Document:

NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

WARRANT TO PURCHASE COMMON STOCK

 

OF

 

ATOSSA GENETICS INC.

 

ATOS –[#]

 

THIS WARRANT (the “Warrant”) certifies that,
for value received, [NAME] (the “Holder”), is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time commencing after the date hereof (the “Issuance Date”)
through 5:00 p.m. (New York City time) on the fifth anniversary of the Issuance Date (the “Expiration Date”),
but not thereafter, and shall entitle the Holder to subscribe for and purchase from Atossa Genetics Inc., a Delaware corporation
(the “Company”), up to [NUMBER] shares of the Common Stock of the Company (the “Warrant Shares”)
at a purchase price equal to $5.00 per share (the “Exercise Price”). This Warrant is one of a series of similar
warrants to purchase Common Stock issued pursuant to that certain Agreement and Plan of Reorganization, dated of even date herewith,
by and between the Company, Acueity Healthcare, Inc., and Ted Lachowicz, as the Stockholder Representative (the “Acquisition
Agreement”). All such warrants are referred to herein, collectively, as the “Warrants.”

 

Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in the Acquisition Agreement.

 

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Section 1. Exercise.

 

(a) Exercise of Warrant. Exercise
of the purchase rights represented by this Warrant may be made at any time or times on or after the Issuance Date and on or before
the Expiration Date by delivery to the Company of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto
as Exhibit A and the payment of the Exercise Price for the Warrant Shares so purchased by wire transfer or cashier’s
check drawn on a United States bank. Upon exercise of the Warrant, the Company shall issue and deliver to the person or person
entitled to receive the same, a certificate or certificates for the number of Warrant Shares issuable upon such exercise.

 

(b) Mechanics of Exercise.

 

i. Authorization of Common
Stock. The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued
shares of common stock, par value $0.001 per share (the “Common Stock”), a sufficient number of shares to provide
for the issuance of all of the shares of Common Stock issuable upon the exercise of the Warrant. The Company further covenants
that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing certificates
to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.
The Company covenants that the Warrant Shares which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid
and non-assessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue). The Company will take all such reasonable action as may be necessary to
assure that the Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any
requirements of the trading market upon which the Common Stock may be listed.

 

ii. Delivery of Certificates
Upon Exercise. Certificates for the Warrant Shares purchased hereunder shall be delivered promptly to the Holder, but in no
event later than five Business Days, from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant
and payment of the Exercise Price as set forth above (“Warrant Delivery Date”). This Warrant shall be deemed
to have been exercised on the date the payment of the aggregate Exercise Price for the Warrant Shares purchased is received by
the Company. The Warrant Shares shall be deemed to have been issued, and the Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such security for all purposes, as of the date the Warrant has been
exercised by payment to the Company of the aggregate Exercise Price for the Warrant Shares purchased and all taxes required to
be paid by the Holder, if any, prior to the issuance of such security, have been paid.

 

iii. Delivery of New Warrants
Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate
or certificates representing the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of such Holder to purchase
the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

 

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iv. Rescission Rights.
If the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to Section
1(b)(ii) by the Warrant Delivery Date, then the Holder will have the right to rescind such exercise.

 

v. Charges, Taxes and Expenses.
Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such
certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided,
however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

 

vi. Closing of Books. The
Company will not close its records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

Section 2. Certain Adjustments.

 

(a) Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not include any shares of Common Stock issuable by the Company pursuant to the Warrants), (B) subdivides
outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares
of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the
denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section
2(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

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(b) Fundamental Transaction. In case
of any reclassification, capital reorganization, exchange of shares, liquidation, recapitalization or change of the Common Stock
(other than as a result of a subdivision, combination, stock dividend or reclassification provided for in Section 2(a) hereof),
or in case of any consolidation or merger of the Company with or into another corporation or entity (other than a merger with a
subsidiary in which merger the Company is the continuing corporation and which does not result in any reclassification or capital
reorganization or change of the outstanding Common Stock) or in case of any sale, lease or conveyance to another corporation or
entity of all or substantially all of the assets of the Company, then the Company shall, as a condition precedent to such transaction,
cause lawful and effective provisions to be made (and duly executed documents evidencing the same from the Company or its successor
shall be delivered to the Holder) so that the Holder shall have the right thereafter upon exercise of this Warrant, to purchase
the kind and amount of shares of stock and other securities and property receivable upon such reclassification, capital reorganization,
exchange of shares, liquidation, recapitalization, change, consolidation, merger, sale or conveyance by a holder of the number
of shares of Common Stock which might have been received upon conversion of this Warrant immediately prior to such reclassification,
capital reorganization, exchange of shares, liquidation, recapitalization, change, consolidation, merger, sale or conveyance, and
in any such event, such provision shall include provision for adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for herein. The Company shall not effect any such consolidation, merger, sale, transfer or other disposition
described above, unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing or otherwise acquiring such assets shall assume, by written
instrument executed and mailed or delivered to the Holder of this Warrant at the last address of the Holder appearing on the books
of the Company, the obligation to deliver to the Holder such shares of stock, securities, cash or properties as, in accordance
with the foregoing provisions, the Holder may be entitled to acquire. The above provisions of this paragraph shall similarly apply
to successive reorganizations, reclassifications, exchanges, liquidations, recapitalizations, changes, consolidations, mergers,
sales, transfers or other dispositions, if any.

