Document:

ex10_73.htm

    Exhibit
10.73

     

    Terms
of Exchange

     

     Invisa
Inc.

     

    EXCHANGE
OF

    SERIES
B PREFERRED STOCK FOR SHARES OF SERIES C PREFERRED STOCK

     

    AND

     

    CONSENT
SOLICITATION

     

     

    THIS
EXCHANGE EXPIRES AT 9:00 A.M., E.S.T., ON JANUARY 28, 2010,

    UNLESS
THE OFFER IS EXTENDED OR MODIFIED BY THE COMPANY.

     

      
        

      

    

     

            Invisa,
Inc. (the "Company," "our," "we" or "us") is offering to exchange on a share for
share basis, upon the terms and subject to the conditions set forth in this
Terms of Exchange and in the related letters of transmittal and consent (the
"Exchange"), all of our outstanding Series B Preferred Stock, par value
$0.001 per share ("Series B Preferred Stock") for shares of Series C
Preferred Stock, par value $0.001 per share ("Series C Preferred Stock" and
together with Series B Preferred Stock, collectively hereinafter referred
to as the "Preferred Stock").

     

            Concurrently
with the Exchange, we are soliciting consents (the "Consent Solicitation") from
holders of the Series B Preferred Stock to amend our Charter (the "Charter") to
modify the preferential terms of the Series B Preferred Stock, including
modifications to dividends and conversion, as described in this Terms of
Exchange ("Proposed Amendments").

     

            If
successfully completed, in the Exchange and Consent Solicitation you will
receive one share of Series C Preferred Stock for each share of Series B
Preferred Stock exchanged.  Any accumulated and unpaid dividends of
the Series B Preferred Stock presented for exchange by any Holder shall be paid
in equal shares of Series C Preferred Stock.

     

    
        Furthermore,
holders representing a majority of the outstanding shares of Series B Preferred
Stock, voting as a single class, must also approve the Proposed Amendments in
order to affect the Proposed Amendments, which may be accomplished by submitting
executed letter(s) of transmittal and consent and exchanging your shares of
Series B Preferred Stock. You must validly exchange all shares of Series B
Preferred Stock that you own and deliver your consent to the Proposed Amendments
to the Charter to modify the terms of the Series B Preferred Stock in order to
participate in the Exchange and Consent Solicitation.

     

            The Exchange and Consent Solicitation
will expire at 9:00 a.m., Eastern Standard Time, on January 28, 2010,
unless extended, modified or otherwise terminated by us. The term "expiration
date" means 9:00 a.m., Eastern Standard Time, on January 28, 2010, unless
we extend or modify the period of time for which the Exchange and Consent
Solicitation are open, in which case the term "expiration date" means the latest
time and date on which the Exchange and Consent Solicitation, as so extended,
expire.

     

            The Exchange and Consent Solicitation
and the securities to be issued in the Exchange and Consent Solicitation have
not been approved or disapproved by the Securities and Exchange Commission (the
"SEC"), any state securities commission, or the similar commission or
governmental agency of any foreign jurisdiction, nor has the SEC, any state
securities commission, or the similar commission or governmental agency of any
foreign jurisdiction determined whether the information in this Terms of
Exchange is truthful or complete. None of the SEC, any state securities
commission or any similar commission or governmental agency of any foreign
jurisdiction has passed upon the merits or fairness of the Exchange and Consent
Solicitation, or passed upon the adequacy or accuracy of the disclosure
contained in this Terms of Exchange. Any representation to the contrary is a
criminal offense.

     

    
      
        
        

      

      
        Page
1

        
          

        

      

      
        
        

      

    

     

    
        This
Terms of Exchange is being mailed to holders of the Series B Preferred Stock on
or around January 11, 2010.

     

    

        There
are 9,000 shares of our Series B Preferred Stock and 6628 shares of our
Series C Preferred Stock outstanding, each of which has a liquidation
preference of $100.00 per share.

     

            We
are seeking consents from holders of the Series B Preferred Stock to amend
certain provisions (collectively, the "Proposed Amendments") applicable to the
Series B Preferred Stock as described herein.  The affirmative vote of
holders of outstanding shares of Series B Preferred Stock is necessary to
approve the Proposed Amendments modifying the preferential terms of the Series B
Preferred Stock.  The holders representing a majority of the
outstanding shares of Series B Preferred Stock, voting as a single class, must
approve the Proposed Amendments which may be accomplished by submitting executed
letter(s) of transmittal and consent and validly exchanging your shares of
Series B Preferred Stock. If we do not receive the requisite consent from the
holders of the Series B Preferred Stock, the Company may or may not elect to
exchange the Series B Preferred Stock presented for exchange together with
accumulated and unpaid dividends on the Preferred Stock.

     

                    None
of our officers, employees, the Board, or any of our financial advisors is
making a recommendation to any holder of Preferred Stock as to whether you
should exchange shares in the Exchange and Consent Solicitation. You must make
your own investment decision regarding the Exchange and Consent Solicitation
based upon your own assessment of the value of the Series B Preferred Stock, the
effect of holding shares of the Series B Preferred Stock upon the approval of
the Proposed Amendments, your liquidity needs, your investment objectives and
any other factors you deem relevant.

     

            In
order to exchange shares in the Exchange and Consent Solicitation, you must
consent to the Proposed Amendments by executing letters of transmittal and
consent.  No meeting has been or is being held in conjunction with the
Consent Solicitation. Consents may only 
be submitted on the terms set
forth herein.

     

            Our
officers, directors and employees may solicit exchanges from holders of our
Preferred Stock and may answer inquiries concerning the Exchange and Consent
Solicitation, but they will not receive additional compensation for soliciting
exchanges or answering any such inquiries.

     

            The
Company will act as its own agent for the Exchange and Consent
Solicitation.

     

            Questions
related to the terms of the Exchange and Consent Solicitation and requests for
assistance or for additional copies of this Terms of Exchange, the letters of
transmittal and consent or any other documents may be directed to the Company
using its contact information set forth herein or by telephone at
(941) 870-3950. Beneficial owners may also contact their custodian for
assistance concerning the Exchange and Consent Solicitation.

     

    
      
        
        

      

      
        Page
2

        
          

        

      

      
        
        

      

    

     

    SUMMARY

     

            The Terms of Exchange and the
related letters of transmittal and consent each contain important information
that should be read carefully before any decision is made with respect to the
Exchange and Consent Solicitation. The following summary is qualified in its
entirety by the more detailed information appearing elsewhere in the Terms of
Exchange and the related letters of transmittal and consent.

