Document:

ex10-05.htm

    Exhibit  10.05

     

    DISTRIBUTOR
AGREEMENT

     

    TERMS AND
CONDITIONS

     

    

     

    This
Distributor Agreement (“Agreement”) is made and entered as of the 16th of
October, 2009 (the “Effective Date”), by and between;

     

    BioXcell
(INVO Bioscience), Incorporated, a Massachusetts Corporation located at 100
Cummings Center Ste 421E Beverly, MA 01915 (“COMPANY”) and,

     

    Gonagen
Ilac Ithalat Ihracat Sanayi ve Ticaret A.S. located at Mecidiyekoy Mah.
Avnigilligil Sok. Meric Plaza No.10 Kat: 5 D.6, Sisli, Istanbul
(“DISTRIBUTOR”).

     

    In
consideration of the promises and mutual covenants contained herein the parties
agree as follows:

     

    

     

    
      	
              1.  

            	
              DISTRIBUTION

            

    

     

    1.1 Distribution.
Subject to the terms and conditions of this Agreement and, if applicable, a
written addendum signed by COMPANY (“Addendum”), COMPANY hereby grants
Distributor an exclusive, non-transferable right during this Agreement to
distribute certain products and services offered by COMPANY (the
“Products”).

     

    1.2 Exclusive
Distribution

     

    Distributor
agrees that the right of distribution granted in the area of representation is
exclusive.  Area of representation is determined mutually by the
parties as Turkey, North Cyprus, Kosovo, Albania, Azerbaijan, Uzbekistan,
Bulgaria (clinics) and Kazakhstan. Except the representation area of the
Distributor, COMPANY reserves the right to distribute, whether directly of
indirectly, any and all Products worldwide without
restriction.  COMPANY may grant the same, similar and/or any other
distribution rights to any other entity, including without limitation to other
distributors, dealer and original equipment manufacturers.

     

    

     

    
      	
              2.  

            	
              PRICES,
      ORDERS, DELIVERIES AND PAYMENT

            

    

     

    2.1
Prices.  COMPANY shall offer the Products to Distributor based on a
written or electronic price list (the “Price List”) supplied by
COMPANY.  Distributor agrees to purchase the Products in accordance
with the terms and conditions noted on the Price List.  COMPANY may
amend the Price List to add or delete Products and may adjust the pricing with
ninety (90) days advance notice to Distributor.  Price list revision
shall apply to all orders received after the effective date of such
revision.  Product price increases shall not apply to unfulfilled
purchase orders prior to the effective date of the Purchase Price
increase.  At its sole discretion, COMPANY may apply Product price
decreases to pending purchase orders accepted by COMPANY prior to the effective
date of the decrease but not yet shipped.  All prices, fees and
delivery terms are Ex Works (“EXW”) (IncoTerms 200) COMPANY’s manufacturing
plant.  In addition to the applicable prices and fees, Distributor
shall pay, or at COMPANY’s option reimburse COMPANY, for any and all taxes,
customs, duties, freight, insurances, shipping and related expenses associated
with the Products.

     

    2.2
Taxes. All prices, fees and charges covered by this Agreement do not include any
federal, state, local or foreign taxes that may be applicable to the Products,
including all nonresident withholding tax, wholesale sales tax, value added
taxes, goods and services tax, excise, sales, use and similar taxes and customs
duties.

     

    Distributor
shall pay or reimburse COMPANY for all such taxes and other
charges.  When COMPANY has the legal obligation to collect such taxes,
the appropriate amount shall be added to Distributor’s invoice and paid by the
Distributor, unless and until Distributor provides COMPANY with a valid tax
exemption certificate.

     

    2.3
Orders and Acceptance.  For any Purchase order, Distributor shall
place the order and corresponding payment to COMPANY.  Distributor
shall comply with all COMPANY minimum purchase order
requirements.  Orders shall not be deemed accepted or binding without
written notification thereof by COMPANY.  This Agreement shall govern
all Distributor orders, and nothing contained in Distributor’s purchase orders,
confirming memos or other communications shall supersede or modify this
agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.4
Delivery and Shipping.  COMPANY shall not liable to Distributor or any
third party if COMPANY fails to deliver an order, delivers an order incorrectly
and/or fails to meet a delivery date.  If any order exceeds COMPANY’s
inventory, COMPANY shall allocate available inventory according to and in its
sole discretion.  Returns are at the discretion of
BioXcell.  Notwithstanding and provision to the contrary, should the
COMPANY fail to meet delivery date that has been given with 60 days or more
prior advance notice; the COMPANY will adjust DISTRIBUTOR invoice by deducting
5% of invoice pre shipping.

     

    2.5 Three
Month Rolling Forecast;  Purchase Orders Fifteen Days in
Advance.  On or before the 10th day of
every calendar month, Distributor shall submit to COMPANY a forecast of all of
the d Distributor’s purchases of the products for the next three (3)
months.  Distributor shall submit to COMPANY a non-cancelable Purchase
Order at least fifteen (15) days in advance of the requested ship date for any
and all products.

     

    2.6
Payment.  All credit terms and terms of payment are to be determined
by BioXcell, based upon completed credit application and credit
verification.  Once credit terms have been established, payments may
be sent via wire transfer only as follows:

    For the
first six (6) months the payment term will be 50% payment upon delivery with
letter of credit with the remaining 50% payment term of forty-five (45) days
after the date of shipment.

    Month’s
seven (7) to twelve (12) upon positive credit review terms will change to 60
days net with letter of credit starting at the date of shipment.

    After
twelve (12) months based on positive credit review terms will be ninety (90)
days net starting on the date of shipment with letter of credit.

    (a). For
wire transfer, payments shall be wired to:

    Bank
name: Bank of America

    Address:
Bank of America, 100 West 33rd Street,
New York City, NY 10001

    Swift
Address: BOFAUS3N or applicable: Chips Participant no. 0959

    ABA:
0260-0959-3 (Bank of America) if needed for direct credit to BOA

    Credit
Acct Name: Century Bank & Trust

    Address:
400 Mystic Ave. Medford, MA 02155

    Credit
Acct Number: 0000006-94537

    CENTURY
BANK ACCOUNT NUMBER 21541655, beneficiary BioXcell, Inc. (INVO Bioscience) 100
Cummings Center, Suite 421E, Beverly, MA 19815, USA

    

    
      	
              3.  

            	
              OWNERSHIP

            

    

    

    3.1
Ownership. All right, title and interest in and with respect to the Products,
including without limitation all intellectual property rights therein, are
solely owned by shall remain with COMPANY, its licensors and
suppliers.  Distributor shall not copy, make copies of, translate,
localize, disassemble, decompile,, reverse engineer, attempt to discover the
source code of, modify, create derivative works from and/or in any way change
any part of the Products, including without limitation the documentation,
packaging and trademarks.

    

    
      	
              4.  

            	
              MARKETING
      OBLIGATIONS OF DISTRIBUTOR

            

    

    

    4.1
Marketing and Support.  Distributor shall maintain a staff of
qualified sales and training personnel to perform its obligation hereunder and
shall actively promote and market the Products.  Distributor shall
provide first and second level support for the Products and shall directly
support its resellers and end users.

    COMPANY
will provide telephone support to Distributor during COMPANY’s normal business
hours in accordance with COMPANY’s then current support program.

    Any
training or further support by COMPANY shall be
chargeable.  Distributor shall provide its resellers and end users
with sufficient and reasonable assistance in training, service and customer
support with respect to products.

    

    4.2
Representations and Third Party Agreements.  Distributor agrees that
all representations and warranties it makes with respect to the Products shall
be consistent with not exceed and those made by COMPANY
herein.  Distributor agree that all theirs party agreements with
resellers and end users, shall have terms and conditions equal to and consistent
with the terms and conditions of this Agreement and shall state that COMPANY is
the intended beneficiary of these obligations and that COMPANY is entitled to
enforce its rights against both Distributor and such third party.

     

    
      
        
        

      

      
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              5.  

            	
              TRADEMARKS
      AND NOTICES

            

    

    

    5.1
Trademarks.  COMPANY grants Distributor a non-exclusive, non
transferable, limited license to use the Product trademarks, service marks and
trade names (“Trademarks”) solely in connection with the marketing and sales of
the Products in accordance with and during this
Agreement.  Distributor shall use the Trademarks in accordance with
and during this agreement.  Distributor shall use the Trademarks in
accordance with instructions from COMPANY, which COMPANY may revise in its
discretion.  Distributor agrees to cooperate with COMPANY in
facilitating COMPANY’s monitoring and control of the nature and quality of the
Products and related marketing material and to supply COMPANY with specimens of
use of the Trademarks upon request.  Distributor acknowledges the
validity of the Trademarks and the ownership of the Trademarks by COMPANY and
its suppliers and licensors.