 

(c) Calculations. All calculations
and adjustments to the Exercise Price under this Section 2 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 2, the number of shares of Common Stock outstanding as of a given date shall be
the sum of the number of shares of Common Stock (excluding treasury shares, if any) outstanding.

 

(d) Notice to Holders. The Company
shall promptly give written notice of any adjustment under this Section 2 to each Holder, which notice shall include a brief statement
of the facts requiring such adjustment.

 

(e) Voluntary Adjustment By Company.
The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period
of time deemed appropriate by the Board of Directors of the Company.

 

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Section 3. Transfer of Warrant.

 

(a) Transferability. Subject to compliance
with any applicable securities laws and the conditions set forth in Sections 4(a) and 3(d) hereof, this Warrant and all rights
hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together
with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or
attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the
denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may
be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b) New Warrants. This Warrant may
be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

 

(c) Warrant Register. The Company
shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant
as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual notice to the contrary

 

(d) Transfer Restrictions. If, at
the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not
be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or
blue sky laws, the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant,
as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary
for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the
Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to
the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited
investor” as defined in Rule 501(a) promulgated under the Securities Act or a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act.

 

Section 4. Miscellaneous.

 

(a) Title to the Warrant. Prior to
the Expiration Date and subject to compliance with applicable laws and Section 4 of this Warrant, this Warrant and all rights hereunder
are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto properly endorsed. The transferee shall sign an
investment letter in form and substance reasonably satisfactory to the Company.

 

(b) No Rights as Shareholder Until Exercise.
This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise
hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares so purchased shall
be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the later of the
date of such surrender or payment.

 

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(c) Loss, Theft, Destruction or Mutilation
of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any certificate relating to the Warrant Shares, and in case of loss, theft or destruction,
of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any
bond), and upon surrender and cancellation of such Warrant or certificate, if mutilated, the Company will make and deliver a new
Warrant or certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or certificate.

 

(d) Saturdays, Sundays, Holidays, etc.
If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a
Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not
a Saturday, Sunday or legal holiday.

 

(e) No Impairment. Except and to
the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant or the Warrant Shares, but will at all times in good faith assist in the carrying out of all such terms and in the taking
of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant and the Warrant
Shares against impairment. Without limiting the generality of the foregoing, the Company will (a) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares upon
the exercise of this Warrant and (b) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations
under this Warrant and the Warrant Shares. Before taking any action which would result in an adjustment in the Warrant Shares for
which this Warrant is exercisable, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto,
as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

(f) Jurisdiction. All questions concerning
the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions
of the Acquisition Agreement.

 

(g) Restrictions. The Holder acknowledges
that the Warrant Shares acquired upon the exercise of this Warrant, if not then registered, will have restrictions upon resale
imposed by state and federal securities laws.

 

(h) Non-waiver and Expenses. No course
of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right
or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate
on the Expiration Date. If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results
in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by
Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

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(i) Notices. Any notice, request
or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance
with the notice provisions of the Acquisition Agreement.

 

(j) Limitation of Liability. No provision
hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant Shares, and no enumeration
herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

(k) Remedies. Holder, in addition
to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance
of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

 

(l) Successors and Assigns. Subject
to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder.

 

(m) Modification. The provisions
of the Warrants may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and
consented to by the Company and holders of at least a majority of the outstanding Warrants (based on the number of Warrant Shares
underlying the Warrants). Any such amendment, modification or wavier shall be binding upon the Holder of this Warrant regardless
of whether the Holder consented to such amendment, modification or wavier; provided that nothing shall prevent the Company and
the Holder from consenting to amendments, modifications or waivers to this Warrant that affect or are applicable to the Holder
only.

 

(n) Severability. Wherever possible,
each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

(o) Headings. The headings used in
this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

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IN WITNESS WHEREOF, the Company has caused
this Warrant to be executed by its officer thereunto duly authorized.

 

Dated:                             ,
2012

 

	 	ATOSSA GENETICS INC.
	 	 
	 	By:	 
	 	 	Name: Steven C. Quay
	 	 	Title: Chairman and Chief Executive Officer

 

[Signature Page to Warrant to Purchase Common Stock]

 

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Exhibit A

 

NOTICE OF EXERCISE

 

TO: ATOSSA GENETICS INC.

 

(1) The undersigned hereby elects to purchase shares of Common
Stock of Atossa Genetics Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment in full, together with
all applicable transfer tax;

 

(2) Payment shall take the form of lawful money of the United
States.

 

(3) Please issue a certificate or certificates representing
said Common Stock in the name of the undersigned or in such other name as is specified below (please include social security or
other tax identification number):

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(4) The Common Stock shall be delivered to the following:

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(5) The undersigned is an “accredited investor”
as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity or Individual: ____________________________________________________

 

Signature of Authorized Signatory of Investing Entity or
Individual: _________________

 

Name of Authorized Signatory: __________________________________________________________

 

Title of Authorized Signatory: ___________________________________________________________

 

Date: _____________________________________________________________________________________

 

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ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

 

this form and supply required information.

