Document:

Unassociated Document

    Exhibit 10.1

 

EXCLUSIVE
PATENT LICENSE AGREEMENT

     

    This
Exclusive Patent License Agreement is made as of July 27, 2009 (“Effective Date”) between
Ensisheim Partners, LLC, a Washington limited liability company (“Licensor”), and Atossa
Genetics, Inc., a Delaware corporation (“Atossa”). The parties agree as
follows:

     

    1. DEFINITIONS

     

    1.1 “First Commercial Sale” means
the initial transfer of a Licensed Product by Atossa, an affiliate or a
sublicensee to a third party in exchange for cash or some equivalent to which
value can be assigned in any country after all required marketing and pricing
approvals have been granted, or otherwise permitted, by the authorities of such
country, in each case for use or consumption of such Licensed Product in such
country by the general public. Sales for test marketing, sampling and
promotional uses, clinical trial purposes, or compassionate or similar use will
not be considered a First Commercial Sale.

     

    1.2 “Licensed Patents” means: (a)
all patents and patent applications set forth in Exhibit A; (b) all
divisions, substitutions, continuations, continuation-in-parts, reissues,
reexaminations, and extensions of the patents and patent applications described
in Section 1.1(a); (c) all foreign and
international counterparts of the patents and patent applications described in
Sections 1.1(a) and 1.1(b); and (d) all patents issuing from patent
applications described in Sections 1.1(a), 1.1(b), and 1.1(c).

     

    1.3 “Licensed Product” means any
product the manufacture, use, or sale of which would, in the absence of the
licenses granted in this Agreement, infringe a Valid Claim of a Licensed Patent
in the country in which that product is made, used, or sold.

     

    1.4 “Net Sales Revenues” means the
gross amount collected by Atossa for the sale of a Licensed Product, less all:
(a) normal and customary cash and trade discounts and rebates (including prompt
payment and volume discounts); (b) duties and taxes (including excise, sales,
use, and value added taxes); (c) insurance, freight, packaging, handling,
shipment, and transportation expenses (including associated insurance costs);
(d) amounts allowed or credited due to returns, rejections, recalls, rebates,
charge backs, billing errors, or retroactive price reductions; and (e) sales
commissions or fees paid. Net Sales Revenues excludes amounts collected by
Atossa: (i) that are not directly related to sale of a Licensed Product,
including amounts paid for support, maintenance, development, research, clinical
trials, training, and products bundled with a Licensed Product; (ii) for
transfers made to a third party for resale by the third party or to an
affiliate; and (iii) for Licensed Products used for research and development or
other non-commercial uses, supplied as commercial samples, or supplied as
charitable donations.

     

    1.5  “Valid Claim” means a pending
or issued and unexpired claim of a Licensed Patent so long as that claim has not
been: (a) irrevocably abandoned, withdrawn, or declared to be unpatentable,
invalid, or unenforceable in an unappealable decision of a court or other
authority of competent jurisdiction; or (b) found or admitted to be invalid or
unenforceable through no fault or cause of Atossa, whether through reissue,
re-examination, disclaimer or otherwise.

     

    2. GRANT
OF RIGHTS

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.1 Licensed Patents.
Licensor hereby grants to Atossa and its affiliates an exclusive, worldwide,
perpetual, irrevocable, royalty-bearing (as set forth in Section 3), license, with the right to grant and authorize
sublicenses, under the Licensed Patents to do the following: (a) make, have
made, use, sell, offer to sell, export, import, and otherwise distribute
Licensed Products; (b) practice and perform any processes, methods, and
procedures described in or that would infringe a Valid Claim of a Licensed
Patent; and (c) otherwise exploit the Licensed Patents.

     

    2.2 Exclusivity. The
license granted in Section 2.1 is exclusive in that
Licensor must not, directly or indirectly: (a) exercise or grant to any third
party any license or other right under a Licensed Patent; or (b) develop or sell
any products or services in the Exclusive Field that would infringe a Licensed
Patent. Without limiting Atossa’s rights or remedies at law, and without regard
to whether Atossa has an adequate remedy at law, Atossa will have the right to
seek equitable relief to prevent any breach or threatened breach of this
Section 2.2.

     

    2.3 Ownership of Licensed
Patents. Licensor will at all times be the sole owner of all right,
title, and interest (including intellectual property rights) in and to the
Licensed Patents.

