Document:

Ownerchip
Program Agreement

 

This
OwnerChip Program Agreement (“Agreement”) is entered into as of September 1, 2013 (“Effective Date”)
by and between Affymetrix, Inc., having its principal place of business at 3420 Central Expressway, Santa Clara, CA 95051
(“Affymetrix”) and The National Reference Laboratory for Breast Health, Inc. (“Customer”), with a
place of business at 1616 Eastlake Avenue East, Suite 510, Seattle, WA 98102 (“Customer’s Site”), each a
“Party” and together as “Parties”.

 

WHEREAS, Affymetrix
is the manufacturer of the GeneChip® System 3000Dx v.2 (“Instrument”); and

 

WHEREAS, Customer wishes to acquire
such Instrument; and

 

WHEREAS, Affymetrix agrees to distribute such Instrument to Customer.

 

NOW, therefore,
subject to the terms and conditions of this Agreement, Affymetrix has agreed to loan the Instrument to Customer based on the following
terms and conditions:

 

		1.	Customer shall fulfill all of the following obligations in order to receive title to the Instrument:

 

		a.	Purchase and take delivery of a minimum of thirty (30) GeneChip Human Genome U133 Plus 2.0 (30-pack)
arrays (PN 900467) (“U133 arrays”) at US$21,590 per 30-pack within three (3) years from the Effective Date (“Purchase
Commitment”) with a minimum purchase of ten (10) U133 arrays per Contract Year (“Annual Commitment”). “Contract
Year” means the 12-month period from the Effective Date and the subsequent anniversary dates.

 

		b.	Customer must place the first purchase order for at least four (4) U133 arrays along with this
signed agreement to Affymetrix Customer Service by September 13, 2013 (“Initial Order”) in order to receive the following
products:

 

	TABLE 1	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	Product	 	Part #	 	 	Quantity	 	 	Sales Price	 
	 	 	 	 	 	 	 	 	 	 
	3’ IVT Express Training (Dx2) Training Labor (2 days)	 	 	000831	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	GCS 3000Dx v.2 Instrument System	 	 	00-0334	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	GCS 3000Dx Installation Install Labor	 	 	901825	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gene Expression Application Training	 	 	000112	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sensation Plus FFPE Amplification & 3’ IVT Labeling Kit (sufficient for 12 reactions)	 	 	902039	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sensation Plus FFPE Amplification & 3’ IVT Labeling Kit (sufficient for 24 reactions)	 	 	902028	 	 	 	1	 	 	$	0.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	GeneChip Hybridization, Wash and Stain Kit (sufficient for 30 reactions)	 	 	900720	 	 	 	1	 	 	$	0.00	 

 

Affymetrix,
Inc. • 3420 Central Expressway • Santa Clara, CA 95051 • Tel: 888-362-2447 • Fax: 408-731-5380 •
www.affymetrix.com

 

    	 

    	 

    

 

2.  The Instrument will be on loan to Customer until the Purchase Commitment is fulfilled (the “Loan
Term”). During the Loan Term, use of the Instrument shall be governed by this Agreement and any Exhibits attached are
hereby incorporated into the Agreement by reference. For the first twelve (12) months of the Loan Term, the Affymetrix
standard Limited Warranty provision as stated in Section 6 of the Terms and Conditions shall apply. Thereafter, Customer must
purchase from Affymetrix a service contract for maintenance and support of the Instrument for the remainder of the Term. The
cost of the service contract is $25,800 per year. If title transfers to the Customer prior to the end of the Term, Customer
will true up on the cost of the service contract. Affymetrix will be responsible for installing the Instrument upon delivery,
and Customer shall provide Affymetrix reasonable access to Customer’s Site necessary for such installation.

 

3.  Title
to the Instrument shall remain with Affymetrix until the title is transferred to Customer in return for the fulfillment of the
Purchase Commitment. During the Loan Term, Customer agrees not to sell, mortgage, pledge or encumber the Instrument, or provide
the Instrument to any third party. Affymetrix may elect to affix an asset identification tag indicating that the Instrument is
property of Affymetrix. Such identification tag, if any, will not to be removed or altered in any way by Customer. Customer understands
that there will be no additional warranty protection once the title is transferred.

 

4.  At
the end of each 12-month period, Affymetrix and Customer shall review Customer’s purchases pursuant to this Agreement
(“Annual Review”). If Customer fails to fulfill its obligation under Section  1a during the Loan Term, Customer
shall true-up on the Purchase Commitment to that point either by paying Affymetrix for the total money owed for the number of
outstanding arrays or purchase the required products immediately.

 

5.  The
use of the Affymetrix Products purchased by Customer and any other Affymetrix products distributed to Customer pursuant to
this Agreement shall be subject to the Affymetrix. Inc. Terms and Conditions of Sale attached hereto as Exhibit
A (“Terms and Conditions”).

 

6.  This
Agreement and any dispute arising from its construction, performance or breach is governed by the laws of the state of California
and the patent and copyright laws of the United States, without reference to conflicts of laws principles.

 

7.  This
Agreement shall be effective as of the Effective Date and terminate three (3) years thereafter (“Term”). This Agreement
may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. This Agreement constitutes the entire agreement between Customer and Affymetrix with respect to the
subject matter hereof and is the final, complete, and exclusive statement of the terms of the Agreement, superseding all prior
written and oral agreements, understandings and undertakings, as well as the terms of any current future purchase orders or similar
forms. Once signed, please return a copy to Affymetrix Contracts Group at 3420 Central Expressway, Santa Clara, CA 95051 or by
email to gigi chapman@affymetrix.com.

 

	AGREED AND ACKNOWLEDGED:	 	 
	 	 	 
	Affymetrix, Inc.	 	Customer
	 	 	 
	By:	/s/ Mike Demayo	 	By:	/s/ Kyle Guse
	 	 	 	 	 
	Name:	Mike Demayo	 	Name:	Kyle Guse
	 	 	 	 	 
	Title:	VP, NA Commercial ops	 	Title:	CFO
	 	 	 	 	 
	Date:	9-4-13	 	Date:	8/23/13

 

    	 

    	 

    

  

Exhibit
A

Affymetrix
Terms and Conditions of Sale

 

1. General.
These Terns and Conditions of Sale (“Terms and Conditions”) shall govern the sale and license to the original purchaser
(“Buyer”) of probe arrays, assays, reagents, instruments, software, and other products and related services (“Products")
from Affymetrix, one of its subsidiaries or authorized sellers named on the invoice or acknowledgement (Affymetrix, Inc. or any
of its subsidiaries named on the invoice is referred to here as "Affymetrix”). These Terms and Conditions shall replace
and supersede any current or future purchase orders or similar forms that are not mutually signed by Affymetrix and Buyer. Purchase
orders, once accepted by Affymetrix, are not subject to cancellation or modification by Buyer without Affymetrix1 written
consent.

 

2. Price.

 

(a) For
Deliveries Outside Europe: Prices exclude all insurance, freight taxes, fees, duties and levies, which shall be payable by Buyer.

 

(b) For
Deliveries Within Europe: Prices include all insurance, duties and levies, unless stated otherwise on the quotation or invoice.
Freight and handling fees will be prepaid by Affymetrix and added to the invoice for reimbursement by Buyer.

 

3.Delivery.
Products will be packed in Affymetrix’ standard shipping packages. Affymetrix may make partial deliveries. Affymetrix will ship
via carrier selected by Affymetrix. Delivery dates set forth on a purchase order accepted by Affymetrix are subject to change and
are predicated on conditions existing at that time. Affymetrix does not guarantee any delivery dates and shall not be responsible
for any loss or damage of any kind or nature whatsoever caused by any delay in delivery irrespective of the cause of such delay.

 

(a) For
Deliveries Outside Europe: Tender will be FCA shipping point. Title (except for software, in which case Affymetrix shall retain
title) and risk of loss or damage will pass to Buyer upon delivery of the Products to the carrier.

 

(b) For
Deliveries Within Europe: Products shall be Delivered Duty Paid Excluding VAT (DDP Ex VAT) to the Buyer’s site and the Buyer
will be the importer for the Products and be responsible for paying VAT or similar taxes within the Buyer’s country. Title
(except for software, in which case Affymetrix shall retain title) and risk of loss or damage will pass to Buyer upon delivery
of the Products to the carrier.

 

4. Rejection.
Any claims for- damaged, missing or defective Product must be reported in writing to Affymetrix by Buyer within five (5) days from
the date of receipt of Product For any valid claim made, Affymetrix shall repair or replace the Product The foregoing shall be
Buyer’s sole and exclusive remedy for damaged or missing Products, and, except for express warranty rights, for defective
Products.

 

5. Payment
Buyer will be invoiced at the time of shipment of each Product. Buyer shall make payment in full within thirty (30) days of the
date of the invoice. Late payments may incur a charge at the rate of one and one-half percent (1.5%) percent per month, or the
maximum allowed by law, whichever is less. Further shipment of Products may be declined without advance notice if Buyer fails to
make any payment when due, or if the financial condition of Buyer becomes unsatisfactory to Affymetrix. Affymetrix may ellect to
retain a security interest in all Products sold to Buyer to secure all of Buyer’s obligations to Affymetrix under these Terms
and Conditions, and Buyer will execute any documents necessary to create and perfect this interest. Sales by Affymetrix shipped
outside the U.S. may require payment on an irrevocable letter of credit reasonably acceptable to Affymetrix.

 

6.Limited
Warranty.

 

		·	For
                                                                                                               new Instruments,
                                                                                                               Affymetrix warrants
                                                                                                               only to Buyer for
                                                                                                               the period that
                                                                                                               is the shortest
                                                                                                               of (i) thirteen
                                                                                                               (13) months from
                                                                                                               the date of shipping;
                                                                                                               (ii) one (1) year
                                                                                                               from the date of
                                                                                                               installation; or
                                                                                                               (iii) the shortest
                                                                                                               period specified
                                                                                                               in the Affymetrix
                                                                                                               sales quote for
                                                                                                               limited-life parts,
                                                                                                               that the operating
                                                                                                               software and instruments
                                                                                                               are free from defects
                                                                                                               in material and
                                                                                                               workmanship and
                                                                                                               conform to Affymetrix'
                                                                                                               published specifications
                                                                                                               in all material
                                                                                                               respects.

