Document:

DISTRIBUTION

AND
MARKETING SERVICES AGREEMENT

 

THE DISTRIBUTION
AND MARKETING SERVICES AGREEMENT (“Agreement”) dated as of April 30, 2013 is by and between Millennium
Medical Devices LLC, a New York limited liability company (“Distributor”), and Atossa Genetics Inc. a Delaware
corporation (“Atossa”). Distributor and Atossa are referred to as a “Party” or the “Parties.”

 

RECITALS

 

WHEREAS,
Atossa manufacturers and sells patented, FDA-cleared Class II medical devices consisting of a hand-held pump (the “Pump”),
and specimen collection kit (the “Collection Kit”) which are sold separately or together along with related
components such as fixative, packaging, instructions, etc. (collectively, the “ForeCYTE Products”);

 

WHEREAS,
Atossa, through its wholly-owned CUA-certified laboratory, the National Reference Laboratory for Breast Health, Inc. (the
“NRLBH”), performs the ForeCYTE Breast Health Test (the “ForeCYTE Test”) on the patient
specimens submitted to the NRLBH with the Collection Kits (the “Lab Testing”) for physician practices and clinics
and other purchasers of laboratory testing services;

 

WHEREAS,
Distributor is a medical device distribution company performing certain marketing and distribution services in the New York
City and Northern New Jersey area (the “Territory”) for physicians practicing in a managed care network (the “Distributor
Customers”);

 

WHEREAS,
Atossa wishes to engage Distributor to distribute, promote and market ForeCYTE Products, as more fully described in Section
1 and Exhibit A hereto (the “Services”), and Distributor is willing to provide those Services in
accordance with the terms set forth herein.

 

NOW, THEREFORE,
in consideration of the foregoing premises, the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree
as follows:

 

		I.	ENGAGEMENT OF THE SERVICES.

 

A.           Engagement
of Distributor. Atossa hereby appoints Distributor as an authorized non-exclusive representative to use its best commercial
efforts to distribute market and promote the ForeCYTE Products to Distributor Customers in the Territory and the Distributor hereby
accepts such appointment.

 

B.           Scope
of Services. Distributor shall render the Services identified in the attached Exhibit A on behalf of Atossa to
the current and future Distributor Customers. Distributor shall use best commercial efforts to distribute, market and promote
the ForeCYTE Products to Distributor Customers in the Territory and (a) exercise the highest degree of professionalism in the
furnishing of the Services, (b) be responsible to provide the infrastructure and personnel through which it shall furnish the
Services at its sole expense, and (c) perform the Services in a timely and professional manner consistent with similarly situated
distributors and marketing consultants. Except as provided in Section III.D, Distributor shall not sub-contract or otherwise
delegate its obligations under this Agreement, without Atossa’s prior written consent. Distributor shall not, directly or
through others, distribute, market or promote products and services that are competitive, directly or indirectly, with services
and products provided by Atossa or the NRLBH.

 

C.           Legal
Compliance. The manner and means by which Distributor performs its Services for Atossa shall be in Distributor’s
sole discretion and control, subject to this Agreement, applicable law and in compliance with all related Federal and state regulations,
ethical business practices and Atossa’s regulatory compliance policies, including those set forth in the attached Exhibit
B.

 

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D.           Distributor
Service Performance. On or before the fifth business day of each month, Distributor shall provide a written report to
Atossa covering activity for the prior month, in the form set forth in Exhibit C (the “Performance Report”).
If the Distributor fails, to perform the Services required by this Agreement, taking into account the most recent Performance
Report provided to Atossa, then Atossa shall notify Distributor in writing of such nonperformance including reasonable detail
and the dates of nonperformance (a “Service Deficiency”).

 

		II.	COMPENSATION FOR SERVICES.

 

A.           Fixed
Monthly Service Fee. In consideration for the provision by Distributor of the Services hereunder, Atossa shall pay Distributor
a fixed fee as set forth in the attached Exhibit D (each, a “Monthly Service Fee”), which shall be paid
by Atossa within 30 days of the end of the month for which the Monthly Service Fee applies. Payments not received by Distributor
within 30 days from due date shall be subject to a 2% per ·month interest charge for all amounts past due. Atossa shall
not be obligated to pay the Monthly Service Fee if Distributor is in breach of this Agreement or if there is a Service Deficiency
(the “Suspended Service Fee”). If a Service Deficiency is remedied during the term of this Agreement then Atossa
shall be obligated to pay the related Suspended Service Fee within 30 days of such determination. If this Agreement is terminated
for cause Atossa shall pay Distributor the Monthly Service Fee owing, other than any Suspended Service Fees, for all Services
performed by Distributor prior to and including the effective date of termination.

 

B.           Compliance
with Law. It is the intention of the Parties that the Monthly Service Fee shall at all times be in compliance with all
applicable laws, rules, regulations, policies and interpretations and shall not exceed the fair market value for the Services
provided by Distributor hereunder, and shall not be determined in a manner that takes into account the volume or value of any
referrals or business that otherwise may be generated by either Party for which payment may be made in whole or in part under
the Federal Health Care Programs. The term “Federal Health Care Programs” is used herein as it is defined in 42 U.S.C.
1320a-7b(f), and includes any Plan or program that provides health benefits, whether directly, through insurance, or otherwise,
which is funded Directly, in whole or in part, by the United States Government (e.g., Medicare, Medicaid, TRICARE). If either
Party determines at any time or is reliably informed by governmental authorities that the compensation arrangements or other terms
set forth herein violate or are likely to be determined by a governmental authority to violate such laws, rules, regulations,
policies or interpretations, the Parties agree to meet immediately and in good faith to amend this Agreement so as to eliminate
such concern or violation and to bring this Agreement into compliance with the foregoing. Any such amendment shall, within lawful
guidelines, have the same aggregate economic effect upon the Parties.

 

C.           Renewal.
The Parties agree that they shall have the right at the commencement of any Renewal Term, as provided in Section V.A hereof,
to review the Monthly Service Fee set forth in Exhibit D and to make a mutually agreeable adjustment to the Monthly Service
Fee, so long as the Monthly Service Fee as adjusted is consistent with fair market value.

 

		III.	DISTRIBUTION OF FORECYTE
                                         PRODUCTS.

 

A.           Purchase
and Distribution of ForeCYTE Products. Distributor shall purchase the ForeCYTE Products only from Atossa and shall
at all times maintain sufficient inventory of the ForeCYTE Products to timely satisfy orders from Distributor Customers. Distributor
shall from time to time place orders for the ForeCYTE products using a form of purchase order reasonably acceptable to Atossa
subject to the following:

 

1.            Purchase
Terms. All sales of the ForeCYTE Products to the Distributor shall be at the price set forth on Exhibit C, subject
to updating by Atossa with advance notice to Distributor. Sales to Distributor shall be FOB Distributor, which shall be payable
net 30 days from invoice date subject to a 2% per month interest charge for all amounts past due. Each order of ForeCYTE Products
shall have a total invoice price to the Distributor of not less than *.

 

* The confidential
portion has been so omitted and filed separately with the Securities and Exchange Commission (“SEC”). 

 

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2.            Forecasts.
Distributor shall on or before the first business day of each month provide a 90 day rolling forecast of its good faith reasonable
estimate of its expected purchasing quantities and delivery dates in the upcoming 90 days, which must include the minimum quantities
set forth on Exhibit C. This 90 day rolling forecast shall not be binding on the Distributor but Atossa shall not be responsible
for filling any orders placed for ForeCYTE Products that exceed the quantities or don’t conform with the expected delivery
dates set forth in any such 90 day forecast delivered to Atossa.

 

3.            Minimum
Purchases. Exhibit C sets forth the minimum quantity of ForeCYTE Products that must be purchased by Distributor on or
before the dates and at the prices set forth in Exhibit C.

 

4.            Supply
Shortages. Supply of ForeCYTE Products may be disrupted from time to time because of regulatory issues, shortages of raw
materials or components or for other reasons beyond the reasonable control of Atossa and in event of such disruption Atossa shall
promptly notify the Distributor in writing as soon as practicable of such disruption and provide the estimated time to recommence
supply of ForeCYTE Products. The minimum purchases set forth on Exhibit C shall be reduced by the amount of any such shortages.

 

B.           Exclusivity;
Customer Conflicts. The Distributor acknowledges that Atossa distributes the ForeCYTE Products directly and through others
in the Territory and that others have been granted rights to sell the ForeCYTE Products nationally including to Distributor Customers.
If instructed to do so by Atossa, the Distributor shall refrain from promoting, marketing or distributing the ForeCYTE Products
to any potential customers if Atossa is notified the Distributor that the particular customer has already purchased the ForeCYTE
Products from another distributor.

 

1.            Exclusivity.
Subject to the above, the Distributor may obtain exclusive rights to sell ForeCYTE Products to certain Distributor Customers as
follows: If a Distributor Customer has purchased ForeCYTE Products from the Distributor in the prior 90 days and if the Distributor
Customer has provided Collection Kits to the NLRBH for completion of the ForeCYTE Test then the Distributor shall inform Atossa
in writing of the name and location of such Distributor customer. Distributor shall update such l ist of such Distributor Customers
on a monthly basis and provide a copy of such list to Atossa on or before the fifth business day of each month, with such list
being certified as being true and correct by an executive officer of Distributor (the customers on such list, as updated, are
referred to as “Distributor ForeCYTE Customers”). Such Distributor ForeCYTE Customers shall be exclusive to
Distributor and Atossa shall not distribute ForeCYTE Products directly or through others to such Distributor ForeCYTE Customers.
During the Term of this Agreement, Distributor ForeCYTE Customers that contact Atossa for ForeCYTE Products shall be referred
to Distributor for order fulfillment.

 

2.            Customer
Conflicts. Distributor shall have the right to inform Atossa in writing from time to time of the names and locations of
potential Distributor Customers that Distributor has established a relationship with and believes in good faith will purchase
ForeCYTE Products from Distributor within the next 90 days. The Parties acknowledge that it would create confusion and not be
in the best interest of physician’s and. patients if multiple sales representatives are soliciting such same potential customers.
Accordingly, during this 90-day period Atossa shall not solicit such customers to purchase the ForeCYTE Products from anyone other
than · the Distributor.

 

3.            Ethical
Obligations. Notwithstanding anything in this Agreement to the contrary no customer shall be considered a Distributor
ForeCYTE Customer if such customer is not satisfied with the service provided by Distributor and the Parties acknowledge and agree
that nothing in this Agreement shall limit the ethical obligation of the NRLBH and its licensed physicians from providing medically
useful services to patients including the ForeCYTE Test.

 

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C.           Sales
Materials. Atossa shall make available to the Distributor brochures, product literature, training materials and labeling
which may be copied, but not altered in anyway, by Distributor and utilized to distribute market and promote the ForeCYTE Products.
The Distributor shall use only such sales materials as are provided by Atossa or those materials that are otherwise approved in
writing in advance by Atossa. All use by the Distributor of the name “Forecyte,” “Atossa,” “National
Reference Laboratory for Breast Health” or any other name or mark that is copyrighted, trademarked or service-marked by
Atossa shall be subject to the prior written approval of Atossa. Upon any termination of this Agreement, the Distributor shall
immediately cease the use of all such names and marks and shall return to Atossa any supplies, samples, brochures, product literature,
training materials and other materials bearing such names or marks.

 

D.           Authorized
Sub-contractors and Sub-distributors. Distributor may delegate or assign some or all of its duties envisioned by this
Agreement hereunder to its qualified employees and independent Representatives and other personnel engaged and/or employed by
Distributor (“Distributor Representatives”), provided that:

 

1.            Such
representatives shall not be health care professionals or persons in a similar position who might be capable of exerting undue
influence on a Distributor Customer or its patients.

2.            Atossa
retains the right, at its sole discretion, to revoke permission for Distributor to allow any of Distributor’s independent
contractors or employees to take actions in furtherance of the Distributor’s duties under this Agreement, only if a breach
of this agreement or ethical issues are exposed.

3.            Distributor
must require its contractors, sub-distributors and/or employees to be bound by the terms and conditions of this Agreement relating
to Distributor, all in a document reasonably satisfactory to Atossa. Atossa retains the right to inspect and/or require modifications
to Distributor’s agreements with its independent contractors and sub-distributors and/or employees at any time.

4.            Distributor
shall remain liable as a principal and not as surety for all of its obligations hereunder.

5.            Distributor
shall indemnify, defend and hold harmless Atossa and its employees, shareholders, officers, directors, agents and other affiliates,
to the fullest extent permitted by law, against any and all claims, actions, demands, losses, costs, expenses, damages and claims
of any kind whatsoever which Atossa may sustain or incur, including reasonable legal fees and costs, as a result of or arising
from Distributor’s failure to fulfill its obligations or perform its duties with respect to its employees, contactors, shareholders,
officers, directors, agents, sub-distributors, and other affiliates of Distributor. Said indemnification by Distributor shall
include its negligent, willful or intentional action, and/or omission.  