     

    2.4 No Requirements.
Atossa is not required to: (a) develop Licensed Products; (b) receive Licensor’s
or a third party’s approval for any use of any Licensed Products; (c) attribute
creation or development of any Licensed Product to Licensor; or (d) take action
against any third party relating to the third party’s use or exploitation of any
Licensed Product.

     

    2.5 Rights in Bankruptcy.
All rights and licenses granted under or pursuant to this Agreement by Licensor
to Atossa are, and will otherwise be deemed to be, for purposes of Section
365(n) of the United States Bankruptcy Code, licenses of rights to “intellectual
property” as defined under Section 101(56) of the Bankruptcy Code. Atossa, as a
licensee of the rights under this Agreement, will retain and may fully exercise
all of its rights and elections under the Bankruptcy Code.

     

    3. ROYALTY

     

    3.1 Royalty Rate. Subject
to Section 3.2, Atossa will pay Licensor a royalty
equal to two percent (2%) of Net Sales Revenues (“Licensing Royalty”). No more
than one royalty payment will be due under this Agreement with respect to a sale
of a particular Licensed Product, even if that Licensed Product is covered by
multiple Valid Claims.

     

    3.2 Minimum
Royalty.  Atossa will pay Licensor, in accordance with this
Section, a minimum royalty of $12,500 per fiscal quarter during the term of this
Agreement, which will increase to a minimum royalty of $25,000 per fiscal
quarter beginning in the quarter in which the First Commercial Sale of a
Licensed Product takes place (each, a “Minimum Royalty”). Atossa will
pay Licensor a pro-rata portion of the first Minimum Royalty within 30 days of
the Effective Date, and the Minimum Royalty for each subsequent fiscal quarter
will be due upon the first day of that fiscal quarter. The Minimum Royalty for
any given fiscal quarter is creditable against any Licensing Royalties due in
that fiscal quarter.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    3.3 Reduction for Third Party
Payments. If Atossa’s manufacture, sale, use, importation, or other
exploitation of a Licensed Product is subject to one or more patents owned,
controlled, or licensable by a third party and Atossa pays the third party to
license such patents, then the Licensing Royalty will be reduced by the amount
paid to the third party for such license, except that the Licensing Royalty
payable to Licensor will not fall below 1% of Net Sales Revenues during any
fiscal quarter. 

     

    3.4 Reporting and
Payment. No later than 60 days after the end of each fiscal quarter
during the term of this Agreement, Atossa will deliver to Licensor a written
report of the Net Sales Revenues collected during the fiscal quarter. With each
report submitted by Atossa, Atossa will deliver payment of the Licensing Royalty
due for the applicable fiscal quarter to the extent not covered by any other
payments made by Atossa that are creditable against Licensing Royalty payments,
e.g., the applicable Minimum Royalty payment.

     

    4. PROSECUTION
AND MAINTENANCE OF THE LICENSED PATENTS

     

    4.1 Atossa’s Rights.
Licensor grants to Atossa: (a) the right to prepare, file, prosecute, and
maintain, in its own name and at its own expense, the Licensed Patents in any
country; and (b) an irrevocable power of attorney to act on Licensor’s behalf
and to execute and file documents on Licensor’s behalf to prepare, file,
prosecute, and maintain these rights.

     

    4.2 Licensor’s
Obligations. Licensor will consult with Atossa regarding the preparation,
filing, prosecution, and maintenance of the Licensed Patents. Licensor will not
prepare, file, prosecute, or maintain the Licensed Patents without Atossa’s
prior written consent. Licensor will have the right to prepare, file, prosecute,
and maintain, in its own name and at its own expense, the Licensed Patents in
any country where Atossa fails or declines to prosecute or maintain those
rights. Licensor may exercise this right only if it notifies Atossa of its
intent in writing and Atossa does not proceed to prosecute or maintain those
rights within 60 days after the notice. Licensor will keep Atossa reasonably
informed regarding Licensor’s prosecution and maintenance of the Licensed
Patents in accordance with this Section (e.g., status of patent filings and
registrations).

     

    5. ENFORCEMENT
OF LICENSED PATENTS

     

    5.1 Atossa’s Rights.
Licensor grants to Atossa the right to bring and prosecute lawsuits against
third parties, in Atossa’s own name or jointly with Licensor if required by law,
for infringement of a Licensed Patent. This right includes bringing any legal
action for infringement, defending any counter claim of invalidity or action of
a third party for declaratory judgment for non-infringement or non-interference,
and settling a suit. Atossa will be entitled to all of the damages, profits, and
awards of whatever nature recoverable from the suit. Licensor will fully
cooperate with Atossa in the prosecution of any such lawsuit at Atossa’s
expense.