 

		·	For
                                                                                                               refurbished instruments,
                                                                                                               Affymetrix warrants
                                                                                                               only to Buyer for
                                                                                                               a period that is
                                                                                                               the shortest of
                                                                                                               (i) one-hundred
                                                                                                               twenty (120) days
                                                                                                               from shipment ;(ii)
                                                                                                               ninety (90) days
                                                                                                               from the date of
                                                                                                               installation; or
                                                                                                               (iii) the shortest
                                                                                                               period specified
                                                                                                               in the Affymetrix
                                                                                                               sales quote for
                                                                                                               limited-life parts,
                                                                                                               that the operating
                                                                                                               software and instruments
                                                                                                               are free from defects
                                                                                                               in material and
                                                                                                               workmanship and
                                                                                                               conform to Affymetrix'
                                                                                                               published specifications
                                                                                                               in all material
                                                                                                               respects.

 

		·	For
                                                                                                               used Instruments,
                                                                                                               Affymetrix warrants
                                                                                                               only to Buyer for
                                                                                                               the period that
                                                                                                               is the shortest
                                                                                                               of (i) thirty (30)
                                                                                                               days from date
                                                                                                               of shipment; (ii)
                                                                                                               twenty (20) days
                                                                                                               from the date of
                                                                                                               installation or
                                                                                                               (iii) the shortest
                                                                                                               period specified
                                                                                                               in the Aflymetrix
                                                                                                               sales quote to
                                                                                                               limited-life parts,
                                                                                                               that the instruments
                                                                                                               and operating software
                                                                                                               are free from defects
                                                                                                               in material and
                                                                                                               workmanship and
                                                                                                               conform to Affymetrix'
                                                                                                               published specifications
                                                                                                               in all material
                                                                                                               respects.

 

		·	For
                                                                                                               all
                                                                                                               instruments,
                                                                                                               warranty service
                                                                                                               will be provided
                                                                                                               pursuant to Affymetrix'
                                                                                                               standard service
                                                                                                               terms and conditions
                                                                                                               enumerated therein.
                                                                                                               Affymetrix' sole
                                                                                                               and exclusive liability
                                                                                                               (and Buyer’s
                                                                                                               sole and exclusive
                                                                                                               remedy) under the
                                                                                                               foregoing warranty
                                                                                                               shall be the repair
                                                                                                               or replacement
                                                                                                               of instruments,
                                                                                                               as solely determined
                                                                                                               by Affymetrix.
                                                                                                               Nonconforming instruments
                                                                                                               will be serviced
                                                                                                               at Buyer’s
                                                                                                               facility or, at
                                                                                                               Afflymetrix’
                                                                                                               option, Affymetrix'
                                                                                                               facility.

 

		·	For
                                                                                                               probe arrays or
                                                                                                               reagents reasonably
                                                                                                               determined by Affymetrix
                                                                                                               to be defective,
                                                                                                               independent of
                                                                                                               user error, shall
                                                                                                               be replaced by
                                                                                                               Affymetrix on a
                                                                                                               1:1, like-kind
                                                                                                               basis at no cost
                                                                                                               to Buyer or at
                                                                                                               Afflymetrix’
                                                                                                               discretion, as
                                                                                                               a credit for future
                                                                                                               purchases, provided
                                                                                                               that such defective
                                                                                                               probe arrays or
                                                                                                               reagents were used
                                                                                                               by Buyer prior
                                                                                                               to their expiration
                                                                                                               date, or if there
                                                                                                               is no expiration
                                                                                                               date, the Products
                                                                                                               were used within
                                                                                                               six (6) months
                                                                                                               of receipt. The
                                                                                                               defect must be
                                                                                                               reported within
                                                                                                               thirty (30) days
                                                                                                               of discovery with
                                                                                                               appropriate detail
                                                                                                               to Affymetrix'
                                                                                                               Technical Support
                                                                                                               team. If the cause
                                                                                                               of the failure
                                                                                                               was due to an Affymetrix
                                                                                                               instrument malfunction,
                                                                                                               a replacement will
                                                                                                               be granted only
                                                                                                               during the instrument
                                                                                                               warranty period
                                                                                                               or if the instrument
                                                                                                               is under an instrument
                                                                                                               service contract,
                                                                                                               pursuant to the
                                                                                                               terms and conditions
                                                                                                               then in effect.
                                                                                                               Third party reagents
                                                                                                               or consumables
                                                                                                               not purchased from
                                                                                                               or provided by
                                                                                                               Affymetrix are
                                                                                                               not covered under
                                                                                                               Affymetrix warranty,
                                                                                                               

 

    	 

    	 

    

 

		·	For
                                                                                                               Affymetrix Methods
                                                                                                               for Automated Target
                                                                                                               Preparation for
                                                                                                               GeneTitan®,
                                                                                                               subject to the
                                                                                                               conditions and
                                                                                                               limitations of
                                                                                                               liability stated
                                                                                                               herein, Affymetrix
                                                                                                               warrants, for one
                                                                                                               (1) year from the
                                                                                                               date of installation
                                                                                                               (“Warranty
                                                                                                               Period”)
                                                                                                               of the GeneTitan®,
                                                                                                               for the Buyer's
                                                                                                               benefit that the
                                                                                                               Affymetrix methods
                                                                                                               for automated target
                                                                                                               preparation for
                                                                                                               the GeneTitan®
                                                                                                               family of instruments
                                                                                                               (the “Method")
                                                                                                               shall operate substantially
                                                                                                               in accordance with
                                                                                                               the accompanying
                                                                                                               documentation provided
                                                                                                               that; (i) the Method
                                                                                                               is installed by
                                                                                                               a qualified Affymetrix
                                                                                                               representative,
                                                                                                               (ii) the automated
                                                                                                               target preparation
                                                                                                               instrument is installed
                                                                                                               by a qualified
                                                                                                               engineer and maintained
                                                                                                               under a valid service
                                                                                                               contract or warranty
                                                                                                               with the third
                                                                                                               party vendor, (iii)
                                                                                                               the Method is operated
                                                                                                               in accordance with
                                                                                                               the supplied technical
                                                                                                               instruction from
                                                                                                               Affymetrix ,(iv)
                                                                                                               that the associated
                                                                                                               storage media on
                                                                                                               which the Method
                                                                                                               resides is free
                                                                                                               from defects in
                                                                                                               material and workmanship.
                                                                                                               The foregoing warranty
                                                                                                               shall not apply
                                                                                                               to (i) Methods
                                                                                                               that are modified;
                                                                                                               (ii) Methods that
                                                                                                               are not the then-current
                                                                                                               version; (fii)
                                                                                                               problems caused
                                                                                                               by Buyer's negligence
                                                                                                               or error, a hardware
                                                                                                               malfunction or
                                                                                                               other causes beyond
                                                                                                               the control of
                                                                                                               Affymetrix; or
                                                                                                               (iv) Methods installed
                                                                                                               in an operating
                                                                                                               environment or
                                                                                                               in a hardware environment
                                                                                                               not strictly complying
                                                                                                               with the Affymetrix
                                                                                                               specifications
                                                                                                               required for the
                                                                                                               Method set forth
                                                                                                               in the documentation.
                                                                                                               The warranty stated
                                                                                                               herein for the
                                                                                                               Methods do not
                                                                                                               cover damage to
                                                                                                               the automated target
                                                                                                               preparation instrument
                                                                                                               nor associated
                                                                                                               consumables and
                                                                                                               reagents not supplied
                                                                                                               by Affymetrix.

 

		·	Technical
                                                                                                               Assistance:
                                                                                                               Affymetrix, may,
                                                                                                               but is not obligated
                                                                                                               to, furnish technical
                                                                                                               assistance and
                                                                                                               information with
                                                                                                               respect to
                                                                                                               the
                                                                                                               Products. Any suggestions
                                                                                                               by Affymetrix regarding
                                                                                                               use, selection,
                                                                                                               application or
                                                                                                               suitability of
                                                                                                               the Products shall
                                                                                                               not be construed
                                                                                                               as a warranty.

 

Except
as provided above, any warranty provided herein does not apply to any consumables, including third party reagents, or to any defect
caused by Buyer's failure to provide a suitable storage, use, or operating environment, use of non-recommended reagents, spills,
or the use of the Products for a purpose or in a manner other than that for which they were designed, modifications or repairs
done by Buyer, or any other abuse, misuse, or neglect of the Products. Affymetrix is not responsible for any costs or expenses
incurred by the Buyer due to downtime. Affymetrix may at any time stop providing and supporting the Products (“End of Life”)
and will use commercially reasonable efforts to communicate such End of Life events in advance. This warranty applies only to Buyer,
and not third parties. Furthermore, this Warranty stated herein shall not apply to product performance failures that are caused
by users of the Affymetrix Products who were not trained on and qualified to use the Affymetrix Products and assays by an Affymetrix
field service engineer, Affymetrix application specialist, or an authorized Affymetrix seller. The foregoing is not intended to
limit any warranty extended to Buyer by a third party original equipment manufacturer of a Product or component thereof, provided
that any remedy received by Buyer under any such warranty shall relieve Affymetrix of its obligations with respect to the subject
of such remedy. TO THE EXTENT PERMITTED BY APPLICABLE LAW, AFFYMETRIX AND ITS SUPPLIERS DISCLAIM ALL OTHER REPRESENTATIONS AND
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO PRODUCTS AND SERVICES, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, SATISFACTORY QUALITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE.

 

7. Pre-release
Products (Not Applicable to Products Marketed for IVD Usel. If any Product is a beta, technology access, early access, or other
pre-commercial release version ("Pre-release Product"), then this Section applies. To the extent that any provision in
this Section is in conflict with any other term or condition in these Terms and Conditions, this Section shall supersede such other
term(s) and condition(s) with respect to the Pre-release Product, but only to the extent necessary to resolve the conflict. Buyer
acknowledges that the Pre-release Product is a pre-release version, does not represent final product from Affymetrix, and may contain
defects, bugs, errors and other problems that could cause system or other failures, sample loss and data loss. CONSEQUENTLY, THE
PRERELEASE PRODUCT IS PROVIDED TO YOU "AS IS" AND AFFYMETRIX DISCLAIMS ALL WARRANTIES (INCLUDING THE LIMITED WARRANTY
SET FORTH ABOVE) AND ALL LIABILITY OBLIGATIONS TO BUYER OF ANY KIND. Buyer acknowledges that Affymetrix has not promised or guaranteed
to Buyer that Pre-release Product will be announced or made available to anyone in the future, that Affymetrix has no express or
implied obligation to Buyer to announce or introduce the Pre-release Product and that Affymetrix may elect not to introduce a product
similar to or compatible with the Pre-release Product. Accordingly, Buyer acknowledges that any research or development that Buyer
performs using the Pre-release Product or any product associated with the Pre-release Product is done entirely at Buyer's own risk.