E.      Lab
Testing. Consistent with good laboratory practices and applicable clinical and molecular laboratory laws Atossa shall
perform the ForeCYTE Test at the NRLBH for the Collection Kits submitted by the Distributor ForeCYTE Customers. Distributor acknowledges
that Atossa owns U.S. patents and patent applications on the ForeCYTE Test and ForeCYTE Products and that those patents prohibit
others from performing laboratory services on specimens collected with the Pump and the Collection Kits. Distributor shall not
cause, directly or indirectly, any Collection Kits to be provided to any laboratory other than the NRLBH.

 

F.      Atossa
as Provider of the ForeCYTE Testing. Atossa shall have ultimate discretion regarding the acceptance by Atossa of requests
for the ForeCYTE Test. ln exercising such discretion, Atossa shall take into consideration such factors as it deems relevant,
including but not limited to whether it has the necessary licenses to deliver the ForeCYTE Test in the locations served by Distributor,
and the necessary billing or provider numbers to bill and be paid for such services by third party payers, and other relevant
factors such as the n umber and mix of ForeCYTE Tests requested by or at a given location. Atossa may require Distributor Customers
to execute such typical and customary forms of agreement as applicable to Atossa’s customers generally, including forms
and formats for ordering testing and for submitting billing information.

 

G.     Training.
During the first 60 days of the term of this Agreement, Atossa will provide Millennium’s sales personnel with training geared
toward reasonably preparing such personnel to market and sell the ForeCYTE Products in a manner generally accepted for similar
products in the industry.

 

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		IV.	INDEPENDENT DISTRIBUTOR
                                         RELATIONSHIP.

 

Distributor’s relationship
with Atossa will be that of an independent contractor and nothing in this Agreement should be construed to create a partnership,
joint venture, franchise, or employer-employee relationship. Distributor is not authorized to make any representation, contract,
or commitment on behalf of Atossa not expressly authorized by Atossa. Distributor will not be entitled to any of the benefits
that Atossa may make available to its employees, such as group insurance, profit sharing or retirement benefits. Distributor will
be solely responsible for all tax returns and payments required to be filed with or made to any federal, state or local tax authority
with respect to Distributor’s performance of services and receipt of fees under this Agreement. Atossa will regularly report
amounts paid to Distributor by filing Form 099-MlSC with the Internal Revenue Service as required by Jaw. Atossa will not withhold
or make payments for social security; make unemployment insurance or disability insurance contributions: or obtain worker’s
compensation insurance on Distributor’s behalf. Distributor agrees to accept exclusive liability for complying with all
applicable state and federal laws governing self-employed individuals, including obligations such as payment of taxes, social
security, disability and other contributions based on fees paid to Distributor, its agents or employees under this Agreement.
Distributor hereby agrees to indemnify and defend Atossa against any and all such taxes or contributions, including penalties
and interest.

 

		V.	CONFIDENTIALITY.

 

A.     Confidentiality.
The Parties acknowledge that the terms of this Agreement are confidential and will not be disclosed without the prior written
consent of the non-disclosing Party except as may otherwise be required by law. Further, during the Term of this Agreement, and
at all times following termination thereof, each Party shall keep strictly confidential all information which they obtain from
the other Party during the Term, including, in particular, “Proprietary Information” and “Third Party
Information,” as each of such terms is defined below. Neither Party shall use or disclose to any person, firm, or other
entity or permit any person to examine, copy or duplicate any such confidential information furnished by one Party to the other,
except as otherwise required by law. Upon the termination of this Agreement (irrespective of the reason or circumstances), unless
otherwise agreed to in writing by the Parties, each Party will return to the other Party all such confidential information in
its possession, as well as any copies or information derived there from. Without limiting any other provision herein, the provisions
of this Section shall survive any termination or expiration of this Agreement. Furthermore, upon termination of this Agreement,
unless otherwise agreed to in writing by the Parties, Atossa and Distributor shall immediately discontinue their use (if any)
of the name or trademarks of the other (or developed for Atossa by Distributor) and shall immediately discontinue all representation
s or statements from which it might be inferred that any relationship exists between Atossa and Distributor.

 

B.     Defined
Terms. For purposes of this Agreement:

 

“Proprietary
Information” includes, without limitation: (a) trade secrets, inventions, ideas, processes, formulas, source and object
codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques; (b)
information regarding plans for research, development, new products, marketing and selling, business plans, budgets and unpublished
financial statements, licenses, prices and costs, suppliers, customers and prospective customers; and (c) information regarding
the skills and compensation of employees and Distributors. Notwithstanding the other provisions of this Agreement, Proprietary
Information does not include (x) information that has been published or is otherwise readily available to the public other than
by a breach of this Agreement; (y) information independently developed by personnel or agents of one Party having no access to
the other Party’s Proprietary Information; or (z) information known to the receiving Party prior to its receipt from the
disclosing Party.

 

“Third
Party Information” means Proprietary Information received from a third party (i.e. a person or entity other than a Party
to this Agreement). The Parties each understand that shall maintain the confidentiality of Third Party Information in accordance
with the foregoing terms of this Section V.

 

C.     HIPAA
Compliance. In connection with the provision of the Services provided hereunder, Distributor may have access to certain
protected health information as defined by the Health Insurance Portability and Accountability Act of 1996 (“HlPAA”),
as amended. Distributor agrees to execute and comply with the HIPAA Business Associate Agreement attached Exhibit F, which
is hereby incorporated by reference. This Section V.C. shall survive the termination of this Agreement.

 

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D.           Ownership
of Proprietary Information. Each Party acknowledges that all data, documents (whether in draft or final form), databases,
storage media, files, electronic or otherwise, computers, equipment and accessories, pagers, personal digital assistants, telephones
and other property containing or referring to Proprietary Information shall at all times be the exclusive property of the disclosing
Party.

 

E.     Remedies.
Atossa and Distributor acknowledge and agree that the agreements, covenants and undertakings contained in this Section V
relate to matters which are of a special unique and extraordinary character and that a violation of the terms of this Article
will cause irreparable injury to the other Party, the amount of which may be extremely difficult, if not impossible, to estimate
or determine and may not be adequately compensated by monetary damages. Therefore, Atossa and Distributor agree that either Party
shall be entitled to an injunction, restraining order or other equitable relief from any court of competent jurisdiction, restraining
any violation or threatened violation of any such terms by the other Party or such other persons, as the court will order. The
rights and remedies provided by this Section V are cumulative and will be in addition to any other rights and remedies
which either Party may have at Jaw or equity.

 

		VI.	TERMINATION.

 

A.    Term.
Unless terminated by either Party in accordance with the terms of this Section VI, the initial term of this Agreement shall
be * (the “Initial Term”). Further, this Agreement will automatically renew for additional one (1) year terms
(each, a “Renewal Term”), unless terminated by either Party upon ninety (90) days’ prior written notice
prior to the expiration of the Initial Term or the then-applicable Renewal Term. The Initial Term and the Renewal Term are sometimes
referred to in this Agreement together as the “Term.” Within the agreement timeline if Distributor enters a
new market, the Parties may mutually agree on an amended marketing fee schedule will be added to the terms of this Agreement.

 

B.    Termination.
Following the one-year anniversary of the Effective Date, either Party may terminate this Agreement at any time upon thirty
(30) days’ prior written notice to other Party. Further, either Party may terminate this Agreement upon a material breach
of this Agreement by the other Party if such breach is not cured within thirty (30) days after written notice of said breach by
the non-breaching Party to the Party in breach (the “Cure Period”).

 

C.    Termination
Without Cause. Notwithstanding the above, Atossa may terminate this Agreement without “Cause” only upon providing
Distributor with 18 months prior written notice of such termination. “Cause” shall mean a breach of this Agreement
by Distributor.

 

D.    Return
of Property. Upon termination of this Agreement or earlier if requested by the other Party, any and all notes, memoranda,
specifications, devices, formulas, and documents, together with all copies thereof in any form, and any other material containing
or disclosing any Third Party Information or Proprietary Information shall be returned to the Party that provided such information
to the other Party under this Agreement. In the case of devices, Atossa shall reimburse Distributor for any and all reasonable,
documented, out of pocket costs associated with the purchase, maintenance and logistics of the ForeCYTE Products returned.

 

* The confidential portion has
been so omitted and filed separately with the SEC.

 

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		VII.	REPRESENTATIONS AND WARRANTIES;
                                         INSURANCE; INDEMNITY

 

A.           Compliance
with Health Care Laws. The parties agree that at the time this Agreement is executed, the subject matter hereof is legal
and enforceable. It is expressly recognized and understood by the parties hereto that the prohibitions of the federal Anti-kickback
Statute and applicable state laws (the “Health Care Laws”) will affect the parties hereto except to the extent
the parties otherwise fall within a safe harbor or other exception to such Health Care Laws; therefore, the parties agree that
the terms and conditions of this Agreement must at all times comply with those exceptions. Specifically, it is intended that at
all times hereunder that this Agreement and the parties’ business arrangement hereunder shall meet the requirements of the
Personal Services and Management Contracts Safe Harbor to the federal Anti-kickback Statute (42 C.F.R. § 100l.952(d)). Accordingly,
if either Party, in good faith, determines at any time or is reliably informed by governmental authorities that the Agreement
violates or is likely to be determined by a third party to violate such laws, rules, regulations, policies or interpretations,
this Agreement will be deemed to be automatically modified to comply with such law or regulation. The parties further agree to
meet immediately upon such determination and in good faith to amend this Agreement so as to eliminate such concern or violation
and to bring this Agreement into compliance with the foregoing. If the Agreement cannot be brought into compliance with such law
or regulation, it shall be terminated.

 

B.           No
Debarment/Exclusion. Each Party certifies to the other that neither it nor any of its employees and agents is excluded
under 42 U.S.C. §I320(a)-7 from participation under any federal health care program for the provision of items or services
for which payment may be made under a federal health care program; and (ii) no action has occurred or is pending or threatened
against it or to its knowledge against any employee, Distributor or agent engaged to provide items or services that could result
in such exclusion (collectively, “Exclusions/Adverse Actions”). During the term of this Agreement, Each Party
agrees to notify the other Party in writing of any Exclusions/Adverse Actions within twenty-one (21) days of learning of any such
Exclusions/Adverse Actions and provide the basis of the Exclusions/Adverse Actions. Each Party acknowledges that the exclusion
of any of its personnel from participation in the Medicare or Medicaid programs shall result in his or her immediate removal from
work under this Agreement. Each Party acknowledges and agrees that any unresolved Exclusions/Adverse Actions of or against it
or any employee, agent or independent Distributor utilized, directly or indirectly, in the performance of this Agreement may serve
as the basis for the immediate termination of this Agreement by the other Party.

 

C.           Insurance;
Expenses. Each Party shall carry general liability and professional liability (if applicable) insurance covering liability
for claims, causes of actions, actions, losses, liabilities, damages, and expenses arising out of, caused by or otherwise resulting
from the negligence or otherwise wrongful acts or omissions of its employees and/or agents occurring while each is engaged in
activities related to this Agreement. Said policies shall contain minimum limits of liability of one million dollars ($l,000,000)
per occurrence and two million dollars ($2,000,000) in the aggregate, or as the Parties may otherwise mutually agree. All expenses
incurred by either Party, including for marketing, training and promotional purposes, shall be the sole responsibility of the
Party incurring such expenses.

 

D.           Atossa
Indemnity. Atossa shall indemnify and hold Distributor harmless from any claims arising out of the ForeCYTE Products provided
by Atossa from any third party, including government entities (including any fees, costs, including, without limitation, attorneys’
fees, expert witness fees and costs of court, and expenses associated with the defense against same), except to the extent such
claims arise from the negligence or willful misconduct of Distributor, including any breach of this Agreement.

 

E.           Authority.
Atossa represent s that it is a corporation duly organized under the laws of the State of Delaware and Distributor represents
that it is a limited liability company organized under the laws of the State of New York. Each party represents that (i) it has
all necessary corporate power to enter into this Agreement, (ii) the execution and delivery of this Agreement has been duly authorized
by all necessary corporate action, and (iii) this Agreement, once executed and delivered, shall be a legal, valid and binding
obligation of the respective Party enforceable in accordance with their respective terms.

 

F.           Distributor
Indemnity. Distributor shall indemnify and hold Atossa harmless from any claims arising out of the Services provided by
Distributor from any third party, including government entities (including any fees, costs, including, without limitation, attorneys
fees, expert witness fees and costs of court, and expenses associated with the defense against same), except to the extent such
claims arise from the negligence or willful misconduct of Atossa, including any breach of this agreement.

 

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G.           Noninterference
with Respective Businesses. The Parties further recognize that, in conjunction with Distributor ’s provision of
services to Atossa, the Parties shall mutually benefit from their association with each respective Party’s goodwill with
third parties in Distributor’s and Atossa’s respective marketplaces. In recognition of the Parties’ exchange
of Proprietary information and Third Party Information and in recognition of each Party benefiting from the other Party’s
goodwill in the marketplace, the Parties agree to the following continuing rights and obligations and restrictions:

 

H.           Nonsolicitation.
During the Term of this Agreement and for a period of two (2) years following its termination by either Party for any reason,
neither Party shall solicit, recruit, hire, induce or interfere in any manner with the other Party’s relationship with any
employee or independent Distributor of the other Party as of the termination date of this Agreement.