     

    Invisa,
Inc.

     

            Invisa Inc.
is a corporation incorporated in Nevada.  Our management has been
seriously challenged by the unprecedented economic turmoil.   One
of our goals in this challenging market environment has been to align the costs
of our operations to our cash flows. The acceptance of this Exchange and Consent
Solicitation would reduce the Company's continuing obligation to pay or
accumulate quarterly dividends on the Series B Preferred Stock, thereby allowing
the Company to use or preserve cash for other purposes and would also allow the
Company to elect to pay accrued but unpaid dividends in kind. The aggregate
dividends on the outstanding Preferred Stock total approximately $ 300,533.00 as
of September 30, 2009.

     

            We
believe the elimination of the Series B Preferred Stock and the related
dividends will give us the enhanced balance sheet flexibility to operate and
grow our business. We additionally believe that with an improved capital
structure there are multiple business opportunities we can pursue to enhance
stockholder value that have not previously been feasible.

     

            If
the Exchange and Consent Solicitation is not approved, there may be a near-term
negative effect on our business, results of operations, and financial position,
including the potential inability to satisfy our liabilities and the long-term
dividend-related cash requirements of our Series B Preferred Stock. The Series B
Preferred Stock will remain issued and outstanding, and entitled to all of the
preferential rights associated with the Series B Preferred Stock, including the
right to receive accumulated dividends.  If we do not successfully
complete the Exchange and Consent Solicitation, we currently cannot make
accumulated or future dividend payments on our Series B Preferred Stock, which
could adversely affect our business. Furthermore, the Preferred Stock is
entitled to receive $100.00 per share (before any payments are made to the
holders of our Common Stock and any other junior stock) upon any voluntary or
involuntary liquidation, dissolution or winding up of our affairs. However, if
the Proposed Amendments are not approved, upon any voluntary or involuntary
liquidation, dissolution or winding up of our affairs, the Series B Preferred
Stock will also continue to be entitled to any accumulated and unpaid dividends
(whether or not declared). Any liquidating distributions to capital stock are
subject to payments on outstanding indebtedness. The Series B Preferred Stock
will continue to rank senior to our Common Stock with respect to the payment of
distributions and the distribution of assets upon liquidation, dissolution or
winding up and be entitled to a larger amount of our assets. Our ability to make
distributions to holders of Common Stock will remain limited.

     

            The
Company cannot make any assurances that it will receive the requisite consents
of the holders of the Preferred Stock and that all the conditions will be met to
complete the Exchange and Consent Solicitation.

     

    
      
        
        

      

      
        Page
3

        
          

        

      

      
        
        

      

    

     

    
      
        
          Summary
Description of the Exchange and Consent Solicitation

        

         

        
          	
                  The
      Company

                	
                  Invisa, Inc.

                	 
      
	 	 	 
	
                  The
      Preferred Stock Subject to 

                  the
      Exchange and Consent 

                  Solicitation

                	
                  All
      outstanding shares of our Series B Preferred Stock.

                	 
      
	 
      	 
      	 
      
	
                  The
      Exchange

                	
                  We
      are offering to exchange one share of Series B Preferred Stock for a
      newly issued shares of Series C Preferred Stock, for any and all of
      our shares of Series B Preferred Stock validly exchanged prior to the
      expiration of the Exchange and Consent Solicitation.

                	 
      
	 	 	 
	
                  Consideration

                	
                   

                  In
      the Exchange and Consent Solicitation for each exchanged share of Series B
      Preferred Stock, the holder will receive one share of newly issued Series
      C Preferred Stock.  Any accumulated and unpaid dividends shall
      be converted into shares of Series C Preferred Stock at a rate of one
      share for each $100.00 of accumulated and unpaid dividends at the time of
      the exchange.

                	 
      
	 
      	 
      	 
      
	
                  
 

                  Aggregate
      Consideration

                	
                   

                  Assuming
      all shares of Preferred Stock are validly exchanged, we will cancel an
      aggregate of 9000 shares of Series B Preferred Stock and issue an
      aggregate of 9000 shares of Series C Preferred Stock, which does not
      include accrued and unpaid dividends.

                   

                   

                	 
      
	 	 	 
	 	 	 
	 	 	 
	
                   

                  Accumulated
      and Unpaid 
Dividends

                	
                  The
      aggregate accumulated and unpaid dividends on the Series B Preferred Stock
      as of September 30, 2009 is $300,533.00, which shall be converted into
      approximately 3005 shares of Series C Preferred Stock as of the expiration
      date.  Additional dividends due and payable through December 31,
      2009 shall be calculated and converted at the same rate.

                	 
      
	 	 	 
	
                   

                  The
      Consent Solicitation

                	
                  In
      order to exchange shares in the Exchange and Consent Solicitation, holders
      of our Series B Preferred Stock are required to consent (by executing the
      letters of transmittal and consent) to amend the Charter to modify the
      terms of the Series B Preferred Stock as set forth in Annex A.

                	 
      

           

          
            
              
              

            

            
              Page
4

              
                

              

            

            
              
              

            

          

           

          	
                  Expiration
      of the Exchange 

                  and
      Consent Solicitation

                	
                  The
      Exchange and Consent Solicitation will expire at 9:00 a.m., Eastern
      Standard Time, on January 28, 2010, unless extended or earlier terminated
      by us.

                	 
      
	 
      	 
      	 
      
	 	 	 
	 	 	 
	 	 	 
	
                  
Risk
Factors

                	
                  You
      should consider carefully all of the information set forth in this Terms
      of Exchange before deciding whether to participate in the Exchange and
      Consent Solicitation.

                
	 	 
	 	 
	 	 
	
                  Additional
      Documentation; 

                  Further
      Information; 

                  Assistance

                	
                  Any
      requests for assistance concerning the Exchange and Consent Solicitation
      and requests for additional copies of this Terms of Exchange and the
      letters of transmittal and consent may be directed to the Company at the
      following address and telephone number:
      ­­­­­­­­PO Box 49376, Sarasota, Fl 34230
      941-870-3950

                

        

      

    

     

    

QUESTIONS AND ANSWERS
ABOUT

    THE
EXCHANGE AND CONSENT SOLICITATION

     

            The following are
some questions regarding the Exchange and Consent Solicitation that you may have
as a holder of the Series B Preferred Stock and the answers to those questions.
We urge you to read carefully the entire Terms of Exchange, the related letters
of transmittal and consent, our annual report on Form 10-K for the year
ended December 31, 2008 (the "Annual Report") and our Quarterly Report on
Form 10-Q for the period ended September 30, 2009 (the "Quarterly Report").
Additional important information is contained in the remainder of the Terms of
Exchange.