 

8. Limited
License. Subject to these Terms and Conditions, and to the terms and conditions of any license provided by Affymetrix that
is specific to a particular Product (which shall govern with respect to such Product in the event of conflict with these Terms
and Conditions), Affymetrix hereby grants to Buyer a non-exclusive, non-transferable, non-sublicensable license to use the Product(s)
provided to Buyer by Affymetrix only in accordance with the manuals and written instructions provided by Affymetrix. Buyer understands
and agrees that except as expressly set forth in these Terms and Conditions (or in the Affymetrix-provided license specific to
a particular Product), no right or license to any patent or other intellectual property owned or licensable by Affymetrix is conveyed
or implied by these Terms and Conditions or any Product. In particular, no right or license is conveyed or implied to use any Product
provided hereunder in combination with a product not provided, licensed or specifically recommended by Affymetrix for such use.

 

    	 

    	 

    

 

9. Product
Uses. Products of Afflymetrix which are or may be drugs, food additives or diagnostic reagents, as described in the federal
food, drug and cosmetic act, are for investigational use only in laboratory research animals or testing in vitro, and are not for
drug, new drug, veterinary drug, food, food additive or human use. Unless otherwise indicated, all products are distributed and
sold for chemical purposes only, not for drug use or for application to or ingestion by humans or for commercial horticulture use,
for pesticide use, for application to or ingestion by animals or for veterinary drug use. All products sold by Affymetrix to Buyer
shall be used by qualified professionals only. The burden for safe use and handling of all products sold by Affymetrix to Buyer
is entirely the responsibility of Buyer and anyone who purchases the goods from Buyer and uses them. Absence of hazardous warnings
does not imply non-toxicity.

 

10. Products
Marketed for Research Use Only.

 

		(a)	Products marketed by Affymetrix for research use only do not have the approval or clearance of
the U.S. Food and Drug Administration ("FDA”) or other regulatory approval, clearance or registration for in vitro diagnostic
(“IVD") use. No license is conveyed or implied for Buyer to use, and Buyer agrees not to use, such Products in any manner
requiring FDA or other regulatory approval, clearance or registration relating to IVD use.

 

		(b)	Affymetrix’ goods that are intended for research purposes may not be on the Toxic Substances
Control Act (“TSCA”) inventory. Buyer assumes responsibility to ensure that the goods purchased from Affymetrix are
approved under TSCA, if applicable. Consistent with Buyer’s agreement to comply with all TSCA and Research and Development
substance exemption (the “R&D exemption”) requirements applicable to the purchase, Buyer agrees and warrants that
Buyer will comply with all the requirements necessary to maintain the R&D exemption, including using the R&D substance
under the supervision of a technically qualified individual, maintaining all necessary labeling, and providing all necessary notifications.
Buyer also agrees and warrants that Buyer will use or sell (if so authorized) the R&D substance exclusively for R&D purposes
or specified exempt commercial purposes. Buyer specifically agrees and warrants that Buyer will not sell or distribute the R&D
substance to consumers.

 

11. Products
Marketed for In Vitro Diagnostic Use. Products marketed by Affymetrix for IVD use have been cleared by the FDA, and CE marked
in the European Union, for IVD use. No license is conveyed or implied for Buyer to use, and Buyer agrees not to use, such Products
in any manner requiring other regulatory approval, clearance or registration relating to IVD use. The Affymetrix GeneChip®
Array Instrumentation System for IVD use requires calibration and maintenance twice a year by authorized Affymetrix personnel to
ensure system performance. Failure to maintain the system as recommended may result in the failure of the system to perform in
accordance with specifications published by Affymetrix.

 

12. Use
Restrictions. Buyer is not licensed to, and agrees not to: (a) resell any Affymetrix-supplied probe array or reagent, unless
otherwise authorized by Affymetrix in writing (b) transfer, or distribute any Affymetrix-supplied probe array or reagent, directly
or indirectly, to any third party for any purpose or use, except as otherwise approved by Affymetrix in writing; (c) use or allow
anyone to use any Affymetrix-supplied probe array or reagent more than once, or dilute any Affymetrix-supplied reagent; or (d)
provide a fee-for- service or other non-collaborative sample processing service to third parties using an Affymetrix-supplied probe
array or reagent (e.g., wherein the service provider offers standardized services for standardized fees to multiple third parties,
the customer does not contribute scientifically to the services performed, and all rights to the results and discoveries derived
therefrom are transferred to the customer).

 

13. Product
Improvements. Except to the extent prohibited by applicable law, Buyer hereby grants to Affymetrix a non-exclusive, worldwide,
fully sublicensable, fully paid-up, royalty-free, irrevocable, perpetual license to all Product Improvements. Buyer need not disclose
any Product Improvements to Affymetrix except as may be reasonably required to comply with the foregoing license. For purposes
of this Section, a “Product Improvement" shall mean any invention conceived or reduced to practice using a Product that
relates to (a) design, manufacturing, layout or packaging of nucleic acid probes or probe arrays; (b) manual or automated assay
techniques that may be used in connection with probe arrays or similar products (including techniques related to nucleic acid extraction,
amplification, labeling, dilution and other processes); or (c) software analysis techniques relating to the extraction or storage
of data generated using probe arrays. “Product Improvements” shall not include data generated using Products or discoveries
derived therefrom (except as expressly set forth in (a) - (c) above).

 

14. Target
Sequence Confidentiality for Custom Products. If Buyer discloses to Affymetrix a confidential set of nucleic acid or peptide
target sequences (“Target Sequences”) for which Buyer desires Affymetrix to design and manufacture custom probe arrays
or custom protein assay or custom nucleic acid assay pursuant to these Terms and Conditions, upon Buyer’s written request,
Affymetrix agrees to use reasonable efforts not to disclose or use such confidential information disclosed to it by Buyer for any
purpose other than designing and manufacturing such Products, supplying them to Buyer and/or other parties designated by Buyer,
otherwise performing its obligations to Buyer (and any obligations Affymetrix may have to such other parties), and for other purposes
authorized by Buyer. The provisions of this Section shall not apply to any information which (a) is known or used by Affymetrix
prior to Buyer’s disclosure to Affymetrix; (b) is disclosed to Affymetrix by a third party under no obligation of confidentiality
to Buyer; (c) is or becomes published or generally known to the public through no fault of Affymetrix; or (d) is independently
developed without reference to such confidential information disclosed to Affymetrix by Buyer. Notwithstanding the foregoing, Affymetrix
shall be permitted to disclose such information in order to comply with applicable laws, a court order, or governmental regulations,
provided that Affymetrix has provided Buyer with prior notice of such disclosure, to the extent reasonably practicable. Afflymetrix’
obligations under this Section shall terminate three (3) years following the date of disclosure.

 

    	 

    	 

    

 

15. Target
Sequence Responsibility. Buyer shall be fully responsible for the Target Sequences, including the obtaining of all required
consents, and Buyer agrees to indemnify Affymetrix and its employees, officers, directors, representatives, contractors, suppliers
and any affiliate of the foregoing (the “Affymetrix Group”) and hold each of them harmless from and against any losses,
liabilities, demands, damages, costs and expenses, including without limitation reasonable legal fees and expenses, arising from
or relating to the Target Sequences or their use. Buyer agrees to fully cooperate with the Affymetrix Group and its counsel in
its defense and preparation for any such action or proceeding.

 

16. Liability
Limitation. EXCEPT TO THE EXTENT CAUSED BY AFFYMETRIX’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR REQUIRED BY APPLICABLE LAW,
AFFYMETRIX SHALL HAVE NO LIABILITY FOR ANY LOSS OF USE OR PROFITS, PROCUREMENT OF SUBSTITUTE GOODS OR ANY INDIRECT, CONSEQUENTIAL,
INCIDENTAL, OR SPECIAL DAMAGES OF ANY KIND, HOWEVER CAUSED AND REGARDLESS OF FORM OF ACTION WHETHER IN CONTRACT, TORT (INCLUDING
NEGLIGENCE), STRICT PRODUCT LIABILITY OR OTHERWISE, EVEN IF AFFYMETRIX HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AS
TO ANY AFFYMETRIX LIABILITY NOT LEGALLY SUBJECT TO THE FOREGOING, AFFYMETRIX’ LIABILITY SHALL NOT EXCEED THE AMOUNT PAID BY BUYER
TO AFFYMETRIX IN THE PRIOR TWELVE (12) MONTHS. BUYER UNDERSTANDS THAT THE RISKS OF LOSS HEREUNDER ARE REFLECTED IN THE PRICE OF
THE PRODUCTS AND THAT THESE TERMS WOULD HAVE BEEN DIFFERENT IF THERE HAD BEEN A DIFFERENT ALLOCATION OF RISK.

 

17. Export
Controls. Buyer acknowledges that the Products and related materials may be subject to export controls under the U.S. Export
Administration Regulations and related U.S. laws. Buyer will (a) comply strictly with all legal requirements established under
these controls, (b) cooperate fully with Affymetrix in any official or unofficial audit or inspection that relates to these controls
and (c) not export, re-export, divert, transfer or disclose, directly or indirectly, any Product or related technical documents
or materials or any direct product thereof to any country (or to any national or resident thereof) which the U.S. Government determines
from time to time is a country (or end-user) to which such export, re-export, diversion, transfer or disclosure is restricted,
without obtaining the prior written authorization of Affymetrix and the applicable U.S. Government agency.

 

18. Unforeseen
Events. Affymetrix shall not be liable for delay or failure in performance of any obligations hereunder if performance is rendered
impracticable by the occurrence of any condition beyond the reasonable control of Affymetrix. In the event of any such delay or
failure in performance, Affymetrix shall have such additional time within which to perform its obligations hereunder as may reasonably
be necessary under the circumstances.

 

19. Miscellaneous.
These Terms and Conditions constitute the entire agreement between Buyer and Affymetrix with respect to the subject matter hereof
and is the final, complete, and exclusive statement of the terms of the agreement, superseding all prior written and oral agreements,
understandings and undertakings with respect to the subject matter hereof. The waiver of any provision or any breach thereof shall
not affect any other provision of these Terms and Conditions. The U.N. Convention on Contracts for the International Sale of Goods
shall not apply to these Terms and Conditions. In the event that any provision of this Agreement or portion thereof is found to
be illegal or unenforceable, the Agreement shall be construed without the unenforceable provision or portion thereof.

 

20. Governing
Law.

 

(a) For
Deliveries Outside Europe: To the extent permitted by applicable law, these Terms and Conditions shall be governed by and construed
according to the laws of California, without regard to conflict of law provisions.