    All such
Trademarks shall bear the designation ”tm” of
the designation “®”, as specified by COMPANY.  Distributor shall not
challenge the rights of COMPANY and its suppliers and licensors in any
Trademarks.  All goodwill and reputation which accrues to any
Trademarks in the course of Distributor’s business shall automatically vest in
COMPANY and its suppliers and licensors without any separate or additional
consideration of any kind to Distributor, and Distributor agrees to take all
such reasonable actions necessary to effect such vesting.

    

    5.2
Notices.  Distributor shall not remove, alter or obscure any patent,
trademark, copywrite or other notice to marking in or on any
product.

    

    5.3
Prohibition of Similar Trademarks.  Distributor shall not adopt, use
register, make application for or attempt to register any acronym, trademark,
trade name or other marketing name of COMPANY or any confusingly similar mark,
uniform resource locator (URL), Internet domain name, or symbol as part of
Distributor’s own name or the name of any of its affiliates or as the name of
any product it markets.

    

    
      	
              6.  

            	
              WARRANTY
      AND DISCLAIMER

            

    

    

    6.1
Limited Warranties.  COMPANY makes no warranty, implies or otherwise,
regarding the performance or reliability of any third party products (hardware).
Installation of any third party products other than as authorized by COMPANY
will void all warranties.  In addition, use, modification and/or
repair of the Products other than as authorized by COMPANY voids all
warranties.

    

    6.2
Warranty Return Procedures.  Distributor shall be responsible for and
shall coordinate all communication with its resellers and end users concerning
warranty claims, maintenance and support requests, including without limitation
obtaining proof of purchase from the end user. Distributor shall comply with
COMPANY’s current latest standard Product return procedures, which COMPANY may
change from time to time.  Unless Distributor returns a Product in
accordance with COMPANY’s limited warranty and latest current standard product
return procedures, Distributor shall not return any product. At its option,
COMPANY shall repair or replace defective Products that are covered by the
COMPANY’s limited warranty and returned in accordance with COMPANY’s standard
procedures by using new or like-new parts or Products, or provide a refund of
the price paid to COMPANY for such Product.  Distributor shall pay for
all shipping charges, insurance, taxes, duties, and other charges for all RMA
shipments.  COMPANY shall pay freight charges on shipments to
Distributor of product repaired or replaced under warranty; however, Distributor
shall pay all duties, customs, taxes and other charges on such
shipments.  Products that COMPANY determines are not defective, not
under warranty or not returned in compliance with COMPANY’s return procedures
shall be returned to Distributor and Distributor shall pay all freight,
insurance, duty, taxes and other charges related to these products.

    

    6.3
DISCLAIMER. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EXCEPT FOR THE
EXPRESS LIMITED WARRANTIES SET FORTH IN THIS SECTION, COMPANY MAKES NO
REPRESENTATIONS OR WARRANTIES TO ANY PERSON OR ENTITY WITH RESPECT TO ANY OF THE
PRODUCTS, WHETHER EXPRESS, IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS
AGREEMENT OR ANY OTHER COMMUNICATION, AND THEY SPECIFICALLY DISCLAIM ANY IMPLIED
WARRANTY OR CONDITION OF SECURITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE AND/OR NONINFRINGEMENT OF THIRD PARTY RIGHTS.  THERE IS
NO WARRANTY OR REPRESENTATION THAT THE OPERATION OF THE PRODUCTS WILL BE
UNINTERRUPTED, FAULT TOLERANT, SECURE OR ERROR-FREE.  TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, THE SOLE LIABILITY OF COMPANY, AND THE SOLE
REMEDY, RELATING  TO ANY AND ALL APPLICABLE WARRANTIES SHALL BE AT
COMPANY’S OR OPTION, TO REPAIR THE PRODUCT, REPLACE THE PRODUCT, OR PROVIDE A
REFUND FOR THE PRICE PAID TO COMPANY FOR THE PRODUCT.

     

    
      
        
        

      

      
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              7.  

            	
              TERM
      AND TERMINATION

            

    

    

    7.1 Term
and Termination.  This agreement shall become effective on the
Effective Date and shall expire five (5) year thereafter unless earlier
terminated in accordance with this Agreement.  This agreement may be
renewed for additional five (5) year periods by mutual agreement of the
parties.  This agreement is not an “evergreen” contract or of
indefinite duration.  Any party may terminate this Agreement, with
legal and reasonable cause, by giving 120 day written notice.

    

    7.2
Termination for insolvency.  This Agreement shall terminate, without
notice,

    (i) upon
the institution by or against Distributor of insolvency, receivership or
bankruptcy proceedings or any other proceedings for the settlement of
Distributor’s debts,

    (ii) upon
Distributor’s making an assignment for the benefit of creditors, or

    (iii)
upon Distributor’s dissolution or ceasing to function as an ongoing business
concern.

    

    7.3 No
Damages or Other Rights Upon Termination.  In making this Agreement,
all parties have considered that they will take expenditures in preparing for
performance under this Agreement and will possibly sustain losses and damages in
the event of its termination. With the exception of unreasonable and unlawful
termination of the contracting parties, the parties expressly agree that the
rights of termination in this Agreement are absolute.  The parties
agree that no party shall be liable to any other party for damages,
compensation, payments, costs or other types of losses arising out of
termination of this Agreement, and the parties expressly waive all such damages,
compensation, payments, costs and losses, including without limitation those
related to goodwill, prospective profits, anticipated sales, and amounts spent
on training, advertising, market development, leases and other
investments.

    Distributor
agrees that any contracts or other arrangements it enters into with any third
parties relating to the Products will be consistent with and subject and
subordinate to the rights of termination in this
agreement.  Distributor will indemnify and hold COMPANY harmless
against any and all liability, loss, damages, costs and expenses incurred in
connection with claims by any such third party.

    

    7.4
Effect of Termination and Survival of Certain Terms. In the event that this
Agreement expires or is terminated, Distributor shall immediately pay all
outstanding amounts payable hereunder.  Upon expiration or termination
of this agreement, all rights granted hereunder to Distributor and its resellers
shall terminate immediately, and Distributor and its resellers shall immediately
cease distribution and marketing of all Products and shall cease use of all
Trademarks.  All provisions concerning termination, ownership of
intellectual property right and trademarks, indemnification, limitation of
liability, disclaimer of warranties, governing law, jurisdiction and venue shall
survive the termination and expiration of this Agreement.

    

    
      	
              8.  

            	
              LIMITATION
      OF TOTAL LIABILITY

            

    

    

    TO THE
MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DISTRIBUTOR AGREES THAT THE
AGGREGATE, CUMULATIVE LIABILITY OF COMPANY FOR ALL CLAIMS RELATED TO THIS
AGREEMENT AND/OR THE PRODUCTS, REGARDLESS OF THE FORM OF ACTION (WHETHER IN
CONTRACT, TORT, UNDER STATUTE OR OTHERWISE), SHALL BE LIMITED TO THE AMOUNT PAID
BY DISTRIBUTOR FOR THE PRODUCTS GIVING RISE TO SUCH LIABILITY.

    DISTRIBUTOR
AGREES THAT SUCH AMOUNT IS SUFFICIENT TO SATISFY THE ESSENTIAL PURPOSE OF THE
PROVISIONS OF THIS AGREEMENT AND THAT SUCH A LIABILITY IS A FAIR AND REASONABLE
ESTIMATE OF ANY LOSS AND DAMAGE LIKELY TO BE SUFFERED IN THE EVENT OF ANY
WRONGFUL ACT OR OMISSION BY COMPANY.  TO THE MAXIMUM EXTENT PERMITTED
BY APPLICABLE LAW, IN NO EVENT SHALL COMPANY BE LIABLE FOR COST OF PROCUREMENT
OF SUBSTITUTE PRODUCTS OR SERVICES, LOST PROFITS, OR ANY SPECIAL, INDIRECT,
RELIANCE, CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY
OF LIABILITY, RELATED TO THIS AGREEMENT OR THE PRODUCTS.  THIS
LIMITATION SHALL APPLY EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.  DISTRIBUTOR AGREES THAT THE PRICE OF THE PRODUCTS
REFLECTS THIS ALLOCATION OF RISK.  TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, COMPANY SHALL HAVE NOT LIABILITY WITH RESPECT TO DISTRIBUTOR’S
END USERS, RESELLERS AND/OR ANY OTHER THIRD PARTIES.