     

    5.2 Licensor’s
Obligations. Licensor will not bring or prosecute a lawsuit against any
third party for infringement of a Licensed Patent without Atossa’s prior written
consent. In addition, if Atossa does not institute a lawsuit (including, but not
limited to, temporary and permanent injunctive actions) within a reasonable
period, but no more than 60 days following Licensor’s written request to do so,
Licensor will have the right to institute and 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    prosecute
the lawsuit in its own name or jointly with Atossa if required by law. Atossa
will fully cooperate with Licensor in the prosecution of any such lawsuit at
Licensor’s expense.

     

     

    6. TERM
AND TERMINATION

     

    6.1 Term. This Agreement
will take effect on the Effective Date and will continue in effect, on a
country-by-country basis, until the date on which no further Licensing Royalty
would be due in such country, unless terminated earlier in accordance with the
terms of this Agreement.

     

    6.2 Termination by Atossa for
Convenience. Atossa may terminate this Agreement, in whole or as to any
particular Licensed Patent or Licensed Product, for any reason or for no reason
by notifying Licensor in writing. Termination in accordance with this Section 6.2 will take effect five days after Licensor receives
Atossa’s written notice of termination.

     

    6.3 Effects of Termination or
Expiration

     

    (a) Payment or Refund.
Within 60 days after termination or expiration of the Agreement, Atossa will pay
to Licensor all Licensing Royalties that it owes for sale of Licensed Products
prior to the date of termination or expiration.

     

    (b) Survival. All rights
and duties of the parties under this Agreement will terminate upon termination
or expiration of this Agreement for any reason except that: (i) all sublicenses
granted by Atossa prior to termination or expiration will survive termination;
and (ii) Sections 6.3 and 8 will survive termination or expiration of this
Agreement.

     

    7. REPRESENTATIONS
AND WARRANTIES

     

    7.1 Authorization.
Licensor represents and warrants that: (a) it is duly organized, validly
existing, and in good standing in the jurisdiction stated in the preamble to
this Agreement; (b) the execution and delivery of this Agreement by Licensor has
been duly and validly authorized; and (c) this Agreement constitutes a valid,
binding, and enforceable obligation of Licensor.

     

    7.2 No Conflict. Licensor
represents and warrants that: (a) the execution of this Agreement and Licensor’s
performance under this Agreement does not and will not violate, conflict with,
or result in a material default under any other agreement, indenture, decree,
judgment, lien, or encumbrance to which Licensor is a party or by which any of
the Licensed Patents are or may become subject or bound; (b) Licensor has not
granted any other rights under the Licensed Patents; and (c) Licensor will not
grant any rights under any future agreement, nor will it permit or suffer any
lien, obligation, or encumbrances, that will conflict with the full enjoyment by
Atossa of its rights under this Agreement.

     

    7.3 Validity and
Enforceability. Licensor represents and warrants that: (a) to Licensor’s
knowledge, Licensor’s rights to the Licensed Patents are valid and enforceable;
and (b) Licensor does not know of any facts or circumstances that could impair
the validity or enforceability of any of its rights to the Licensed
Patents.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    7.4 Legal Proceedings.
Licensor represents and warrants that: (a) Licensor is not involved in any legal
proceeding (litigation, arbitration, mediation, or otherwise) relating to the
Licensed Patents; (b) Licensor has not received notice of a claim relating to
the Licensed Patents; and (c) Licensor is not aware of any facts or
circumstances that might lead to a legal proceeding relating to the Licensed
Patents.

     

    8. GENERAL

     

    8.1 Remedies

     

    (a) No Consequential
Damages. IN NO EVENT WILL EITHER PARTY HAVE LIABILITY TO THE OTHER PARTY
FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, EVEN IF ADVISED
OF THE POSSIBILITY OF THESE DAMAGES. THESE LIMITATIONS WILL APPLY
NOT­WITH­STANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY
IN THIS AGREEMENT.

     

    (b) Limitation to
Damages. Licensor’s sole remedy, if any, in the event of a breach will be
an action for monetary damages. Licensor will not be entitled to injunctive or
other equitable relief or to terminate or rescind this Agreement or the licenses
granted in this Agreement.