 

I.     Goodwill.
Each Party agrees that the goodwill and reputation of the other Party are essential and should not be impaired at any time.
Neither Party nor its agents shall communicate or cause or encourage others to communicate with any person in a manner which:
(i) disparages the other Party or its respective affiliates, directors, officers, employees, representatives, agents, business
partners, sub distributors, distributors, suppliers, or the products or services of any of the foregoing; or (ii) adversely affects,
disrupts or interferes with the other Party’s reputation, goodwill, business relationships, business plans, litigation,
claims, business arrangements or agreements; or (iii) causes economic harm to the other Party.

 

		VIII.	MISCELLANEOUS.

 

A.           Severability.
 If one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.
Notwithstanding the foregoing, a court of competent jurisdiction may reform any provision found invalid, illegal, or unenforceable
in a manner consistent with the intent of the Parties so as render such provision fully enforceable to the extent permitted by
law.

 

B.           Counterparts;
Electronic Transmission. This Agreement may be executed in counterparts, with all counterparts constituting one and the
same original. Signatures may be transmitted or delivered by electronic means, including facsimile and digital image (e.g.,.PDF,
..JPG) and such electronic version shall constitute an original for all purposes.

 

C.           No
Assignment. This Agreement may not be assigned by either Party without the other Party’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed. Subject to the foregoing, this Agreement shall be binding
upon the heirs, successors, and permitted assigns of the Parties hereto.

 

D.           Governing
Law. This Agreement shall be governed by and construed under the laws of the State of Washington without regard to the
principles of conflicts of laws thereof. Any judicial proceeding brought to enforce this Agreement, or any matter related thereto,
shall be brought in the appropriate court for King County, State of Washington or the appropriate United States District Court
for the Western District of Washington. By execution of this Agreement, each Party accepts and agrees to the exclusive jurisdiction
and venue of the aforesaid courts and irrevocably agrees to be bound by any judgment rendered thereby in connection with this
Agreement, subject to a Party’s appeal rights.

 

E.            Injunctive
Relief. A breach of certain promises or agreements contained in this Agreement may result in irreparable and continuing
damage to the non-breaching Party for which there may be no adequate remedy at law, and the non-breaching Party is therefore entitled
to seek injunctive relief as well as such other and further relief as may be appropriate. For purposes of this Section VIII.E.,
if a non-breaching Party seeks injunctive relief, the breaching Party shall waive any requirement of a bond or other security
and shall be liable for reasonable attorney fees and costs incurred in enforcing the terms of this Agreement.

 

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F.           Survival.
The following provisions shall survive termination of this Agreement: Sections V, Section VI.C, Section VII.F
through I, and Section VIII.

 

G.           Waiver.
No waiver by a Party to this Agreement of any breach of this Agreement shall be a waiver of any preceding or succeeding breach.
No waiver by a Party to this Agreement of any right under this Agreement shall be construed as a waiver of any other right. Neither
Party shall be required to give notice to enforce strict adherence to all terms of this Agreement.

 

H.           Entire
Agreement. This Agreement and the exhibits attached hereto, constitute the final, complete and exclusive agreement of
the Parties with respect to the subject matter hereof and supersede and merge all prior discussions between the Parties. No modification
of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and
signed by the Party to be charged.

 

I.             Notices.
All notices, requests and other communications under this Agreement must be in writing, and must be mailed by registered or
certified mail, postage prepaid and return receipt requested, or Delivered by hand to the Party to whom such notice is required
or permitted to be given. If mailed, any such notice will be considered to have been given five (5) business days after it was
mailed postage prepaid to the address provided below or updated by delivery of written notice in accordance with the provisions
of this Section VIII.I. If delivered by hand, any such notice will be considered to have been given when received by the
Party to whom notice is given.

 

	ATOSSA	DISTRIBUTOR
	 	 
	Atossa Genetics inc.	Millennium Medical Devices LLC
	1616 Eastlake Ave., East,
    No. 510	400 Garden City Plaza, Suite 440  
	Seattle, Washington
    98102	Garden City, New York 11530  
	Attention: President

    Tel.: (800) 351-3902	Attention:  Chris Amandola

    Tel: (516) 628-5500 
	Fax: (206) 430-1 288	Fax: (516) 628-5400
	 	 
	 	With a copy to: 
	 	 
	 	Finkelstein & Feil, PC
	 	666 Old Country Road. Suite 210
	 	Garden City, NY 11530
	 	Attention: Michael Finkelstein, Esq.
	 	Tel: (516) 280-3660
	 	Fax: (516) 280-3661
	 	Email: msf@finkelsteinfeil.com

 

    	Page | 9

    	 

    

 

IN WITNESS
WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representative as of the date first
set forth above.

 

	Atossa Genetics Inc.	 	Millennium medical devices llc	 
	 	 	 	 	 	 
	By:	/s/ Kyle Guse	 	By:	/s/ Chris Amandola	President
	 	Kyle Guse	 	 	Chris Amandola	 
	 	Chief Financial Officer and General Counsel	 	 	President	 

 

    	Page | 10

    	 

    

  

EXHIBIT
A

 

DISTRIBUTOR
SERVICES

 

Distributor
shall assist Atossa to distribute, promote and market the ForeCYTE Products, by providing distribution, promotional and marketing
services, including without limitation, the services more fully described below (the "Services") through qualified
employees and independent representatives and other personnel engaged and/or employed by Distributor ("Distributor Representatives")
in accordance with the Agreement to which this Exhibit A forms a part:

 

		1.	Distribution, Marketing
                                         and Promotion of ForeCYTE Products. Subject to item 2 below, Atossa has engaged
                                         Distributor to use its best commercial efforts to distribute market and promote Atossa's
                                         ForeCYTE Products the Distributor Customers in the Territory. Distributor shall promptly
                                         sell the Atossa ForeCYTE Products to Distributor Customers so that all of Distributor’s
                                         inventory of ForeCYTE Products shall be sold prior to each date that Distributor is required
                                         to place a minimum purchase order. Distributor shall use best commercial efforts to ensure
                                         that Distributor Customers do not maintain more than 60 days inventory of Collection
                                         Kits, for example, by re-allocating such inventory to other Distributor Customers.

 

		2.	State Law Restrictions.
                                         To the extent prohibited by applicable state law, neither Distributor nor its Distributor
                                         Representatives shall solicit, arrange for or recommend any existing or potential Distributor
                                         Customers to order any ForeCYTE Test. Any solicitation of or marketing to Distributor
                                         Customers for the ForeCYTE Test within such states shall be conducted exclusively by
                                         Atossa and its employees.

 

		3.	Customer Liaison Services.
                                         Distributor shall provide customer service liaison support to Distributor Customers
                                         regarding issues such as specimen collection, operation of the Pump, complaints, missed
                                         tests, technical problems with laboratory testing procedures, specimen requirements and
                                         labeling, specimen transport and tracking and use of the Collection Kits. Distributor
                                         shall ensure the ongoing in-person and phone customer service required to maintain Distributor
                                         Customers. Distributor shall report to Atossa any customer service problems upon occurrence
                                         and shall provide Atossa on a quarterly basis a Customer Service and Quality
                                         improvement Summary Report. Distributor shall maximize sales of the ForeCYTE Products
                                         by soliciting and assisting Distributor Customers with the completion of new provider
                                         forms to be sent to the Lab.

 

		4.	Monitoring of Atossa
                                         Services. ln coordination with Atossa and its Quality Improvement Manager, Distributor
                                         shall monitor quality of the ForeCYTE Products and ForeCYTE Tests and use reasonable
                                         efforts to ensure that Atossa is providing timely and high quality services, including
                                         turnaround, corrected reports and resolution of problem samples. Distributor shall provide
                                         Atossa on a quarterly basis a Customer Service and Quality Improvement Summary Report.

 

		5.	Authorized Materials.
                                         Distributor shall use only materials supplied by or approved by Atossa, including
                                         without limitation new provider forms, test requisitions and order forms and sales and
                                         marketing materials. Distributor is not authorized to extend any representation, warranty,
                                         guaranty, obligation or responsibility (express or implied) with respect to the ForeCYTE
                                         Products and ForeCYTE Tests without express written authorization from Atossa. Atossa
                                         will provide one copy of literature, physician new provider forms, sales and marketing
                                         materials, etc. so that they can be duplicated without alteration by Distributor at Distributor's
                                         sole cost and expense.

 

		6.	No Impermissible Services.
                                         In no case shall Distributor or its Distributor Representative s perform any
                                         tasks that are normally the responsibility of the Distributor Customer or its office
                                         staff, including without Limitation, performing nursing function s, or performing clerical
                                         services for the Distributor Customer. Upon request by Atossa, Distributor shall provide
                                         to Atossa a signed certification from each Distributor Representative assigned to perform
                                         Services hereunder that the Distributor Representative shall comply fully with the Agreement
                                         and this Exhibit.

 

    	Page | 11

    	 

    

 

		7.	Compliance Program.
                                         Distributor shall be expected to participate in and assure that Distributor Representatives
                                         comply in all material respects with Atossa’s Compliance Program. Distributor shall
                                         also review Atossa 's Compliance Program and, on a regular and continuous basis, provide
                                         consultation to Atossa on possible enhancements to Atossa's Compliance Program. As an
                                         adjunct to the Atossa's Compliance Program, Distributor will also provide consultation
                                         on the implementation of mechanisms to ensure the medical necessity and appropriateness
                                         of all testing, including without limitation Distributor Customer in-service and education.
                                         Distributor’s obligations hereunder are defined in greater detail in Exhibit
                                         C below.

 

		8.	New Provider Forms.
                                         Prior to each date that Distributor must place a minimum order of ForeCYTE Products,
                                         Distributor shall ensure that new provider forms have been completed and submitted to
                                         the Lab for all Distributor Customers who have purchased ForeCYTE Products.

 

    	Page | 12

    	 

    

  

EXHIBIT
B

 

COMPLIANCE
OBLIGATIONS OF DISTRIBUTOR

 

		1.	Compliance Plan.
                                         Distributor shall maintain continuously in place throughout the term of this Agreement
                                         an effective Compliance Plan that includes at a minimum the seven (7) elements referred
                                         to in the OJG Compliance Program Guidance for Clinical Laboratories (published 08-24-1998).
                                         At least once per year, the Distributor 's compliance plan will be reviewed as a whole
                                         by Distributor's legal counsel and by key executives to assure that the plan is appropriate
                                         for the Services performed for Atossa hereunder and to update the plan to take into account
                                         changes in the regulatory environment.

 

		2.	Compliance Meetings.
                                         Distributor shall appoint a compliance committee which shall hold and document regulatory
                                         meetings and which shall report to the Distributors Board of Directors and which shall
                                         be accessible to all employees of Distributor.

 

		3.	Chief Compliance Officer.
                                         Distributor shall designate a Chief Compliance Officer who shall make it a key point
                                         of his or her efforts to assure that such persons continue to gain additional knowledge
                                         on compliance- related issues. Distributor' s Chief Compliance Officer shall timely inform
                                         Atossa 's Compliance Officer of any compliance-related issues (within not later than
                                         5 business days following the initial discovery of issues that may raise a compliance
                                         concern, with periodic updates as required by Atossa until the issue is resolved).

 

		4.	HIPAA Privacy Standards.
                                         In accordance with HIPAA, Distributor will adopt and maintain HIPAA compliance plan,
                                         as well as HIPAA-compliant privacy standards. Distributor will appoint a privacy official.

 

		5.	Background Checks on
                                         Employees and Distributors. Distributor will ensure that none of its employees,
                                         owners or contractors have been excluded or debarred from Medicare or Medicaid or any
                                         other federal program.

 

		6.	No Kickbacks. Distributor
                                         will maintain policies and procedures reasonably calculated to assure that all individuals
                                         providing services to Atossa and/or the Distributor ForeCYTE Customers under this Agreement
                                         are informed within the 30 days following the inception of this Agreement (or such person's
                                         date of hire if later, and then at least twice yearly thereafter, that:

 

		a.	They are prohibited from engaging
                                         in any act or omission that constitutes or results in the overutilization of Atossa’s
                                         ForeCYTE Test.

 

		b.	They are required to comply
                                         with applicable state and federal statutes, policies and regulations.

 

		c.	They may not engage in any illegal
                                         activities related to the furnishing of the Atossa's ForeCYTE Test (such illegal activities
                                         include - but are not limited to- paying kickbacks, incentives and/or gratuities to Lab
                                         Customers or to individuals who might influence a customer’s decision to order
                                         lab testing from Atossa, or to provide such person with gifts, bribes, services, or any
                                         other form of compensation in exchange for -or to induce- referrals).

 

		d.	They must act in accord with
                                         the guidance issued by the Inspector General of the Department of Health and Human Services
                                         (as updated from time to time).