    NOTWITHSTANDING
THE TERMS OF THIS SECTION, COMPANY DOES NOT EXCLUDE LIABILITY IN RESPECT OF
PERSONAL INJURY OR DEATH EXCEPT TO THE MAXIMUM EXTENT THAT IT CAN BE EXCLUDED OR
LIMITED BY LAW.

     

    
      
        
        

      

      
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              9.  

            	
              CONFIDENTIAL
      INFORMATION. “Confidential Information” means any information, technical
      data, or know-how that, if disclosed in written form, is designated in
      writing to be confidential or proprietary, or if disclosed orally, is
      summarized and confirmed in writing within thirty (30) days as being
      confidential or proprietary.  Notwithstanding the foregoing, all
      Price list, Product information, the terms and conditions of this
      Agreement and any Addendum are deemed Confidential Information.
      Confidential Information does not include information, technical data or
      know-how that

            

    

    
      	
              (i)  

            	
              Is
      in the possession of the receiving party at the time of disclosure as
      shown by the receiving party’s files and records in existence prior to the
      time of disclosure, or

            

    

    
      	
              (ii)  

            	
              Prior
      to or after the time of disclosure becomes part of the public knowledge or
      literature, not as a result of any wrongful inaction or action of the
      receiving party, or

            

    

    
      	
              (iii)  

            	
              Is
      developed independently by the receiving party without use of or reference
      to the Confidential Information of the disclosing party,
  or

            

    

    
      	
              (iv)  

            	
              Is
      properly  acquired from a third party having the right to
      disclose such information,

            

    

    
      	
              (v)  

            	
              Is
      approved in writing for release by the disclosing party,
  or

            

    

    
      	
              (vi)  

            	
              Is
      required to be disclosed by administrative or judicial action, provided
      that the disclosing party is afforded sufficient time in advance to oppose
      or limit such disclosure.  Each party agrees not to use
      Confidential Information disclosed to it by the other party for its own
      use or for any purpose except to perform as required under this
      Agreement.  Neither party shall disclose the Confidential
      Information of the other party to third parties or to its own employees
      except employees who are required to have the information in order to
      carry out the contemplated business discussions.  Each party has
      had or shall have employees to whom Confidential Information of the other
      is disclosed sign a non-disclosure agreement in content substantially
      similar to this Agreement.  Each party agrees that it shall take
      all reasonable efforts to avoid disclosure of Confidential Information of
      the other including efforts at least as great as those used to protect its
      own confidential information.  Each party agrees to notify the
      other party in writing of any misuse or misappropriation of any
      Confidential Information of the other which may come to its
      attention.

            

    

    

    
      	
              10.  

            	
              MISCELLANEOUS

            

    

    

    10.1
Independent Relationship.  The relationship of COMPANY and Distributor
is independent and only that of a vendor and vendee.  Nothing
contained in this Agreement shall create any agency, employment, partnership,
joint venture or similar relationship between COMPANY and Distributor for any
purpose.  No party shall have any right whatsoever to incur any
liabilities or obligations or to make any warranties on behalf of or binding
upon another party.

    

    10.2
Indemnification.  Distributor agrees to indemnify and hold COMPANY
harmless against any claim, liability, expenses, judgements, attorney fees and
damages that COMPANY becomes liable for by any reason of Distributor’s breach of
this Agreement or Addendum, or by reason of any act or omission of Distributor
in marketing, selling or supporting the Products.

    

    10.3
Force Majcure.  Except for payments of monies, no party shall be
liable for its failure to perform any obligations on account of strikes,
shortages, failure or acts of suppliers, riots, insurrection, fires, flood,
storm, explosions, acts of God, war, acts of terrorism whether actual or
threatened, acts of a public enemy, epidemies, quarantines, governmental action,
labor conditions, earthquakes, material shortages or any cause which is similar
to those enumerated or beyond the reasonable control of such party.

    10.4
Nonassignability and Binding Effect.  The parties shall not assign or
transfer this Agreement, except that COMPANY may assign and transfer its rights
and obligations under this Agreement to an affiliate, parent or subsidiary of
COMPANY.  Subject to the foregoing sentence, this Agreement shall be
binding upon and insure to the benefit of the parties hereto and their
successors and permitted assigns.

    

    10.5
Notices.  Any notice to be given under this Agreement shall be
delivered to the address specified above postage prepaid, and if to COMPANY to
its Legal Department

    (i) by
registered or certified mail,

    (ii) by
overnight courier,

    (iii) by
fax, or

    (iv) by
first class mail.

    Notice so
given shall be deemed effective when first sent.

    

    10.6  Governing
Law; Jurisdiction; Venue.  The laws of Switzerland shall govern this
Agreement.

    

    All
disputes arising out of this Agreement shall be settled through the Arbitration
Rules of (ICC) the International Chamber of Commerce in Paris.  The
place of Arbitration is Zurich.

     

    
      
        
        

      

      
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    10.7
Export Law Compliance.  Distributor understands and recognizes that
the Products and other material made available under this Agreement are subject
to the export administration regulations of the United States Department of
Commerce, other United States government laws and regulations related to the
export of technical data and equipment and products, and applicable foreign laws
and regulations. Distributor shall be solely responsible for compliance
with all such laws and regulations, and agrees to comply, and to ensure that its
resellers comply, with all such laws and regulations, including any future
modifications thereof.  Distributor and its resellers shall be solely
responsible for obtaining any necessary export licenses and
exemptions.  All products and related information and materials are
prohibited for expert or re-export to a number of countries and person,
including without limitation Cuba, Iran, Iraq, Libya, North Korea, Sudan, and
Syria, and to any person or entity on the U.S. Department of Treasury’s list of
Specially Designated Nationals, Specially Designated Narcotics Traffickers and
Special Designated Terrorists.

    

    10.8
Compliance With Law.  Distributor shall provide, pay for, be
responsible for, and keep in good standing all licenses, permits or other
applicable approvals pertaining to activities engaged in by Distributor that may
be required.  Distributor shall comply in all respects with all
applicable laws and regulations, including without limitation federal, state,
local and foreign laws and regulations, pertaining to the distribution of the
Products and its obligations and activities under this Agreement.

    

    10.9
Severability.  If any provision of this Agreement is found to be
invalid, unlawful or unenforceable by a court of competent jurisdiction, such
invalid term shall be severed from the remaining portion of this Agreement,
which will continue to be valid and enforceable to the fullest extent permitted
by law.

    10.10
Entire Agreement.  This Agreement consists of the terms and conditions
herein and constitutes the entire Agreement between the parties which supersedes
all prior agreements, discussions and understandings, whether oral or written,
between the parties hereto with respect to the subject matter
hereof.  This Agreement may be executed in faxed counterparts, each of
which shall be deemed an original and all of which together shall constitute one
instrument.  This Agreement may be modified only by a written
Amendment hereto executed by duly authorized representative of all the
parties.

    

    10.11
Language.  This Agreement is in English only, which shall be
controlling in all respects.  All communications and notices shall be
in English.

    

    

    

    

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representative on the dates set forth below.

    

    
      DISTRIBUTOR:

      Gonagen
Ilac Ithalat Ihracat Sanayi ve Ticaret A.S 

      

      By: s/  Gulbin
Bahceci                                                     

       

      Printed
Name:  Gulbin
Baheci                                          

      

      Title:
 General
Manager                                                   

      

      Date:
October 16, 2008                                                     

      

       

      

      

      BioXcell,
Incorporated

      

      By: s/Sean M
Paradis                                                       

                                               

      Printed
Name: Sean Michael
Paradis                            

      

      Title:
Vice President, Sales
&
Mktg.                             

      

      Date:
October 16, 2008                                                     

      

    

    

    

    

    

    
      
        
        

      

      
        6ex10-06.htm

    Exhibit
10.06

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

      Terms and
Conditions

    

    

    THIS
AGREEMENT is made this 17  day of January
,  2009,  between INVO BioScience Inc. (INVO), a Nevada
Corporation having a place of business at 100 Cummings Center, Suite 421E,
Beverly, MA 01915 USA, and Centro de Reproduccion Humana de Lima, having a place
of business at Peru (“Distributor”).

    

    INVO is
the global manufacturer of INVOcell® Medical Devices

    

    Distributor
desires to obtain from INVO and INVO desires to grant to Distributor, on the
terms and conditions set forth below, the right to import, sell and distribute
the Products (as hereinafter defined) in the Territory (as hereinafter
defined).