     

            What is the purpose of the Exchange
and Consent Solicitation?

     

           One
of our goals in this challenging market environment has been to align the costs
of our operations to our cash flows. The acceptance of this Exchange and Consent
Solicitation would reduce the Company's continuing obligation to pay or
accumulate quarterly dividends on the Series B Preferred Stock and allow the
Company to pay accrued and unpaid dividends in kind, thereby allowing the
Company to use or preserve cash for other purposes and improve its balance
sheet. Currently, the aggregate dividends on the outstanding Preferred Stock
total approximately $300,533.00 as of September 30, 2009.

     

            If
we receive the requisite approval from the holders of the Series B Preferred
Stock and the Exchange and Consent Solicitation is completed, then
contemporaneously with the closing we will pay all accumulated and unpaid
dividends on the Series B Preferred Stock through the issuance of additional
shares of Series C Preferred Stock. Those holders who do not exchange their
shares of Series B Preferred Stock, despite the completion of the Exchange and
Consent Solicitation, will not be paid any cumulated dividends on the Series B
Preferred Stock. Further, if the Exchange and Consent Solicitation is completed,
our obligation to pay future accumulated and unpaid dividends on any remaining
outstanding shares of Preferred Stock will be eliminated and future dividends,
if any, will be eliminated.

     

            We
believe the significant reduction or elimination of the outstanding Series B
Preferred Stock and the elimination of the related dividends obligations will
give us the enhanced balance sheet flexibility to operate and grow our business.
We additionally believe that with an improved capital structure there are
multiple business opportunities we can pursue to enhance stockholder value that
have not previously been feasible.

     

    
      
        
        

      

      
        Page
5

        
          

        

      

      
        
        

      

    

     

            If
the Exchange and Consent Solicitation is not approved, there may be a near-term
negative effect on our business, results of operations, and financial position,
including the potential inability to satisfy our liabilities and the long-term
dividend-related cash requirements of our Series B Preferred Stock and
obligations pursuant to the terms of our remaining trust preferred securities.
We currently have no present intention to pay accumulated or future dividends on
the Series B Preferred Stock.

     

            
What will I receive in the Exchange and Consent Solicitation if I exchange my
shares of Preferred Stock and they are accepted?

     

            If
successfully completed, for every one share of Series B Preferred Stock
exchanged, you will receive one share of Series C Preferred
Stock.  Additionally, any accrued and unpaid interest as of December
31, 2009, on the Series B Preferred Stock will be paid by the issuance of
additional Series C Preferred Stock.

     

                    
When will I receive my Series C Preferred Stock?

     

            If
all terms and conditions for completion of the Exchange and Consent Solicitation
are satisfied or waived, we will issue for all validly exchanged shares of
Series B Preferred Stock for shares of Series C Preferred Stock as set forth
herein promptly after the expiration date of the Exchange and Consent
Solicitation. Unless otherwise indicated on the Letter of Transmittal and
Consent, newly issued share certificates for Series C Preferred Stock shall be
delivered to the address of the Holder on the books and records of the
Company.

     

            
What are the conditions to the closing of the Exchange and Consent
Solicitation?

     

            We
are not obligated to purchase any exchanged shares of Preferred Stock if (1)
there is any litigation regarding the Exchange and Consent Solicitation
challenging or seeking to make illegal, materially delay, restrain or prohibit
the Exchange and Consent Solicitation; or which would have a material adverse
effect on us; (2) the consummation of the Exchange and Consent Solicitation
would violate any law, rule or regulation applicable to us; (3) any law, rule,
regulation or governmental order becomes applicable to us that results, directly
or indirectly, in the consequences described under paragraph 1 above; or
(4) less than a majority of the outstanding shares of the Series B Preferred
Stock, voting as a single class are exchanged (and thereby consent to the
Proposed Amendments to our Charter) in the Exchange and Consent
Solicitation.   We will, in our reasonable judgment, determine
whether each of the Exchange and Consent Solicitation conditions have been
satisfied and whether to waive any conditions that have not been
satisfied.

     

            If the Exchange and Consent
Solicitation is NOT successfully completed, what will be the consequences to the
stockholders and the Company?

     

            If
the Exchange and Consent Solicitation is not successfully completed, the Series
B Preferred Stock will remain issued and outstanding, and entitled to all of the
preferential rights associated with the Preferred Stock, including the right to
receive dividends.  Given our current financial condition, we
currently cannot pay dividends on the Series B Preferred Stock if the Exchange
and Consent Solicitation is not successfully completed. If the Exchange and
Consent Solicitation is not successfully completed, the Series B Preferred Stock
will continue to rank senior to our Common Stock with respect to the payment of
distributions and the distribution of assets upon liquidation, dissolution or
winding up and be entitled to a larger amount of our assets. Plus, our ability
to make distributions to holders of Common Stock will remain limited. Unless all
of the cumulative dividends due and owing on the Series B Preferred Stock are
paid in full, the Company will not be able to declare dividends or distributions
on the Common Stock of the Company in the future.

     

    
      
        
        

      

      
        Page
6

        
          

        

      

      
        
        

      

    

     

    
        There
may be significant adverse consequences to the Company if the proposal to
approve the Proposed Amendments is not approved by the holders of Series B
Preferred Stock, including the potential inability to satisfy our liabilities
and the long-term dividend-related cash requirements of our Series B Preferred
Stock. The Company will continue to be obligated to pay accumulated dividends on
the Series B Preferred Stock.

     

            In
light of the continuing economic turmoil, our ability to continue our operations
is dependent upon our ability to implement successfully our strategic
initiatives and acquire new operations that contribute sufficient additional
cash flow to enable us to meet our current and future expenses. Our future
financial performance and success are dependent in large part upon our ability
to implement our contemplated strategies successfully. To the extent that we are
not successful in reducing our payment obligations, we would be unlikely to be
able to continue our operations as planned, thereby requiring us to reduce our
operating costs and expenses so that our income can cover those costs. As a
result, we may not be able to accomplish our goals, rebuild our business, and,
given the limited opportunities available in the financial market, we may be
required to change our current plan of operations, which we cannot determine at
this time, but could include a wind down of the Company.