 

		e.	They may not have any direct
                                         contact with any patient who is receiving (or likely to receive) testing from Atossa.

 

		f.	They may not be a health care
                                         professional or person in a similar position who might be capable of exerting undue influence
                                         on a customer or a customer's patients.

 

    	Page | 13

    	 

    

 

EXHIBIT
C

 

MINIMUM
PURCHASES

 

	Date	 	ForeCYTE Product	 	Quantity	 	Price* FOB Distributor
	 	 	 	 	 	 	 
	May 1, 2013	 	ForeCYTE Collection Kits (AG-FC5)	 	**	 	**
	May 1, 2013	 	MASCT pump (AG-MASCT)	 	40	 	FOC
	 	 	 	 	 	 	 
	Date	 	ForeCYTE Product	 	Quantity	 	Price* FOB Distributor
	 	 	 	 	 	 	 
	May 1, 2014	 	ForeCYTE Collection Kits (AG-FC5)	 	**	 	**
	May 1, 2014	 	MASCT pump (AG-MASCT)	 	80	 	FOC
	 	 	 	 	 	 	 
	Date	 	ForeCYTE Product	 	Quantity	 	Price* FOB Distributor
	 	 	 	 	 	 	 
	May 1, 2015	 	ForeCYTE Collection Kits (AG-FC5)	 	**	 	**
	May 1, 2015	 	MASCT pump (AG- MASCT)	 	120	 	FOC

  

* The prices equal approximately
the cost to Atossa as of the date of this Agreement, plus $2 per Collection Kit. The prices will be adjusted from time to time
so that the price of the Collection Kit is approximately equal to Atossa's then current cost plus $2 per Collection Kit.

 

** The confidential portion has
been so omitted and filed separately with the SEC.

 

    	Page | 14

    	 

    

 

EXHIBIT
D

 

COMPENSATION
FOR DISTRIBUTOR SERVICES

 

A.       Compliance
with Law

 

It
is the intention of the Parties that the Monthly Service Fee set forth in this Exhibit D shall at all times be in compliance
with all applicable laws, rules, regulations, policies and interpretations and shall not exceed the fair market value for the
Services provided by Distributor hereunder, and is not determined in a manner that takes into account the volume or value of any
referrals or business that otherwise may be generated by either Party for which payment may be made in whole or in part under
public or private healthcare insurance program, including Medicare or Medicaid. ·

 

B.        Monthly
Service Fee

 

	Service Period	 	Fixed Service Fee
	May 2013	 	*
	June 2013	 	*
	July 2013	 	*
	August 2013	 	*
	September 2013	 	*
	October 2013	 	*
	November 2013	 	*
	December 2013	 	*
	January 2014	 	*
	February 2014	 	*
	March 2014	 	*
	April 2014	 	*

 

	Service Period	 	Fixed Service Fee
	May 2014	 	*
	June 2014	 	*
	July 2014	 	*
	AuGust 2014	 	*
	September 2014	 	*
	October 2014	 	*
	November 2014	 	*
	December 2014	 	*
	January 2015	 	*
	February 2015	 	*
	March 2015	 	*
	April 2015	 	*

 

	Service Period	 	Fixed Service Fee
	May 2015	 	*
	June 2015	 	*
	July 2015	 	*
	August 2015	 	*
	September 2015	 	*
	October 2015	 	*
	November 2015	 	*
	December 2015	 	*
	January 2016	 	*
	February 2016	 	*
	March 2016	 	*
	April 2016	 	*

 

* The confidential portion has
been so omitted and filed separately with the SEC.

 

    	Page | 15

    	 

    

 

EXHIBIT
E

 

PERFORMANCE
CERTIFICATE

 

The undersigned duly appointed
and acting President of the Distributor hereby certifies, based on reasonable inquiry and investigation, that the following is
true and correct as of                     
     , 201   .

 

	Performance Criteria	 	Results for Month of 2013
	l. Number of Collection Kits held in inventory at month end	 	 
	2. Number of Collection Kits held by health care providers at month end	 	 
	3. Number of Pumps held in inventory at month end	 	 
	4. Number of Pumps held by health care providers at month end	 	 
	5. Number of Physicians trained on ForeCYTE during month	 	 
	6.Number of Physicians who have completed ForeCYTE —New Provider Fonns during month	 	 
	6.a. Of the New Provider Forms, how many AG-MASCT5 kits have been placed within these providers	 	 
	7. Number of sales associates actively promoting ForeCYTE	 	 
	 	 	 
	8. Number of new sales representatives trained on the ForeCYTE Products during month	 	 

 

Dated:                    
      201   

 

	By:	 	 
	 	Chris Amandola	 
	 	President	 

 

    	Page | 16

    	 

    

 

EXHIBIT
F

 

BUSINESS
ASSOCIATE AGREEMENT

 

This
Business Associate Agreement ("BA Agreement") dated             ,
         (the "Effective Date"), is entered into by and between
Atossa ("Atossa"), and                              
("Distributor"), each a "Party" and collectively, the "Parties."

 

WHEREAS,
Atossa and Distributor have entered into, or are entering into, or may subsequently enter into, agreements or other documented
arrangements (collectively, the "Business Arrangements") pursuant to which Distributor may provide products and/or services
for Atossa that require Distributor to access, create and use health information that is protected by state and/or federal law;
and

 

WHEREAS,
pursuant to the Administrative Simplification provisions of the Health Insurance Portability and Accountability Act of 1996
("HIPAA"), the U.S. Department of Health & Human Services ("HHS") promulgated the Standards for Privacy
of Individually Identifiable Health Information (the "Privacy Standards"), at 45 C.F.R. Parts 160 and 164, requiring
certain individuals and entities subject to the Privacy Standards (each a "Covered Entity'', or collectively, "Covered
Entities") to protect the privacy of certain individually identifiable health information ("Protected Health Information",
or "PHI"); and

 

WHEREAS,
pursuant to HIPAA, HHS has issued the Security Standards (the "Security Standards"), at 45 C.F.R. Parts 160, 162
and 164, for the protection of electronic protected health information ("EPHI"); and

 

WHEREAS,
in order to protect the privacy and security of PHI, including EPHI, created or maintained by or on behalf of Atossa, the
Privacy Standards and Security Standards require Atossa to enter into a "Business Associate Agreement" with certain
individuals and entities providing services for or on behalf of Atossa if such services require the use or disclosure of PHJ or
EPHI; and

 

WHEREAS,
on February 17, 2009, the federal Health Information Technology for Economic and Clinical Health Act (the "HITECH Act"),
was signed into law and the HITECH Act imposes certain privacy and security obligations on Atossa in addition to the obligation
s created by the Privacy Standards and Security Standards; and

 

WHEREAS,
the HITECH Act revises many of the requirements of the Privacy Standards and Security Standards concerning the confidentiality
of PHI and EPHI, including extending certain HlPAA and HITECH Act requirement s directly to business associates; and

 

WHEREAS,
the HITECH Act requires that certain of its provisions be included in business associate agreements, and that certain requirement
s of the Privacy Standards be imposed contractually upon Atossa as well as business associates; and

 

WHEREAS,
Distributor and Atossa desire to enter into this Business Associate Agreement;

 

NOW
THEREFORE, in consideration of the mutual promises set forth in this Agreement and the Business Arrangements, and other good
and valuable consideration, the sufficiency and receipt of which are hereby severally acknowledged, the Parties agree as follows:

 

1.       Distributor
Obligations. Distributor may receive from Atossa, or create or receive on behalf of Atossa, health information that is
protected under applicable state and/or federal law, including without limitation, PHl and EPHI. All capitalized terms not otherwise
defined in this Agreement shall have the meaning s set forth in the Privacy Standards, Security Standards or the HlTECH Act, as
applicable (collectively referred to hereinafter as the "Confidentiality Requirements"). All references to PHI herein
shall be construed to include EPHI. Distributor agrees not to use or disclose (or permit the use or disclosure of) PHI in a manner
that would violate the Confidentiality Requirements if the PHI were used or disclosed by Atossa in the same manner.

 

2.
       Use of PHI. Except as otherwise required by law, Distributor shall
use PHI in compliance with 45 C.F.R. § 164.504(e). Furthermore, Distributor shall use PHI (i) solely for Atossa's benefit
and only for the purpose of performing Services for Atossa as such services are defined in Business Arrangements, and (ii) as
necessary for the proper management and administration of the Distributor or to carry out its legal responsibilities, provided
that such uses are permitted under federal and state Jaw. Atossa shall retain all rights in the PHI not granted herein. Use, creation
and disclosure of de-identified health information by Distributor are not permitted unless expressly authorized in writing by
Atossa.

 

    	Page | 17

    	 

    

 

3.       Disclosure
of PHI. Subject to any limitations in this BA Agreement, Distributor may disclose PHI. to any third party persons or entities
as necessary to perform its obligations under the Business Arrangement and as permitted or required by applicable federal or state
law. Further, Distributor may disclose PHI for the proper management and administration of the Distributor, provided that (i)
such disclosures are required by law, or (ii) Distributor: (a) obtains reasonable assurances from any third party to whom the
information is disclosed that it will be held confidential and further used and disclosed only as required by law or for the purpose
for which it was disclosed to the third party; (b) requires the third party to agree to immediately notify Distributor of any
instances of which it is aware that PHI is being used or disclosed for a purpose that is not otherwise provided for in this Agreement
or for a purpose not expressly permitted by the Confidentiality Requirements. Additionally, Distributor shall ensure that all
disclosures of PHI by Distributor and the third party comply with the principle of "minimum necessary use and disclosure,"
i.e., only the minimum PH1 that is necessary to accomplish the intended purpose may be disclosed: provided further, Distributor
shall comply with Section l 3405(b) of the HITECH Act, and any regulation s or guidance issued by HHS concerning such provision,
regarding the minimum necessary standard and the use and disclosure (if applicable) of Limited Data Sets. If Distributor discloses
PHI received from Atossa, or created or received by Distributor on behalf of Atossa, to agents, including a sub distributor (collectively,
"Recipients"), Distributor shall require Recipients to agree in writing to the same restrictions and conditions that
apply to the Distributor under this Agreement. Distributor shall report to Atossa any use or disclosure of PH1 not permitted by
this Agreement, of which it becomes aware, such report to be made within two (2) business days of the Distributor becoming aware
of such use or disclosure. In addition to Distributor's obligations under Section 9, Distributor agrees to mitigate, to the extent
practical and unless otherwise requested by Atossa in writing, any harmful effect that is known to Distributor and is the result
of a use or disclosure of PHI by Distributor or Recipients in violation of this Agreement.

 

4.
       Accounting of Disclosures. Distributor shall make available to Atossa
in response to a request from an individual, information required for an accounting of disclosures of PHI with respect to the
individual in accordance with 45 CFR § 164.528, as amended by Section 13405(c) of the HITECH Act and any related regulations
or guidance issued by HHS in accordance with such provision. Distributor shall provide to Atossa such information necessary to
provide an accounting within thirty (30) days of Atossa's request or such shorter time as may be required by state or federal
law. Such accounting must be provided without cost to the individual or to Atossa if it is the first accounting requested by an
individual within any twelve (12) month period. For subsequent accountings within a twelve (12) month period, Distributor may
charge a reasonable fee based upon the Business's labor costs in responding to a request for electronic information (or a cost-based
fee for the production of non-electron ic media copies) so long as Distributor informs Atossa and Atossa informs the individual
in advance of the fee, and the individual is afforded an opportunity to withdraw or modify the request. Such accounting obligations
shall survive termination of this Agreement and shall continue as long as Distributor maintains PHJ.

 

5.
       Withdrawal of Authorization. If the use or disclosure of PHI in this
Agreement is based upon an individual 's specific authorization for the use of his or her PHI, and (i) the individual revokes
such authorization in writing, (ii) the effective date of such authorization has expired, or (iii) the consent or authorization
is found to be defective in any manner that renders it invalid, Distributor agrees, if it has notice of such revocation or invalidity,
to cease the use and disclosure of any such individual’s PHI except to the extent it has relied on such use or disclosure,
or where an exception under the Confidentiality Requirements expressly applies.

 

6.
       Records and Audit. Distributor shall make available to the United
States Department of Health and Human Services or its agents, its internal practices, books, and records relating to the use and
disclosure of PHI received from, created, or received by Distributor on behalf of Atossa for the purpose of determining Atossa’s
compliance with the Confidentiality Requirements or any other health oversight agency, in a time and manner designated by the
Secretary. Except to the extent prohibited by law, Distributor agrees to notify Atossa immediate ly upon receipt by Distributor
of any and all requests by or on behalf of any and all federal, state and local government authorities served upon Distributor
for PHI.