 

(a) For
Deliveries Within Europe: To the extent permitted by applicable law, these Terms and Conditions shall be governed by
and construed according to the laws of England, without regard to conflict of law provisions. 

 

	 	AFFYMETRIX
	 	 
	 	By: 	
	 	 	
[Insert Title]

 

Date:  [Insert
Date]Exhibit 10.2

 

COMMON STOCK PURCHASE AGREEMENT

 

COMMON STOCK PURCHASE
AGREEMENT (the “Agreement”), dated as of November 8, 2013 by and between ATOSSA GENETICS, INC., a
Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company
(the “Buyer”). Capitalized terms used herein and not otherwise defined herein are defined in Section 10 hereof.

 

WHEREAS:

 

Subject to the terms
and conditions set forth in this Agreement, the Company wishes to sell to the Buyer, and the Buyer wishes to buy from the Company,
up to Twenty-Five Million Dollars ($25,000,000) of the Company’s common stock, par value $0.001 per share (the “Common
Stock”). The shares of Common Stock to be purchased hereunder are referred to herein as the “Purchase Shares.”

 

NOW THEREFORE,
the Company and the Buyer hereby agree as follows:

 

		1.	PURCHASE OF COMMON STOCK. 

 

Subject to the terms
and conditions set forth in this Agreement, the Company has the right to sell to the Buyer, and the Buyer has the obligation to
purchase from the Company, Purchase Shares as follows:

 

(a)Commencement of Purchases
of Common Stock; Milestone Purchases. The purchase and sale of Purchase Shares hereunder shall occur from time to time upon
written notices by the Company to the Buyer on the terms and conditions as set forth herein following the satisfaction of the conditions
(the “Commencement”) as set forth in Sections 6 and 7 below (the date of satisfaction of such conditions, the
“Commencement Date”). Subject to the terms and conditions of this Agreement, on any given Business Day after
the Commencement Date, the Company shall be obligated to sell and the Buyer shall be obligated to purchase $2,000,000 worth of
common shares in two separate purchases of $1,000,000 per purchase (each such purchase a “Milestone Purchase”)
directly from the Company as follows. The first Milestone Purchase shall be on the date of the submission by the Company of a new
premarket notification (a “510(k) Application”) to the U.S. Food and Drug Administration (the “FDA”)
that covers the collection, preparation, and processing of nipple aspirate fluid specimens in regard to the ForeCYTE Breast Health
Test (the “ForeCYTE Test”) and the Mammary Aspiration Specimen Cytology Test device (the “MASCT Device”).
The purchase price for this first Milestone Purchase shall be equal to the lower of $2.00 per share or the Purchase Price on the
FDA submission date. The Company and the Buyer shall also complete a second Milestone Purchase of an additional $1,000,000 of Purchase
Shares on the date of clearance by the FDA of the 510(k) Application that covers the collection, preparation, and processing of
nipple aspirate fluid specimens in regard to the ForeCYTE Test and the MASCT Device. The purchase price for this second Milestone
Purchase shall be equal to the lower of $4.00 per share or the Purchase Price on the date of clearance by the FDA of the 510(k)
Application.

 

    	 

    	 

    

 

(b)The
Company’s Right to Require Regular Purchases. Subject to the terms and conditions of this Agreement, on any given Business
Day after the Commencement Date, the Company shall have the right but not the obligation to direct the Buyer by its delivery to
the Buyer of a Purchase Notice from time to time, and the Buyer thereupon shall have the obligation, to buy the number of Purchase
Shares specified in such notice, up to a maximum of 150,000 Purchase Shares, on such Business Day (as long as such notice is delivered
on or before 5:00 p.m. Eastern time on such Business Day) (each
such purchase, a “Regular Purchase”) at the Purchase Price on the Purchase Date; however, in no event shall
the Purchase Amount of a Regular Purchase exceed Five Hundred Thousand Dollars ($500,000) per Business Day. The Company may deliver
additional Purchase Notices to the Buyer from time to time so long as the most recent purchase
has been completed.  The share amounts in the first sentence of this Section 1(b) shall be appropriately adjusted for any reorganization,
recapitalization, non-cash dividend, stock split, reverse stock split, or other similar transaction.

 

(c)VWAP Purchases. Subject
to the terms and conditions of this Agreement, in addition to purchases of Purchase Shares as described in Section 1(b) above,
with one Business Day’s prior written notice (as long as such notice is delivered on or before 5:00 p.m. Eastern time on
the Business Day immediately preceding the VWAP Purchase Date), the Company shall also have the right but not the obligation to
direct Buyer by the Company’s delivery to Buyer of a VWAP Purchase Notice from time to time, and Buyer thereupon shall have
the obligation, to buy the VWAP Purchase Share Percentage of the trading volume of the Common Stock on the VWAP Purchase Date up
to the VWAP Purchase Share Volume Maximum on the VWAP Purchase Date (each such purchase, a “VWAP Purchase”)
at the VWAP Purchase Price. The Company may deliver a VWAP Purchase Notice to the Buyer on or before 5:00 p.m. Eastern time on
a date on which (i) the Company also submitted a Purchase Notice for a Regular Purchase of 150,000 Purchase Shares to the Buyer
and (ii) the Closing Sale Price is higher than $0.50. A VWAP Purchase shall automatically be deemed completed at such time on the
VWAP Purchase Date that the Sale Price falls below the VWAP Minimum Price Threshold; in such circumstance, the VWAP Purchase Amount
shall be calculated using (i) the VWAP Purchase Share Percentage of the aggregate shares traded on the Principal Market for such
portion of the VWAP Purchase Date prior to the time that the Sale Price fell below the VWAP Minimum Price Threshold and (ii) a
VWAP Purchase Price calculated using the volume weighted average price of Common Stock sold during such portion of the VWAP Purchase
Date prior to the time that the Sale Price fell below the VWAP Minimum Price Threshold. Each VWAP Purchase Notice must be accompanied
by instructions to the Company’s Transfer Agent to immediately issue to the Buyer an amount of Common Stock equal to the
VWAP Purchase Share Estimate, a good faith estimate by the Company of the number of Purchase Shares that the Buyer shall have the
obligation to buy pursuant to the VWAP Purchase Notice. In no event shall the Buyer, pursuant to any VWAP Purchase, purchase a
number of Purchase Shares that exceeds the VWAP Purchase Share Estimate issued on the VWAP Purchase Date in connection with such
VWAP Purchase Notice; however, the Buyer will immediately return to the Company any amount of Common Stock issued pursuant to the
VWAP Purchase Share Estimate that exceeds the number of Purchase Shares the Buyer actually purchases in connection with such VWAP
Purchase. Upon completion of each VWAP Purchase Date, the Buyer shall submit to the Company a confirmation of the VWAP Purchase
in form and substance reasonably acceptable to the Company. The Company may deliver additional VWAP Purchase Notices to the Buyer
from time to time so long as the most recent purchase has been completed. The Company may, by written notice to the Buyer, in its
sole discretion at any time after the date of this Agreement, irrevocably terminate this Section 1(c) and its right to direct the
Buyer to make VWAP Purchases.

 

(d)Payment for
Purchase Shares. For each Regular Purchase, the Buyer shall pay to the Company an amount equal to the Purchase Amount as full
payment for such Purchase Shares via wire transfer of immediately available funds on the same Business Day that the Buyer receives
such Purchase Shares. For each VWAP Purchase, the Buyer shall pay to the Company an amount equal to the VWAP Purchase Amount as
full payment for such Purchase Shares via wire transfer of immediately available funds on the third Business Day following the
VWAP Purchase Date. All payments made under this Agreement shall be made in lawful money of the United States of America via wire
transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance
with the provisions of this Agreement. Whenever any amount expressed to be due by the terms of this Agreement is due on any day
that is not a Business Day, the same shall instead be due on the next succeeding day that is a Business Day.

 

    	-2-

    	 

    

 

(e)Purchase
Price Floor. The Company and the Buyer shall not effect any sales under this Agreement on any Purchase Date where the Closing
Sale Price is less than the Floor Price. “Floor Price” means $0.25 per share of Common Stock, which shall be
appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar
transaction.

 

(f)Records of
Purchases. The Buyer and the Company shall each maintain records showing the remaining Available Amount at any given time and
the dates and purchase amounts for each purchase, or shall use such other method reasonably satisfactory to the Buyer and the Company
to reconcile the remaining Available Amount.

 

(g)Taxes.
The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance and delivery
of any shares of Common Stock to the Buyer made under this Agreement.

 

(h)Compliance
with Principal Market Rules. Notwithstanding anything in this Agreement to the contrary, and in addition to the limitations
set forth in Section 1(e), the total number of shares of Common Stock that may be issued under this Agreement, including the Commitment
Shares (as defined in Section 4(e) hereof), shall be limited to 3,528,199 shares of Common Stock (the “Exchange Cap”),
which equals 19.99% of the Company’s outstanding shares of Common Stock as of the date hereof, unless stockholder approval
is obtained to issue more than such 19.99%. The foregoing limitation shall not apply if stockholder approval has not been obtained
and at any time the Exchange Cap is reached and at all times thereafter the average price paid for all shares issued under this
Agreement is equal to or greater than $1.98 (the “Minimum Price”), a price equal to the Closing Sale Price on
the Business Day prior to the date hereof (in such circumstance, for purposes of the Principal Market, the transaction contemplated
hereby would not be “below market” and the Exchange Cap would not apply). Notwithstanding the foregoing, the Company
shall not be required or permitted to issue, and the Buyer shall not be required to purchase, any shares of Common Stock under
this Agreement if such issuance would violate the rules or regulations of the Principal Market.

 

(i)Beneficial
Ownership Limitation. The Company shall not issue, and the Buyer shall not purchase any shares of Common Stock under this Agreement,
if such shares proposed to be issued and sold, when aggregated with all other shares of Common Stock then owned beneficially (as
calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by the Buyer and its affiliates
would result in the beneficial ownership by the Buyer and its affiliates of more than 19.99% of the then issued and outstanding
shares of Common Stock of the Company.

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

The Buyer represents
and warrants to the Company that as of the date hereof and as of the Commencement Date:

 

    	-3-

    	 

    

 

(a)Investment
Purpose. The Buyer is entering into this Agreement and acquiring the Commitment Shares and the Purchase Shares (the Purchase
Shares and the Commitment Shares are collectively referred to herein as the “Securities”), for its own account
for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof; provided
however, by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other
specific term.

 

(b)Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)(3) of Regulation
D of the 1933 Act.

 

(c)Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings
of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire
the Securities.