 

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

	 	 	 	 	 	 	 
	 	 	whose address is	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 
	 	 	 
	.	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

Dated:       

 

	 	 	Holder’s Signature:	 	 	 	 
	 	 	 	 
	 	 	Holder’s

 Address:	 	 	 	 

 

Signature Guaranteed:

 

NOTE: The signature to this Assignment Form must correspond
with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 

    	10CONFIDENTIAL TREATMENT REQUESTED

 

Redacted Portions are indicated by [****]

 

SUPPLY AND DISTRIBUTION AGREEMENT

 

This Agreement made and entered into
this 21st day of September, 2012 by Atossa Genetics Inc.(“Atossa”), a Delaware Corporation, having its principal
place of business at 4105 E. Madison Street, Suite 320, Seattle, WA, 98112, its successors and/or assigns and Diagnostics
Test Group LLC (“DTG”), a Delaware Corporation having its principal place of business at 33 SE 8th
Street, Boca Raton, FL 33432, its successors and/or assigns.

 

WITNESSETH:

 

WHEREAS, Atossa is the creator and
patent holder of the MASCT breast health test system and the ForeCYTE Breast Health Test;

 

WHEREAS, Atossa has agreed to supply
its MASCT breast health system to DTG on a co-exclusive basis for distribution in the United States, Puerto Rico and Canada; and

 

WHEREAS, DTG desires to purchase
the MASCT breast health system exclusively from Atossa and to sell such Product(s) upon the terms and conditions set forth herein.

 

IT IS MUTUALLY AGREED AS FOLLOWS:

 

		1.	Definitions

 

		1.1	“Affiliate” shall mean, with respect to any Party or any entity, which,
directly or indirectly, controls, is controlled by or is under common control by either of the Parties. "Control,"
including the terms "controls," "controlled" and "under common control"
means possession, directly or indirectly, of the power to direct or to cause the direction of the management policies of the entity
whether by the ownership of voting securities or interests, control, agreement or otherwise.

		1.2	“Market” shall mean OBGYN’s, Internists, primary care physicians, hospitals,
student health centers, surgery centers, Breast Centers of Excellence, alternate care, acute care, continuum of care, and mammogram
centers.

		1.3	“Effective Date” shall mean the date on which this Agreement is executed by
the last Party herein.

		1.4	“Party” shall mean each of DTG and Atossa individually and “Parties”
shall mean DTG and Atossa Genetics, Inc.

		1.5	“Products” shall mean MASCT breast health system (test).

		1.6	“Specifications” shall mean the technical, scientific and packaging specifications
required by DTG for the Products as indicated herein and any modifications thereto published by Atossa from time to time.

		1.7	“Best Efforts” shall mean the level of endeavor, which a prudent business
person would ordinarily expend in the normal course of business to accomplish an important objective.

 

    	 

    	 

    

 

		1.8	“Confidential Information” shall mean the Information and any other information
relating to the business or affairs of either of Parties hereto including, but not limited to, formulas, Products information,
financial records, marketing plans and studies, packaging and business strategies.

		1.9	“Good Faith Efforts” shall mean commercially reasonable and diligent efforts
to act without taking unfair advantage of the other Party.

		1. 10	"F.O.B" shall mean “Free On Board,”
and refers to the risk of loss of and/or damage to the goods being transferred from Atossa to DTG.

		1.11	"Force Majeure" shall mean an event that is beyond the reasonable control of the
applicable Party including an act of war (whether declared or not) or terrorism, the mobilization of armed forces, civil commotion
or riot, natural disaster, industrial action or labor disturbance, currency restriction, embargo, action or inaction by a government
agency, or unavoidable delay, failure of a supplier, public utility or common carrier.

		1.12	“Marketing” shall mean promoting, advertising and selling finished Products
to DTG’s Market.

		1.14	“Test Period” shall mean the seven month period during which the Product will
be launched and market tested.

		1.15	“Territory” shall mean the United States, Puerto Rico and Canada. Other
markets, countries and territories may be added to the Territory by advanced written consent of the Parties and on terms and conditions
mutually agreeable to the Parties.

		1.16	“Closing Date” shall mean the Effective Date of the Agreement.

 

2. Co-Exclusive Grant and Supply

 

		a)	Atossa hereby grants to DTG the co-exclusive right to sell and distribute its MASCT breast
health test (“Products”) in the Territory, with Atossa retaining co-exclusive rights to sell and distribute the Products
in the Territory under the terms of this agreement.DTG shall receive its marketing and sales fees as outlined in paragraph 7 hereafter
for any sales made by Atossa. In addition, DTG shall have the non-exclusive right to sell the Product(s) with Atossa’s prior
written approval anywhere outside of DTG’s assigned Territory. All Products and packaging licensed hereunder shall be private
labeled under DTG’s brand per its specifications. In addition, DTG shall have the right of first refusal for the co-exclusive
right to sell any of the other related breast cancer tests and products currently being developed by Atossa (the “Additional
Products”) on such terms and conditions as are hereinafter negotiated by the Parties. This right must be exercised within
thirty (30) days after Atossa notifies DTG of the availability of any of said Additional Products.

 

		b)	In turn, DTG agrees during the term of this Agreement that it will purchase breast health tests
only from Atossa and, further that it will not sell or distribute any other breast cancer tests than those manufactured by Atossa.
In the event DTG fails to reach its minimum annual required sales goal, Atossa shall retain the right to market its own brand of
MASCT in DTG’s Territory. If Atossa so elects, DTG shall have the right to terminate this Agreement in its entirety by providing
sixty days prior written notice thereof.