     

    8.2 Relationship. Nothing
in this Agreement may be construed as creating an employer-employee
relationship, agency relationship, joint venture, or partnership between the
parties.

     

    8.3 Assignability.
Neither this Agreement nor any rights or obligations under this Agreement may be
assigned or otherwise transferred by Licensor, in whole or in part, whether
voluntarily or by operation of law, without the prior written consent of Atossa.
Atossa may assign this Agreement or any rights and obligations under this
Agreement freely. Subject to the foregoing, this Agreement will be binding upon
and will inure to the benefit of the parties and their respective successors and
assigns. Any assignment in violation of the foregoing will be null and
void.

     

    8.4 Further Assurances.
Each party agrees that it will execute and deliver such documents as may be
required to implement any of the provisions of this Agreement.

     

    8.5 Governing Law. This
Agreement is governed by the laws of the State of Washington, without giving
effect to provisions related to choice of laws or conflict of laws.

     

    8.6 Venue and
Jurisdiction. Venue and jurisdiction of any lawsuit involving this
Agreement exists exclusively in the state and federal courts in King County,
Washington, unless Atossa seeks injunctive relief that, in Atossa’s judgment,
would not be effective unless obtained in some other venue.

     

    8.7 Waiver. The waiver by
either party of any breach of any provision of this Agreement does not waive any
other breach. The failure of any party to insist on strict performance of any
covenant or obligation under this Agreement will not be a waiver of such

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    party’s
right to demand strict compliance in the future, nor will the same be construed
as a novation of this Agreement.

     

    8.8 Severability. If any
part of this Agreement is found to be unenforceable, the remaining portions of
this Agreement will remain in full force and effect.

     

    8.9 Drafting. The parties
have had an equal opportunity to participate in the drafting of this Agreement
and the attached exhibits. No ambiguity will be construed against any party
based upon a claim that that party drafted the ambiguous
language.

     

    8.10 Headings. The
headings appearing at the beginning of several sections contained in this
Agreement have been inserted for identification and reference purposes only and
must not be used to construe or interpret this Agreement.

     

    8.11 Notices. Any notice
required or permitted to be given under this Agreement will be effective if it
is in writing and sent by certified or registered mail, or insured courier,
return receipt requested, to the appropriate party at the address set forth
below and with the appropriate postage affixed. Either party may change its
address for receipt of notice by notice to the other party in accordance with
this Section. Notices will be deemed given two business days following the date
of mailing or one business day following delivery to a courier.

    
      	
              To Licensor:

            	
              To Atossa:

            
	
              Shu-Chih
      Chen Quay

            	
              Dr.
      Steven Quay

            
	
              Ensisheim
      Partners, LLC

              4105
      E Madison St, Suite 320

            	
              Atossa
      Genetics, Inc.

              4105 E. Madison St., Suite 320

              Seattle, WA 98112

            
	
              Seattle,
      WA  98112

            	 
      
	
              With
      a copy to:

              Ms.
      Effie Toshav, Esq.

              Wilson
      Sonsini Goodrich & Rosati, PC

              701
      Fifth Ave., Suite 5100

              Seatlle,
      WA  98104

            	 
      

    

     

    8.12 Counterparts. This
Agreement may be executed in any number of identical counterparts,
notwithstanding that the parties have not signed the same counterpart, with the
same effect as if the parties had signed the same document. All counterparts
will be construed as and constitute the same agreement.

     

    8.13 Entire Agreement.
This Agreement, including any exhibits, is the final and complete expression of
all agreements between these parties and supersedes all previous oral and
written agreements regarding these matters. It may be changed only by a written
agreement signed by the party against whom enforcement is sought.

    
      	 
      	 
      
	
              “Licensor”

            	
              “Atossa”

            
	
              Ensisheim
      Partners, LLC

            	
              Atossa
      Genetics, Inc.

