Document:

ex10-5.htm

EXHIBIT 10.5

 

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

INVO BIOSCIENCE, INC.

 

SHORT TERM NOTE

 

	
$88,000.00   
	Beverly, Massachusetts
	 	 
	 	 May 19, 2009

    

FOR VALUE RECEIVED, the undersigned, INVO Bioscience, Inc. (“Maker”) a Nevada corporation with its principal place of business in Beverly, Massachusetts promises to pay to Kathleen Karloff (“Holder”), of 109 Beacon Street, Boston, MA 02116 or at such other place as
Holder shall have designated to Maker in writing, a principal amount equal to Eighty-Eight Thousand Dollars ($88,000.00) (the “Principal Amount”) together with interest thereon as set forth below.

 

	
1.  
	
Repayment.  Maker promises to pay the entire Principal Amount plus accrued and unpaid interest thereon, and all other sums and charges due Holder hereunder on September 15, 2009 (the “Maturity Date”).  The Maturity Date is subject to acceleration as set forth
below.

 

This is an extension and increase of the Holder’s original note dated March 5, 2009.  In consideration for the extension the Maker agrees to pay any fees, charges or penalties that the Holder may incur as a result of not being able to repay her 401k account (source of funds) in a timely manner.

 

	
2.  
	
Interest.  This Note shall bear interest at the rate of five percent (5%) per annum from the date hereof.  All interest shall accrue and be paid with the Principal Amount on the Maturity Date.

 

	
3.  
	
Application of Payments.  All payments shall be made in legal tender of the United States of America and shall be applied first to the payment of any sums or charges other than principal or interest due Holder; second, to the payment of accrued and unpaid interest on the unpaid
Principal Amount; and third, the balance on account of the Principal Amount.

 

	
4.  
	
Payment of Charges and Expenses.  Maker agrees to pay the debt evidenced hereby, and, after default, to pay all reasonable costs, expenses and attorneys’ fees incurred by the Holder in connection with any proceeding for collection of the debt evidenced hereby, or in any litigation
or controversy arising from or connected with this Note.  The Maker’s obligation to pay such costs, expenses and attorneys’ fees of Holder after default in connection with the protecting, enforcing or realizing of the rights and remedies above described or otherwise set forth herein, shall exist whether or not proceedings are instituted or legal appearances made in any court of competent jurisdiction on behalf of the Holder.

 

	
5.  
	
Event of Default.  Upon the occurrence of any one or more of the following events Maker shall be in default hereunder and the entire indebtedness with accrued interest due thereon under this Note shall, at the option of Holder, accelerate and become immediately due and payable without
demand or notice of any kind:

 

	
(a)  
	
Failure by Maker to pay (i) the outstanding Principal Amount of this Note, together with interest accrued thereon, at final maturity of this Note; or (ii) any other sums required to be paid by Maker hereunder; or

 

	
(b)  
	
If (i) a petition is filed against Maker under any bankruptcy, reorganization, arrangement, composition, readjustment, liquidation, dissolution, or insolvency law, and is not dismissed within ninety (90) days after such filing; or (ii) Maker (x) files a petition in voluntary bankruptcy or seeks relief under any provision of any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under any such law, or (y) makes any general assignment for the benefit of creditors or admits in writing its inability to pay, or fails to pay, its debts generally as they become due, or consents to or otherwise suffers the appointment of a receiver, custodian, liquidator or trustee for itself, or of all or any part of its
property.

 

	
6.  
	
Waiver of Rights.  Maker hereby waives presentment, demand, notice, protest, and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note, and assents to extensions of the time of payment of forbearance or other indulgence
without notice.

 

	
7.  
	
Holder’s Rights.  Holder’s rights hereunder shall be cumulative and not exclusive and may be exercised at the sole discretion of Holder until this Note and all accrued and unpaid interest and other sums and charges due hereunder shall have been paid in full.  Further,
no failure on the part of Holder to exercise any right or remedy hereunder, whether before or after the occurrence of any event of default hereunder, shall constitute a waiver hereof, and no waiver of any past default shall constitute waiver of any future default or of any other default.  No failure to accelerate the indebtedness evidenced hereby by reason of default hereunder, or waiver granted from time to time shall be construed to be a waiver of the right to insist upon prompt payment thereafter
or a waiver of any right of acceleration or any other right, or be construed so as to preclude the exercise of any right which Holder may have, whether by the laws of the Commonwealth of Massachusetts, by agreement or otherwise; and Maker hereby expressly waives the benefit of any statute or rule of law or equity which would produce a result contrary to or in conflict with the foregoing.