 

7.
       Implementation of Security Standards; Notice of Security Incidents.
Distributor will use appropriate safeguards to prevent the use or disclosure of PHJ other than as expressly permitted under this
Agreement. Distributor will implement administrative, physical and technical safeguards that reasonably and appropriately protect
the confidentiality, integrity and availability of the PHl that it creates, receives, maintains or transmits on behalf of Atossa.
Distributor acknowledges that the HITECH Act requires Distributor to comply with 45 C.F.R. §§ 164.308, 164.310, 164.312
and 164.3l 6 as if Distributor were a Covered Entity, and Distributor agrees to comply with these provisions of the Security Standards
and all additional security provisions of the HlTECH Act. Furthermore, to the extent feasible, Distributor will use Commercially
reasonable efforts to ensure that the technology safeguards used by Distributor to secure PHI will render such PHl unusable, unreadable
and indecipherable to individuals unauthorized to acquire or otherwise have access to such PHI in accordance with 1-lliS Guidance
published at 74 Federal Register 19006 (April 17, 2009), or such later regulation s or guidance promulgated by HHS including the
National Institute for Standards and Technology (''NTST'') standard s adopted by HHS concerning the protection of identifiable
data such as PHI. Lastly, Distributor will promptly report to Atossa any Successful Security incident of which it becomes aware.
At the request of Atossa, Distributor shall identify: the date of the Security Incident, the scope of the Security Incident, the
Distributor’s response to the Security Incident and the identification of the party responsible for causing the Security
Incident, if known.

 

    	Page | 18

    	 

    

 

8.         Data
Breach Notification and Mitigation.

 

8.1         HIPAA
Data Breach Notification and Mitigation. Distributor agrees to implement reasonable systems for the discovery and prompt
reporting of any "breach " of "unsecured PH1" as those term s are defined by 45 C.F.R. § J 64.402
(hereinafter a "HIPAA Breach "). The Parties acknowledge and agree that 45 C.F.R. § 164.404, as described
below in this Section, governs the determination of the date of a HIPAA Breach. In the event of any conflict between this Section
and the Confidentiality Requirements, the more stringent requirements shall govern. Distributor will, following the discovery
of a HIPAA Breach, notify Atossa immediately within fifteen (15) Distributor discovers such HIPAA Breach, unless Distributor is
prevented from doing so by 45 C.F.R. § 164.412 concerning law enforcement investigations. For purposes of reporting a HIPAA
Breach to Atossa, the discovery of a HIPAA Breach shall occur as of the first day on which such HIPAA Breach is known to the Distributor
or, by exercising reasonable diligence, would have been known to the Distributor. Distributor will be considered to have had knowledge
of a HIPAA Breach if the HIPAA Breach is known, or by exercising reasonable diligence would have been known, to any person (other
than the person committing the HIPAA Breach) who is an employee, officer or other agent of the Distributor. No later than three
(3) business days following a HIPAA Breach, Distributor shall provide Atossa with sufficient information to permit Atossa to comply
with the HlPAA Breach notification requirements set forth at 45 C.F.R. § 164.400 et seq. Specifically, if the following
information is known to (or can be reasonably obtained by) the Distributor, Distributor will provide Atossa with: (i) contact
information for individuals who were or who may have been impacted by the 1-0PAA Breach (e.g., first and last name, mailing address,
street address, phone number, email address); (ii) a brief description of the circumstances of the HIPAA Breach, including the
date of the HIPAA Breach and date of discovery: (iii) a description of the types of unsecured PHl involved in the HIPAA Breach
(e.g., names, social security number, date of birth, addresses, account numbers of any type, disability codes, diagnostic and/or
billing codes and similar information); (iv) a brief description of what the Distributor has done or is doing to investigate the
HIPAA Breach, mitigate harm to the individual impacted by the HJPAA Breach, and protect against future HIPAA Breaches; and (v)
appoint a liaison and provide contact information for same so that Atossa may ask questions or learn additional information concerning
the HIPAA Breach. Following a HIPAA Breach, Distributor will have a continuing duty to inform Atossa of new information learned
by Distributor regarding the HIPAA Breach, including but not limited to the information described in items (i) through (v), above.

 

8.2         Data
Breach Notification and Mitigation under Other Laws.  In addition to the requirements of the foregoing Section,
Distributor agrees that in the event any individually Identifiable Information is lost, stolen, used or disclosed in violation
of one or more State data breach notification laws, Distributor shall promptly: (i) cooperate and assist Atossa with any investigation
into any State Breach or alleged State Breach: (ii) cooperate and assist Atossa with any investigation into any State Breach or
alleged State Breach conducted by any State Attorney General or State Consumer Affairs Department (or their respective agents);
(iii) comply with Atossa 's determinations regarding Atossa's and Distributor 's obligations to mitigate to the extent practicable
any potential harm to the individuals impacted by the State Breach: and (iv) assist with the implementation of any decision by
Atossa or any State agency, including any State Attorney General or State Consumer Affairs Department (or their respective agents),
to notify individuals impacted or potentially impacted by a State Breach.

 

9.
         Term and Termination.

 

9.1        This
BA Agreement shall commence on the Effective Date and shall remain in effect until terminated in accordance with the terms of
this Section, provided, however, that termination shall not affect the respective obligations or rights of the Parties arising
under the Business Arrangements prior to the effective date of termination, all of which shall continue in accordance with their
terms.

 

9.2         Atossa
shall have the right to terminate this BA Agreement if the Distributor fails to observe or perform any material covenant or obligation
contained in this BA Agreement for ten (10) days after written notice thereof has been given to the Distributor.

 

    	Page | 19

    	 

    

 

9.3         Termination
of this BA Agreement pursuant to Section 9.2 above shall be cause for Atossa to immediately terminate for cause any Business Arrangement
pursuant to which Distributor is entitled to receive PHI from Atossa.

 

9.4         Upon
termination of this BA Agreement for any reason, Distributor agrees either to return to Atossa or to destroy all PHI received
from Atossa or otherwise through the performance of services for Atossa, that is in the possession or control of Distributor or
its agents. In the case of PHI which is not feasible to "return or destroy," Distributor shall extend the protections
of this BA Agreement to such PHI and limit further uses and disclosures of such PHl to those purposes that make the return or
destruction infeasible, for so long as Distributor maintains such PHI. Distributor further agrees to comply with other applicable
state or federal law, which may require a specific period of retention, redaction, or other treatment of such PHI.

 

10.         No
Warranty. PHI JS PROVIDED TO Distributor SOLELY ON AN "AS IS" BASIS. COMPANY DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, AND FlTNESS FOR A PARTICULAR PURPOSE.

 

11.         Miscellaneous.

 

11.1         Notice.
All notices, requests, demands and other communications required or permitted to be given or made under this BA Agreement shall
be in writing, shall be effective upon receipt or attempted delivery, and shall be sent by (i) Personal delivery; (ii) certified
or registered United States mail, return receipt requested; or (iii) overnight delivery service with proof of delivery. Neither
Party shall refuse delivery of any notice hereunder.

 

To Atossa:

 

Atossa Genetics,

Inc., 1616 Eastlake

Ave E

Seattle, WA 98102

Attn: President

 

To Distributor:

 

Millennium Medical
Devices

LLC 400 Garden City
Plaza

Suite 440

Garden City, NY 11530

 

11.2         Waiver.
No provision of this BA Agreement or any breach thereof shall be deemed waived unless such waiver is in writing and signed by
the Party claimed to have waived such provision or breach. No waiver of a breach shall constitute a waiver of or excuse any different
or subsequent breach.

 

11.3         Severability.
Any provision of this BA Agreement that is determined to be invalid or unenforceable will be ineffective to the extent of such
determination without invalidating the remaining provisions of this BA Agreement or affecting the validity or enforceability of
such remaining provisions.

 

11.4         Entire
Agreement. This BA Agreement constitutes the complete agreement between Distributor and Atossa relating to the matters
specified in this Agreement, and supersedes all prior representations or agreements, whether oral or written, with respect to
such matters. In the event of any conflict between the terms of this BA Agreement and the terms of the Business Arrangements or
any such later agreement(s), the terms of this BA Agreement shall control unless the terms of such Business Arrangements are more
strict with respect to PHJ and comply with the Confidentiality Requirements, or the Parties specifically otherwise agree in writing.
No oral modification or waiver of any of the provisions of this BA Agreement shall be binding on either Party; provided, however,
that upon the enactment of any law, regulation, court decision or relevant government publication and/or interpretive guidance
or policy that Atossa believes in good faith will adversely impact the use or disclosure of PHI under this BA Agreement, Atossa
may amend the BA Agreement to comply with such law, regulation, court decision, government publication, guidance, policy by delivering
a Witten amendment to Distributor which shall be effective thirty (30) days after receipt. No obligation on either Party to enter
into any transaction is to be implied from the execution or delivery of this BA Agreement. This BA Agreement is for the benefit
of, and shall be binding upon the Parties, their affiliates and respective successors and assigns. No third party shall be considered
a third party beneficiary under this BA Agreement, nor shall any third-party have any rights as a result of this BA Agreement.

 

    	Page | 20

    	 

    

 

11.5         Governing
Law. This BA Agreement shall be governed by and interpreted in accordance with the laws of the state of Washington, excluding
its conflicts of law’s provisions. Jurisdiction and venue for any dispute relating to this BA Agreement shall exclusively
rest with the state and federal courts in the county in which Atossa is located.

 

11.6         Equitable
Relief. Distributor understands and acknowledges that any disclosure or misappropriation of any PHI in violation of this
BA Agreement will cause Atossa irreparable harm, the amount of which may be difficult to ascertain, and therefore agrees that
Atossa shall have the right to apply to a court of competent jurisdiction for specific performance and/or an order restraining
and enjoining any such further disclosure or breach and for such other relief as Atossa shall deem appropriate. Such right of
Atossa is to be in addition to the remedies otherwise available to Atossa at law or in equity. Distributor expressly waives the
defense that a remedy in damages will be adequate and further waives any requirement in an action for specific performance or
injunction for the posting of a bond by Atossa.

 

11.7         Nature
of Agreement; Independent Distributor. Nothing in this BA Agreement shall be construed to create (i) a partnership, joint
venture or other joint business relationship between the Parties or any of their affiliates, or (ii) a relationship of employer
and employee between the Parties. Distributor is an independent Distributor, and not an agent of Atossa. This BA Agreement does
not express or implies any commitment to purchase or sell goods or services.

 

11.8         Counterparts.
This BA Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document. In making proof of this BA Agreement, it shall not be necessary to produce
or account for more than one such counterpart executed by the Party against whom enforcement of this Agreement is sought.

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	"Atossa"	 	"Distributor"
	 	 	 
	By:	/s/ Kyle
    Guse	 	By:	/s/ Chris
    Amandola	 President
	Printed Name:	Kyle Guse	 	Printed Name:	Chris Amandola
	Title: 	CFO	 	Title:	President

 

    	Page | 21MEDICAL RECORDS CODING AGREEMENT

 

This Medical Records
Coding Agreement (the “Agreement”) dated as of February I, 2013, by and between CDx Diagnostics Inc., a Delaware
corporation with an address at 2 Executive Boulevard, Suffern, New York 10901 (the “Company”) and Millennium
Coding & Billing Inc., a New York corporation having a place of business at 400 Garden City Plaza, Suite 440, Garden City,
NY 11530 (“Millennium”).

 

WHEREAS, the
Company has determined it is in its best interests to engage Millennium to provide certain medical record coding review services
to the Company on a non-exclusive basis; and

 

WHEREAS, Millennium
is a coding services company which has agreed to become engaged by the Company to provide certain medical record coding review
services to the Company on a non-exclusive basis.

 

NOW, THEREFORE,
for good and valuable consideration, the parties hereto agree as follows:

 

 1.           SERVICES TO BE PROVIDED BY MILLENNIUM. Millennium shall provide the Company with the following services:

 

(a)          Review
coded medical records provided by the Company and review assignments of ICD-9-CM or ICD-10-CM, when implemented, (or their successor)
and review coding of principal diagnosis, secondary diagnoses, principal procedure, and secondary procedures;

 

(b)          Review
the appropriate Present on Admission (POA) indicator for all diagnoses assigned; and

 

(c)          Review
assignment of each procedure coded to the appropriate physician and date of service.

 

2.           FEES.

 

2.1          Except
as otherwise provided herein, Millennium shall be paid a fee by the Company for all services rendered by Millennium hereunder (inclusive
of all services and expenses), in an amount equal to * Dollars for each secondary chart review with one (1) to two (2) corresponding
*, * Dollars for each secondary chart review with three (3) to four (4) corresponding * and * Dollars for each secondary chart
review with five (5) or more corresponding CPT codes for each service or test rendered by the healthcare provider. For clarity,
laboratory testing performed from a single test kit is recorded on a single patient chart.

 

2.2           Millennium
shall submit a monthly invoice to the Company for its fees hereunder. Payment shall be made no later than thirty (30) business
days following the submission of the invoices by Millennium to the Company. Should the Company dispute any portion of the invoice,
it must so notify Millennium within sixty (60) business days of the invoice date. Failure to notify Millennium within this sixty
(60) business day period shall be deemed an agreement to pay Millennium in full for the invoice; provided, however that this deemed
agreement shall not apply to disputes not obvious from the face of the invoice.

 

* The confidential portion has been so
omitted and filed separately with the Securities and Exchange Commission (“SEC”).

