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
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Beverly,
Massachusetts
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May 19,
2009
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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.
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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.
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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.
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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.
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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.
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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.
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Event of
Default . Upon
the occurrence of any one or more of the following events Maker
shall be in defaul
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