     

            
If I decide not to exchange my shares of Preferred Stock and the Exchange and
the Consent Solicitation is completed, how will the completion of the Exchange
and the Consent Solicitation affect my shares of Preferred Stock?

     

            If
you decide not to exchange your shares of Preferred Stock and the Proposed
Amendments take effect, the Series B Preferred Stock will no longer accrue
dividends and any accrued and unpaid dividends may be satisfied by either (i)
cash, (ii) in Series B Preferred Stock or (iii) in common stock of the Company,
by the Company at its election.  In addition, the Company may convert
your Series B Preferred Stock into common stock at its election at any time
after the Proposed Amendments take effect.

     

     

     

            
 Am I required to exchange my shares
of Preferred Stock in order to receive the accumulated and unpaid dividends on
my shares of Preferred Stock?

     

            No.
If the Exchange and Consent Solicitation is successfully completed, but you
choose not to exchange your shares of Series B Preferred Stock, you will still
be entitled to receive the accumulated and unpaid dividends on your shares of
Series B Preferred Stock until such time as the Proposed Amendments become
effective.  However, the Company does not have adequate funds to pay
such dividends at this time and there can be no assurance that you will receive
payment on the accumulated and unpaid dividends in the future.  In
addition, the Proposed Amendments will permit the Company to satisfy any
accumulated and unpaid dividends by issuing you additional shares of the Series
B Preferred Stock in lieu of a cash payment.

     

            
Will I receive accumulated and unpaid dividends if the Exchange and Consent
Solicitation is NOT successfully completed?

     

            
All dividends accrued as of the date of the Exchange shall remain an obligation
of the Company; however, the Company is not able to pay any of the accumulated
and unpaid dividends at this time and there can be no assurance that the Company
will have the monetary resources to pay such dividends in the
future.

     

            
When will the Exchange and Consent Solicitation expire?

     

            The
Exchange and Consent Solicitation is currently scheduled to expire at
9:00 a.m., Eastern Standard Time, on January 28, 2010.  We may,
however, extend the Exchange and Consent Solicitation from time to time as
necessary until all the conditions to the Exchange and Consent Solicitation have
been satisfied or waived.

     

            
Under what circumstances can
the Exchange and Consent Solicitation be extended?

     

            We
may extend the Exchange and Consent Solicitation for any period at our sole
discretion to increase the time in which holders of the Series B Preferred Stock
may exchange their shares. We will also extend the expiration date of the
Exchange and Consent Solicitation if required by applicable law or
regulation.  You should note that it is highly unlikely that the
period of time for the exchange would be later than January28,
2010.

     

    
      
        
        

      

      
        Page
7

        
          

        

      

      
        
        

      

    

     

            What happens to my exchanged shares
if the Exchange and Consent Solicitation is terminated?

     

            
 If the Exchange and Consent
Solicitation is terminated and you previously have exchanged shares, we will
return certificates for such shares of Series B Preferred Stock exchanged as
soon as practicable following the termination of the Exchange and Consent
Solicitation without expense to the exchanging stockholder.
        

     

            
How will I be notified if the Exchange and Consent Solicitation is extended,
amended or terminated?

     

            If
the Exchange and Consent Solicitation is extended, amended or terminated, we
will promptly notify all holders of the Series B Preferred at the address of
record on the books of the Company.

     

            
Will I have to pay any fees or commissions for participating in the Exchange and
Consent Solicitation?

     

            No.

     

            
May I exchange only a portion of the shares of Preferred Stock that I
hold?

     

            No.
You must exchange all of your shares of Series B Preferred Stock to participate
in the Exchange and Consent Solicitation.

     

     

     

            
How do I exchange my shares of Preferred Stock?

     

            If
you hold physical share certificates and are the record owner of your shares,
you must deliver the certificates representing your shares of Series B Preferred
Stock, together with completed letters of transmittal and consent and any other
documents required by the letters of transmittal and consent, to the Company, no
later than the time the Exchange and Consent Solicitation expires.

     

            What is the Consent
Solicitation?

     

            We
are soliciting consents from holders of the Series B Preferred Stock to amend
the Charter to modify the preferential terms of the Series B Preferred Stock
including modifications to dividend.   Each share of Series B
Preferred Stock (equal to each $100.00 of liquidation preference) will be
entitled to one vote on the Consent Solicitation.

     

            In
order to complete the purchase of the Series B Preferred Stock in the Exchange
and Consent Solicitation, we must receive the requisite approvals of the
Proposed Amendments from the holders of the Series B Preferred
Stock.

     

            
Do I have to deliver my consent in the Consent Solicitation in order to exchange
my shares of Series B Preferred Stock validly in the Exchange and Consent
Solicitation?

     

            Yes.
You must consent to the Proposed Amendments in order to exchange your shares of
Series B Preferred Stock in the Exchange and Consent Solicitation. Your
participation in the Exchange and Consent Solicitation is conditioned on your
execution of a written consent approving the Proposed Amendments, and our
completion of the Exchange and Consent Solicitation is conditioned on obtaining
consents from the requisite number of holders of the Preferred Stock (voting
together as a single class) to the Proposed Amendments.  There is no
record date for the Exchange and Consent Solicitation, and the holders of a
majority of the outstanding shares of Series B Preferred Stock as of the
expiration date will be required to consent to the Proposed Amendments pursuant
to the terms set forth herein.

     

    
      
        
        

      

      
        Page
8

        
          

        

      

      
        
        

      

    

    
      
         

                
What vote is required to approve the
Proposed Amendments?

      

    

     

         Holders
representing a majority of the outstanding shares of Preferred Stock, voting as
a single class, must approve the Proposed Amendments in order to affect the
Proposed Amendments, which may be accomplished by submitting executed letter(s)
of transmittal and consent and validly exchanging your shares of Series B
Preferred Stock.

    
      
         

                
May
I deliver a consent to only some of the Proposed
Amendments?

      

    

     

            No.
You must consent to all of the Proposed Amendments affecting the Series B
Preferred Stock you hold if you wish to validly exchange any of your shares of
Preferred Stock.

    
      
         

                
How do I deliver my consent to the
Proposed Amendments?

      

    

     

            If
you are a record holder of shares of Preferred Stock, by submitting executed
letters of transmittal and consent and validly exchanging your shares of Series
B Preferred Stock, you will be consenting to all of the Proposed Amendments to
the terms of the Preferred Stock.

    
      
         

                
When
will the Proposed Amendments become effective?