            
	
              Name:
      Shu-Chih Chen Quay

            	
              Name:
      Dr. Steven Quay

            
	
              Title:
      Principal

            	
              Title:
      President

            
	
              Signature: /s/
      Shu-Chih Chen Quay

            	
              Signature:
      /s/ Steven
      Quay                                            

            
	
              Date:
      27 July,
      2009               

            	
              Date:
      27 July,
      2009                             

            

    

     

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    
      
        EXHIBIT
A

        

         

        LICENSED
PATENTS

         

        
          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    ATOS-0003

                    US

                    (020424-000100US)

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                  	
                    08/709,207

                    08/27/96

                  	
                    5,798,266

                    08/25/98

                     

                    11.5
      Yr MF-February 25, 2010

                  
	
                    ATOS-0005

                    Australia

                    (020424-000100AU)

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                  	
                    40850/97

                    08/22/97

                  	
                    740,160

                     

                    13th
      Yr MF-August 22, 2009

                  
	
                    ATOS-0006

                    Canada

                    (020424-000100CA)

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                  	
                    2,264,277

                    08/22/97

                  	
                    2,264,277

                    04/15/2008

                     

                    13th
      Yr MF-August 22, 2009

                  

          

           

           

          
            
              
              

            

            
              -7-

              
                

              

            

            
              
              

            

          

           

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    PCT

                    ATOS-0004?

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                    Foreign
      filing of ATOS-0003

                  	
                    PCT/US97/14863

                    filed
      08/22/97

                     

                    WO
      98/08976 published 03/05/1998

                  	
                    NATIONAL

                  
	
                    ATOS-0007

                    European

                    (020424-000100EP)

                     

                  	
                    Kits
      for Obtaining and Assaying Mammary Fluid Samples for Breast Diseases,
      Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                  	
                    97938551.5

                    08/22/97

                     

                    Notice
      of Intent to Grant

                     

                    EU
      Validation-November 8, 2008

                  	
                    EP
      0932699 - withdrawn

                     

                    January
      8, 2009-2 Month Further Processing Request

                  
	
                    ATOS-0025

                    Hong
      Kong

                    (020424-000100HK)

                  	
                    Kits
      for Obtaining and Assaying Mammary Fluid Samples for Breast Diseases,
      Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                  	
                    00100654.7

                    08/22/97

                  	
                     

                    13th
      Yr MF-August 22, 2009

                  

          

          
             

            
              
                
                

              

              
                -8-

                
                  

                

              

              
                
                

              

            

             

          

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    ATOS-0026

                    Japan

                    (020424-000100JP)

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (claims
      priority to ATOS-0004 and ATOS-00003)

                  	
                    10-511772

                    03/01/99

                     

                    08/22/97

                  	
                     

                    Abandoned
      in Favor of CYTC-11-0407

                  
	
                    ATOS-0027

                    US

                    (020424-000110US)

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (CIP
      of ATOS-0003)

                  	
                    09/027,362

                    02/20/98

                  	
                    6,287,521
      B1

                    09/11/01

                     

                    7.5
      Yr MF-March 11, 2009

                  
	
                    ATOS-0028

                    US

                    (020424-000120US)

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (Cont.
      of ATOS-0027 which is a CIP of ATOS-0003)

                  	
                    09/435,131

                    11/05/99

                  	
                    Abandoned

                  

          

          
             

            
              
                
                

              

              
                -9-

                
                  

                

              

              
                
                

              

            

             

          

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    ATOS-0040

                    US

                  	
                    Devices
      and Methods for Obtaining Mammary Fluid Samples for Evaluating Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (Utility
      filing of ATOS-0030 and ATOS-0033

                  	
                    10/002,540

                    11/13/01

                  	
                    6,887,210

                    05/03/2005

                  
	
                    ATOS-0041

                    US

                  	
                    Methods
      and Devices for Collecting, Handling and Processing Mammary Fluid Samples
      for Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (Utility
      filing of ATOS-0030 and ATOS-0033

                  	
                    10/001,041

                    11/13/01

                  	
                    6,689,073

                    02/10/2004

                  
	
                    US

                  	
                    Methods
      and Devices for Collecting, Handling and Processing Mammary Fluid Samples
      for Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                  	
                    60/248,134

                    11/13/00

                  	
                    EXPIRED

                  

          

          
             

            
              
                
                

              

              
                -10-

                
                  

                

              

              
                
                

              

            

             

          

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    US

                  	
                    Methods
      and Devices for Collecting, Handling and Processing Mammary Fluid Samples
      for Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                  	
                    60/248,136

                    11/13/00

                  	
                    EXPIRED

                  
	
                    ATOS-0042

                    PCT

                  	
                    Methods
      and Devices for Collecting, Handling and Processing Mammary Fluid Samples
      for Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (foreign
      filing of ATOS-0030 and ATOS -0033 both filed 11/13/00)

                  	
                    PCT/US01/46032

                    11/13/01

                     

                    Publication
      No.