 

    	 

    	 

    

 

		c)	In order to avoid any unnecessary confusion in the marketplace, Atossa will assign its existing
client base to DTG. DTG shall thereafter be responsible for and derive the economic benefits from all future sales to such customer
base.

 

		d)	The Effective Date of this Agreement shall be on the Closing Date, which for purposes hereof shall
be concurrent with the Effective Date, or such other date as may be mutually agreed upon by the parties. Between the date that
this Agreement is executed and the Closing Date, DTG shall have the right to begin its preparations for the marketing and sales
process including, but not limited to preparation of the artwork, package design, product brochure, product slicks, and package
inserts.

 

3. Term and Termination

 

The term of this agreement shall be a rolling
six year period beginning on the Closing Date. After the completion of each year of the contract this Agreement shall automatically
be extended for an additional term of one year so long as DTG has achieved the minimum annual sales required by this Agreement.
If DTG fails to reach its minimum annual sales requirements for two consecutive years during the initial term or any extension
thereof, Atossa shall have the right to terminate the Agreement by providing sixty days prior written notice thereof to DTG. For
both such purposes, ****, 2013 (unless DTG’s initial Product launch occurs after ****, 2012, in which case
the first year commencement date will be delayed until seven months after such date) shall begin the first year during which DTG
shall be held accountable for reaching minimum annual required sales goals and annual performance shall be measured as of June
1 of each subsequent year. The goal for the first year is hereby set at **** tests. Future sales goals (requirements) shall
be set by mutual agreement of the Parties at the end of the first year, after taking into account actual sales results achieved
by DTG the first year and the capabilities of Atossa to fulfill its obligations under this Agreement. In the event that the Parties
fails to agree in any year on the sales goals in future years, then they shall be set at **** of the previous year’s
Product sales. Atossa shall have the right to conduct semi-annual reviews of DTG’s performance and to offer its advice and
counsel on how to improve sales.

 

4. Price

 

Atossa agrees to sell and supply DTG its
Products to sell to its customers in its Territory at such prices that reflect a mark-up not greater than ****. Recognizing
DTG’s contractual restrictions with it distributors, Atossa will sell and supply these Products for the duration of this
Agreement at the price and terms stated hereafter unless Atossa’s cost of these Products increases by more than ****
in any calendar year. In such event, after Atossa supplies DTG with reasonable evidence of said cost increase, Atossa may increase
the cost of these Products by no more than **** in any one calendar year, but in no event more often than twice in any six
year period. In the event that Atossa’s cost increases by more than **** in any calendar year, the Parties agree to
re-examine the pricing for the Product(s) in a good faith effort to reach a mutually agreeable solution.

 

    	 

    	 

    

 

5. DTG’s Marketing and Other Obligations

 

		a)	Best Efforts. DTG shall exert its Best Efforts to develop and to promote maximum sales and wide distribution of the
Products and Additional Products. DTG shall also provide such assistance to Atossa as is reasonably requested in the final design
and composition of the Products (and Additional Products, if applicable) and if applicable its software.

 

		b)	Goodwill. DTG shall promote the goodwill and good name of Atossa and otherwise do
everything in its capacity to further the best interest of Atossa and to establish and maintain the good reputation of Atossa.

 

		c)	Minimum Annual Order. After completion of the test period for the Product(s) ending on ****,
2013, DTG shall commit to purchase for all twelve month periods thereafter a certain minimum annual volume of the Product(s), the
amount of which shall be determined hereafter by the mutual agreement of the Parties. DTG herby commits to purchase in the first
year (twelve month period) starting ****, 2013, a minimum of **** breast cancer tests from Atossa. For each year
thereafter, **** said minimums shall be mutually determined by the Parties using the actual results of the previous years
as a basis for their collective determination. If the launch of the Product occurs after ****, 2012, then the commencement
of the first year (and for all years thereafter) shall be delayed by the number of days the launch is late; by way of example only,
if the Product launch is delayed until ****, 2012 (i.e., 14 days after ****, 2012), then the commencement of each
annual period shall be similarly delayed by 15 days to ****. In the event that the Parties fails to agree in any year on
the required annual minimum, it shall be set at **** of the previous year’s number of Clarity breast cancer tests
processed by Atossa Labs.

 

		d)	Compliance with Government Regulations. Each of the Parties hereto shall comply with
all rules and regulations of every governmental authority having jurisdiction over the handling, use, marketing, or sale of the
Products.

 

		e)	Training. DTG shall be primarily responsible for the training and supervision of its sales
reps and those of the various distributors for the Product(s). Atossa shall provide such assistance in the ongoing training process
as is reasonably necessary and beneficial to ensure the commercial acceptance of the Product(s).

 

		f)	Call coverage. During normal business hours, DTG shall provide call coverage for end users
that may experience problems with performance of the Products or questions regarding the use thereof. It is DTG’s responsibility
to report to Atossa any problems regarding the performance of the Products.

 

		g)	Forecasts. On or about the first day of each month during the term hereof, DTG shall provide
Atossa with 90 day rolling forecasts, the first 60 days of which shall be treated as a binding order. Atossa shall have the right
to periodically (no more frequently than twice a year) review and comment on DTG’s forecasts and their actual sales results.