    

    INVO is
entering into this Agreement based on assurances that Distributor will devote
its best efforts to market and sell the Products in the Territory for its own
account and will otherwise adhere to all the terms and conditions of this
Agreement.

    

    The
parties agree as follows:

    

    1.            
GRANT OF DISTRIBUTION
RIGHTS

    

    
      	
              A.  

            	
              Subject
      to all of the terms and conditions of this Agreement (including the
      attached Exhibits), INVO hereby grants Distributor an Exclusive Master,
      non-transferable  distributorship as set forth in Exhibit C
      Exclusive Distribution Milestones in the geographical territory described
      in Section 2 below (the "Territory") for its Products.  The
      "Products" are those items which, as of the date of this Agreement, are
      attached as Exhibit A - Products, Pricing & Terms, and are outlined
      below.

            

    

    

    Products:

     

    
      	
              a.  

            	
              INVO
      branded products only, including:

            

    

     

    
      	
              i.  

            	
               INVOcell®

            

    

     

    
      	
              ii.  

            	
               INVOcell
      Block®

            

    

     

    
      	
              iii.  

            	
              Perforated
      Diaphragms

            

    

    

    
      	
              iv.  

            	
              Any
      other products that INVO, in its sole discretion, agrees to sell to
      DISTRIBUTOR during the term hereof, including any non-standard/custom
      products, as evidenced by an amendment to this Agreement signed by the
      parties;

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    
      	
              v.  

            	
              Any
      improved or updated versions of the foregoing products or replacements of
      discontinued products that are added to this Agreement by an amendment to
      this Agreement signed by the
parties

            

    

     

    
      	
              vi.  

            	
              Any
      other products actually purchased by distributor from INVO during the term
      hereof that might be added to this agreement on a case-by-case
      basis;

            

    

     

    
      	
               
      

            	
              The
      preceding products will be referred to throughout this Agreement as the
      "Products."

            

    

     

    
      	
              B.  

            	
              The
      following are expressly excluded as Products under this
      Agreement:

            

    

    

    
      
        	
                 
      

              	
                    
      (i)

              	
                Products
      the international shipment of which is subject to prohibitions or
      penalties imposed by United States laws or regulations;

              
	 	 	 
	 	
                      (ii) 

              	Products
      manufactured by INVO licensees in the Territory, if
  any;

      

    

     

    
      	
               
      

            	
                  
      (iii)

            	
              Products
      which have been ordered by third parties but have not been delivered
      before the commencement of this
Agreement;

            

    

    

    
      	
               
      

            	
                   
      (iv)

            	
              Products
      for which exclusive rights in the Territory have been granted to others as
      of the date of this Agreement;

            

    

    

    
      	
              (v)  

            	
              Products
      for which territorial restrictions apply in a license, distribution or
      other agreement through which INVO has acquired or retains the right to
      distribute such products;

            

    

    

    
      	
               
      

            	
              C.

            	
              Without
      limiting INVO’s other rights, INVO is expressly entitled (i) to sell or
      solicit sales to persons located outside the Territory (even if such
      persons request delivery into the Territory), (ii) to sell or solicit
      sales directly to customers as a result of a multi-facility sales
      agreement entered into directly by INVO and its customer, and (iii) to
      grant exclusive or non-exclusive manufacturing, distribution and/or
      trademark licenses or agreements covering the Products outside of the
      Territory and manufacturing licenses or agreements within the
      Territory.

            

    

    

    2.           
TERRITORY

    

    
      	
              A.  

            	
              The
      "Territory" is the entire geographic territory of as defined in Exhibit B.
      Distributor is appointed Distributor only for the Territory and will not
      distribute or sell any Products to any parties located outside the
      Territory.  Distributor will not distribute or sell Products in
      the Territory to any person or entity which Distributor knows or should
      know will distribute or sell Products outside the
      Territory.  Distributor will promptly notify INVO of all sales
      requests received from potential customers outside the Territory for
      products, including the Products, which are to be sold outside the
      Territory.   INVO reserves the right to distribute, whether
      directly or indirectly, any and all Products worldwide without restriction
      outside of the Distributors defined territory to any other entity,
      including without limitation to other distributors, dealers and original
      equipment manufacturers.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    3.            
TERM OF AGREEMENT AND EARLY
TERMINATION

    

    A.           This
Agreement will begin on commencement date above and will continue
for  _five (5) years until  January,
17,  2014.  Within ninety (90) days of the anniversary of
this Agreement, INVO and Distributor will review Distributor's sales and payment
performance and other compliance with the terms of this Agreement during the
prior Contract Year (as defined below).  Both parties can decided to
extended this agreement for an additional period of not greater than one
year.  For the purposes of this Agreement, "Contract Year" means a
twelve-month period beginning on the anniversary date of this
Agreement.

    

    B.           Early
Termination.  Notwithstanding any other provisions of this
Agreement, this Agreement may be terminated before its normal expiration date
under the following circumstances:

    

    1.           Either
party has the right to terminate this Agreement at any time by a written notice
to the other party given no less than ninety (90) days in advance of the
intended date of termination.

    

    2.           If
either party defaults in the performance of any of its obligations under this
Agreement, the other party may give written notice to the defaulting party
specifying the nature and the extent of the default and demanding a cure to the
default, and the defaulting party will then have thirty (30) days to cure each
default.  If the default is not cured within thirty (30) days of the
date of notice, then the aggrieved party may by written notice terminate this
Agreement effective immediately upon the defaulting party's receipt of the
notice.

    

    3.           If
either party becomes bankrupt or insolvent, or makes an assignment for the
benefit of its creditors, or has a receiver appointed for it or for any of its
properties, the other party will have the right to terminate this Agreement
effective immediately upon the date of written notice to the other
party.

    

    4.           INVO
will have the right to terminate this Agreement immediately in the event of a
merger, consolidation, or change of control, directly or indirectly, of
Distributor or a transfer by, or agreement to transfer by, Distributor of
substantially all of its business or assets.

    

    5.           INVO
will have the right to terminate this Agreement immediately if INVO believes in
good faith that Distributor has defaulted in the performance of any of its
obligations under Article 6, 10 or 11 of this Agreement. Nevertheless,
INVO  may give written notice to the distributor specifying the
default and demanding a cure to the default, and the defaulting party will then
have thirty (30) days to cure each default.  If the default is not
cured within thirty (30) days of the date of notice, then the aggrieved party
may by written notice terminate this Agreement effective immediately upon the
defaulting party's receipt of the notice.

    

    

    6. INVO will
have the right to terminate this Agreement immediately upon written notice to
Distributor in the event that any other agreement existing between INVO (or its
affiliates) and Distributor (or its affiliates) terminates for cause during the
term of this Agreement.

    

    7. If the government or Peruvian
authority by any reason forbids the commercialization of the
product.

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    C.           Obligations Upon
Termination

    

    1.        In
the event of the termination of this Agreement by INVO pursuant to Sections
3.B.2. or 3.B.5., INVO will have the right to withhold payment of any amounts
owed by INVO under the Agreement as a set-off against any damages, including
fines and attorneys' fees, which INVO incurs as a result of Distributor's
default.

    

    2.          Immediately
upon the termination or expiration of this Agreement, Distributor's appointment
will terminate and all of Distributor's rights under the Agreement will
terminate, including the right to any additional payments, severance or
termination fees, or other termination claims, except that Distributor will have
the non-exclusive right to sell its remaining inventory of the Products, subject
to the terms and conditions of this Agreement. Following any expiration or
termination of this Agreement, if requested in writing by INVO at its sole
option, Distributor will within 30 days of request return all unsold quantities
of Products in its inventory. INVO will refund Distributor within 30 days of
receipt of such returned inventory the purchase price paid for such Products
which exceeds all amounts due INVO under this Agreement or otherwise, provided
that such Products are in salable condition.

    

    3.          The
termination or expiration of this Agreement will operate as a cancellation, as
of the date of the termination, of all orders which have not been shipped by
INVO to Distributor and, thereafter, INVO will not be obligated to fill such
orders.  Distributor will be unconditionally obligated to take and pay
for all Products ordered and shipped prior to delivery of notice of
termination.  Within thirty (30) days after the date of termination or
expiration of the Agreement, Distributor will pay all outstanding invoices and
deliver to INVO any and all other sums due INVO from Distributor under the
Agreement and will return to INVO all trade secret and confidential information
belonging to INVO, along with any and all sales aids which INVO may have
supplied to Distributor under this Agreement.