 

    	 

    	 

    

 

 

2.3           A
fee of one and one-half (1.5%) per month (or the maximum amount permitted by law) shall be charged for any late payments beyond
fifteen (15) days.

 

		3.	TERM AND TERMINATION.

 

3.1           This
Agreement shall commence on the date hereof and shall continue for five (5) years unless terminated as herein provided (the “Term”).

 

3.2           Termination
or Amendment for Change in Law. Notwithstanding anything to the contrary contained herein, in the event that during the Term
(1) any provision of the Agreement is deemed by any governmental entity to be invalid, unenforceable or in violation of any applicable
laws or regulations ; (2) any governmental entity determines that any provision of the Agreement would violate any applicable laws
or regulations without the inclusion of a provision not contained herein; (3) any change in laws or regulations (including a change
in the interpretation or enforcement of existing laws and regulations or new guidance provided under existing laws and regulations)
is enacted, adopted or implements that either party determines in its reasonable discretion, (i) could have a material adverse
effect on this Agreement or (ii) would make performance of the Agreement or any provision thereof unlawful, illegal or commercially
impracticable, or poses substantial risk thereof (any of the events described in sub-clauses (1), (2) or (3), a “Material
Adverse Change in Law”), then either party may terminate this Agreement on twenty (20) days prior written notice.

 

3.3           This
Agreement may be terminated by either party:

 

(a)          For
just cause by Company. This Agreement may be terminated by the Company at any time upon twenty (20) days prior written notice with
an opportunity to cure within such notice period for the following reasons:

 

		i.	Millennium defaults on any of its obligations under this Agreement;

 

		ii.	Millennium is found guilty of a crime by a court of competent jurisdiction involving fraud, larceny,
or any other felony charge;

 

		iii.	If Millennium shall (i) be dissolved, (ii) apply for or consent to the appointment of, or the taking
of possession by, a receiver, custodian, trustee or liquidator of itself of all or a substantial part of its property, (iii)        make
a general assignment for the benefit of its or his creditors, (iv)        commence a voluntary
case under Title 11 of the United States Bankruptcy Code or any successor thereto (the “Bankruptcy Code”), any state
bankruptcy law or any law similar to any of the foregoing, (vi) file a petition seeking to take advantage of any law relating to
bankruptcy, insolvency, reorganization, winding up, or composition or readjustment of debts, or (vii) fail to controvert in a timely
and appropriate manner, or acquiesce in writing to, any petition filed against the party in an involuntary case under the Bankruptcy
Code, any state bankruptcy law or any law with a purpose or otherwise similar to any of the foregoing; or

 

    	2

    	 

    

 

		iv.	Millennium breaches any of the representations and warranties or covenants made by Millennium,
in this Agreement or in the Business Associate Agreement attached hereto and made a part hereof.

 

(c)          With
Just Cause by Millennium. This Agreement may be terminated with cause by Millennium at any time upon twenty (20) days notice with
an opportunity to cure within such notice period for the following reasons:

 

		i.	The Company’s failure to pay the fees described in Section 2 of this Agreement;

 

		ii.	The Company defaults on any of its obligations in this Agreement;

 

		iii.	The Company breaches any of its representations, warranties and/or covenants set forth in this
Agreement;

 

		iv.	The Company shall (i) be dissolved, (ii) apply for or consent to the appointment of, or the talking
of possession by, a receiver, custodian, trustee or liquidator of itself of all or a substantial part of its property, (iii)        make
a general assignment for the benefit of its or his creditors,

 

		(iv)	commence a voluntary case under Title 11 of the Bankruptcy Code, any state bankruptcy law or any
law similar to any of the foregoing, (vi) file a petition seeking to take advantage of any law relating to bankruptcy, insolvency,
reorganization, winding up, or composition or readjustment of debts, or (vii) fail to controvert in a timely and appropriate manner,
or acquiesce in writing to, any petition filed against the party in an involuntary case under the Bankruptcy Code, any state bankruptcy
law or any law with a purpose or otherwise similar to any of the foregoing; or

 

		v.	Company is found guilty of violating state or federal statutes or regulations.

 

3.4.          The
following Sections of this Agreement shall survive the termination or expiration of this Agreement: 6, 7, 8, 9, 12.2-12.5, 13 and
14.

 

		4.	ARMS-LENGTH NEGOTIATIONS.

 

4.1          The
parties acknowledge and agree that: (1) the fees paid hereunder has been determined by the parties, after good faith and arms-length
negotiations, to be fair market value for the services to be rendered hereunder; (2) no fees or amounts paid hereunder is intended
to be, nor shall it be construed to be, an inducement or payment for referral of patients ; and (3) the fees paid under this Agreement
shall be full and complete with respect to the services required hereunder.

 

    	3

    	 

    

 

		5.	COMPLIANCE.

 

5.1          Millennium
shall not be responsible for Company’s compliance with federal, state or local laws. Millennium’s services shall be
limited to the determination of the proper coding for each medical record provided. Such services shall not include a review of
the compliance of each medical record or that all billing by the Company is in compliance with federal, state, local and third
party payer requirements.

 

		6.	ACCESS TO BOOKS AND RECORDS.

 

6.1          Millennium
agrees to make available upon written request to the Company, the Secretary of Health & Human Services, the Comptroller General
of the United States, or any of their duly authorized representatives this Agreement and any documents and records necessary to
verify the costs of services rendered under this Agreement until the expiration of four (4) years after the services are last furnished
under this Agreement. In the event Millennium subcontracts any or all of its duties under this Agreement to another party (in accordance
with this Agreement) and said subcontract has a value or cost of $10,000 or more over a twelve (12) month period, Millennium agrees
that the subcontract shall contain a clause requiring the subcontractor to make available upon written request to the Company,
the Secretary of Health & Human Services, the Comptroller General of the United States or any of their duly authorized representatives
the subcontractor, books, documents and records of the subcontractor that are necessary to verify the nature of the costs under
subcontract. Millennium shall promptly provide copies to the Company of any request for documents received by it from, or documents
delivered by it to, any of the Secretary of Health & Human Services, the Comptroller General of the United States or any of
their duly authorized representatives.

 

		7.	RELATIONSHIP OF THE PARTIES.

 

7.1           It
is expressly acknowledged by the parties hereto that Millennium is an independent contractor and nothing in this Agreement is intended
or shall be construed: (i) to create with the Company an employer/employee relationship, a joint venture relationship, or a lease
or landlord/tenant relationship, or (ii) to permit Millennium or any of its employees or subcontractors to incur any obligation
or enter into any agreement on behalf of the Company, or (iii) to allow the Company to exercise control or direction over the manner
or method by which Millennium or any of its employees or subcontractors perform the services which are the subject matter of this
Agreement; provided always that the services to be provided hereunder by Millennium and each of its employees and subcontractors
shall be provided in a manner consistent with the provisions of this Agreement.

 

7.2           Millennium
understands and agrees that the Company will not withhold on behalf of Millennium or any of its employees or subcontractors pursuant
to this Agreement any sums for income tax, unemployment insurance, social security, or any other withholding pursuant to any law
or requirement of any governmental body relating to Millennium or any of its employees or subcontractors or make available to Millennium
or any of its employees or subcontractors any of the benefits afforded to employees of the Company and that all of such payments,
withholdings, and benefits, if any, are the sole responsibility of Millennium.

 

    	4

    	 

    

 

		8.	PATIENT INFORMATION.

 

8.1           The
Company shall provide necessary data to Millennium in order to enable Millennium to perform its services as set forth in this Agreement.

 

8.2           Millennium
acknowledges and agrees that it is bound by and will observe all applicable rules governing the confidentiality of patient records
and information. Millennium, its employees and any subcontractors, successors, and assigns shall keep all information received
from the Company and all reports created by the Company confidential. All patient records and information disclosed to Millennium
and its staff shall be used solely for the purpose of coding services performed by the Company, and shall not be disclosed to any
other individual or entity except to the extent required by state or federal law and necessary to the coding process. This Section
8 shall expressly survive termination of this Agreement.

 

		9.	CONFIDENTIALITY I NON-SOLICITATION/RESTRICTIVE COVENANT.

 

9.1           Millennium
recognizes and acknowledges that the Company’s (i) patient names and lists, (ii) personally identifiable patient information
and records, (iii) information relating to the health care providers who use the Company’s products and services and (iv)
other non-public information that the Company designates as confidential, are confidential to the Company and shall be treated
by Millennium as confidential information (hereinafter referred to collectively as “Confidential Information”).
Millennium agrees that during or after the termination of this Agreement, Millennium will only make such Confidential Information
available within its own organization on a “need to know” basis and shall not use, or disclose any such Confidential
Information to any third person, except Millennium may use such Confidential Information in the ordinary course of its duties hereunder,
or where required by law; provided, however, that in the case of any disclosure required by law (e.g., law, regulation, subpoena
or judicial order), Millennium shall, if permitted by law, notify the Company of such legal requirement in advance of any disclosure
and shall (i) provide the Company with adequate time to respond before it makes such disclosure, if possible and (ii) reasonably
assist the Company in seeking a protective order or other means to prevent or reduce the disclosure.

 

9.2           Millennium
represents warrants and covenants that, throughout the term of this Agreement, it shall provide its services in accordance with
applicable federal and state laws, rules, regulations and agency guidelines, including the Health Insurance Portability and Accountability
Act of 1996 and its related regulations (“HIPAA”), as modified or amended from time to time. Millennium further represents
warrants and covenants that it will be able to perform its services, either directly or through a subcontractor, in the standard
format required by HIPAA. Additionally, Millennium hereby agrees to all of the terms and conditions set forth in the Business Associate
Agreement attached hereto as Schedule A. and will require any subcontractor performing billing services for Company’s accounts
to execute a like agreement. In the event of any conflict or inconsistency between the terms of this Agreement and Schedule A,
Schedule A shall prevail.

 

9.3           The
Company shall not retain or attempt to retain the services of any employee of Millennium during the Term of this Agreement and
for a period of two (2) years thereafter, either directly or indirectly, unless it first pays Millennium an amount equal to one
Hundred (100%) percent of such individuals annual compensation within fifteen (15) days after such employee’s start date
with the Company. Notwithstanding the foregoing, nothing shall prevent a the Company from having contact with and/or hiring any
person who answers general employment solicitations or advertisements for job positions not specifically directed to employees,
representatives, or agents of Millennium.

 

    	5

    	 

    

 

9.5          The
parties hereto, their members, shareholders, and directors acknowledge that all restrictions contained in Section 9 of this Agreement
are a reasonable and necessary protection of the legitimate interests of the other party (“Damaged Party”). The
parties do hereby acknowledge that a violation of the covenants set forth above will cause irreparable damage to the Damaged Party,
its successors and assigns, the exact amount of which would not be subject to reasonable or accurate ascertainment, and they therefore
consent that in the event of such violation, the Damaged Party, its successors and assigns, shall as a matter of right and as a
matter of cause, be entitled to injunctive relief restraining the other party from violating said covenants; said remedy, however,
to be cumulative, and in addition to such other remedies as Damaged Party, its successors and assigns, may then be entitled to;
and that Damaged Party would not have entered into this Agreement without receiving this additional consideration offered by the
other party, its members, shareholders, directors, agents and employees, binding them to these restrictions.

 

9.5           If
any of the restrictions or terms contained in this Section 9 shall be deemed invalid, illegal, or unenforceable by reason
of the extent, duration, or geogra phical scope thereof, or otherwise, then the court making such determination may reduce such
extent, duration, geographical scope, or other provisions hereof to the maximum extent permitted.

 

9.6           This
Section 9 shall survive the termination of this Agreement.

 

		10.	REPRESENTATIONS AND WARRANTIES OF MILLENNIUM.

 

10.1         Millennium
is duly organized and validly existing under the laws of the State of New York and it has all necessary corporate authority to
execute this Agreement and perform the Services hereunder.

 

10.2         Millennium
has the power and authority to carry on its business as now being conducted;

 

10.3         This
Agreement and the transactions contemplated hereby have been approved by all necessary corporate action on the part of Millennium;
and

 

I0.4         Millennium
has the power and authority to enter into this Agreement, to consummate the transactions contemplated hereby and this Agreement
and all other agreements to be executed and delivered by Millennium in connection with it constitute legal, valid and binding obligations
of Millennium enforceable against it and in accordance with their respective terms;

 

    	6

    	 

    

 

10.5         The
execution and delivery of this Agreement will not conflict with any law, injunction, judgment, order, decree, or other restriction
binding upon Millennium or conflict with, result in a breach of, constitute a default under, result in the acceleration of any
obligation under, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under, any agreement,
contract, lease, license, instrument, or other arrangement to which Millennium is a party or by which either of them is bound ;

 

10.6         Millennium
is in compliance with, and shall remain during the Term of this Agreement in compliance with, all applicable federal, state and
local laws, rules, regulations and restrictions in the conduct of Millennium ’s business and in its performance of its obligations
under this Agreement ;

 

10.7         Millennium
has not been served with any summons, complaint or written notice to arbitrate, and no suit, litigation, claim (equitable or legal),
administrative arbitration, investigation or other proceeding is pending or threatened against Millennium by or before any governmental
entity, mediator, arbitrator or other person or instrumentality that would reasonably be expected to have a materially adverse
effect upon the ability of Millennium to perform its obligations under this Agreement ;

 

10.8         Millennium
attests that it is not excluded, debarred or suspended by the Office of the Inspector General of the United States Department of
Health and Human Services or by the General Services Administration or by any state health care program under 42 U.S.C. §
1320a-7 or under the Federal Employees Health Benefits Program and is not aware of any pending or threatened exclusion, debarment
or suspension actions against it; and

 

10.9         Millennium
shall perform its obligations under this Agreement in a professional and workmanlike manner and with a similar degree of care,
attention and timeliness as is in keeping with the customary industry standards and practices in the medical administrative services
industry.