                    WO
      02/38032 A2 on May 16, 2002

                  	
                    NATIONAL

                  
	
                    ATOS-0043

                    Australia

                  	
                    Methods
      and Kits for Obtaining and Assaying Mammary Fluid Samples for Breast
      Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (Divisional
      of ATOS-0005 which claims priority to ATOS-0004 and
    ATOS-0003)

                  	
                    14725/02

                    01/31/02

                  	
                    781,187

                     

                    13th
      Yr MF- August 22, 2009

                  

          

          
             

            
              
                
                

              

              
                -11-

                
                  

                

              

              
                
                

              

            

             

          

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    ATOS-0070

                    U.S.
      Utility

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    Debra
      L. Quay

                    (Cont.
      of ATOS-0028, which is a cont. of ATOS-0027, which is a CIP of
      ATOS-0003)

                  	
                    10/404,866

                     

                    Filed
      3/31/03

                  	
                    7,128,877

                    10/31/2006

                  
	
                    US

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                  	
                    11/116,961

                    04/27/2005

                  	
                    Abandoned

                  
	
                    JP

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    2003-343663

                     

                    03/24/2004

                     

                    11/13/2001

                  	 
      

          

          
             

            
              
                
                

              

              
                -12-

                
                  

                

              

              
                
                

              

            

             

          

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    CA

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    2,427,967

                     

                    08/22/1997

                     

                    11/13/2001

                  	
                    2,427,967

                     

                    8th
      Yr MF – November 13, 2008

                  
	
                    EP

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    01993422.3

                     

                    11/13/2001

                  	 
      
	
                    JP

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    11/13/2001

                     

                    4,050,612

                  	
                    4,050,612

                     

                    10th
      Yr MF – November 13, 2008

                  

          

           

          
            
              
              

            

            
              -13-

              
                

              

            

            
              
              

            

          

           

           

          
            	
                    WWKMN
      Ref.

                    (TTC
      Ref. No.)

                    Country

                  	
                    Title

                  	
                    Inventor(s)
      Priority

                  	
                    Application
      Number

                    Filing
      Date

                  	
                    Patent
      Number

                    Issue
      Date

                    Due:

                  
	
                    AU

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    2002-227163

                     

                    11/13/2001

                  	
                    8th
      Yr MF – November 13, 2008

                  
	
                    HK

                  	
                    Methods
      and Devices for Obtaining and Assaying Mammary Fluid Samples for
      Evaluating Breast Diseases, Including Cancer

                  	
                    Steven
      C. Quay

                    (claims
      priority to ATOS-0042, 60/248,134 & 60/248,136)

                  	
                    03105927.4

                     

                    11/13/2001

                  	
                    9th
      Yr MF – August 19, 2009

                  

          

        

         

         

      

    

    
      
        
        

      

      
        -14-Unassociated Document

     

    
      DCN

       

      EXHIBIT
10.11

    

    SUBLEASE
AGREEMENT

    

    This
Sublease Agreement (this "Sublease") is made effective as of September 29, 2010,
by and between CompleGen, Inc. ("Tenant"), and Atossa Genetics, Inc.
("Subtenant").  The Tenant has previously entered into a lease
agreement with Alexandria Real Estate Equities, Inc. (the "Landlord"), said
lease agreement dated June 26, 2006 (the "Prime Lease") with a First amendment
dated October 1, 2009, which is incorporated by reference and has been provided
to Subtenant.  Tenant now desires to sublet the leased property to the
Subtenant and the Subtenant desires to sublet the leased property from the
Tenant.  Therefore, the parties agree as follows:

    

    PREMISES.  Tenant,
in consideration of the payments provided in the Sublease, subleases to the
Subtenant laboratory rooms 622 and 621, located on the 6th floor
of the Seattle Life Sciences Building, at 1124 Columbia Street, Seattle, WA
98104-2050 (the "Premises").  Subtenant shall share CompleGen’s leased
cold room (laboratory room 647), lunch room (Room 644) and conference room (Room
644A).  A sketch of the Premises subject to this Sublease is attached
as Exhibit A.