 

    	 

    	 

    

 

		h)	Distribution. DTG shall use its Best Efforts to establish
product codes and contracted agreements, if such are deemed necessary by DTG, for the sale and placement of the Clarity branded
MASCT product line with at least the following distributors: Henry Schein, McKesson, PSS World Medical, Cardinal Health, VWR, Vaxserve,
Mercedes Medical, Fisher, NDC members, Imco members, B&H Surgical, Marshall Medical and Cascade HealthCare Products. DTG shall
submit to Atossa for its approval its plan designed to achieve such results prior to the formal launch of the Products.

 

5. Representations of Atossa

 

		a)	Atossa, its Affiliates and related companies warrant and represent that during the existence of
this Agreement, it will not license to any third party the rights to sell or consign directly or indirectly MASCT breast health
tests and Products to any person, firm or corporation for resale to any of DTG’s customers in the Territory; and

 

		b)	That all MASCT breast health tests and Products supplied hereunder will be of the same or comparable
quality as those samples previously supplied to DTG by Atossa; and

 

		c)	That its MASCT test is 510(k) FDA-cleared and that the ForeCYTE test performed on MASCT samples is categorized as a CLIA High
Complexity test and is performed exclusively at Atossa’s CLIA-certified laboratory ; and

 

		d)	That DTG shall have the right to return all dated Products referred to above (i) which have less
than 15 months dating remaining when shipped by Atossa,(ii) for which production has ceased, (iii) which are subject to recall,
(iv) which have been determined by Atossa or the FDA to be unsafe, (v) which are defective and under warranty, (vi) which are non-conforming,
or (vii) which are remaining in Atossa’s inventory following Termination. Credit issued for returned Products shall be based
upon the net price paid by DTG, less any prior credits granted by Atossa. The cost of shipping returned Products shall be borne
by DTG.

 

		e)	The provisions of this agreement and any amendments thereto shall be automatically extended to
any Additional Product that is later added to this Agreement by the mutual agreement of the parties.

 

		f)	That Atossa shall always maintain at least one additional month of DTG Products in its inventory
based on the rolling 90 day forecasts supplied by DTG. If Atossa so desires, DTG will maintain said inventory at its warehouse
facilities in Boca Raton at no cost to Atossa, provided that DTG will insure the contents of such warehouse facility, naming Atossa
an additional insured, with policy limits covering the replacement cost of such contents.

 

    	 

    	 

    
 

6. Pricing/Products

 

The price for the Products shall be as follows:

 

		a)	For all MASCT breast health system Products purchased under this Agreement, the prices are listed
on Exhibit “A”, attached hereto and made a part hereof, subject to price changes as outlined above. All prices include
packaging.

		b)	Private Labelling: All Products being purchased hereunder shall be private labelled under
the Clarity brand, as approved by Atossa. DTG shall be responsible for all costs associated with regulatory compliance for labelling.
All product labels shall recognize Atossa Genetics, its patents, FDA clearances, trademarks and trade names. Atossa shall supply,
prepare and store at its cost all private labelling and packaging materials as designed and approved by DTG. By private labelling
DTG will be directly responsible for end-user customer and tech support calls.

		c)	Tooling Fees and Start-up Costs: Atossa shall be responsible for any and all costs associated
with the creation of the Products including the tooling and set-up fees associated with the private labelling of the Product for
DTG up to a maximum of $5,000.00.

		d)	All prices are USD. Prices do not include shipping and handling and are F.O.B.Origin. DTG at its
option may arrange and pay for shipping on its own account.

 

7. Marketing and Sales Fees

 

In order to reimburse DTG for the services
it will be rendering hereunder including its internal sales and marketing costs and unreimbursed expenses and to encourage maximum
sales efforts, Atossa shall pay DTG a fee of **** for each test performed by Atossa on MASCT samples sold by DTG. Said fees
shall be paid as follows: **** on the 30th day after the date the test was performed, **** on the 60th
day after the test was performed, with the balance due on the 90th day after the test was performed.

 

8. Co-Marketing Expenses

 

Atossa and DTG shall jointly create and
approve a marketing plan which shall include an annual budget for public relations, print media and/ or electronic advertisements,
promotions, distributor marketing programs, spiffs, national industry shows, sales meetings and conferences, travel and entertainment
connected therewith. Atossa shall either pay directly for all such approved expenses as and where appropriate or reimburse DTG
on a monthly basis for any such amounts expended by DTG for such purposes. DTG shall submit monthly statements to Atossa complete
with available back-up detailing each such expenditure. The plan as well as the underlying budget shall be subject to periodic
review and adjustment based on customer responses and sales results.

 

9. Sale of Products

 

		9.1	Purchases by DTG. During the term of this Agreement, Atossa shall sell and DTG shall purchase
such quantities of the Products as may be ordered by DTG in accordance with this Agreement.

 

    	 

    	 

    
 

		9.2	Conditions of Resale.

 

		a)	Products shall be advertised, marketed and sold by DTG only under its own trademarks or those of
its distributors or end-users, but will use Atossa’s FDA number. Atossa will add DTG to its FDA 510(k) registration. DTG
has registered all of the trademarks that Atossa will be asked to use so as to permit Atossa to manufacture the Products bearing
such trademarks there.

 

		b)	DTG shall conduct its business in a manner that reflects favorably
at all times on the Products and the good name, goodwill and reputation of Atossa. Without limiting the generality of the foregoing,
DTG shall (i) avoid deception, misleading or unethical practices that are or might be detrimental to Atossa or the public,
including but not limited to disparaging Atossa or its Products; (ii) not publish or employ, or cooperate in the publication
or employment of any misleading or deceptive advertising material; (iii) make no representations, warranties or guarantees
to third Parties with respect to the specifications, features or capabilities of Products that are inconsistent with the specifications
describing the Products provided by Atossa; and (iv) use marketing and advertising efforts of high quality and good taste, and
preserve the professional image and reputation of Atossa and the Products.