 

(d)Information.
The Buyer has been furnished with all materials relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities that have been reasonably requested by the Buyer, including, without limitation,
the SEC Documents (as defined in Section 3(f) hereof). The Buyer understands that its investment in the Securities involves a high
degree of risk. The Buyer (i) is able to bear the economic risk of an investment in the Securities including a total loss, (ii)
has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the
proposed investment in the Securities and (iii) has had an opportunity to ask questions of and receive answers from the officers
of the Company concerning the financial condition and business of the Company and other matters related to an investment in the
Securities. Neither such inquiries nor any other due diligence investigations conducted by the Buyer or its representatives shall
modify, amend or affect the Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

 

(e)No Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)Transfer
or Sale. The Buyer understands that except as provided in the Registration Rights Agreement (as defined in Section 4(a) hereof):
(i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder or (B) an exemption exists permitting such
Securities to be sold, assigned or transferred without such registration; (ii) any sale of the Securities made in reliance on Rule
144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities
under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that
term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations
of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register the Securities under
the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

    	-4-

    	 

    

 

(g)Organization.
The Buyer is a limited liability company duly organized and validly existing in good standing under the laws of the jurisdiction
in which it is organized, and has the requisite organizational power and authority to own its properties and to carry on its business
as now being conducted.

 

(h)Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Buyer and is a valid
and binding agreement of the Buyer enforceable against the Buyer in accordance with its terms, subject as to enforceability to
(i) general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar
laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and (ii) public policy
underlying any law, rule or regulation (including any federal or state securities law, rule or regulation) with regards to indemnification,
contribution or exculpation. The execution and delivery of the Transaction Documents by the Buyer and the consummation by it of
the transactions contemplated hereby and thereby do not conflict with the Buyer’s certificate of organization or operating
agreement or similar documents, and do not require further consent or authorization by the Buyer, its managers or its members.

 

(i)Residency.
The Buyer is a resident of the State of Illinois.

 

(j)No Prior
Short Selling. The Buyer represents and warrants to the Company that at no time prior to the date of this Agreement has any
of the Buyer, its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly,
any (i) “short sale” (as such term is defined in Section 242.200 of Regulation SHO of the Securities Exchange Act of
1934, as amended (the “1934 Act”)) of the Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Common Stock.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents
and warrants to the Buyer that as of the date hereof and as of the Commencement Date:

 

(a)Organization
and Qualification. The Company and its “Subsidiaries” (which for purposes of this Agreement means any entity in
which the Company, directly or indirectly, owns more than 50% of the voting stock or capital stock or other similar equity interests) are corporations or limited liability companies
duly organized and validly existing in good standing under the laws of the jurisdiction in which they are incorporated or organized,
and have the requisite corporate or organizational power and authority to own their properties and to carry on their business
as now being conducted. Each of the Company and its Subsidiaries is duly qualified as a foreign corporation or limited liability
company to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business
conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing
could not reasonably be expected to have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect”
means any material adverse effect on any of: (i) the business, properties, assets, operations, results of operations or financial
condition of the Company and its Subsidiaries, if any, taken as a whole, or (ii) the authority or ability of the Company to perform
its obligations under the Transaction Documents (as defined in Section 3(b) hereof). The Company has no material Subsidiaries
except as set forth on Schedule 3(a).

 

    	-5-

    	 

    

 

(b)Authorization;
Enforcement; Validity. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement, the Registration Rights Agreement and each of the other agreements entered into by the parties on the Commencement
Date and attached hereto as exhibits to this Agreement (collectively, the “Transaction Documents”), and to issue
the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation, the issuance
of the Commitment Shares and the reservation for issuance and the issuance of the Purchase Shares issuable under this Agreement,
have been duly authorized by the Company’s Board of Directors or duly authorized committee thereof, do not conflict with
the Company’s Certificate of Incorporation or Bylaws, and do not require further consent or authorization by the Company,
its Board of Directors or its stockholders, (iii) this Agreement has been, and each other Transaction Document shall be on the
Commencement Date, duly executed and delivered by the Company and (iv) this Agreement constitutes, and each other Transaction Document
upon its execution on behalf of the Company, shall constitute, the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be limited by (y) general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally,
the enforcement of creditors' rights and remedies and (z) public policy underlying any law, rule or regulation (including any federal
or states securities law, rule or regulation) with regards to indemnification, contribution or exculpation. The Board of Directors
of the Company or duly authorized committee thereof has approved the resolutions (the “Signing Resolutions”)
substantially in the form as set forth as Exhibit B-1 attached hereto to authorize this Agreement and the transactions contemplated
hereby. The Signing Resolutions are valid, in full force and effect and have not been modified or supplemented in any material
respect other than by the resolutions set forth in Exhibit B-2 attached hereto regarding the registration statement referred
to in Section 4 hereof. The Company has delivered to the Buyer a true and correct copy of the Signing Resolutions as approved by
the Board of Directors of the Company.

 

(c)Capitalization.
As of the date hereof, the authorized capital stock of the Company consists of (i) 75,000,000 shares of Common Stock, of which
as of the date hereof 17,649,824shares are issued and outstanding, zero shares are held as treasury shares, 2,246,651 shares are
reserved for future issuance pursuant to the Company’s equity incentive plan(s) and pursuant to options grants outside the
Company’s equity incentive plan(s), of which approximately 250,912 shares remain available for future option grants or stock
awards, and 4,775,550 shares are issuable and reserved for issuance pursuant to securities (other than stock options or equity
based awards issued pursuant to the Company’s stock incentive plans) exercisable or exchangeable for, or convertible into,
shares of Common Stock pursuant to warrants outstanding, and (ii) 10,000,000 shares of preferred stock, par value $0.001 per share,
of which as of the date hereof no shares are designated, issued or outstanding. All of such outstanding shares have been, or upon
issuance will be, validly issued and are fully paid and non-assessable. Except as disclosed in this Section 3(c) or Schedule 3(c),
(i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or
encumbrances suffered or permitted by the Company, (ii) there are no outstanding debt securities of the Company or any of its Subsidiaries,
(iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or
contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to
issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, (iv) there are no material agreements or arrangements under which the Company
or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration
Rights Agreement and except such rights that have been satisfied), (v) there are no outstanding securities or instruments of the
Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the
Company or any of its Subsidiaries, (vi) there are no securities or instruments containing anti-dilution or similar provisions
that will be triggered by the issuance of the Securities as described in this Agreement and (vii) the Company does not have any
stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company has
furnished or made available to the Buyer true and correct copies of the Company’s Certificate of Incorporation, as amended
and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s Bylaws, as
amended and as in effect on the date hereof (the “Bylaws”).

 

    	-6-

    	 

    

 

(d)Issuance
of Securities. The Commitment Shares have been duly authorized and, upon issuance in accordance with the terms hereof, shall
be (i) validly issued, fully paid and non-assessable and (ii) free from all taxes, liens and charges with respect to the issuance
thereof, 4,200,000 shares of Common Stock have been duly authorized and reserved for issuance upon future purchase under this Agreement.
Upon issuance and payment therefore in accordance with the terms and conditions of this Agreement, the Purchase Shares shall be
validly issued, fully paid and non-assessable and free from all taxes, liens and charges with respect to the issue thereof, with
the holders being entitled to all rights accorded to a holder of Common Stock.

 

(e)No Conflicts.
Except as disclosed in Schedule 3(e), the execution, delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the reservation
for issuance and issuance of the Purchase Shares) will not (i) result in a violation of the Certificate of Incorporation, any Certificate
of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the Bylaws or (ii) constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of
its Subsidiaries is a party, or result, to the Company’s knowledge, in a violation of any law, rule, regulation, order, judgment
or decree (including federal and state securities laws and regulations and the rules and regulations of the Principal Market applicable
to the Company or any of its Subsidiaries) or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except in the case of defaults, terminations, amendments, accelerations, cancellations and violations under clause
(ii), which could not reasonably be expected to result in a Material Adverse Effect. Except as disclosed in Schedule 3(e), neither
the Company nor its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any Certificate
of Designation, Preferences and Rights of any outstanding series of preferred stock of the Company or Bylaws or their organizational
charter or bylaws, respectively. Except as disclosed in Schedule 3(e), neither the Company nor any of its Subsidiaries is in violation
of any term of or is in default under any material contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible violations,
defaults, terminations or amendments that could not reasonably be expected to have a Material Adverse Effect. The business of the
Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, ordinance, or regulation
of any governmental entity, except for possible violations, the sanctions for which either individually or in the aggregate could
not reasonably be expected to have a Material Adverse Effect. Except as specifically contemplated by this Agreement, reporting
obligations under the 1934 Act or as required under the 1933 Act or applicable state securities laws or the filing of a Listing
of Additional Shares Notification Form with the Principal Market, the Company is not required to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency or any regulatory or self-regulatory agency
in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents in accordance
with the terms hereof or thereof. Except for reporting obligations under the 1934 Act, all consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence shall be obtained or effected on or
prior to the Commencement Date. The Company is not subject to any notices or actions from or to the Principal Market, other than
routine matters incident to listing on the Principal Market and not involving a violation of the rules of the Principal Market.
To the Company’s knowledge, the Principal Market has not commenced any delisting proceedings against the Company.

 

    	-7-

    	 

    

 

(f)SEC Documents;
Financial Statements. Except as disclosed in Schedule 3(f), since November 7, 2012, the Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934
Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules
thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
As of their respective dates (except as they have been correctly amended), the SEC Documents complied in all material respects
with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC (except as they may have been properly amended), contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective
dates (except as they have been properly amended), the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles,
consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). Except for routine correspondence, such as comment letters and notices of effectiveness in connection
with previously filed registration statements or periodic reports publicly available on EDGAR, to the Company’s knowledge,
the Company or any of its Subsidiaries are not presently the subject of any inquiry, investigation or action by the SEC.

 

(g)Absence of
Certain Changes. Except as disclosed in Schedule 3(g), since October 31, 2013, there has been no material adverse change in
the business, properties, operations, financial condition or results of operations of the Company or its Subsidiaries taken as
a whole. For purposes of this Agreement, neither a decrease in cash or cash equivalents nor losses incurred in the ordinary course
of the Company’s business shall be deemed or considered a material adverse change. The Company has not taken any steps, and
does not currently expect to take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company or any of its
Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency
proceedings. The Company is financially solvent and is generally able to pay its debts as they become due.