      

    

     

            If
we receive the requisite approval of the holders of the Series B Preferred Stock
and all other conditions are met, the Proposed Amendments will become effective
upon the filing by the Company of the Amendment to the Certificate of
Designation of the Series B Preferred Stock with the Secretary of State of the
State of Nevada  (the “Amendment”) or at a later date and time
specified in the amendment.  The Company intends to file the Amendment
promptly upon the earlier of receipt of a majority of the consents of the Series
B Preferred Stock or, after the expiration of the Exchange and Consent
Solicitation, but not later than January 31, 2009.

    
      
         

                
Are
you making a recommendation regarding whether I should exchange in the Exchange
and Consent Solicitation?

      

    

     

            No.
You must make your own investment decision regarding the Exchange and Consent
Solicitation based upon your own assessment of the market value of the Series B
Preferred Stock, the effect of holding shares of Series B Preferred Stock if the
Proposed Amendments are approved, your liquidity needs, your investment
objectives and any other factors you deem relevant.

    
      
         

                
What are the tax consequences of the
transaction to me?

      

    

     

            We
urge you to consult with your own tax advisor as to the particular tax
consequences to you of the Exchange and Consent Solicitation.

    
       

              
Does
the Company intend to remain a public company following the completion of the
Exchange and Consent Solicitation?

    

     

            Yes.
We intend to remain a public company.

     

            
Whom do I call if I have any questions on how to exchange my shares of Preferred
Stock or consent to the Proposed Amendments, or any other questions relating to
the Exchange and Consent Solicitation?

     

    
      
        
        

      

      
        Page
9

        
          

        

      

      
        
        

      

    

     

            Questions
related to the terms of the Exchange and Consent Solicitation and requests for
assistance, as well as for additional copies of this Terms of Exchange, the
letters of transmittal and consent or any other documents, may be directed to
the Company at its mailing address, PO Box 49376, Sarasota, Florida 34230 or by
telephone at (941) 870-3750.

     

            
Where can I find more information about Invisa, Inc.?

     

            For
more information, see the Annual Report and the Quarterly Reports filed with the
Securities and Exchange Commission at www.sec.gov.

     

    Page
10ex10_74.htm

    Exhibit
10.74

     

    AMENDED
AND RESTATED

    CERTIFICATE
OF DESIGNATIONS OF PREFERENCES AND RIGHTS

    OF

    SERIES B
CONVERTIBLE PREFERRED STOCK

    OF

    INVISA,
INC.,

    a Nevada
corporation

    

             The
undersigned, Edmund C. King, certifies that:

    

                      1.  He
is the duly acting President of Invisa, Inc., a corporation organized and
existing under the Corporation Code of the State of Nevada (the
"CORPORATION").

    

                      2.
Pursuant to authority conferred upon the Board of Directors by
the  Certificate of  Incorporation  of the
Corporation,  and pursuant to the provisions  of
the  Corporations  Code of the  State
of  Nevada,  said  Board of
Directors,  pursuant to a meeting  held on January
11,  2010,  adopted a  resolution amending and
restating the rights,  preferences,  privileges and
restrictions of, and the number of shares comprising,  the
Corporation's  Series B Convertible  Preferred Stock, which
resolution is as follows:

    

             RESOLVED,  that
a series of Preferred Stock in the Corporation,  having the rights,
preferences,  privileges and restrictions,  and the number
of shares constituting such series and the designation of such series,
authorized  by the  Board
of  Directors  of the  Corporation pursuant to
authority given by the Corporation's Certificate of
Incorporation,  be, and hereby is, amended and restated as set forth
below.

    

             NOW,  THEREFORE,  BE
IT RESOLVED,  that the Board of  Directors  hereby
amends and restates the
rights,  preferences,  privileges  and  restrictions  relating
to, the Series B Preferred Stock as follows:

    

             (a)  Determination.  The
series of Preferred Stock is hereby designated Series B Convertible Preferred
Stock (the "SERIES B PREFERRED STOCK").

    

             (b)
Authorized Shares. The number of authorized shares constituting the Series B
Preferred  Stock shall be Ten Thousand (10,000) shares of such
series.

    

             (c)  Dividends.   On
or after January 1, 2010, the holder of the Series B Preferred Stock shall be
entitled to receive, when, as and if declared by the Board of Directors, out of
any assets of the Corporation legally available therefor, such dividends as may
be declared from time to time by the Board of Directors.  Nothing
herein shall obligate or require the Board of Directors to declare a dividend
for the Series B Preferred Stock on or after January 1, 2010. To the extent that
any dividends accrued prior to January 1, 2010 and remain outstanding, such
dividend may be paid in whole or in part by the delivery of (i) cash, (ii)
shares of Series B Preferred Stock valued at $100.00 per share or (iii) shares
of Common Stock at the Conversion Price (as hereinafter
defined).  Payments of dividends with  Series B Preferred
Stock may be made at any time and from time to time at the option of the
Company, in its sole discretion.

    
       

               (d)
Liquidation Preference.

       

    

    
      
        
        

      

      
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                      (i)
Preference upon Liquidation, Dissolution or Winding Up. In the event of any
dissolution or winding up of the Corporation, whether voluntary or
involuntary,  holders of each  outstanding  share
of Series B Preferred Stock
shall  be  entitled  to
be  paid  first  out of
the  assets  of the  Corporation available
for  distribution  to  shareholders,  whether
such assets are capital, surplus or earnings,  an amount equal to
$100.00 (the "SERIES B PURCHASE PRICE") per share of Series B
Preferred  Stock held (as adjusted  for any
stock  splits, stock dividends or  recapitalizations of the
Series B Preferred  Stock) and any declared but unpaid dividends on
such share, before any payment shall be made to the holders of the Common Stock,
or any other stock of the  Corporation  ranking junior to
the Series B Preferred Stock with regard to any distribution of assets upon
liquidation,  dissolution or winding up of the
Corporation.  The holders of the Series B Preferred Stock shall be
entitled to share ratably,  in accordance
with  the  respective  preferential  amounts  payable  on  such  stock,  in  any
distribution which is not sufficient to pay in full the aggregate of the amounts
payable  thereon.  If, upon
any  liquidation,  dissolution  or winding up of
the Corporation,  the  assets  to
be  distributed  to the  holders  of
the  Series B Preferred Stock shall be insufficient to permit payment
to such  shareholders of
the  full  preferential  amounts  aforesaid,  then  all  of  the  assets  of
the Corporation  available for distribution to
shareholders  shall be distributed to the holders of Series B
Preferred  Stock.  Each holder of the Series B Preferred
Stock shall be entitled to receive that portion of the assets available for
distribution as the number of outstanding shares of Series B Preferred Stock
held by such holder bears to the total number of shares of Series B Preferred
Stock.  Such payment shall constitute payment in full to the holders
of the Series B Preferred Stock upon the liquidation, dissolution or winding up
of the Corporation. After such payment shall have been made in full, or funds
necessary for such payment shall have been set aside by the Corporation in trust
for the account of the holders of Series B Preferred Stock, so as to be
available for such payment, such holders of Series B Preferred Stock shall be
entitled to no further participation in the distribution of the assets of the
Corporation.