 

 

 

 

 

	
8.  
	
Prepayment.  Maker shall have the right to prepay this Note.

 

	
9.  
	
Binding Effect.  This Note shall bind the successors and assigns of Maker and shall inure to the benefit of Holder, his heirs, administrators, representatives, trustees, successors and assigns.

 

	
10.  
	
Captions and Section Headings.  The captions and section headings used in this Note are for convenience only and shall not be used to interpret, modify or affect in any way the covenants and agreements herein contained.

 

 

	
11.  
	
Severability.  In the event that any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part, or in any respect, or in the event that any one or more of the provisions of this Note shall operate or would
prospectively operate, to invalidate this Note, then the remaining provisions of this Note shall remain operative and in full force and effect, shall be valid, legal and enforceable and shall in no way be affected, prejudiced or disturbed thereby.

 

	
12.  
	
Governing Law.  This Note shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts without reference to its conflict of law’s provisions.

 

 

	MAKER:	HOLDER:
	INVO BIOSCIENCE, INC. 	
 

KATHLEEN T. KARLOFF

	By: s/Dr. Claude Ranoux                                               	
 

By: s/Kathleen Karloff      

	Dr. Claude Ranoux, President                                      	
 

Kathleen Karloffex10-6.htm

EXHIBIT 10.6

 

 

June 10, 2009

 

 

Lionshare Ventures, LLC

 

100 Cummings Center Suite 324C

 

Beverly, Massachusetts 01915

 

 

Re:  LSV Pledge

 

 

Dear Christopher,

 

 

For good and valuable consideration, the parties agree to the following modifications to the Term Sheet, dated May 19, 2008 and reaffirmed on December 5, 2008 by and between LionShare Ventures (LSV) and then BioXcell Inc., the undersigned do hereby covenant and agree as follows:

 

	
1)  
	
LSV and Christopher Esposito (“Esposito”), jointly and severally, hereby promise to pay to INVO Bioscience (INVO) by December 5, 2009 the amount of $205,000 in cash, which amount LSV agreed to contribute to  pursuant to the Term Sheet in connection with the transactions
contemplated by the Exchange Agreement on December 5, 2008. The parties agree that such amount represents the balance due for the prior issuance of INVO Bioscience common stock and that no further shares of INVO Bioscience common stock shall be issued to Esposito upon contribution of the $205,000.

 

	
2)  
	
In order to secure the prompt and complete payment of the amount set forth in the prior paragraph, LSV and Esposito hereby pledge and grant to INVO a continuing first priority security interest in 775,000 shares of Common Stock of INVO Bioscience.  The parties acknowledge that all of such shares will be held in escrow until December 5th, 2009.
The parties acknowledge that with each investment of $51,000, 25% or 193,000 shares will be issued to Lion Share Ventures, if Esposito contributes the $205,000 to INVO Bioscience prior to December 5, 2009, the stock certificates and stock powers shall be returned to Esposito.

 

This letter agreement constitutes the entire agreement between LSV and INVO Bioscience pertaining to the subject matter contained herein.  This letter agreement may not be altered, amended, or modified, except by means of a writing executed by LSV and INVO.  This letter agreement shall be governed by and construed
and enforced in accordance with the laws of the Commonwealth of Massachusetts, other than the choice of law provisions thereof.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

Please execute this letter in the space provided below in order to acknowledge your acceptance of and agreement with the terms set forth herein.

 

 

Sincerely,

 

 

 

 

Lionshare Ventures, LLC

 

 

 

 

By: /s/Gerald Esposito        

 

 

Name: Gerald Esposito

 

 

Title: President

 

 

 

 

Christopher Esposito

 

 

s/Christopher Esposito

 

 

 

 

 

Acknowledged and Agreed:

 

 

INVO Bio Science, Inc.

 

 

By:      s/Kathleen T. Karloff

 

 

Name: Kathleen T. Karloff                                              

 

Title:   CEO

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