    

    4.           Upon
the expiration or effective date of termination of this Agreement, Distributor
will immediately remove from its premises and elsewhere all signs and
advertising relating to INVO and the Products and will stop all use of the INVO
Trademarks and all other trademarks and trade names identified with the
Products.  Distributor will also ensure that all such use by any
assistant or subsidiary distributors or others claiming rights from Distributor
will also immediately cease and will no longer use, without INVO written
consent, any name, title, or expression in connection with any business in which
Distributor is engaged which, in the judgment of INVO, so nearly resembles any
trademark or trade name, or part thereof, owned by INVO, including the INVO
Trademarks, as to be likely to lead to confusion or uncertainty on the part of
the public.

    

    Nevertheless,
the DISTRIBUTOR would have the right to sell all the products already bought
after the termination of this agreement.

    

    5.           It
is understood by the parties hereto that in the event of the termination of this
Agreement or its expiration, INVO shall have no obligation whatsoever to
reimburse or otherwise compensate Distributor, in whole or in part, for the
capital or labor investment undertaken in connection with the storage or
distribution of the Products, including without limitation its investment in
personal or real property or any improvements thereto, any personnel employed by
Distributor engaged in the handling, storage or distribution of the Products,
for advertising, promotion or marketing efforts undertaken in connection with
the Products, or to compensate or indemnify Distributor in any other way
whatsoever, including without limitation on account of the loss of prospective
profits on anticipated sales or commitments in connection with the business or
goodwill of Distributor. Distributor acknowledges that (i) Distributor has no
expectation and has received no assurances that its business relationship with
INVO will continue beyond the stated term of this Agreement or
its  termination in accordance with the terms of this Agreement, or
that any investment by Distributor in the promotion of Products will be
recovered or recouped by virtue of this Agreement; and (ii) Distributor will not
have or acquire any vested, proprietary or other right in the promotion of
Products or in any goodwill created by its efforts under this
Agreement.  THE PARTIES ACKNOWLEDGE THAT THIS SECTION HAS BEEN
INCLUDED AS A MATERIAL INDUCEMENT FOR INVO TO ENTER INTO THIS AGREEMENT AND THAT
INVO WOULD NOT HAVE ENTERED INTO THIS AGREEMENT BUT FOR THE LIMITATIONS OF
LIABILITY OUTLINED IN THIS ARTICLE.

    

    6.           The
expiration or termination of this Agreement will not affect any then existing
obligation of either party with respect to moneys already owed or to
Confidential Information (as defined below).

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    4.            
TERMS AND CONDITIONS OF SALE TO
DISTRIBUTOR

    

    A.           Purchase
Orders.  Distributor will order Products from INVO and INVO
will sell Products to Distributor pursuant to the terms and conditions in this
agreement.  In the event of a conflict between the terms of
Distributor's purchase order and the terms of this Agreement, the terms of this
Agreement will control.  Each confirmed purchase order will be an
agreement between Distributor and INVO for the delivery of Products in
accordance with this Agreement.  INVO may amend its terms and
conditions of sale on notice to Distributor, and such amended terms and
conditions will apply to all future orders placed by Distributor.

    

    B.           Price.  The price
payable by Distributor for Products purchased from INVO will be the Distributor
Price outlined in Exhibit A. The Distributor Price may be increased or decreased
by INVO.  The effective date of such price change will be upon ninety
(90) days notice from INVO..  The Distributor Price  does
not include export packing charges, handling, shipping and insurance charges,
inspection fees, consular fees, import or export duties, taxes, and levies
(including but not limited to, value added, property, sales, use, or similar
taxes), whether imposed by the United States or any other foreign, state or
local government.  The payment of the full amount of all such fees,
charges or taxes will be the responsibility of the Distributor.  If
INVO is required to collect or pay any such fees, charges or taxes, the amounts
so paid or collected will be reimbursed by Distributor.  Distributor
will provide INVO with appropriate resale certificate numbers and other
documentation satisfactory to the applicable taxing authorities to substantiate
any claim of exemption from any such fees, charges or taxes.

    

    C.            Payment.  An open
terms credit limit may be established by INVO based on financial documentation
submitted by the Distributor.  Terms of payment will be outlined in
Exhibit A.  Payment for all purchase orders above the established
credit limit will be paid by confirmed, irrevocable letter of credit unless
otherwise agreed by the parties.  All payments will be made in United
States dollars. Failure to make any payment when due will be deemed a material
breach of this Agreement, and will entitle INVO to interest of overdue payments
at the rate of 1.5% (one and one half percent) per month.

    

    D.           INVO Remedies.  In
addition to any other legal or equitable remedies INVO may have, INVO reserves
the right to refuse to accept or to cancel any purchase orders placed by
Distributor and accepted by INVO, or to refuse or delay shipment, if Distributor
(i) fails to make any payment as provided for in this Agreement or a INVO
invoice, (ii) fails to meet reasonable credit or financial requirements
established by INVO, including any limitations on allowable credit, or (iii)
otherwise fails to comply with the terms and conditions of this
Agreement.

    

    E.           Risk of Loss and Title to
Products.  Risk of loss or damage to the Products will pass to
Distributor at INVO loading facility and INVO will have no further
responsibility for any damages or losses to the Products.  Distributor
must obtain insurance from an insurance company satisfactory to INVO covering
the Products in the amount equal to the purchase order price.  Title
to the Products will pass to Distributor when Products are loaded at INVO
facility, unless otherwise designated by INVO.

    

    F.           Discontinued
Distribution.  INVO reserves the right to discontinue the
distribution of any Products at any time, and to cancel any orders for
discontinued Products without liability of any kind to the Distributor or to any
other person by a written notice to the other party given no less than ninety
(90) days in advance of the intended date of discontinue.  No
cancellation, refusal or delay will be considered to be a termination or breach
of this Agreement by INVO.

    

    G.           Changes to
Products.  It is understood that the basic specifications of
any Product may be modified. INVO will notify immediately Distributor of
significant changes in specifications that will alter the use or handling of the
Product.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    5.            
GENERAL COMMERCIAL
CONDITIONS

    

    A.           Sales Promotion, Service and
Assistance.  Distributor will, at its own expense, use its best
efforts to introduce, promote the sale of (including, without limitation, visits
to existing and potential customers and the use of advertising, sales bulletins,
product displays, and exhibits), fill the demand for, and service the Products
within the Territory, deal promptly with all requests for service, and assist
purchasers of the Products in the satisfactory use of the
Products.  Distributor should provide all appropriate information
regarding the Products to existing and potential customers in the Territory and
will promptly reply to all requests for information, as well as to all
correspondence or purchase orders from customers.  INVO may send its
own representatives to visit and advise customers in the Territory, but will
notify Distributor in advance of such visits. FOR THE AVOIDANCE OF DOUBT BOTH
PARTIES HEREBY RECOGNIZE THAT IT IS CRUCIAL THAT THE DISTRIBUTOR ACTS AS A FULLY
FLEDGED DISTRIBUTOR PURSUANT TO THE TERMS HEREOF AND NOT SIMPLY A SALES
AGENT.

    

    B.           Sales
Structure.  Distributor will, at its own expense, set up and
consistently maintain adequate facilities for stocking the
Products.  Distributor will employ a trained and qualified sales
organization which must be adequate to cover the potential market for Products
in the Territory.  Distributor's sales people and clinical trainers
will be trained by INVO, in training courses scheduled from time to time by
INVO.  These employees of the Distributor will be the Distributor’s
trainers who will be charged with properly training the rest of the
Distributor’s organization to maintain the highest level of service to the
customer. Distributor will pay any costs of travel, room and board associated
with the training.

    

    C.           Inventory.  Distributor
will maintain an adequate inventory of Products (and accessories) at all
times.  An "adequate inventory" is defined as an inventory that will
allow Distributor to promptly and efficiently supply customers in the
Territory.

    

    D.           Safety, Health and Other
Regulations.  Distributor will keep INVO currently informed, in
writing, of all governmental and/or technical regulations that may apply to the
Products in the Territory.  INVO will determine whether any of the
Products will be modified in order to conform to any such regulations, but INVO
will not be required to modify any of the Products.

    

    E.           Resale
Prices.  Distributor is free to set its resale
prices.  All resale prices will be outlined in a current price list
for the Products, and that price list will be consistently maintained by
Distributor.

    

    F.           Regulatory Approvals; Compliance with
Law.

    

       
1. INVO
represents and warrants that the INVOcell® Product is approved in European Union
(EU) and Canada and has received ISO 12485 certification and the CE
mark.

    

    
      	
               
      2. 