    

                      (ii)  Consolidation,
Merger and Other Corporate Events.  A consolidation  or
merger of the  Corporation  (except  into or with
a subsidiary or affiliated corporation) or a sale,
lease,  mortgage,  pledge,  exchange,  transfer
or other disposition of all or substantially  all of the assets of the
Corporation or any reclassification  of the stock of
the  Corporation  (other  than a change in
par  value or from no par to par,  or from par to no par or
as the result of an event described in subsection  (iv), (v), (vi) or
(viii) of paragraph (f)),  shall be regarded  as
a  liquidation,  dissolution  or
winding  up of the  affairs of the Corporation within the
meaning of this paragraph (d), provided,  however, in the case of
a  merger,  if (a) the  Corporation  is
the  surviving  entity,  (b) the
Corporation's  shareholders  hold
a  majority  of the  shares  of
the  surviving entity, and (c) the Corporation's  directors
hold a majority of the seats on the board of  directors  of
the  surviving  entity,  then
such  merger  shall not be regarded as a
liquidation,  dissolution or winding up within the meaning of this
paragraph  (d). In no event shall the issuance of new classes of
stock,  whether senior,  junior or on a parity with the
Series B Preferred  Stock,  or any stock splits, or the
issuance of common stock in connection with an acquisition of the securities,
assets or business of another company, joint ventures, merger of a subsidiary
and employee stock options be deemed a  "reclassification, merger or
consolidation"  under or otherwise limited by the terms
hereof.

    

                      (iii)
Distribution of Cash and Other Assets. In the event of a
liquidation,  dissolution  or winding  up of
the  Corporation  resulting  in the
availability  of assets other than cash
for  distribution  to the holders of the Series B
Preferred  Stock,  the holders of the Series B Preferred
Stock shall be entitled  to a  distribution  of
cash  and/or  assets  equal to the value of the
liquidation  preference  stated in subsection  (i)
of this  paragraph (d), which valuation shall be made solely by the
Board of Directors, and provided that such Board of Directors was acting in good
faith, shall be conclusive.

     

    
      
        
        

      

      
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                      (iv)  Distribution  to  Junior  Security  Holders.  After  the
payment or  distribution  to the holders of the Series B
Preferred Stock of the
full  preferential  amounts  aforesaid,  the
holders of Series B Preferred Stock shall have
no  further  rights in respect  at
such  Series B Stock  which  shall become null and
void, and the holders of the Common Stock
then  outstanding,  or any  other  stock
of the  Corporation  ranking  as to
assets  upon  liquidation, dissolution  or winding
up of the  Corporation  junior to the Series B Preferred
Stock,  shall be entitled to receive ratably all of the
remaining  assets of the Corporation.

    

                      (v)  Preference;
Priority.  References  to
a  stock  that  is "SENIOR"  to, on a
"PARITY"  with or "JUNIOR"  to other stock as
to  liquidation shall refer, respectively, to rights of priority of
one series or class of stock over another in the  distribution of
assets on any  liquidation,  dissolution or winding up of
the  Corporation.  The Series B Preferred Stock shall be
senior to the Common Stock of the  Corporation and junior to any
subsequent  series of Preferred Stock issued by the
Corporation.

    

             (e)
Voting Rights.  Except as otherwise required by law, the holder of
shares of Series B  Preferred  Stock shall not have the
right to vote on matters that come before the shareholders.

    

             (f)  Conversion
Rights.  The holders of Series B Preferred Stock will have the
following conversion rights:

    

                      (i)
Right to Convert.  Subject to and
in  compliance  with the provisions of this paragraph (f),
any issued and outstanding  shares of Series B
Preferred  Stock shall, upon election in the discretion of the
Corporation, be automatically converted by the Corporation, at any time or from
time to time into fully paid and  non-assessable  shares of
Common Stock at the conversion rate in effect at the time of conversion,
determined as provided herein (the “Conversion
Shares”);  provided,  that a holder of Series
B  Preferred  Stock may at any given time be required to
convert  up to that number of shares of Series
B  Preferred  Stock so that, upon conversion, the
aggregate  beneficial ownership of the Corporation's Common Stock
(calculated  pursuant to Rule 13d-3 of the
Securities  Exchange Act of 1934, as amended) of such holder and all
persons  affiliated with such holder is not more than 9.99% of the
Corporation's Common Stock then outstanding (the “Conversion
Threshold”).

    

                      (ii)  Mechanics
of Conversion.  Upon the determination by the Corporation that any
holder has fallen below the Conversion Threshold, the Corporation may
automatically convert such number of shares of the Series B Preferred Stock
which may equal, but shall not exceed the Conversion Threshold, by the
conversion of such number of Series B Preferred Stock, that equals such number
of Common Stock as such holder shall be entitled.  Such conversion
shall be automatically completed upon issuance by the Corporation of written
Notice of Conversion mailed by regular US mail to the address of the record
Holder of the Series B Preferred Stock as reflected on the books of the transfer
agent or if no transfer agent the records of the Corporation (the “Notice of
Conversion”). In issuing the Notice of Conversion and effecting the conversion,
the Corporation may rely upon the records of the Company’s transfer agent, or if
no transfer agent upon the Corporation’s books and records, as final and
absolute proof of the identity of holder of record of the shares of Series B
Preferred stock, the number of shares of Series B Preferred stock owned and the
address of the Holder. Immediately upon issuance of such Notice of Conversion,
the Holder shall be treated as a common stockholder for all purposes and such
Holder shall have no continuing interest in or claim to Series B Preferred
stock. Upon Notice of Conversion  by the Corporation , the Holder
shall  surrender  the  certificate  or  certificates  therefor,  duly
endorsed,  at the office of the  Corporation  or
of any  transfer  agent for the Common Stock,  and
the Corporation shall give written notice to the transfer agent to convert the
same and shall state therein the number of shares of Series B Preferred Stock
being converted.  Thereupon, the Corporation shall promptly issue and
deliver to the record Holders address as reflected on the books of the transfer
agent, or if no transfer agent the Corporation’s books, a certificate or
certificates for the number of shares of Common Stock to which Holder shall be
entitled, not to exceed the Conversion Threshold and, if applicable, a
certificate or certificates for the number of shares of Series B Preferred Stock
existing immediately after an automatic conversion.  The effectiveness
of the Conversion shall not be affected by Holder’s failure to surrender or
deliver the certificates for the Series B Preferred shares to the Corporation;
however, Corporation shall have no obligation to deliver certificates for
Conversion Shares until such surrender and delivery has been completed by
Holder. Should it occur that a Holder of Series B Preferred stock transfers or
assign shares of Series B Preferred stock without giving the transfer agent or
the Corporation proper notice, the Holder shall be liable for any damage to the
Corporation resulting therefrom and any Conversion Shares issued or to be issued
to Holder based on the incorrect information on the Corporations books or the
books of its transfer agent shall be voidable by the Corporation.