 

		c)	DTG shall comply with any and all governmental laws, regulations, and orders that may be applicable
to DTG by reason of its execution of this Agreement including without limitation any and all laws, regulations, or orders that
govern or affect the ordering, export, shipment, import, marketing, sale (including government procurement), delivery, or redelivery
of Products in the Territory. Failure to comply with this Section will result in the material breach of this Agreement.
	 	 	 

		9.3	DTG Inquiries and any Official Third Party’s Inquiries. Atossa will make commercially
reasonable efforts to assist DTG, at its reasonable request, with any inquiries DTG may receive from its customers concerning the
Products and which DTG is unable to satisfactorily answer itself without assistance from Atossa.

 

		9.4	Products Registrations. DTG shall, at its own expense: (i) obtain any registration,
license, permit, governmental approval (collectively, “Registration”) that may be necessary to permit the purchase,
distribution and resale by DTG of Products in the Territory; and (ii) comply with all registration requirements for
the Territory. All Registrations shall be made in the name of DTG and shall remain the property of DTG during the term of this
Agreement, provided, however, that Atossa shall have co-exclusive rights to use any such Registrations, to the extent necessary.
Atossa shall be provided with a copy of all Registrations and applications.

 

		9.5	Traceability.
                                                                                                                      DTG
                                                                                                                      shall ensure
                                                                                                                      that an
                                                                                                                      effective
                                                                                                                      system of
                                                                                                                      lot traceability
                                                                                                                      is
                                                                                                                      implemented.

 

		9.6	Examination of Products. DTG shall examine the goods within seven business days from the receipt thereof and report
to Atossa any identifiable defects within ten business days in writing, stating the invoice number and the defect. In the event
that a later defect or problem is discovered by the end user, DTG will immediately notify Atossa of said complaint including any
attempts made by DTG to rectify the problem. If at all possible the Products will be returned to Atossa for analysis. DTG shall
receive full credit for all returned defective Products.

 

    	 

    	 

    

 

		10.	Terms of Payment

 

Payment terms on all orders shall
be Net 45 days from the date that DTG receives delivery of the order.

 

		11.	Delivery of Products

 

Atossa represents that the lead
time for the delivery of all orders of the Products is expected to be approximately **** weeks. The Parties shall work together
with Manufacturer once the required raw materials are in stock to reduce the lead time to no more than **** weeks. In support
thereof, the manufacturer has agreed to maintain **** kits and **** breast pumps in inventory at all times. DTG shall
notify Atossa in advance how each order is to be shipped.

 

		12.	Order Size

 

The Parties hereto acknowledge
and understand that Atossa is not currently in production of the Products and will require several months to ramp up to full production.
At such time as Atossa reaches full production, DTG shall order in minimum case quantities.

 

		13.	Representations, Warranties and Covenants

 

		13.1	Atossa represents and warrants as follows:

 

		a)	That the execution, delivery and performance of this Agreement do not conflict with, violate or
breach any agreement to which Atossa is a Party.

		b)	That at the time of delivery, all Products being sold to DTG are free from any and all encumbrances.

		c)	That Atossa shall maintain throughout the term of this agreement or any extension thereof ****
of Products Liability Insurance naming DTG as an additional insured on the policy.

 

		13.2	DTG represents and warrants as follows:

 

		a)	That DTG has full power and authority to enter into and perform its obligations under this Agreement.

		b)	That the execution, delivery and performance of this Agreement do not conflict with, violate or breach any agreement to which
DTG is a Party.

		c)	That DTG has and will maintain over the course of this Agreement or any extension thereof **** of Products Liability
Insurance. Atossa shall be named as an additional insured on said policy.

 

    	 

    	 

    

 

		14.	Termination, Cancellation and Force Majeure

 

		14.1	Either Party may terminate this Agreement by giving notice in writing to the other Party if:

 

a). The other Party breaches
a material provision of this Agreement and, if such breach is capable of being remedied, fails to remedy the breach within ninety
(90) days of receipt of written notice requiring it to do so;

 

b). If any proceedings are commenced
or any other action is taken against a Party in bankruptcy or seeking reorganization, arrangement, readjustment of its debts, dissolution,
liquidation, winding-up, composition or any other relief under the United States Bankruptcy Act, as amended, or under any other
insolvency, reorganization, liquidation, dissolution, arrangement, composition, readjustment of debt or any other similar act or
law, of any jurisdiction, domestic or foreign, now or hereafter existing; or a receiver, conservator, trustee or similar person
for the Party or for all or substantially all of its assets and properties is appointed; and in each such case, such event continues
for ninety (90) days without dismissal, cancellation of the bond and discharge; or

 

c). the other Party ceases to
carry on the whole, or a substantial part, of its business; or

 

d). DTG challenges any issued
patent or trademark in the Territory; or

 

e). DTG fails to purchase the
minimum required volume of Product as defined above in any two consecutive years of this Agreement.

 

		14.2	Either Party may terminate this Agreement if any event
of Force Majeure (that continues for longer than 60 days) claimed by a Party prevents performance by the other Party of its obligations
under this Agreement.