 

		11.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

11.1         The
Company is duly organized and validly existing under the laws of the State of Delaware and it has all necessary corporate authority
to execute this Agreement and perform the Services hereunder ;

 

11.2         The
Company has the power and authority to carry on its business as now being conducted ;

 

11.3         This
Agreement and the transactions contemplated hereby have been approved by all necessary corporate action on the part of the Company;
and

 

    	7

    	 

    

 

11.4         The
Company has the power and authority to enter into this Agreement, to consummate the transactions contemplated hereby and this Agreement
and all other agreements to be executed and delivered by the Company in connection with it constitute legal, valid and binding
obligations of the Company enforceable against it and in accordance with their respective terms;

 

11.5         The
execution and delivery of this Agreement will not conflict with any law, injunction, judgment, order, decree, or other restriction
binding upon the Company or conflict with, result in a breach of, constitute a default under, result in the acceleration of any
obligation under, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under, any agreement,
contract, lease, license, instrument, or other arrangement to which the Company is a party or by which either of them is bound;

 

11.6         The
Company is in compliance with, and shall use its best efforts to comply with, all applicable federal, state and local laws, rules,
regulations and restrictions in the conduct of the Company’s business; and

 

11.7         Any
and all factual information furnished or to be furnished by the Company to Millennium, including, but not limited to, any medical
records, shall be true and accurate in all material respects as of the date on which such information is furnished.

 

		12.	INSURANCE AND INDEMNIFICATION.

 

12.1         The
Company shall maintain throughout the term of this Agreement general liability insurance in the minimum amount of $1,000,000 per
occurrence and $1,000,000 aggregate. Millennium will cause a certificate of insurance evidencing the above to be presented to the
Company upon execution of this Agreement. Millennium will place insurance with carriers with a BEST rating of A minus VII or better
qualified to write insurance in the State of New York.

 

12.2         Subject
to the limitations of Section 12.5 below, the Company agrees to indemnify and hold Millennium, its managers, members, officers,
and employees (collectively, “Millennium Indemnified Parties”; each, a “Millennium Indemnified Party”)
harmless from and against any and all costs, losses, liabilities, damages, claims or expenses (including without limitation reasonable
attorney ’s fees and expenses) (collectively, “Losses”) incurred by an Indemnified Party in connection with a
third party claim arising out of, related to, occasioned by or attributable to: (i) any breach by the Company or any of its directors,
officers, employees or agents of any representation, warranty or covenant made by the Company herein; or (ii) the gross negligence
or willful misconduct on the part of the Company, or any of its directors, officers, employees or agents in its/their performance
of this Agreement. Notwithstanding anything herein to the contrary, the foregoing indemnity will not apply to Losses to the extent
that such Losses have resulted from the willful misconduct, bad faith, fraud or gross negligence of, or breach of this Agreement
by, a Millennium Indemnified Party.

 

    	8

    	 

    

 

12.3         Subject
to the limitations of Section 12.5 below, Millennium shall indemnify and hold the Company and its directors, officers, employees
and shareholders (collectively, “Company Indemnified Parties”; each, a “Company Indemnified Party”) harmless
from any Losses incurred by a Company Indemnified Party in connection with a third party claim arising out of, related to, occasioned
by or attributable to: (i) any breach by Millennium or any of its managers, members, officers or employees of any representation,
warranty or covenant made by Millennium herein; or (ii) the gross negligence or willful misconduct on the part of Millennium, or
any of its managers, members, officers or employees in its/their performance of this Agreement. Notwithstanding anything herein
to the contrary, the foregoing indemnity will not apply to Losses to the extent that such Losses have resulted from the willful
misconduct, bad faith, fraud or gross negligence of, or breach of this Agreement by, a Company Indemnified Party.

 

12.4         Indemnification
Procedure. Upon obtaining knowledge of any third-party claim (a “Third-Party Claim”) which gives or could give
rise to a right of indemnification under this Agreement, the party requesting indemnification (“Indemnitee”) shall
provide notification to the other party (“Indemnitor”) describing the amount and nature of the Third-Party Claim;
provider, however, that any failure or delay in giving such notice shall only relieve the lndemnitor of its obligation to defend,
indemnify, and hold the Indemnitee harmless to the extent it reasonably demonstrates its defense or settlement of the Claim was
adversely affected thereby. The lndemnitor shall have sole control of the defense and of all negotiations for settlement of any
Third-Party Claim and the lndemnitee shall cooperate with the Indemnitor in the defense or settlement of any such Claim at the
Indemnitor’s expense. Notwithstanding the foregoing, the lndemnitor shall not settle any claim unless such settlement completely
and forever releases the Indemnitee from all liability with respect to such Claim or unless the Indemnitee consents to such settlement
in writing. Where the Indemnitor does not request the Indemnitee to cooperate in the defense or settlement of any such Claim in
which the Indemnitee is involved, the Indemnitee may participate in the defense of the Claim at its own expense. If Indemnitee
does not assume defense of the Third-Party Claim, the lndemnitee will defend or settle the Third Party Claim, utilizing counsel
of the Indemnitee’s choice, and Inseminator shall reimburse the Indemnitee an amount equal to the aggregate of (i) the liabilities,
plus (ii) all costs and expenses incurred by the Indemnitee in connection with the enforcement of the indemnification obligations
set forth herein (including reasonable attorney’s fees and costs), plus (iii) interest at the highest amount permitted by
law on the aggregate amount of the liabilities, plus the other costs and expenses incurred by the Indemnitee.

 

12.5         Limitation
of Liability. EXCEPT FOR OBLIGATIONS OF INDEMNITY FOR THIRD PARTY CLAIMS, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT,
SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES RESULTING FROM ANY ACTIVITIES OF THE PARTIES UNDER THIS AGREEMENT.

 

		13.	NOTICE.

 

13.1         Any
notice or communications required or permitted hereunder shall be deemed to have been sufficiently given or served for all purposes
if in writing and delivered via nationally recognized overnight courier, or sent by registered or certified mail, postage and charges
prepaid, return receipt requested to the parties’ addresses as set forth below.

 

    	9

    	 

    

 

If to the Company, to:

 

CDx Diagnostics, Inc.

 

2 Executive Boulevard

Suffern, New York 10901

Attention: Chief Executive Officer

Tel: 845-369-7096

Fax: 845-369-7082

 

Email: mrutenberg@cdxdiagnostics.com

 

With a copy to:

 

Art Lerner

Crowell & Moring, LLP

1001 Pennsylvania Avenue, N.W.

Washington, D.C. 20004-2595

Tel: 202-624-2820

Fax: 202-628-5116

Email: alerner@crowell.com

 

lf to Millennium, to:

 

Millennium Coding & Billing
Inc.

400 Garden City Plaza, Suite 440

Garden City, New York 11530

Attn: Chris Amandola

Facsimile: 516-628-5400

E-Mail: chris@millenniumhcs.com

 

With a copy to:

 

Abrams Fensterman, et al.

1111 Marcus Avenue, Suite 107

Lake Success, New York 11042

Attn: Ayman Soliman, Esq.

Telephone: 516-328-2300

Facsimile: 516-328-6638

E-Mail: asoliman@abramslaw.com

 

or such other address as may subsequently
be provided to the other party in writing. Unless otherwise expressly set forth in this Agreement, any such notice shall be deemed
to be given if sent by overnight courier on the business day following the date same was deposited with the overnight courier,
if sent by registered or certified mail three days after the date on which the same was deposited in a regularly maintained receptacle
for the deposit of United States mail, prepaid, and addressed and set forth above.

 

    	10

    	 

    

 

		14.	MISCELLANEOUS.

 

14.1         This
Agreement may only be changed, waived, discharged or terminated by an instrument in writing signed by both parties.

 

14.2         This
Agreement shall be governed by the laws of the State of New York without giving effect to conflict of law principles.

 

14.3         The
headings in this Agreement are for the purpose of reference only and do not limit or define the meaning hereof.

 

14.4         This
Agreement may be executed in several counterparts, each of which shall be an original, but all of which shall constitute one instrument.
Any executed signature page delivered by facsimile or e-mail transmission shall be binding to the same extent as an original executed
signature page, with regard to any agreement subject to the terms hereof or any amendment thereto.

 

14.5         This
Agreement (together with Schedule A hereto) contains the entire agreement of the parties relating to the subject matter of this
Agreement and supersedes and replaces all prior negotiations, proposed agreements, agreements and understandings of any kind, implied,
oral or written, between the parties respecting such subject matter.

 

14.6         Neither
party shall be liable for any failure or delay in performing its obligations under this Agreement due to any cause beyond its reasonable
control, including but not limited to fire, accident, labor dispute or unrest, flood, riot, war, rebellion, insurrection, sabotage,
transportation delays, shortage of raw materials, energy or machinery, acts of God or of the civil or military authorities of a
state or nation, or the inability, due to the aforementioned causes, to obtain necessary labor or facilities.

 

14.7         Each
of the parties hereto agrees to execute any document or documents that may be reasonably requested from time to time by the other
party to implement or complete such party’s obligations pursuant to this Agreement.

 

14.8         Any
provision of this Agreement that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law, the parties to such instrument waive any provision of law that renders any provision
thereof prohibited or unenforceable in any respect.

 

14.9         The
persons signing on behalf of Company and Millennium hereby warrant and represent that they have authority to execute this Agreement
on behalf of the party for whom they have signed.

 

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14.l0         This
Agreement *, the Company * hereunder and either party may contract with any other person and/or entity to provide some or all of
the services set forth herein during the Term of this Agreement and thereafter.

 

14.11         This
Agreement shall not be assigned without the prior written consent of the non-assigning party. Notwithstanding the previous sentence,
either party may freely assign this agreement to any related entity or to any successor of its business.

 

14.12         Except
as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the
respective legal representatives, successors and permitted assigns of the parties hereto. Neither this Agreement nor any other
agreement contemplated hereby shall be deemed to confer upon any person not a party hereto or thereto any rights or remedies hereunder
or thereunder.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written.

 

	 	CDX DIAGNOSTICS INC.
	 	 	 
	 	By:	 /s/ Mark Rutenberg
	 	 	Name Mark Rutenberg
	 	 	Title: Chairman and CEO
	 	 	 
	 	MILLENNIUM CODING & BILLING INC.
	 	 	 
	 	By:	 /s/ Chris Amandola
	 	 	Name: Chris Amandola
	 	 	Title: President

 

 

* The confidential portion has been so omitted and filed separately
with the SEC. 

 

    	12

    	 

    

 

SCHEDULE A

 

BUSINESS ASSOCIATE AGREEMENT

 

This Business Associate
Agreement (the “Agreement”) is entered into on this 1st day of February, 20I 3 (the “Effective Date”),
between CDx Diagnostics Inc., (the “Covered Entity”) and Millennium Coding & Billing Inc., a New York
corporation having a place of business at 400 Garden City Plaza, Suite 440, garden City, New York 11530 (the “Business
Associate”). This Business Associate Agreement is entered into pursuant to the Health Insurance Portability and Accountability
Act of 1996, as amended by the Health Insurance Technology for Economic and Clinical Health Act, Title XIII of the American Recovery
and Reinvestment Act of 2009, and the regulations promulgated by the United States Department of Health and Human Services thereunder
set forth at 45 C.F.R. Parts 160-164 (collectively herein, “HIPAA”).

 

WITNESSETH:

 

WHEREAS, the
Covered Entity, a professional healthcare practice, authorized to practice professional healthcare services through its licensed
providers in the State of New York qualifies as a “Covered Entity” as defined in 45 C.F.R. §160.103, under the
terms of HIPAA.

 

WHEREAS, the
Covered Entity has entered into a Billing Agreement (the “Billing Agreement”) with the Business Associate.

 

WHEREAS, the
Covered Entity shall make available and/or transfer to Business Associate certain Protected Health Information and Electronic Protected
Health Information (“EPHI”) as those terms are defined in 45 C.F.R. §I60.103, in connection with goods or services
that are being provided by the Business Associate to the Covered Entity, that is confidential and subject to protection under HIPAA.

 

WHEREAS, the
Business Associate will have access to, and/or receive from the Covered Entity, certain Protected Health Information, that can
be used or disclosed only in accordance with this Agreement and HIPAA.