 

    	-8-

    	 

    

 

(h)Absence of
Litigation. To the Company’s knowledge, there is no action, suit, proceeding, inquiry or investigation before or by any
court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any
of its Subsidiaries, threatened against the Company, the Common Stock or any of the Company’s Subsidiaries or any of the
Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, which could reasonably
be expected to have a Material Adverse Effect (each, an “Action”). A description of each such Action, if any,
is set forth in Schedule 3(h).

 

(i)Acknowledgment
Regarding Buyer’s Status. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s
length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further
acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to the Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Buyer or
any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and
thereby is merely incidental to the Buyer’s purchase of the Securities. The Company further represents to the Buyer that
the Company’s decision to enter into the Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives and advisors.

 

(j)Intellectual
Property Rights. To the Company’s knowledge, the Company and its Subsidiaries own or possess adequate rights
or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property
rights (collectively, “Intellectual Property”) necessary to conduct their respective businesses as now conducted,
except as set forth in Schedule 3(j) or to the extent that the failure to own, possess, license or otherwise hold adequate rights
to use Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed
in Schedule 3(j), to the Company’s knowledge, none of the Company’s active and registered Intellectual Property have
expired or terminated, or, by the terms and conditions thereof, will expire or terminate within two years from the date of this
Agreement. The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of
any Intellectual Property of others, or of any such development of similar or identical trade secrets or technical information
by others with respect to the Company’s or its Subsidiaries’ Intellectual Property and, except as set forth on Schedule
3(j), there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened
against, the Company or its Subsidiaries regarding Intellectual Property, which could reasonably be expected to have a Material
Adverse Effect.

 

(k)Environmental
Laws. To the Company’s knowledge, the Company and its Subsidiaries (i) are in material compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the protection of the environment or human health and safety
and with respect to hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) have received all material permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in material compliance with all terms and conditions of any such permit, license or approval,
except where, in each of the three foregoing clauses, the failure to so comply or receive such approvals could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

    	-9-

    	 

    

 

(l)Title.
The Company and its Subsidiaries have good and marketable title to all personal property owned by them that is material to the
business of the Company and its Subsidiaries, free and clear of all liens, encumbrances and defects except such as are described
in Schedule 3(l) or such as do not materially affect the value of such property and do not interfere with the use made and proposed
to be made of such property by the Company and any of its Subsidiaries or could not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect. Any real property and facilities held under lease by the Company and any of its
Subsidiaries, to the Company’s knowledge, are held by them under valid, subsisting and enforceable leases with such exceptions
as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company
and its Subsidiaries.

 

(m)Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be reasonable and customary in the businesses in which the Company
and its Subsidiaries are engaged. To the Company’s knowledge, since September 30, 2011, neither the Company nor any such
Subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such Subsidiary, to the
Company’s knowledge, will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected
to have a Material Adverse Effect.

 

(n)Regulatory
Permits. Except as disclosed in the SEC Documents, the Company and its Subsidiaries possess all material certificates, authorizations
and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses
as currently conducted, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating
to the revocation or modification of any such material certificate, authorization or permit.

 

(o)Tax Status.
The Company and each of its Subsidiaries has made or filed all federal and state income and all other material tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each
of its Subsidiaries has set aside on its books reserves reasonably adequate for the payment of all unpaid and unreported taxes
or filed valid extensions) and has paid all taxes and other governmental assessments and charges that are material in amount,
shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set
aside on its books reserves reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. To the Company’s knowledge, there are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction.

 

(p)Transactions
With Affiliates. Except as set forth on Schedule 3(p), and other than the grant or exercise of stock options or any other
equity securities offered pursuant to duly adopted stock or incentive compensation plans as disclosed on Schedule 3(c), none of
the officers, directors or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries
(other than for services as employees, officers and directors and reimbursement for expenses incurred on behalf of the Company),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or,
to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such
employee has a material interest or is an officer, director, trustee or general partner.

 

    	-10-

    	 

    

 

(q)Application
of Takeover Protections. The Company and its board of directors have taken or will take prior to the Commencement Date all
necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation or
the laws of the state of its incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company’s issuance of the Securities and the Buyer’s ownership
of the Securities.

 

		4.	COVENANTS.

 

(a)Filing of
Form 8-K and Registration Statement. The Company agrees that it shall, within the time required under the 1934 Act, file a
Current Report on Form 8-K (or provide substantially equivalent disclosure in the Company’s Quarterly Report on Form 10-Q
to be filed within that time period) disclosing this Agreement and the transaction contemplated hereby. The Company shall also
file within ten (10) Business Days from the date hereof a new registration statement covering the sale of the Securities by the
Buyer in accordance with the terms of the Registration Rights Agreement between the Company and the Buyer, dated as of the date
hereof (“Registration Rights Agreement”).

 

(b)Blue Sky.
The Company shall take such action, if any, as is reasonably necessary in order to obtain an exemption for or to qualify (i) the
initial sale of the Securities to the Buyer under this Agreement and (ii) any subsequent sale of the Securities by the Buyer, in
each case, under applicable securities or “Blue Sky” laws of the states of the United States in such states as is reasonably
requested by the Buyer from time to time, and shall provide evidence of any such action so taken to the Buyer at its written request.

 

(c)Listing.
The Company shall promptly secure the listing of all of the Securities upon each national securities exchange and automated
quotation system that requires an application by the Company for listing, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and shall maintain such listing, so long as any other shares of Common Stock
shall be so listed. The Company shall use its commercially reasonable efforts to maintain the Common Stock’s listing on
the Principal Market in accordance with the requirements of the Registration Rights Agreement. Neither the Company nor any of
its Subsidiaries shall take any action that would be reasonably expected to result in the delisting or suspension of the
Common Stock on the Principal Market, unless the Common Stock is immediately thereafter traded on the New York Stock
Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC
Bulletin Board, or the OTCQB or OTCQX market places of the OTC Markets. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section.

 

(d)Limitation
on Short Sales and Hedging Transactions. The Buyer agrees that beginning on the date of this Agreement and ending on the date
of termination of this Agreement as provided in Section 11(k), the Buyer and its agents, representatives and affiliates shall not
in any manner whatsoever enter into or effect, directly or indirectly, any (i) “short sale” (as such term is defined
in Section 242.200 of Regulation SHO of the 1934 Act) of the Common Stock or (ii) hedging transaction, which establishes a net
short position with respect to the Common Stock.

 

    	-11-

    	 

    

 

(e)Issuance
of Commitment Shares. Immediately upon the execution of this Agreement, the Company shall issue to the Buyer as consideration
for the Buyer entering into this Agreement 375,000 shares of Common Stock (the “Commitment Shares”). The Commitment
Shares shall be issued in certificated form and (subject to Section 5 hereof) shall bear the following restrictive legend:

 

THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

 

(f)Due Diligence.
The Buyer shall have the right, from time to time as the Buyer may reasonably deem appropriate, to perform reasonable due diligence
on the Company during normal business hours and subject to reasonable prior notice to the Company. The Company and its officers
and employees shall provide information and reasonably cooperate with the Buyer in connection with any reasonable request by the
Buyer related to the Buyer’s due diligence of the Company, including, but not limited to, any such request made by the Buyer
in connection with (i) the filing of the registration statement described in Section 4(a) hereof and (ii) the Commencement; provided,
however, that at no time is the Company required to disclose material nonpublic information to the Buyer or breach any obligation
of confidentiality or non-disclosure to a third party or make any disclosure that could cause a waiver of attorney-client privilege.
Each party hereto agrees not to disclose any Confidential Information of the other party to any third party and shall not use
the Confidential Information of such other party for any purpose other than in connection with, or in furtherance of, the transactions
contemplated hereby. Each party hereto acknowledges that the Confidential Information shall remain the property of the disclosing
party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential Information disclosed by
the other party. All disclosures of Confidential Information shall be subject to the terms and conditions of the Non-Disclosure
Agreement dated March 25, 2013 between the Company and the Buyer.

 

		5.	TRANSFER AGENT INSTRUCTIONS.

 

Immediately upon the
execution of this Agreement, the Company shall deliver to the Transfer Agent a letter in the form as set forth as Exhibit D
attached hereto with respect to the issuance of the Commitment Shares. On the Commencement Date, the Company shall cause
any restrictive legend on the Commitment Shares to be removed upon surrender of the originally issued certificate(s) for such shares.
All of the Purchase Shares to be issued under this Agreement shall be issued without any restrictive legend unless the Buyer expressly
consents otherwise. The Company shall issue irrevocable instructions to the Transfer Agent, and any subsequent transfer agent,
to issue Common Stock in the name of the Buyer for the Purchase Shares (the “Irrevocable Transfer Agent Instructions”).
The Company warrants to the Buyer that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this
Section 5, will be given by the Company to the Transfer Agent with respect to the Purchase Shares and that the Commitment Shares
and the Purchase Shares shall otherwise be freely transferable on the books and records of the Company as and to the extent
provided in this Agreement and the Registration Rights Agreement, subject to the provisions of Section 4(e) in the case of the
Commitment Shares.

 

    	-12-

    	 

    

 

		6.	CONDITIONS TO THE COMPANY’S RIGHT TO COMMENCE

			SALES OF SHARES OF COMMON STOCK UNDER THIS AGREEMENT.

 

The right of the Company
hereunder to commence sales of the Purchase Shares is subject to the satisfaction of each of the following conditions on or before
the Commencement Date (the date that the Company may begin sales of Purchase Shares):

 

		(a)	The Buyer shall have executed each of the Transaction Documents and delivered the same to the Company;

 

		(b)	The representations and warranties of the Buyer shall be true and correct as of the Commencement
Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true
and correct in all material respects as of such specific date) and the Buyer shall have performed, satisfied and complied in all
material respects with the covenants and agreements required by this Agreement to be performed, satisfied or complied with by the
Buyer at or prior to the Commencement Date; and

 

		(c)	A registration statement covering the sale of the Securities shall have been declared effective
under the 1933 Act by the SEC and no stop order with respect to the registration statement shall be pending or threatened by the
SEC.