     

    
      
        
        

      

      
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                      (iii)  Conversion
Price.  The number of shares into which one share of Series B
Preferred  Stock shall be  convertible shall be determined
by dividing the Series B Purchase Price by $0.12 ( hereinafter, the “Conversion
Price”)

    

                     
(iv)  Adjustment for Stock Splits and
Combinations.  If the Corporation shall at any time, or from time to
time after the date shares of the Series B Preferred Stock are first issued (the
"ORIGINAL ISSUE DATE"),  effect a subdivision of the
outstanding  Common Stock,  the Conversion Price in
effect  immediately  prior thereto shall
be  proportionately  decreased,  and
conversely,  if the Corporation shall at any time or from time to time
after the Original Issue Date combine
the  outstanding  shares of Common Stock,  the
Conversion Price then in effect  immediately before the combination
shall be proportionately  increased. Any adjustment under this
paragraph (f)(iv) shall become  effective  at
the  close of  business  on the
date  the  subdivision  or combination becomes
effective.

    

                      (v)
Adjustment for Certain Dividends and Distributions. In the event the Corporation
at any time, or from time to time after the Original Issue Date, shall make or
issue, or fix a record date for the determination of holders of Common Stock
entitled to receive, a dividend or other distribution payable in
additional  shares of Common Stock,  then and in each such
event the Conversion Price  then in effect  shall
be  decreased  as of the time of such
issuance  or, in the event such a record date shall have
been  fixed,  as of the close
of  business  on
such  record  date,  by  multiplying  the
Conversion Price then in effect by a fraction:

    

                               (A)
the  numerator of which shall be the total number of shares of Common
Stock issued and outstanding  immediately  prior to the time
of such issuance or the close of business on such record date; and

     

    
      
        
        

      

      
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                               (B)
the  denominator  of  which  shall  be
the  total number of shares of
Common  Stock  issued
and  outstanding  immediately prior to the time of
such  issuance  or the close
of  business  on such record  date plus
the  number of shares  of
Common  Stock  issuable  in payment of such
dividend or distribution;  provided,  however,  if
such record  date shall have been fixed and such  dividend
is not fully paid or if such  distribution  is not fully
made on the date fixed therefor, the Conversion Price shall be recomputed
accordingly as of the close of business on
such  record  date and  thereafter,  the
Conversion Price shall be adjusted  pursuant to
this  paragraph
(f)(v)  as  of  the  time  of  actual  payment  of  such  dividends  or
distributions.

    

                      (vi)
Adjustments for Other Dividends and Distributions. In the event
the  Corporation at any time or from time to time after the Original
Issue Date shall make or issue, or fix a record date for
the  determination of holders of Common Stock entitled to receive, a
dividend or other distribution payable in securities of
the  Corporation  other than shares of
Common  Stock,  then and in each such
event  provision  shall be made so that
the  holders of such  Series B Preferred Stock shall receive
upon conversion  thereof in addition to the number of shares of Common
Stock receivable thereupon,  the amount of securities of the
Corporation  that they would have  received had
their  Series B Preferred  Stock been
converted  into Common Stock on the date of such event and
had  thereafter, during the period from the date of such event to
and  including  the  conversion
date,  retained  such  securities  receivable  by
them as aforesaid  during such period giving application to all
adjustments called for during such period under
this  paragraph  (f) with  respect to the rights
of the  holders of the Series B Preferred Stock.

    

                      (vii)    Adjustment   for    Reclassification    Exchange   or
Substitution.  If the Common Stock  issuable upon the
conversion of the Series B Preferred  Stock shall be changed into the
same or a different  number of shares
of  any  class  or  classes  of  stock,   whether  by  capital   reorganization,
reclassification or otherwise (other than a subdivision or combination of shares
or stock dividend provided for above, or a reorganization, merger, consolidation
or sale of assets  provided for elsewhere in
this  paragraph  (f)),  then and in each such
event the holder of each share of Series B Preferred  Stock shall have
the right thereafter to convert such share into the kind and amount of shares of
stock and other  securities and
property  receivable  upon such  reorganization,
reclassification  or other change,  by holders of the number
of shares of Common

    Stock  into  which  such  shares
of Series
B  Preferred  Stock  might  have been
converted immediately prior to such reorganization, reclassification, or change,
all subject to further adjustment as provided herein.

    

                      (viii)  Reorganization,
Mergers, Consolidations or Sales of Assets.  If
at  any  time  or  from  time  to  time  there  shall  be
a  capital reorganization  of the
Common  Stock  (other  than
a  subdivision,  combination, reclassification  or
exchange of shares provided for elsewhere in this paragraph (f) or
a  merger  or  consolidation  of
the  Corporation  with or into  another
corporation,  or  the  sale  of all
or  substantially  all of the  Corporation's
properties   and  assets  to  any  other  person,   then,  as  a  part  of  such
reorganization,  merger,  consolidation or sale, provision
shall be made so that the holders of the Series
B  Preferred  Stock  shall  thereafter  be
entitled to receive upon conversion of such Series B
Preferred  Stock,  the number of shares of stock or
other  securities or property of the Corporation or of the successor
corporation  resulting  from such merger
or  consolidation  or sale,  to which a holder of
Common Stock  deliverable  upon conversion would have been
entitled on such
capital  reorganization,  merger,  consolidation
or sale. In any such case, appropriate  adjustment  shall be
made in the  application  of the provisions of
this  paragraph  (f) with  respect to the rights
of the  holders of the Series B Preferred Stock after the
reorganization,  merger,  consolidation or sale to the end
that the provisions of this paragraph (f) (including adjustment of the
Conversion Price then in effect and the number of shares purchasable upon
conversion of the Series B Preferred Stock) shall be applicable after that event
as nearly equivalent as may be practicable.