            	
              Distributor,
      at its own expense, will obtain all necessary permits and licenses for the
      importation of the Products into the Territory and Distributor is
      responsible for obtaining all necessary regulatory approvals and complying
      with local laws regarding the distribution, sale or use of the Products
      within the Territory.  INVO will cooperate with the Distributor
      in obtaining any necessary
approvals.

            

    

    

    

    G.           Accurate Records; Reports of
Operation.  Distributor agrees to maintain accurate and
complete books, records and accounts of transactions under this
Agreement.  Distributor will provide INVO with its financial reports,
reports of inventory levels, actual and forecast sales, market trends for the
sale of Products, and such other information as INVO reasonably
requests.

    

    1  The product is classified
as a class 2 Medical Device and as such proper record keeping must be maintained
by the Distributor by Lot Number to the customer and end user.

    

                    2
The Distributor must instruct its customer of their responsibility to maintain
proper lot tracking records of each INVOcell® used in a procedure.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    H.           No Repackaging.  All
shipments of the Products purchased by Distributor will be marketed by
Distributor in their original configuration including the original labels
provided by INVO.  Components should not be mixed, repackaged, sold
separately, or offered in any form other than that provided by
INVO.  The only exception to this is if local language operating
instructions are required by custom or law.

    

    I.           Advertising.

    

    1.           Subject
to Section 5.I.2 and Article 11, all advertising by Distributor will follow
general advertising statements and specific instruction as to the use of INVO
Trademarks (as hereinafter defined) provided by INVO. The INVO name and the INVO
Trademarks will be featured in all advertising and promotion by Distributor
targeted to the Territory with respect to the Products unless otherwise
previously agreed upon in writing by INVO.  INVO may request
Distributor to alter its advertising, and Distributor will comply with all such
requests at its sole expense.  INVO will provide approved copy of
recommended materials bearing the INVO brand for use by the Distributor while
this agreement is in effect.

    

    2.           Distributor
agrees, upon request, to promptly discontinue any advertising or practice which
INVO reasonably determines might mislead or deceive the public or which might be
detrimental to the good name, trademarks, trade names, goodwill or reputation of
INVO  or the Products.  Distributor may not advertise the
Products outside the Territory.  Any Product which Distributor
advertises or otherwise represents to customers as being made by or obtained
from INVO must in fact be so made or obtained.

    

    J.           Commercial
Practices.  The Distributor will at all times respect the laws
and rules of commerce and fair competition in the Territory.

    

    K.           Inspection.  Upon
request, INVO and its representatives will have reasonable access, during normal
working hours, to Distributor's place(s) of business and inventory stock to
review Distributor's compliance with this Agreement.

    

    L.           Cooperation with
Recall.  If INVO, or one of INVO suppliers, institutes a recall
or notification campaign, or similar program, with respect to any one of the
Products, Distributor will assist INVO in any way necessary to comply with the
terms and goals of the campaign or program.

    

    M.           Limited
Warranty.  INVO agrees to warrant the Products to Distributor
in accordance with its limited warranty in effect at the time of shipment
..  INVO’s limited warranty may be changed by INVO at any time in its
sole discretion upon thirty (30) days' written notice to
Distributor.  INVO’s limited warranty and other remedies provided
under this Agreement are assignable to Distributor's customers only when
required under the law of the Territory.  In the event that
Distributor extends to any customer a warranty which differs from INVO limited
warranty, Distributor will be exclusively responsible for such extended
warranty, will support all consequences regarding the warranty and will hold
INVO harmless with regard to any warranty related costs. INVO WILL HAVE NO
LIABILITY TO DISTRIBUTOR, DISTRIBUTOR'S CUSTOMERS OR OTHER THIRD PARTIES FOR
CLAIMS OR DAMAGES OF ANY KIND, INCLUDING INCIDENTAL OR CONSEQUENTIAL DAMAGES,
OTHER THAN AS EXPRESSLY PROVIDED FOR IN THIS AGREEMENT. No employee, agent or
representative of INVO has the authority to bind INVO to any oral representation
or warranty concerning any Product sold.  Any oral representation or
warranty made prior to the purchase of any Product and not set forth in writing
and signed by a duly authorized officer of INVO shall not be enforceable by
Distributor. INVO makes no warranty and shall have no obligation with respect to
expendable or consumable parts and supplies or with respect to damage caused by
or resulting from accident, misuse, neglect or unauthorized installation,
alterations or repairs to the Products.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    INVO
warrants to the original end user only for 60 days from such end user’s purchase
date of the Product(s), if used as authorized in accordance with INVO
specifications, will not have significant defects in materials or workmanship
that make the Products unusable. INVO makes no warranty or representation that
the Products will meet any end user’s specific requirements, that the operation
of the Products will be secure or error free, or that all defects in the
Products will be corrected.  INVO makes no warranty, implied or
otherwise, regarding the performance or reliability of any third party products
such as culture medium.  Unintended use, not following instructions
for use (IFU),  modification or repair of the Products voids all
warranties.  INVO
EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,
INCLUDING THE WARRANTIES OF MERCHANTABILITY, AND FITNESS FOR A PARTICULAR
PURPOSE.

    

    N.             Warranty Return Procedures.
Distributor shall be responsible for and shall coordinate all communication with
its resellers and end users concerning warranty claims, maintenance and support
requests, including without limitation obtaining proof of purchase from the end
user. Distributor shall comply with INVO’s then current Product return
procedure, which INVO may change from time to time.  This procedure is
called Return Material Authorization (RMA) process. At its option, INVO shall
repair or replace defective Product(s) that are covered by INVO’s limited
warranty and returned in accordance with INVO’s RMA procedure by using new
materials or provide a refund of the price paid to INVO for such
Product.  The Distributor shall pay for all shipping charges,
insurance, taxes, duties, and others charges for all RMA shipments. INVO shall
pay freight charges on shipments, duties, customs, taxes and other charges on
such shipments to Distributor of the repaired or replaced Product(s) under
warranty; however, Distributor shall pay all duties, customs, taxes and other
charges on such shipments.  Products that INVO determines are not
defective, not under warranty or not returned in compliance with INVO’s return
(RMA) procedure shall be returned to Distributor and Distributor shall pay all
freight, insurance, duty, taxes and others charges related to these
Products.  It is the Distributor’s responsibility to manage its
inventory of INVO Products. The products have a three (3) year shelf life and
cannot be returned if they exceed the expiration date (greater than three years
old).

    

    O.           
Indemnification.  Distributor
will defend, indemnify and hold harmless INVO, its officers, directors, their
successors, representatives and assigns, and INVO affiliated companies against
any and all liability, claims, causes of action, suits, damages and expenses
(including reasonable attorneys' fees and expenses), which they, or any of them
are or become liable for, or may incur, or be compelled to pay by reason of any
acts, whether of omission or commission, that may be committed or suffered by
Distributor, any of its servants, agents or employees or any other persons who
are connected with the distribution of the Products in connection with the
performance of this Agreement.  Distributor releases INVO and its
affiliated companies from any direct, collateral, incidental or consequential
damages, whether for personal injury or property damage, in connection with
Distributor's or such other persons' sale or other disposal of any Product,
except for such damages as are covered by insurance.  INVO will not be
liable to Distributor for any claim arising from or based upon the combination
or use of any Product with other products not supplied by INVO, or arising from
any alteration or modification by Distributor or others of
Products.  The provisions of this Section will survive the termination
of this Agreement.

    

    P.           
Status of the
Parties. Distributor, its agents and employees are in no way the
sales representatives or agents of INVO for any purpose whatsoever and have no
right or authority to represent themselves or act as such or in any way to bind
INVO to any obligation to a third party, and they will not assume or create in
writing or otherwise any obligation of any kind, express or implied, in the name
of or on behalf of INVO, unless specifically authorized to do so in writing by
INVO and in accordance with the conditions specified by INVO

    

    Q.           
Distributor an Independent
Contractor. The Distributor warrants and agrees that it will be at
all times an independent contractor, and that it will do business at its own
risk and for its own profit and not as a partner, joint venture, agent or
employee of INVO or of any of its affiliated companies.  Distributor
and its agents and employees will not be entitled to any benefits, privileges or
compensation given or extended by INVO to INVO’s employees.  All sales
personnel and other agents and employees of Distributor will be deemed to be
Distributor's agents and employees exclusively, and their entire management,
direction and control will be the responsibility of
Distributor.  Distributor will be responsible for any and all
expenses, charges, fees, and taxes that may be levied or imposed by any
authority within the Territory or elsewhere, upon Distributor by reason of its
activities under this Agreement.