 

WHEREAS, on
behalf of the Covered Entity, the Business Associate will create, receive, maintain or transmit Electronic Protected Health Information,
and ensure its integrity, availability and confidentiality in accordance with this Agreement and HIPAA.

 

WHEREAS, the
Covered Entity and Business Associate desire to define and identify their permitted use and disclosure of Protected Health Information
and to define how to maintain the confidentiality, integrity and availability of Electronic Protected Health Information.

 

NOW, THEREFORE,
in consideration of the mutual agreements, undertakings, representations and warranties hereinafter set forth, the parties
hereby agree as follows:

 

		1.	DEFINITIONS

 

		I.I	General. Terms used, but not otherwise defined, in this Agreement shall have the same meaning given
to those terms by HIPAA in effect or as amended from time to time.

 

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		2.	PERMITTED USE AND DISCLOSURES BY BUSINESS ASSOCIATE

 

		2.1	Business Associate agrees to not use or further disclose Protected Health Information provided
or made available to it by the Covered Entity for any purpose other than as permitted or required by this Agreement or as required
by law. Business Associate shall comply with the provisions of this Agreement relating to privacy and security of Protected Health
Information and all present and future provisions of HIPAA that relate to the privacy and security of Protected Health Information
and that are applicable to Covered Entity and/or Business Associate.

 

		2.2	Business Associate shall be permitted to use or disclose Protected Health Information to perform
its obligations under the Billing Agreement as long as such agreement is in effect.

 

		2.3	Business Associate shall be permitted to use Protected Health Information that it receives in its
capacity as Business Associate if necessary, for its proper billing services or to carry out its legal responsibilities provided
that such disclosure is permitted under state and federal confidentiality laws.

 

		2.4	Business Associate shall be permitted to use and disclose Protected Health Information that it
receives in its capacity as Business Associate if necessary, to provide billing services relating to the health care operations
of the Covered Entity.

 

		2.5	Business Associate shall be permitted to disclose to third parties Protected Health Information
that it receives in its capacity as a Business Associate, for its proper billing services or to carry out its legal responsibilities
provided it receives reasonable assurances from the person to whom the information is disclosed that: (i) the information will
be held confidentially and used or further disclosed only as required by law or, for the purpose for which the information was
disclosed and (ii) it shall immediately notify the Covered Entity of any Security Incident, as defined in 45 C.F.R. § 164.304,
or Breach, or any other instance that it is aware that the confidentiality of the information has been breached.

 

		III.	RESPONSIBILITIES OF THE PARTIES

 

		3.1	Business Associate agrees to use appropriate safeguards to prevent the use or disclosure of the
Protected Health Information other than as permitted by this Agreement. Business Associate shall maintain and implement appropriate
administrative, physical and technical safeguards, as set forth in HIPAA, to prevent unauthorized use or disclosure of Protected
Health Information to prevent unauthorized parties from having access to or, modifying or copying Protected Health Information
and to reasonably and appropriately protect the confidentiality, integrity and availability of the Electronic Protected Health
Information that it creates, receives, maintains, or transmits on behalf of Covered Entity.

 

		3.2	Business Associate shall require all of its subcontractors and agents that receive, create, transmit
or use or have access to Protected Health Information and Electronic Protected Health Information under this Agreement and/or the
Billing Agreement, to agree, in writing, to adhere to the same restrictions and conditions on the use and/or disclosure of Protected
Health Information and Electronic Protected Health Information that apply to the Business Associate pursuant to this Agreement.

 

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		3.3	Business Associate shall promptly report in writing to the Covered Entity and not more than two
(2) days of its Discovery of any unauthorized use or disclosure of Protected Health Information not permitted or required by this
Agreement, or of any Security Incident relating to Protected Health Information, of which it becomes aware.

 

		3.4	Business Associate agrees to promptly notify Covered Entity following the discovery of a Breach
of Unsecured Protected Health Information or any Security Incident. A Breach or Security Incident is considered “discovered”
as of the first day on which the Breach or Security Incident is known, or reasonably should have been known, to Business Associate
or any employee, officer or agent of Business Associate. Any notice of a Security Incident or Breach of Unsecured Protected Health
Information shall include the identification of each Individual whose Protected Health Information has been, or is reasonably believed
by Business Associate to have been accessed, acquired, or disclosed during such Security Incident or Breach as well as a description
of what happened, the type of Unsecured Protected Health Information that were involved, what the Business Associate is doing to
investigate the Breach or the Security Incident and the steps taken by the Business Associate to mitigate any harmful effect known
by it to have occurred as a result.

 

		3.5	Upon notice of the Business Associate’s breach of this Agreement of any provision of HIPAA,
or any other violation of its obligations, Business Associate shall take reasonable steps to cure the breach or end the violation,
as applicable.

 

		3.6	Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known
to Business Associate or its employees, managers, officers or agents in violation of the requirements of this Agreement (including,
without limitation, any Security Incident or Breach of Unsecured Protected Health Information) and to protect against any further
Breaches or Security Incidents. Business Associate agrees to reasonably cooperate and coordinate with Covered Entity in the investigation
of any violation of the requirements of this Agreement and/or any Security Incident or Breach. Business Associate shall also reasonably
cooperate and coordinate with Covered Entity in the preparation of any reports or notices to the individual, a regulatory body
or any third party required under HIPAA or any other Federal or State laws, rules or regulations, provided that any such reports
or notices shall be subject to the prior written approval of Covered Entity. Notwithstanding anything in this section to the contrary,
Business Associate may delay notification of a Breach of an Unsecured Protected Health Information to Covered Entity in the event
Business Associate is instructed to do so by a law enforcement official.

 

		3.7	Notwithstanding anything in the Billing Agreement to the contrary, Covered Entity may terminate
the Billing Agreement immediately if any term under this Agreement is violated or breached and such violation or breach cannot
otherwise be cured within the time specified by Covered Entity. If neither termination nor cure is feasible, Covered Entity shall
report the violation to the Secretary.

 

		3.8	Business Associate agrees that upon termination of the Billing Agreement, it shall return or destroy
all Protected Health Information received from the Covered Entity or created by the Business Associate for the Covered Entity,
regardless of the form of such data and retain no copies of such information. Business Associate shall retain no copies of the
Protected Health Information, unless return or destruction is not reasonably feasible. If such return or destruction is not feasible,
the Business Associate will extend the protections of this Agreement to the Protected Health Information and limit further uses
and disclosures to those purposes that make the return or destruction of the information infeasible. If Business Associate elects
to destroy the information, it shall certify in writing to the Covered Entity that the information has been destroyed. This provision
shall apply to the Protected Health Information that is in the possession of subcontractors or agents of Business Associate.

 

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		3.9	If Business Associate is maintaining Protected Health Information in a Designated Record Set as that term is defined under
45 CFR §164.501, Business Associate agrees to provide access to an Individual or the Covered Entity, at the request of Covered
Entity, in order to meet the requirements under 45 CFR §164.524. Covered Entity’s determination of what constitutes
“Protected Health Information” or a “Designated Record Set” shall be final and conclusive.

 

		3.10	If Business Associate is maintaining Protected Health Information in a Designated Record Set, Business Associate agrees to
incorporate any amendments or corrections to Protected Health Information at the request of the Covered Entity or an Individual.

 

		3.11	Business Associate shall make available to the Covered Entity or an Individual the information required for an accounting of
disclosures of Protected Health Information and Electronic Protected Health Information in accordance with HIPAA and the HITECH
Act. Business Associate agrees to document disclosures of Protected Health Information as would be required for Covered Entity
to respond to a request by an Individual for an accounting of disclosures of Protected Health Information in accordance with 45
C.F.R. 164.528.

 

		3.12	Covered Entity agrees to provide Business Associate with any changes in, or revocation of, permission by an individual to disclose
Protected Health Information, if such changes affect Business Associate’s permitted uses and disclosures and Business Associate
agrees to comply with such changes.

 

		3.13	Business Associate agrees upon prior written request, to make available within two (2) days, during normal business hours at
Business Associate’s offices all records, books, amendments, policies and procedures relating to the use or disclosure of
Protected Health Information to the Covered Entity for purposes of enabling the Covered Entity to determine the Business Associate’s
compliance with the terms of this Agreement.

 

		3.14	Business Associate agrees to make its internal books, records and practices relating to the use and disclosure of Protected
Health Information received from or, created by or, received by the Business Associate on behalf of the Covered Entity available
to the Secretary of the HHS for the purpose of determining the Covered Entity’s compliance with HIPAA.

 

		3.15	Business Associate does not acquire any ownership or any other right or title in the Protected Health Information or Electronic
Protected Health Information data (other than its non-exclusive right of possession for purposes of fulfilling its legal obligations
under the Billing Agreement).

 

		3.16	Business Associate shall disclose to its subcontractors, agents or third parties, and request from the Covered Entity, only
the minimum amount of Protected Health Information or Electronic Protected Health Information necessary to perform or fulfill a
specific function required or permitted hereunder.

 

    	16

    	 

    

 

		3.17	Business Associate agrees and understands that it must develop and implement a system of sanctions
for any employee, subcontractor or agent who violates this Agreement or HIPAA.

 

		3.18	Covered Entity agrees not to request Business Associate to use or disclose Protected Health Information
and Electronic Protected Health Information in any manner that would not be permissible under HIPAA.

 

		3.19.	Business Associate acknowledges that (i) all safeguards, policies and procedures requirements applicable
to Covered Entity under HIPAA (which includes all requirements set forth in the Health Insurance Portability and Accountability
Act of 1996, the Health Insurance Technology for Economic and Clinical Health Act, and all regulations promulgated by the United
States Department of Health and Human Services thereunder set forth at 45 C.F.R. Parts 160-164) shall apply to Business Associate
and any subcontractors or agents of Business Associate in the same manner that such requirements apply to Covered Entity, and (ii)
Business Associate shall be liable under the civil and criminal enforcement provisions set forth at 42 U.S.C. 1320d-5 and 1320d-6,
as amended from time to time, for failure to comply with the safeguards, policies and procedures requirements and any guidance
issued by the Secretary from time to time with respect to such requirements.

 

		IV.	MISCELLANEOUS

 

		4.1	Any reference in this Agreement to a section in HIPAA’s Privacy Rule, Security Rule, or Breach
Notification Rule means the section as in effect or as amended, and for which compliance is required.

 

		4.2	The parties agree to take such action as is necessary to amend this Agreement from time to time
as is necessary for the Covered Entity to comply with the requirements of HIPAA.

 

		4.3	The respective rights and obligations of Business Associate and the Covered Entity hereunder shall
survive termination of the Billing Agreement.

 

		4.4	Business Associate will indemnify and hold Covered Entity (including the Covered Entity’s
Board of Directors, individually and collectively, and its officers, owners, members, employees, agents and other representatives,
individually and collectively) harmless from and against all claims, demands, costs, expenses, liabilities and losses, including
reasonable attorney’s fees and punitive damages which may arise against Covered Entity as a result of any violation of this
Agreement or HIPAA. For the avoidance of doubt, Business Associate agrees to indemnify Covered Entity for all damages, costs, and
expenses resulting from a Security Incident or Breach, including but not limited to costs and expenses related to investigation,
breach notification, credit monitoring services, attorneys’ fees, and any and all other costs. Covered Entity shall retain
sole discretion to determine whether a Security Incident constitutes a Breach and shall retain sole discretion to determine whether
notification to individuals must be provided under the Breach Notification Rule.

 

		4.5	This Agreement may not be modified, nor shall any provision hereof be waived or amended, except
in writing duly signed by authorized representatives of the Parties. A waiver with respect to one event shall not be construed
as continuing, or as a bar to, or, a waiver of any right or remedy as to subsequent events.

 

    	17

    	 

    

 

		4.6	It is expressly understood and agreed by the parties that any inconsistency or conflict between
this Agreement and the Billing Agreement shall be determined in every instance in favor of this Agreement except as otherwise set
forth herein. Any ambiguity in this Agreement shall be resolved in favor of a meaning that permits the Covered Entity to comply
with HIPAA’s Privacy, Security, and Breach Notification Rules. In all other respects, the Billing Agreement, as previously
entered into, shall continue in full force and effect according to its terms. In the event that any portion of this Agreement shall
be determined to be invalid or unenforceable, the remainder of this Agreement shall be deemed to continue to be binding upon the
parties hereto in the same manner as if the invalid or unenforceable provision were not a part of this Agreement.

 

		4.7	Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer,
upon any person other than the parties and the respective successors or assigns of the parties, any rights, remedies, obligations,
or liabilities whatsoever.

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Agreement effective the day, month and year first above written.

 

	Covered Entity	 
	 	 	 
	By: 	 /s/ Mark Rutenberg	 
	 	Name Mark Rutenberg	 
	 	Title: Chairman and CEO	 
	 	 	 
	Business Associate	 
	 	 	 
	By: 	 /s/ Chris Amandola	 
	 	Name: Chris Amandola	 
	 	Title: President	 

 

    	18

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