    

    TERM AND
POSSESSION.  The term of this Sublease shall commence on
September 30, 2010, and unless terminated sooner pursuant to the terms of this
Sublease, it shall terminate in six months on March 31,
2011.  Sublease will continue on a month to month basis at the
expiration of the original sublease term provided that either party may
terminate the option by giving two (2) months written notice.  The
Subtenant shall be entitled to possession on the first day of the term of this
Sublease, and shall yield possession to the Tenant on the last day of the term
of this Sublease, unless otherwise agreed by both parties in writing, or sooner
if this Sublease is terminated pursuant to the terms of the Sublease by either
party.

    

    SUBLEASE
PAYMENTS.  The Subtenant shall pay to the Tenant monthly
payments of $3,657.05 per month, payable in advance on the first day of each
month.  Sublease payments shall be made to the Tenant at 1124 Columbia
Street, Suite 662, Seattle, WA 98104-2050, which may be changed from time to
time by the Tenant upon providing written notice.

    

    ADDITIONAL RENT.  In
addition to Sublease payments, Subtenant agrees to pay to Tenant as additional
rent: (i) Subtenant’s share, equal to 13.25%, of  “Net Operating
Expenses” as defined in the Prime Lease, which share is based on a formula of
1,296 square feet divided by 9,778 square feet, and (ii) any and all other
amounts Subtenant expressly assumes or agrees to pay under the provisions of
this Sublease, including, without limitation, any and all other sums that may
become due by reason of any default of Subtenant or failure to comply with the
agreements, terms, covenants and conditions of this Sublease to be performed by
Subtenant, after any applicable notice and cure period.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    DCN

     

    SERVICES.  The
Subtenant will arrange and pay separately to third parties for all Subtenant’s
communication needs, including but not limited to telephone, facsimile, copier
and internet access expenses.  Charges for janitorial service will be
the responsibility of Subtenant.

    

    SECURITY DEPOSIT.  A
security deposit of $3,657.05 is due on signing of this agreement, provided that
this amount shall be refunded in full within 2 business days if the Tenant does
not obtain Landlord approval for this Sublease as contemplated below under the
caption “Landlord’s Consent.”

    

    TENANT
IMPROVEMENTS.  The passage way in the northwest corner of Room
622 to 625 shall be closed by a wall or other substantial structure to prevent
unauthorized access to 622 at a cost of up to $200.00 to the
Subtenant.  Otherwise, the Subtenant shall accept the space in “as is”
condition.  Subtenant shall be permitted to install security keypads,
at Subtenant’s expense, on its dedicated space in laboratory rooms 622 and
625.  Upon request the Subtenant shall return the premises to its
original condition and configuration.

    

    NOTICE.  Notices
under this Sublease shall not be deemed valid unless given or served in writing
and forwarded by mail, postage prepaid, addressed as follows and sent to every
interested party:

    

    TENANT:

    

    Name:          CompleGen,
Inc.

    Address:   
  1124 Columbia Street, Suite 600

    Seattle, WA 98104

    Attention: John Swindle, PhD,
President & CEO

    

    SUBTENANT:

    Name:          Atossa
Genetics, Inc.

    Address:      4105
E Madison St, Ste 320

    Seattle, WA 98112

    Attention: Steven Quay, MD, PhD,
Chairman, President & CEO

    

    LANDLORD:

    

    Name:          Alexandria
Real Estate Equities, Inc.

    Address:      385
East Colorado Blvd, Suite #229

    Pasadena, CA 91101

    Attention: General
Counsel

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    DCN
 

    Such
addresses may be changed from time to time by any party by providing notice to
the other interested party(ies) as described above.

    

    GOVERNING LAW.  This
Lease shall be construed in accordance with the laws of the State of
Washington.

    

    LANDLORD'S
CONSENT.  The Prime Lease requires the prior written consent of
the Landlord to any sublease of the Premises.  The terms and
conditions of this Sublease are conditional upon the Landlord's written consent
to this Sublease.  The Tenant agrees to use the Tenant's best efforts
to obtain such consent within 20 days of signing of the sublease, however this
must be obtained before the Subtenant may take possession.  Should the
Landlord refuse to consent to this Sublease, this Sublease shall be null and
void and neither party shall have any further obligations or liabilities under
its terms.

