
      of
      Proceeds

    $325,000
      Expenses related to New Products

    $150,000
      Expenses relating to general Research and Development

    $50,000
      Expenses relating to IR & PR

    $175,000
      Expenses relating to Transaction and registration statement

    $300,000
      Working Capital

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        
        

      

    

    

    Schedule
      F

    

    Criminal
      Records and Bankruptcies

    

    None
      

    

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

        
        

      

    

    

    Exhibit
      A

     

    Warrant

     

    See
      Attached

     

    

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    

    Exhibit
      B

     

    Certificate
      of Designations of

    Series
      B
      Convertible Preferred Stock

    of

    INVISA,
      INC.

     

    

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    

    Exhibit
      C

     

    Form
      of
      Legal Opinion

     

     

    1.    The
      Company
      is a corporation duly incorporated, validly existing and in good standing under
      the laws of the State of Nevada, with corporate power to own its properties
      and
      to conduct its business. 

     

    2.    The
      Company
      has the corporate power to execute, deliver and perform the Transaction
      Documents, including the Exhibits, thereto. The Transaction Documents have
      been
      duly authorized by all requisite corporate action by the Company and constitute
      the valid and binding obligations of the Company, enforceable in accordance
      with
      their terms (subject to bankruptcy, equitable principles and other customary
      exceptions). 

     

    (a)    The
      authorized capital stock of the Company consists of 5,000,000 shares of
      Preferred Stock, and 95,000,000 shares of Common Stock. 

     

    (b)    The
      shares of
      the Company's Series B Stock have been duly authorized and, upon issuance,
      delivery, and payment therefor as described in the Subscription Agreement,
      will
      be validly issued, fully paid and non-assessable. 

     

    (c)    The
      shares of
      the Company’s Common Stock initially issuable upon conversion of the shares of
      Series B Stock sold have been duly authorized and reserved for issuance and,
      upon issuance and delivery upon conversion of the Series B Stock as described
      in
      the Certificate of Designations, will be validly issued, fully paid and
      non-assessable. 

     

    (d)    The
      shares of
      the Company's Common Stock issuable upon exercise of the Warrants have been
      duly
      authorized and reserved for issuance, and upon issuance, delivery, and payment
      therefor in accordance with the Warrants, will be validly issued, fully paid
      and
      non-assessable. 

     

    3.    The
      Company's
      execution and delivery of the Transaction Documents and the issue and sale
      of
      the Series B Stock and the Warrants, on the terms and conditions set forth
      in
      the Subscription Agreement, will not violate any law of the United States or
      the
      State of Nevada, any rule or regulation of any governmental authority or
      regulatory body of the United States or the State of Nevada or any provision
      of
      the Company's Articles of Incorporation or Bylaws. 

     

    4.    No
      consent,
      approval, order or authorization of, and no notice to or filing with, any
      governmental agency or body or any court is required to be obtained or made
      by
      the Company for the issuance and sale of the Series B Stock and the Warrants
      pursuant to the Transaction Documents, except such as have been obtained or
      made
      and such as may be required under applicable securities laws. 

     

    5.    On
      the
      assumption that the representations of the Purchasers and MAG in the
      Subscription Agreement are correct and complete, the offer and sale of the
      Series B Stock and the Warrants pursuant to the terms of the Subscription
      Agreement are exempt from the registration requirements of Section 5 of the
      Securities Act of 1933, as amended, and from the qualification requirements
      of
      California securities statutes and regulations, and, under such securities
      laws
      as they presently exist, the issuance of the Company's Common Stock upon
      conversion of the Series B Stock and exercise of the Warrants would also be
      exempt from such registration and qualification requirements.

     

    6.    We
      know of no
      pending or overtly threatened action, proceeding or governmental investigation
      with respect to the Company’s sale of Series B Stock and Warrants pursuant to
      the Transaction Documents. 

     

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    

    Exhibit
      D

     

    
      Registration
        Rights Agreement

       

      See
        attachedWarrant - AMI

    
      

    

    Exhibit 10.53

     

    

      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 1,750,000 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, Asset Managers International, 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. 

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      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. 

       

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
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.

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