    

    R.          
 Limitation of
Actions. Any cause of action for breach of warranty must be brought by
Distributor, if at all, within ninety (90) days from the date the cause of
action accrued.  Additionally any discrepancy in Distributor's pricing
or other charges shall be deemed waived by Distributor unless Customer notifies
Distributor thereof, in writing, within sixty (60) days from the date of the
invoice on which such disputed transaction is reflected.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    6.            
REPRESENTATIONS AND WARRANTIES
OF DISTRIBUTOR

    

    Distributor
specifically represents, warrants and agrees to the following and agrees to
indemnify, defend and hold INVO and its affiliated companies harmless from the
results of any failure on its part to comply with the following:

    

    A.           Distributor
will comply in all respects with all United States and foreign laws, regulations
and standards applicable to its activities under this Agreement as such laws,
regulations and standards may be amended from time to time ("Applicable Law"),
and will conduct its activities in accordance with professional business
practices of honesty and integrity.  In that connection, the
Distributor represents and agrees:

    

    1.          that
it is familiar with the provisions of United States law regarding international
transactions, including, without limitation, the U.S. Foreign Corrupt Practices
Act and that it will comply in all respects and at all relevant times with
Applicable Law

    

    2.          that
it will from time to time confirm to INVO, upon written request by INVO, that it
is in compliance with Applicable Law, the Code of Conduct, and any other INVO
policy relating to the transaction of business in the Territory that has been
communicated to the Distributor; and

    

    3.          that
none of its partners, owners, principals, officers or staff members are
officials, officers or representatives of any government or political party or a
candidate for political office, and no part of the fees it is to receive under
the terms of this Agreement will be used for any purpose which would violate
Applicable Law.

    

    B.       Distributor
represents and warrants that it has full power and authority to enter into and
perform its obligations under this Agreement, and that its performance will not
conflict with or constitute a breach of or default under any existing contract,
promise or obligation of Distributor.

    

    7.           
 RESPONSIBILITIES OF
INVO

    

    A.           INVO
will furnish to Distributor current information on Products, any price or
information changes concerning the Products and will inform Distributor of all
changes to the Distributor Price outlined in Exhibit A with prior notice of 90
days.

    

    B.           INVO
will cooperate with Distributor in promoting the sale of the Products and will
supply Distributor with product bulletins, price lists, advertising material,
regularly published literature and other sales promotion aids, in the English
language, of a type and in such amounts as INVO believes will enhance the
marketability of the Products.  The shipping costs, duties, taxes, and
other applicable expenses of such materials will be paid by
Distributor.  Exceptionally large quantities of any publication
requested by Distributor will be billed to Distributor at the reprint
price.  INVO will furnish to Distributor, upon request, and free of
charge, photographs, retouchings, negatives or engravings from INVO available
stock, but Distributor will pay for all literature or advertising in which it
uses any such materials.

    

    C.           INVO
will be responsible for obtaining any necessary licenses for the export of the
Products from the United States.

    

    D.           INVO
will furnish to the Distributor such technical and clinical advice, assistance
and support as INVO believes is reasonable to enable the Distributor to sell the
Products, but INVO may bill the Distributor for outside costs for such material
(e.g., Instructions for Use  manuals - IFU).  If at any time
other than as previously scheduled by INVO, it is necessary for an INVO employee
or agent to travel to Distributor's facility in connection with such sales,
clinical or technical training, Distributor will reimburse INVO for all
reasonable costs incurred in connection with such visit.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    8.            
MINIMUM PURCHASE
AMOUNTS

    

    During
the term of this Agreement, Distributor agrees to purchase from INVO a minimum
of Product, outlined in Exhibit C Milestones. Distributor expressly acknowledges
that such commitment is reasonable and a conservative estimate of the amount of
Product it can resell within the Territory.  The minimum purchase
quantity may be revised by the parties from time to time during the term of this
Agreement, but under no circumstances will the quantities for any year be less
than the quantities for the immediately preceding year.

    

    

    9.            
DISTRIBUTION OF OTHER
PRODUCTS

    

     A.          Distributor
will not, without INVO prior written consent, during the term of this Agreement,
manufacture, aid in the manufacture, export, sell, distribute or otherwise
handle competing products in the Territory or directly or indirectly facilitate
or promote the distribution or sale of any competing products or hold or
acquire, directly or indirectly, any participation in any organization or entity
selling, distributing or otherwise handling competing products or manufacture or
reproduce, in whole or in part, any Products, unless otherwise agreed to in
writing prior to the execution of this agreement.  For the purposes
hereof, "competing products" means any products similar to any of the Products
manufactured by INVO or which can be put to identical or similar uses or which
might compete with or hinder the sale of such
Products.  Non-compliance by Distributor with the provisions of this
Section 9 during the term of this Agreement will constitute an incurable default
under this Agreement.

    

    
      	
              B.  

            	
                     
      If this Section 10 or any part of it is held by a court or arbitration
      panel, administrative body or governmental agency of competent
      jurisdiction to be invalid, illegal or unenforceable for any reason, it is
      agreed that within such jurisdiction the restrictions set forth in Section
      9 will automatically be considered modified to embrace the greatest
      possible time and area of restriction then permitted under applicable law,
      and such invalidity, illegality or unenforceability will not impair the
      enforceability of these restrictions as so modified nor in any manner
      otherwise affect the remaining provisions of this
    Agreement.

            

    

     

    10.              TECHNICAL INFORMATION;
CONFIDENTIALITY

    

    A.           INVO
will furnish to Distributor technical information to assist Distributor in the
sale and service of the Products.  Distributor will reimburse INVO for
any costs incurred by INVO in obtaining such information from third
parties.  Distributor acknowledges that all technical and commercial
information and know-how (collectively, "Confidential Information") furnished by
INVO and its affiliated companies to Distributor during the term of this
Agreement is proprietary and is of a highly confidential and secret
nature.

    

    B.           All
Confidential Information is given and received in strict confidence and is to be
used by Distributor solely for the purpose of carrying out this
Agreement.  Distributor will keep in strict confidence the
Confidential Information and will not, for any reason whatsoever, reveal,
disclose, sell or transfer any part of such Confidential Information, directly
or indirectly, to its own employees or agents or to any third party except as
permitted by the terms of this Agreement.

    

    C.           In
the performance of its obligations under this Section, Distributor will at its
own cost take all precautions and steps which may be reasonably requested in
order to protect Confidential Information (including the bringing of legal
action in order to ensure that others respect this undertaking of
confidentiality).  Nothing in this Agreement should be interpreted as
prohibiting INVO from bringing such legal actions at its own expense within or
outside the Territory as INVO may choose.

    

    D.           Distributor
will have the right to disclose Confidential Information to those of
Distributor's employees and its subsidiary distributors who require the
information and Distributor agrees to exercise a high degree of care in the
selection of its employees and subsidiary dealers to whom Confidential
Information will be disclosed, and to bind them to obligations of
confidentiality at least as stringent as those provided for in this Agreement.
Distributor will indemnify and hold harmless INVO for the consequences of any
unauthorized disclosure or misuse of such Confidential Information.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    E.           Distributor's
obligations set forth in this Section will survive and remain in effect even
after the expiration or the termination of the present Agreement.

    

    F.           It
is expressly agreed that the obligations of Distributor to maintain the
confidentiality of Confidential Information under this Section will not apply to
any information which:

    

    (a)          was
in the public domain at the time of disclosure to Distributor;

    

    (b)          was
in the possession of Distributor without binder of secrecy prior to disclosure
to it; or

    

    (c)          though
confidential at the time of disclosure, subsequently becomes part of the public
domain through no fault of the Distributor.

    

    G.         Distributor
will immediately inform INVO if it becomes aware of any violations of INVO
Confidential Information rights within the Territory.  If INVO, after
consultation with Distributor but in its entire discretion, decides to institute
a legal action in its own name, it may do so at its own
expense.  Distributor may participate in such legal action at its own
cost.  INVO will have the final decision with regard to the conduct of
all such legal actions and will retain all settlements, recoveries and judgments
arising from such actions, after reimbursement to Distributor for out-of-pocket
expenses, if any, incurred by Distributor in connection with legal action taken
at INVO specific request.  If Distributor decides not to participate
in such legal action, it will cooperate with INVO and assign to INVO any claims
it may have, without compensation.

    H.       
Distributor's obligations upon the expiration or termination of the Agreement is
to return all confidential information and documents.