 

		14.3	The rights of either Party to terminate this Agreement shall not be affected in any way by its
waiver of, or failure to take action with respect to, any prior default.

 

		14.4	In the event of the sale or merger of either of the Parties hereto, this Agreement shall remain
in full force and effect unless both Parties agree to jointly terminate the Agreement. Both Parties shall co-operate with each
in the event of a sale or merger and shall use their best Good Faith Efforts to protect the interests of the other Party.

 

		15.	Results of Termination

 

		15.1	Upon termination of this Agreement by either Party:

 

		a)	Each of the Parties hereto shall return all information and records provided by the other Party
and shall do whatever may be reasonably necessary to protect each Party’s rights, title and interest in the Information.

 

    	 

    	 

    

 

		b)	DTG shall be liable for the purchase price, less any prepayments made of all Products that DTG
has ordered and that have been completed prior to the date of termination.

		c)	DTG shall be entitled to sell any DTG branded Products that remains in stock (in either Company)
until such supplies are exhausted.

 

		16.	Non-Piracy

 

Atossa agrees that it will not
directly or indirectly sell or permit any of its customers to sell any of the Products listed hereunder to any customer of DTG
during the term of this Agreement or for a period of one year thereafter. However, in the event DTG unilaterally terminates this
Agreement, the one year extension shall not apply.

 

		17.	Confidential Information

 

		17.1	Each of the Parties hereto agrees to hold in confidence, and to use only for the purpose of this
Agreement, any and all Confidential Information disclosed by the other Party under this Agreement. Each Party shall limit disclosure
of the other’s Confidential Information to those employees who are required to have access to it for the performance of their
duties, which such employees shall be required to hold such Confidential Information in strict confidence. Each Party acknowledges
that all Confidential Information disclosed to it by the other Party prior to the execution of this Agreement is deemed to have
been disclosed to it pursuant to the provisions of this clause.

 

		17.2	The provisions of clause 17.1 shall not apply to any Confidential Information which:

 

		a)	Was in fact known by either Party prior to its disclosure;

		b)	Is obtained from a third Party in lawful possession of such information that is not under a confidential
obligation to the disclosing Party;

		c)	at the time of its disclosure was in the public domain or subsequently comes into the public domain,
other than reason of any unauthorised disclosure by the disclosing Party; or

		d)	Is required by law to be disclosed; provided however, the disclosing Party has provided
written notice to the other Party promptly upon receiving notice of such requirement in order to enable the other Party to seek
a protective order or otherwise prevent disclosure of such Confidential Information.

 

		17.3	The Parties shall not disclose the terms of this Agreement to others, except by mutual written
agreement and as required by law and various regulatory agencies or as may be necessary to enforce the terms of this Agreement.

 

    	 

    	 

    

 

		17.4	The Information shall remain the sole property of Atossa and nothing in this Agreement shall operate
to transfer to DTG any rights, title or interest in the Information. DTG agrees not to challenge, oppose, or petition to cancel
or otherwise attack the Information and Atossa’s ownership rights thereof anywhere, including in the United States. DTG also
agrees, subject to the terms and conditions of this Agreement, that any and all rights that may be acquired by the use of the Information
shall inure to the sole benefit of Atossa. Except as provided in this Agreement, DTG shall not use the Information as all or part
of any corporate name, trade name, trademark, service mark or certification mark or any other designation. DTG shall reimburse
Atossa for all costs and expenses, including but not limit to reasonable attorneys’ fees, for Atossa’s valid opposition
or related legal proceeding to protect its rights or value in the Information for any prohibited use of the Information by or caused
by DTG.

 

		17.5	It is expressly agreed that should DTG alter any formula or Products supplied by Atossa without
its prior written consent, it shall conclusively be deemed a material breach of this Agreement, and any and all indemnities of
Atossa in this Agreement shall be null and void.

 

		18.	Indemnities

 

		18.1	Atossa shall indemnify and hold DTG harmless against any and all actions, claims, demands, liabilities
or damages (collectively referred to as the “Claims”) and the costs associated with the Claims arising out of or related
to the sale and/or use of the Products, including but not limited to personal injury, property damage, and patent infringement
of any kind.

 

		16.2	DTG shall indemnify, defend and hold Atossa harmless from and against all actions, claims, demands
or proceedings against Atossa or its directors, officers, employees or agents howsoever arising (including by DTG’s negligence)
from or related in any way to (i) DTG’s breach of this Agreement or any warranty contained in this Agreement, (ii) the alteration,
or improper storage, transportation, marketing, training, or handling of the Products by DTG or its employees, distributors, Affiliates
or agents, or (iii) any false or misleading statement made or published by or on behalf of DTG including on any packaging materials
or in any advertising or promotion of the Products.

 

		17.	Survival of Provisions on Termination

 

The rights and obligations of
the Parties as they pertain to representations and warranties will survive termination of this Agreement.

 

		18.	Notices

 

		18.1	All notices provided for in this Agreement shall be given in writing and addressed as shown below:

 

		a)	Atossa Genetics Inc.