 

		7.	CONDITIONS TO THE BUYER’S OBLIGATION TO MAKEPURCHASES
OF SHARES OF COMMON STOCK.

 

The obligation of the
Buyer to buy Purchase Shares under this Agreement is subject to the satisfaction of each of the following conditions on or before
the Commencement Date (the date that the Company may begin sales of Purchase Shares) and once such conditions have been initially
satisfied, there shall not be any ongoing obligation to satisfy such conditions after the Commencement has occurred:

 

(a)The Company
shall have executed each of the Transaction Documents and delivered the same to the Buyer;

 

(b)The
Company shall have issued to the Buyer the Commitment Shares and, in the event that the Buyer shall have surrendered the originally
issued certificate(s), shall have removed the restrictive transfer legend from the certificate representing the Commitment Shares;

 

(c)The Common Stock
shall be authorized for quotation on the Principal Market, trading in the Common Stock shall not have been within the last 365
days suspended by the SEC or the Principal Market and the Securities shall be approved for listing upon the Principal Market;

 

    	-13-

    	 

    

 

(d)The Buyer shall
have received the opinion of the Company’s legal counsel dated as of the Commencement Date in customary form and substance;

 

(e)The representations
and warranties of the Company shall be true and correct in all material respects (except to the extent that any of such representations
and warranties is already qualified as to materiality in Section 3 above, in which case, such representations and warranties shall
be true and correct without further qualification) as of the date of this Agreement and as of the Commencement Date as though
made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct
in all material respects as of such specific date) and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied
with by the Company at or prior to the Commencement Date. The Buyer shall have received a certificate, executed by the CEO, President
or CFO of the Company, dated as of the Commencement Date, to the foregoing effect in the form attached hereto as Exhibit A;

 

(f)The Board of
Directors of the Company or a duly authorized committee thereof shall have adopted resolutions substantially in the form attached
hereto as Exhibit B-1 which shall be in full force and effect without any amendment or supplement thereto as of the Commencement
Date;

 

(g)As of the Commencement
Date, the Company shall have reserved out of its authorized and unissued Common Stock, solely for the purpose of effecting purchases
of Purchase Shares hereunder, 4,200,000 shares of Common Stock;

 

(h)The Irrevocable
Transfer Agent Instructions, in form acceptable to the Buyer shall have been signed by the Company and the Buyer and have been
delivered to the Transfer Agent;

 

(i)The Company
shall have delivered to the Buyer a certificate evidencing the incorporation and good standing of the Company in the State of
Delaware issued by the Secretary of State of the State of Delaware as of a date within ten (10) Business Days of the Commencement
Date;

 

(j)The Company
shall have delivered to the Buyer a certified copy of the Certificate of Incorporation, as certified by the Secretary of State
of the State of Delaware within ten (10) Business Days of the Commencement Date;

 

(k)The Company
shall have delivered to the Buyer a secretary’s certificate executed by the Secretary of the Company, dated as of the Commencement
Date, in the form attached hereto as Exhibit C;

 

(l)A registration
statement covering the sale of (i) all of the Commitment Shares and (ii) such number of Purchase Shares as reasonably determined
by the Company shall have been declared effective under the 1933 Act by the SEC and no stop order with respect thereto shall be
pending or threatened by the SEC. The Company shall have prepared and delivered to the Buyer a final and complete form of prospectus,
dated and current as of the Commencement Date, to be used by the Buyer in connection with any sales of any Securities, and to
be filed by the Company one (1) Business Day after the Commencement Date pursuant to Rule 424(b). The Company shall have
made all filings under all applicable federal and state securities laws necessary to consummate the issuance of the Commitment
Shares and the Purchase Shares pursuant to this Agreement in compliance with such laws;

 

    	-14-

    	 

    

 

(m)No Event
of Default has occurred and is continuing, or any event which, after notice and/or lapse of time, would become an Event of
Default has occurred;

 

(n)On or prior
to the Commencement Date, the Company shall take all necessary action, if any, and such actions as reasonably requested by the
Buyer, in order to render inapplicable any control share acquisition, business combination, stockholder rights plan or poison
pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation
or the laws of the state of its incorporation, other than Section 203 of the Delaware General Corporation Law, that is or could
become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including, without limitation,
the Company's issuance of the Securities and the Buyer's ownership of the Securities; and

 

(o)The Company
shall have provided the Buyer with the information reasonably requested by the Buyer in connection with its due diligence requests
made prior to, or in connection with, the Commencement, in accordance with the terms of Section 4(f) hereof.

 

		8.	INDEMNIFICATION. 

 

In consideration of
the Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities hereunder and in addition to
all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and
hold harmless the Buyer and all of its affiliates, members, officers, directors, and employees, and any of the foregoing person’s
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated
by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result
of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company
in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of
any covenant, agreement or obligation of the Company contained in the Transaction Documents or any other certificate, instrument
or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Indemnitee
and arising out of or resulting from the execution, delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, other than with respect to Indemnified Liabilities which directly
and primarily result from (A) a breach of any of the Buyer’s representations and warranties, covenants or agreements contained
in this Agreement, or (B) the gross negligence, bad faith or willful misconduct of the Buyer or any other Indemnitee. To the extent
that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

		9.	EVENTS OF DEFAULT.

 

An “Event
of Default” shall be deemed to have occurred at any time as any of the following events occurs:

 

    	-15-

    	 

    

 

(a)during any
period in which the effectiveness of any registration statement is required to be maintained pursuant to the terms of the Registration
Rights Agreement, the effectiveness of such registration statement lapses for any reason (including, without limitation,
the issuance of a stop order) or is unavailable to the Buyer for the sale of all of the Registrable Securities (as defined in
the Registration Rights Agreement), and such lapse or unavailability continues for a period of ten (10) consecutive Business Days
or for more than an aggregate of thirty (30) Business Days in any 365-day period, which is not in connection with a post-effective
amendment to any such registration statement or the filing of a new registration statement; provided, however, that in connection
with any post-effective amendment to such registration statement or filing of a new registration statement that is required to
be declared effective by the SEC, such lapse or unavailability may continue for a period of no more than Twenty (20) consecutive
Business Days, which such period shall be extended for up to an additional Thirty (30) Business Days if the Company receives a
comment letter from the SEC in connection therewith;

 

(b)the suspension
from trading or failure of the Common Stock to be listed on a Principal Market for a period of three (3) consecutive Business
Days;

 

(c)the delisting
of the Common Stock from the Principal Market, and the Common Stock is not immediately thereafter trading on the New York Stock
Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC Bulletin
Board, or the OTCQB or OTCQX market places of the OTC Markets;

 

(d)the failure
for any reason by the Transfer Agent to issue Purchase Shares to the Buyer within five (5) Business Days after the applicable
Purchase Date that the Buyer is entitled to receive;

 

(e)the breach
of any representation, warranty, covenant or other term or condition under any Transaction Document if such breach could reasonably
be expected to have a Material Adverse Effect and except, in the case of a breach of a covenant which is reasonably curable, only
if such breach continues uncured for a period of at least five (5) Business Days;

 

(f)if any Person
commences a proceeding against the Company pursuant to or within the meaning of any Bankruptcy Law;

 

(g)if the Company
pursuant to or within the meaning of any Bankruptcy Law; (A) commences a voluntary case, (B) consents to the entry of an order
for relief against it in an involuntary case, (C) consents to the appointment of a Custodian of it or for all or substantially
all of its property, (D) makes a general assignment for the benefit of its creditors or (E) becomes insolvent; or

 

(h)a court of
competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company in an involuntary
case, (B) appoints a Custodian of the Company or for all or substantially all of its property, or (C) orders the liquidation of
the Company or any Subsidiary.

 

(i)if at any time
after the Commencement Date, the Exchange Cap is reached unless and until stockholder approval is obtained pursuant to Section
1(h) hereof. The Exchange Cap shall be deemed to be reached at such time if, upon submission of a Purchase Notice or VWAP Purchase
Notice under this Agreement, the issuance of such shares of Common Stock would exceed that number of shares of Common Stock which
the Company may issue under this Agreement without breaching the Company’s obligations under the rules or regulations of
the Principal Market.

 

    	-16-

    	 

    

 

In addition to any other rights and remedies
under applicable law and this Agreement, including the Buyer termination rights under Section 11(k) hereof, so long as an Event
of Default has occurred and is continuing, or if any event which, after notice and/or lapse of time, would become an Event of Default,
has occurred and is continuing, or so long as the Closing Sale Price is below the Floor Price, the Company may not require and
the Buyer shall not be obligated or permitted to purchase any shares of Common Stock under this Agreement. If pursuant to or within
the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company,
a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment
for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f), 9(g) and 9(h) hereof)
this Agreement shall automatically terminate without any liability or payment to the Company without further action or notice by
any Person. No such termination of this Agreement under Section 11(k)(i) shall affect the Company’s or the Buyer’s
obligations under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective
obligations with respect to any pending purchases under this Agreement.

 

		10.	CERTAIN DEFINED TERMS.

 

For purposes of this
Agreement, the following terms shall have the following meanings:

 

(a)“1933
Act” means the Securities Act of 1933, as amended.

 

(b)“Available
Amount” means initially Twenty-Five Million Dollars ($25,000,000) in the aggregate which amount shall be reduced by the
Purchase Amount each time the Buyer purchases shares of Common Stock pursuant to Section 1 hereof.

 

(c)“Bankruptcy Law”
means Title 11, U.S. Code, or any similar federal or state law for the relief of debtors.

 

(d)“Business
Day” means any day on which the Principal Market is open for trading during normal trading hours (i.e., 9:30 a.m. to
4:00 p.m. Eastern Time), including any day on which the Principal Market is open for trading for a period of time less than the
customary time.

 

(e)“Closing
Sale Price” means the last closing trade price for the Common Stock on the Principal Market as reported by the Principal
Market.

 

(f)“Confidential Information”
means any information disclosed by either party to the other party, either directly or indirectly, in writing, orally or by inspection
of tangible objects (including, without limitation, documents, protocols, development plans, commercialization plans, samples,
compounds and clinical and pre-clinical trial results). Confidential Information may also include information disclosed to a disclosing
party by third parties. Confidential Information shall not, however, include any information which (i) was publicly known and made
generally available in the public domain prior to the time of disclosure by the disclosing party; (ii) becomes publicly known and
made generally available after disclosure by the disclosing party to the receiving party through no action or inaction of the receiving
party; (iii) is already in the possession of the receiving party at the time of disclosure by the disclosing party as shown by
the receiving party’s files and records immediately prior to the time of disclosure; (iv) is obtained by the receiving party
from a third party without a breach of such third party’s obligations of confidentiality; (v) is independently developed
by the receiving party without use of or reference to the disclosing party’s Confidential Information, as shown by documents
and other competent evidence in the receiving party’s possession; or (vi) is required by law to be disclosed by the receiving
party, provided that the receiving party gives the disclosing party prompt written notice of such requirement prior to such disclosure
and assistance in obtaining an order protecting the information from public disclosure.

 

    	-17-

    	 

    

 

(g)“Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

(h)“Maturity
Date” means the date that is thirty (30) months from the Commencement Date.