    

    11.            TRADEMARKS

    

    A.           Distributor
acknowledges that the trademarks, trade names and logos used by INVO in
promoting its products and services (the "INVO Trademarks") are the exclusive
property of INVO or its affiliated companies.  Distributor undertakes
throughout the term of this Agreement to display the INVO Trademarks in
publications, signs and displays and in other suitable advertising and sales
promotion media in association with the names and/or illustrations of the
Products which are manufactured by INVO or its affiliated companies (the "INVO
Products") or such Products themselves only in a manner that is in compliance
with such rules and regulations regarding their use as INVO provides to the
Distributor.  Neither the Distributor nor any assistant or subsidiary
dealer of Distributor will acquire any right or interest whatsoever, as a result
of this Agreement, in any patents, the INVO Trademarks or other trademarks,
trade names, logos owned by INVO or its affiliated companies or other industrial
property rights of INVO or its affiliated companies or will use same in any
manner except as explicitly authorized by INVO.

    

    B.          If
any case of unfair competition or infringement by third parties in the Territory
of the INVO Trademarks or other trade names, trademarks or other industrial
property rights of INVO or its affiliated companies or of the manufacturers of
Products which are not INVO Products comes to the knowledge of Distributor, the
latter will inform INVO immediately.  INVO will, at its own
discretion, decide whether it will prosecute any such case of which it is so
notified and in what manner it will prosecute.  At the request of
INVO, Distributor will assist INVO to the best of its ability.

    

    C.          Distributor
will not use directly or indirectly, in whole or in part, any of the INVO
Trademarks or any other trademark or trade name that is now or may hereafter be
owned by INVO or its affiliated companies as part of Distributor's corporate or
business name, or in any way in connection with Distributor's business, except
to such extent and in such manner as INVO  may specifically consent to
in writing.

    

    
      	
              C.  

            	
              Distributor
      acknowledges that any breach of its obligations regarding INVO
      Confidential Information will cause INVO irreparable injury for which
      there are no adequate remedies at law, and therefore INVO will be entitled
      to equitable relief in addition to all other remedies provided by this
      Agreement or available at law.

            

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    12.           NOTICES

    

    Any
notice regarding this Agreement should be in writing and should be sent by fax
or by registered or certified mail, postage prepaid, to the party notified,
addressed to the party at its address or fax number outlined below, or any
updated address or fax number that the party may have submitted in writing to
the other party:

    

    

    

    

    

    

    If to INVO
at:                     INVO
BioScience, Inc.

    Attn:  Chief Financial
Officer

    Fax:  (978)
878-9505

    Suite 421E

    100 Cummings Center

    Beverly, MA 01915

    

    with a copy to:

    

    If to Distributor
at:   _________________________ 

                                                                                       
_________________________

                                                                                       
_________________________

                                                                                       
_________________________

    

    

    

    13.           ENTIRE AGREEMENT;
MODIFICATIONS

    

    This
Agreement and Exhibits attached form the entire Agreement and understanding
between the parties regarding this distributorship relationship.  This
Agreement may only be amended by a writing signed by duly authorized
representatives of both parties.

    

    14.           FORCE MAJEURE

    

    Neither
party will be liable for any claim regarding a failure to perform under this
Agreement if the failure to perform is due to any cause beyond the party's
reasonable control, including without limitation, acts of God, acts of civil or
military authority, labor disputes, fire, riots, civil commotions, sabotage,
war, embargo, blockade, floods, epidemics, power shortages, or governmental
restrictions.

    

    15.           ENGLISH LANGUAGE
TEXT

    

    This
Agreement has been executed in the English language, and any interpretation or
construction of  this Agreement should be based on the English
language text.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    16.            APPLICABLE LAW

    

    This
Agreement has been entered into in the Commonwealth of Massachusetts and will be
governed by and construed in accordance with the laws of the Commonwealth of
Massachusetts  without giving effect to principles of conflicts of
law.  The parties also agree that all sales made by INVO to
Distributor during the term of this Agreement will be made, if made, by the
acceptance by INVO of orders in the Commonwealth of
Massachusetts.  This Agreement will not be subject to the United
Nations Convention for the International Sale of Goods. Exclusive jurisdiction
of any disputes under this Agreement will lie in the Commonwealth of
Massachusetts and the Boston District of the Federal courts of the United States
of America.

    

    17.            ASSIGNABILITY; SUCCESSORS AND
ASSIGNS

    

    This
Agreement and the rights and obligations of Distributor outlined in this
Agreement are not assignable by Distributor, by operation of law or otherwise,
without the prior written consent of INVO BioScience, Inc.  Any
attempted assignment in violation of this Section will be considered
void.  INVO will have the right, without notice to Distributor, to
assign all or any part of its rights and obligations under this Agreement, but
only to one of its affiliated companies.  It is expressly agreed that
this Agreement will be binding on and will benefit the successors and permitted
assigns of the parties.

    

    18.            WAIVER

    

    The
failure of either party at any time to require performance by the other party of
any provision in this Agreement will not affect the full right to require such
performance at a future date, and a waiver of any one breach should not be
considered a waiver of any other breaches.

    

    19.           EQUITABLE RELIEF

    

    Distributor
acknowledges that any breach of its obligations regarding INVO Confidential
Information and Trademarks will cause INVO irreparable injury for which there
are no adequate remedies at law, and therefore INVO will be entitled to
equitable relief in addition to all other remedies provided by this Agreement or
available at law.

     

    20.           EXHIBITS

    

    Attached
to and are integral parts of this agreement, both parties are to
initial:

    

    ___           Exhibit
A:  Price List & Terms

    

    ___           Exhibit
B:  Territory

    

    ___           Exhibit
C: Exclusive Distribution Milestones

    

    ___           Exhibit
D:  _____

    

    ___           Exhibit
E:  _____

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    INVO
BioScience, Inc.

    Exclusive
Distribution Agreement

    
      

      

    

    

    

    21.  SIGNATURES

    

    

    AGREED
TO BY:

    

    Centro de
Reproduccion Humana de Lima INVO BioScience,
Inc.

    

    

    /s/Imelda Machado
Leon                                                                                                        /s/Brian
Files                   

    By:    Imelda
Machado
Leon                                                                                                   By:  Brian
Files

    Title:  General
Manager                                                                                                          
Title:  VP of Government Relations

    

    Date:   1/17/09                                                                                                                          
 Date:   1/17/09

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

    

    

    TERMS
AND CONDITIONS

    

    Exhibit
A

    Price
List

    (US
dollars)

    

    PRODUCTS

    

    INVOCELL                                FG-002                                                                          
$

    The
INVOcell device is a three-part assembly enclosed in two separate
packages.

    Package 1
contains the inner chamber, the 2nd package contains the top and

    bottom
parts of the outer rigid shell.

    

    INVOCELL
Block      FG-102                                                                                           $

    The
INVOcell Block is a device that holds the INVOCELL in a stationary
position

    allowing
the embryologist to easily rotate the INVOCELL for inspection and
extraction.

    

     INVOCELL Small
Diaphragm      FG-205                                                                         
$

    The
INVOcell diaphragm is a specially designed retention device that will
prevent

     the
INVOcell from becoming dislodged.

    

    INVOCELL  Large
Diaphragm     FG-210                                                                          $

    

    ADVISORY  SERVICES

    

    Clinical
Training                                                                                  $

    Sales
Training                                                                                     $

    Expert
Consulting                                                                               $

    

    

    PAYMENTS
TERMS

    

    

    50% 30
days in advance of shipment and the balance 15 days after receipt of
product

    

    

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    

    TERMS
AND CONDITIONS

    

    Exhibit
B

    Exclusive
Territory

     

     

    COUNTRY
of PERU

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
       

      INVO
BioScience, Inc.

      Exclusive
Distribution Agreement

      
        

        

      

    

    

    

    TERMS
AND CONDITIONS

    

    Exhibit
C

    Milestones

    

    As
a requisite to retain territory exclusivity the following milestones must be
adhered too based on a review of the territory and the market
potential.

    

    INVOcells
must be purchased by the following intervals:

    

                          
INVO
cell                                                                             
INVO cell

    Time
Period                                              Purchases in
Period                                                                Cumulative
Total

    Initial
Purchase                                                      

    1st  6
months                                                      

    12
months                                           

    24
months                                           

    36
months                                           

    48
months                                           

    60
months                                           

    

    

    

    

    Forecast

    

     

    Distributor
is to provide a 12 month rolling forecast updated quarterly, to allow INVO to
ensure it maintains sufficient inventory to meet the Distributors
requirements.

     

     

    If
the Distributor’s Territory includes multiple counties it will provide the
forecasts by country.

     

    

    

    

    
      
        
        

      

      
        17

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