4104 E. Madison Street, Suite
320

Seattle, WA 98112

Attention:
Dr. Steven Quay, CEO

 

		b)	DIAGNOSTIC TEST GROUP LLC (DTG)
	 	 	33 SE 8th Street
	 	 	Boca Raton, FL 33432
	 	 	Attn: Mr. Gregory J. Lustig, COO

 

    	 

    	 

    

 

		18.2	A notice shall be considered delivered and effective either:

 

		a)	When served by personal delivery; or

		b)	Ten days after being delivered via any commercial service with a proof of delivery which includes
the accepting Parties signature; or

		c)	When transmitted via facsimile or email with a separate original notice mailed on the same day
as the above-mentioned transmittal.

 

		19.	Entire Agreement

 

This Agreement supersedes all
prior agreements, arrangements and understandings between the Parties and constitutes the entire agreement between the Parties
hereto.

 

		20.	Applicable Law 

 

			This Agreement shall be governed by Delaware and US law, without application, of its conflict of
laws principles.

 

		21.	Assignment

 

The benefit of this Agreement
is personal to the Parties and neither Party may assign the benefit of or any of its rights under, this Agreement without the prior
written consent of the other Party, which consent shall not be unreasonably withheld. No subsequent assignment shall relieve or
release the Parties of their obligations under this Agreement.

 

		22.	Waiver

 

The failure of either Party at
any time to enforce any of the terms of this Agreement must not be construed to be a waiver of such provision, or of the right
of that Party thereafter to enforce such provision.

 

		23.	Severability

 

In the event that any part of
this Agreement shall be held to be unenforceable as in violation of any applicable law or regulation, the validity and enforceability
of the remaining provisions shall not be affected.

 

    	 

    	 

    

 

		24.	Dispute Resolution

 

		24.1	In the event of any unresolved disputes arising between the Parties relating to, arising out of,
or in any way connected with this Agreement or any term or condition hereof, or the performance by either Partner of its obligations
hereunder, whether before or after termination of this Agreement (the “Dispute”), the Parties will attempt to settle
any Dispute through consultation and negotiation in good faith and a spirit of mutual cooperation. Either Party to this Agreement
(each a "Party") may commence proceedings hereunder by delivery of written notice providing a reasonable description
of the Dispute to the other, including a reference to this Clause 24.1 (the "Dispute Notice"). The Parties shall first
attempt in good faith to resolve promptly any Dispute by negotiations between executives, and who have authority to settle it (as
to each Party, an "Executive"). Not later than twenty (20) days after delivery of the Dispute Notice, each Party shall
designate an Executive to meet with the other Party's Executive at a reasonably acceptable place in the United States within thirty
(30) days after the Dispute Notice, and thereafter as such Executives deem reasonably necessary. The Executives shall exchange
relevant information and endeavor to resolve the Dispute. Prior to any such meeting, each Party's Executive shall advise the other
as to any other individuals who will attend such meeting. All negotiations pursuant to this clause shall be confidential and shall
be treated as settlement and compromise negotiations.

 

		24.2	Arbitration.

Any controversy,
dispute or claim between the Parties arising from this Agreement shall be finally settled by three (3) arbitrators appointed and
acting in accordance with the rules of arbitration established by the American Arbitration Association. The location of the arbitration
shall be in the county and state of the opposing Party. The language of the arbitration shall be English. Any award shall be binding
and non appealable by any Party thereto and shall include among other things, an award of reasonable attorneys fees and costs of
suit.

 

		25.	Non-Circumvent

 

			DTG agrees that it will not directly or indirectly attempt to deal in any manner whatsoever with
any of Atossa’s suppliers for any elements or components of any of the Products purchased hereunder during the Term of this
Agreement and for a period of one year thereafter.

 

		26.	Warrant Plan

 

			Once Atossa has received **** Clarity branded (and sold) MASCT tests for processing, Atossa
shall issue to DTG warrants for **** shares of its common stock at a price per share equal to the last price of the underlying
Atossa common stock on the date the warrants are granted. In addition, for each year that DTG achieves its minimum annual sales
goals (as hereinafter set by agreement of the Parties) Atossa shall grant DTG a number of warrants equal to **** of the
number of Clarity branded tests received by Atossa Labs for processing up to a maximum amount of warrants equal to one million
(common) shares total over the term of their contractual relationship. The price of said warrants in each year they are so granted
shall be equal to the last price of Atossa’s common stock on the date the warrants are granted. All warrants shall have a
five year term. The warrants may be exercised in whole or in part at any time after the third anniversary date of this Agreement. DTG
shall assign its voting rights to any Atossa common stock it purchases under this warrant plan back to Atossa. Upon the sale of
either Party, this assignment shall terminate and all future voting rights shall revert to DTG or its buyer as the case maybe.

 

    	 

    	 

    

 

If Atossa
is sold to a third Party who wants to keep this Agreement in place the Warrant Plan shall cease as of the date of their acquisition.
This termination event, however, shall not affect any warrants already earned by DTG under this Warrant Plan.

 

		27.	License

 

Atossa hereby grants to DTG the
right to use its trade name “Forecyte” in its packaging and for the marketing and sale of its breast cancer test in
its Territory for the duration of this Agreement.

 

EXECUTED as of this 21st day of September
2012 by and between:

 

ATOSSA

 

	By:	/s/ Steven C. Quay	 
	 	 	 
	Its:	President and Chief Executive Officer	 

 

	DIAGNOSTIC TEST GROUP, LLC

 

	By:	/s/ Richard S. Simpson	 
	 	 	 
	Its.	Chief Executive  Officer	 

 

    	 

    	 

    

 

Exhibit A:

 

Product Pricing

 

****

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