    

    INCORPORATION OF PRIME
LEASE.  This Sublease Agreement is subject to all of the terms
of the Prime Lease with the same force and effect as if each provision of the
Prime Lease were included in this Sublease, excepting as otherwise provided
herein. Tenant covenants that it has provided Subtenant a full and complete copy
of the Prime Lease.  All of the terms which Tenant is bound to comply
with under the Prime Lease shall, to the extent only that they apply to the
Premises and except as otherwise provided herein, be binding upon
Subtenant.  All of the obligations of Landlord set forth in the Prime
Lease shall, to the extent that they apply to the Premises, inure to Subtenant's
benefit provided, however, that this shall not be construed to establish any
direct obligations on the part of the Landlord to Subtenant under the terms of
the Prime Lease, nor any direct obligation on the part of Subtenant to
Landlord.  It is the intention of the parties that, except as
otherwise provided in this Sublease, the relationship between Tenant and
Subtenant shall be governed by the language of the various sections and the
covenants of the Prime Lease as if those sections were included in this Sublease
in full, and the words "Landlord", "Tenant" and "Lease" as used in the Prime
Lease, shall refer to, respectively, "Tenant", "Subtenant" and
"Sublease".  To the extent that action is required by the Landlord to
effect the terms of the Prime Lease or Sublease, Tenant agrees to assist
Subtenant and use its best efforts to effect such action on the part of Landlord
in a commercially reasonable manner.

    

    REPRESENTATION.  Tenant
hereby represents to Subtenant that Tenant is using commercially reasonable best
efforts to comply with the terms of the Prime Lease and covenants that it will
use commercially reasonable best efforts to continue to comply with the terms of
the Prime Lease during the term of this Sublease.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    DCN

     

    INDEMNIFICATION.  (a)
Except to the extent caused by the negligence or willful misconduct of Tenant,
its agents, employees, contractors or invitees, Subtenant shall indemnify,
defend with counsel reasonably acceptable to Tenant and hold Tenant harmless
from and against any and all claims, liabilities, judgments, causes of action,
damages, costs and expenses (including reasonable attorneys' and experts' fees)
caused by or arising in connection with: (i) the use, occupancy or condition of
the Premises by Subtenant; (ii) the negligence or willful misconduct of
Subtenant or its agents, employees, contractors, or invitees; or (iii) a breach
of Subtenant's obligations under this Sublease or the provisions of the Prime
Lease assumed by Subtenant hereunder.  Subtenant's indemnification of
Tenant shall survive termination of this Sublease.  (b) Except to the
extent caused by the negligence or willful misconduct of Subtenant, its agents,
employees, contractors or invitees, Tenant shall indemnify, defend with counsel
reasonably
acceptable to Subtenant and hold Subtenant harmless from and against any and all
claims, liabilities, judgments, causes of action, damages, costs and expenses
(including reasonable attorneys' and experts' fees) caused by or arising in
connection with:  (i) a breach of Tenant's representations or
obligations under this Sublease; (ii) a breach of Tenant's representations or
obligations under the Prime Lease to the extent
those obligations are not assumed by Subtenant under this Sublease; or (iii) the
negligence or willful misconduct of Tenant, its agents, employees, contractors
or invitees occurring on the Subleased Premises.  Tenant's
indemnification of Subtenant shall survive termination of this
Sublease.

    

    INSURANCE.  The
Subtenant, at its sole cost and expense shall maintain during the Term of the
Sublease, risk property insurance in an amount reasonably expected to cover the
full replacement cost of all property and improvements installed or placed in
the Premises by the Subtenant at the Subtenant’s expense.  The
Subtenant must have workers’ compensation insurance with no less than the
minimum limits required by law, employer’s liability insurance with such limits
as required by law and commercial general liability insurance with a minimum
limit of $2,000,000 per occurrence for bodily injury and property damage with
respect to the Premises.  The commercial general liability insurance
policy shall name CompleGen and the Landlord Parties, Alexandria Real Estate
Equities, Inc., including its employees and agents as additional
insureds.  A Certificate of Insurance consistent with the foregoing
terms must be submitted to the Landlord before taking possession of the
premises.

    

    Dated:  September
29, 2010

    

    
      
        	
                TENANT

              	 
      	
                SUBTENANT

              
	 
      	 
      	 
      
	
                /s/ John Swindle

              	 
      	
                /s/ Steven C. Quay

              
	
                CompleGen,
      Inc.

              	 
      	
                Atossa
      Genetics, Inc.

              
	
                President
      & CEO

              	
                  

              	
                Chairman,
      President & CEO

              

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    DCN

     

    Exhibit
A:

     

    

    
      
          

      

      
        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]