     

    
      
        
        

      

      
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                      (ix)  Sale
of Common  Stock
or  Securities  Convertible  Into Common Stock. In
the event the Corporation sells or issues Common Stock or other
securities  convertible  into
or  exercisable  for  Common  Stock at a
per share price,  exercise price or conversion  price lower
than the Conversion Price then in effect  (other than
in  connection  with an  acquisition  of
the  securities, assets
or  business  of  another  company,  licensing,  partnership,  technology
transfer,  marketing alliance, joint ventures or employee, director,
officer, or consultant issuances or stock options), the Conversion Price shall
be subject to weighted average anti-dilution adjustments.

    

                      (x)  Certificate
of Adjustment.  In each case of an adjustment or readjustment of the
Conversion Price or the securities  issuable upon conversion of the
Series B Preferred Stock,  the Corporation  shall compute
such  adjustment or readjustment  in
accordance  herewith and the  Corporation's
Chief  Financial  Officer  shall  prepare
and sign a  certificate  showing  such adjustment
or readjustment, and shall mail such certificate by first class mail,
postage  prepaid,  to each registered  holder of
the Series B Preferred Stock at the holder's address as shown in the
Corporation's  books. The certificate shall set forth such
adjustment  or  readjustment,  showing in detail
the facts upon which such adjustment or readjustment is based.

    

                      (xi)
Notices of Record Date. In the event of (A) any taking by
the  Corporation of a record of the holders of any class or series of
securities for the purpose of determining  the
holders  thereof who are entitled to receive
any   dividend   or  other   distribution   or  (B)  any   reclassification   or
recapitalization  of  the  capital  stock  of
the  Corporation,  any  merger  or
consolidation
of the Corporation or any transfer of all or substantially  all of the
assets of the Corporation to any other corporation, entity or person, or any
voluntary  or  involuntary  dissolution,   liquidation  or  winding  up  of  the
Corporation,  the  Corporation  shall mail to
each  holder of Series B Preferred Stock at least 10
days  prior to the
record  date  specified  therein,  a
notice specifying  (1) the date on which any such record is to be
taken for the purpose of  such  dividend  or  distribution  and
a  description  of  such  dividend  or
distribution,  (2) the date on which any such
reorganization,  reclassification,
transfer,  consolidation,  merger,  dissolution,  liquidation  or  winding
up is expected to become effective and (3) the time, if any is to be fixed, as
to when the holders of record of Common Stock (or other securities) shall be
entitled to exchange their shares,  of Common Stock (or
other  securities) for securities or other property deliverable upon
such reorganization, reclassification, transfer, consolidation, merger,
dissolution, liquidation or winding up. 

     

    (xii)
Fractional Shares. No fractional shares of Common Stock shall be issued upon
conversion of the Series B Preferred Stock. In lieu of any
fractional  shares  to  which  the  holder  would  otherwise  be  entitled,  the
Corporation shall round the shares up to the nearest whole
number.

                      (xiii)  Reservation
of Stock Issuable Upon  Conversion.  The
Corporation  shall at all times reserve and keep
available  not less than the aggregate number of authorized but
unissued shares sufficient to effect the conversion of all then outstanding
shares of Series B Preferred Stock and if at any time the number of authorized
but unissued shares of Common Stock shall not be sufficient to effect
the  conversion of all then  outstanding  shares
of Series B Preferred Stock, the Corporation will take such corporate action as
may, in the opinion of its counsel,  be necessary to
increase  its  authorized  but
unissued  shares of Common Stock to such number of shares as shall be
sufficient for such purpose.

     

    
      
        
        

      

      
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                        (xiv)
Notices. Any notice required by the provisions of this paragraph (f) to be given
to the holders of shares of Series B Preferred Stock shall be deemed given (A)
if deposited in the United States mail, postage prepaid, or (B) if given by any
other reliable or generally accepted means (including by facsimile or by a
nationally recognized overnight courier service), in each case addressed to each
holder of record at his address (or facsimile number) appearing on the books of
the Corporation.

                      (xv)
Payment of Taxes.  The Corporation will pay all transfer taxes and
other governmental charges that may be imposed in respect of the issue or
delivery  of shares of Common  Stock
upon  conversion  of shares of Series B Preferred
Stock.

     

             (g)
No Re-issuance of Preferred Stock. Except as otherwise expressly permitted
herein with respect to dividends, any shares of Series B Preferred Stock
acquired by the Corporation by reason of purchase, conversion or otherwise shall
be canceled, retired and eliminated from the shares of Series B Preferred Stock
that the Corporation shall be authorized to issue.  All such shares
shall upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued as part of a new series
of  Preferred  Stock  subject to the

    conditions  and   restrictions   on  issuance  set  forth  in  the  Articles  of
Incorporation  or
in  any  certificate  of  designation  creating  a  series  of
Preferred Stock or any similar stock or as otherwise required by
law.

    

             (h)
Severability.  If any right, preference or limitation of the Series B
Preferred  Stock set forth  herein is
invalid,  unlawful or incapable of being enforced  by
reason  of any  rule,  law
or  public  policy,  all  other  rights,
preferences  and  limitations  set forth herein
that can be given effect without the invalid,  unlawful
or  unenforceable  right,  preference or
limitation shall nevertheless  remain in full  force
and  effect,  and
no  right,  preference  or
limitation  herein  shall  be  deemed  dependent  upon  any  other  such  right,
preference or limitation unless so expressed herein.

    

             3.  The  number  of  authorized   shares  of  Preferred  Stock  of  the
Corporation  is  5,000,000  and the number of
shares of Series B Preferred Stock, 9,000 of which has been issued and
outstanding, is 10,000.

    

            The  undersigned  declares  under  penalty
of perjury  that the matters  set out in
the  foregoing  Certificate  are true of his
own  knowledge. Executed at Sarasota, Florida on this 11th day of
January, 2010.

    

    
 

                      

    Print
Name:  Edmund C. King

    Title:      Acting
President and Chief Financial Officer

     

     

     

    7

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