 

(i)“Milestone Purchase
Notice” shall mean an irrevocable written notice from the Company to the Buyer (i) certifying achievement of the applicable
milestone and (ii) directing the Buyer to buy Purchase Shares pursuant to Section 1(a) hereof at the applicable purchase price
as of the applicable Purchase Date as a Milestone Purchase required under Section 1(a) hereof.

 

(i)“Person”
means an individual or entity including any limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof.

 

(j)“Principal
Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is ever
listed or traded on the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq Global Market, the OTC
Bulletin Board, or either one of the OTCQB or the OTCQX market places of the OTC Markets, then the “Principal Market”
shall mean such other market or exchange on which the Company’s Common Stock is then listed or traded.

 

(k)“Purchase
Amount” means, with respect to any particular purchase made hereunder, the portion of the Available Amount to be purchased
by the Buyer pursuant to Section 1 hereof as set forth in a valid Milestone Purchase Notice, Purchase Notice, or VWAP Purchase
Notice which the Company delivers to the Buyer.

 

(l)“Purchase
Date” means with respect to any Regular Purchase made hereunder, the Business Day of receipt by the Buyer of a valid
Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(b) hereof. “Purchase Date” means with
respect to the first Milestone Purchase to be made under Section 1(a) hereof, the date of the submission by the Company of the
510(k) Application. “Purchase Date” means with respect to the second Milestone Purchase to be made under Section 1(a)
hereof, the date of the FDA clearance of the 510(k) Application. In either case, if such date is not on a Business Day, it shall
mean the Business Day immediately following such date.

 

(m) “Purchase Notice”
shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase Shares pursuant to Section
1(b) hereof as specified by the Company therein at the applicable Purchase Price on the Purchase Date.

 

(n) “Purchase
Price” means the lesser of (i) the lowest Sale Price of the Common Stock on the Purchase Date or (ii) the arithmetic
average of the three (3) lowest Closing Sale Prices for the Common Stock during the twelve (12) consecutive Business Days ending
on the Business Day immediately preceding such Purchase Date (to be appropriately adjusted for any reorganization, recapitalization,
non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	-18-

    	 

    

 

(o)“Sale
Price” means any trade price for the shares of Common Stock on the Principal Market during normal trading hours, as reported
by the Principal Market.

 

(p)“SEC”
means the United States Securities and Exchange Commission.

 

(q)“Transfer
Agent” means the transfer agent of the Company as set forth in Section 11(f) hereof or such other person who is then
serving as the transfer agent for the Company in respect of the Common Stock.

 

(r)“VWAP
Minimum Price Threshold” means, with respect to any particular VWAP Purchase Notice, the Sale Price on the VWAP Purchase
Date equal to the greater of (i) 90% of the Closing Sale Price on the Business Day immediately preceding the VWAP Purchase Date
or (ii) such higher price as set forth by the Company in the VWAP Purchase Notice.

 

(s)“VWAP
Purchase Amount” means, with respect to any particular VWAP Purchase Notice, the portion of the Available Amount to be
purchased by the Buyer pursuant to Section 1(c) hereof as set forth in a valid VWAP Purchase Notice which requires the Buyer to
buy the VWAP Purchase Share Percentage of the aggregate shares traded on the Principal Market during normal trading hours on the
VWAP Purchase Date up to the VWAP Purchase Share Volume Maximum, subject to the VWAP Minimum Price Threshold.

 

(t)“VWAP
Purchase Date” means, with respect to any VWAP Purchase made hereunder, the Business Day following the receipt by
the Buyer of a valid VWAP Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section 1(c) hereof.

 

(u)“VWAP
Purchase Notice” shall mean an irrevocable written notice from the Company to the Buyer directing the Buyer to buy Purchase
Shares on the VWAP Purchase Date pursuant to Section 1(c) hereof as specified by the Company therein at the applicable VWAP Purchase
Price with the applicable VWAP Purchase Share Percentage specified therein.

 

(v)“VWAP
Purchase Share Percentage” means, with respect to any particular VWAP Purchase Notice pursuant to Section 1(c) hereof,
the percentage set forth in the VWAP Purchase Notice which the Buyer will be required to buy as a specified percentage of the aggregate
shares traded on the Principal Market during normal trading hours up to the VWAP Purchase Share Volume Maximum on the VWAP Purchase
Date subject to Section 1(c) hereof but in no event shall this percentage exceed thirty percent (30%) of such VWAP Purchase Date’s
share trading volume of the Common Stock on the Principal Market during normal trading hours.

 

(w) “VWAP
Purchase Price” means the lesser of (i) the Closing Sale Price on the VWAP Purchase Date; or (ii) ninety-five
percent (95%) of volume weighted average price for the Common Stock traded on the Principal Market during normal trading hours
on (A) the VWAP Purchase Date if the aggregate shares traded on the Principal Market on the VWAP Purchase Date have not exceeded
the VWAP Purchase Share Volume Maximum, or (B) the portion of the VWAP Purchase Date until such time as the sooner to occur of
(1) the time at which the aggregate shares traded on the Principal Market has exceeded the VWAP Purchase Share Volume Maximum,
or (2) the time at which the sale price of Common Stock falls below the VWAP Minimum Price Threshold (to be appropriately adjusted
for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction).

 

    	-19-

    	 

    

 

(x) “VWAP
Purchase Share Estimate” means the number of shares of Common Stock that the Company has in its sole discretion irrevocably
instructed its Transfer Agent to issue to the Buyer via the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program in connection with a VWAP Purchase Notice pursuant to Section 1(c) hereof and issued to the Buyer’s
or its designee’s balance account with DTC through its Deposit Withdrawal At Custodian (DWAC) system on the VWAP Purchase
Date (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split
or other similar transaction).

 

(y) “VWAP
Purchase Share Volume Maximum” means a number of shares of Common Stock traded on the Principal Market during normal
trading hours on the VWAP Purchase Date equal to: (i) the VWAP Purchase Share Estimate, divided by (ii) the VWAP Purchase Share
Percentage (to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock
split or other similar transaction).

 

		11.	MISCELLANEOUS.

 

(a)Governing
Law; Jurisdiction; Jury Trial. The laws of the State of Delaware shall govern all
issues concerning the relative rights of the Company and its stockholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the other Transaction Documents shall be governed by the internal laws of
the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City
of Chicago, for the adjudication of any dispute hereunder or under the other Transaction Documents or in connection herewith or
therewith, or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(b)Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a
facsimile or pdf (or other electronic reproduction) signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic
reproduction) signature.

 

    	-20-

    	 

    

 

(c)Headings.
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

(d)Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

(e)Entire Agreement.
This Agreement and the Registration Rights Agreement supersede all other prior oral or written agreements between the Buyer, the
Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement,
the other Transaction Documents and the instruments referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the
Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. The Company acknowledges and agrees
that is has not relied on, in any manner whatsoever, any representations or statements, written or oral, other than as expressly
set forth in this Agreement. The Buyer and the Company agree that that certain Common Stock Purchase Agreement, dated as of March
27, 2013, by and between the Company and the Buyer is hereby terminated as of the date hereof.

 

(f)Notices.
Any notices, consents or other communications required or permitted to be given under the terms of this Agreement must be in writing
and will be deemed to have been delivered: (i) upon receipt when delivered personally; (ii) upon receipt when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii)
one (1) Business Day after timely deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

Atossa Genetics, Inc.

1616 Eastlake Ave., East, Suite
510

Seattle, Washington 98102

Telephone: 800 351-3902

Facsimile: 206 430-1288

Attention: Kyle Guse

Chief Financial Officer
and General Counsel

 

With a copy (which
shall not constitute notice) to:

Ropes &
Gray LLP

Three Embarcadero
Center, 3rd Floor

San Francisco,
CA 94111

Telephone:
(415) 315-6395

Facsimile:(415)
315-6026

Attention:Ryan
A. Murr, Esq.

 

    	-21-

    	 

    

 

 

If to the Buyer:

Aspire Capital Fund, LLC

155 North Wacker Drive, Suite
1600

Chicago, IL 60606

Telephone:312-658-0400

Facsimile:312-658-4005

Attention:Steven G. Martin

 

With a copy to (which
shall not constitute delivery to the Buyer):

O’Melveny & Myers LLP

1625 Eye Street, NW

Washington, DC 20006

Telephone:202-383-5418

Facsimile:202-383-5414

Attention:Martin P. Dunn, Esq.

 

If to the Transfer
Agent:

VStock Transfer

77 Spruce
Street , Suite 201

Cedarhurst,
New York

Telephone:
212 828-8436

Facsimile:646
536-3179

Attention:Chief
Executive Officer

 

or at such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party one (1) Business Day prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine
containing the time, date, and recipient facsimile number or (C) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of receipt in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Buyer, including by merger or consolidation. The Buyer may not assign its rights or obligations under this Agreement.

 

(h)No Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

(i)Publicity.
The Buyer shall have the right to approve before issuance any press release, SEC filing or any other public disclosure made by
or on behalf of the Company whatsoever with respect to, in any manner, the Buyer, its purchases hereunder or any aspect of this
Agreement or the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval
of the Buyer, to make any press release or other public disclosure (including any filings with the SEC) with respect to such transactions
as is required by applicable law and regulations so long as the Company and its counsel consult with the Buyer in connection with
any such press release or other public disclosure at least one (1) Business Day prior to its release. The Buyer must be provided
with a copy thereof at least one (1) Business Day prior to any release or use by the Company thereof. 

 

    	-22-

    	 

    

 

(j)Further Assurances.
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)Termination.
This Agreement may be terminated only as follows:

 

(i)By
the Buyer any time an Event of Default exists without any liability or payment to the Company. However, if pursuant to or within
the meaning of any Bankruptcy Law, the Company commences a voluntary case or any Person commences a proceeding against the Company,
a Custodian is appointed for the Company or for all or substantially all of its property, or the Company makes a general assignment
for the benefit of its creditors, (any of which would be an Event of Default as described in Sections 9(f), 9(g) and 9(h) hereof)
this Agreement shall automatically terminate without any liability or payment to the Company without further action or notice by
any Person. No such termination of this Agreement under this Section 11(k)(i) shall affect the Company’s or the Buyer’s
obligations under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective
obligations with respect to any pending purchases under this Agreement.

 

(ii)[Intentionally
Omitted.].

 

(iii)In
the event that the Commencement shall not have occurred on or before April 1, 2014, due to the failure to satisfy any of the conditions
set forth in Sections 6 and 7 above with respect to the Commencement, the Buyer shall have the option to terminate this Agreement
at the close of business on such date or thereafter without liability of either party to any other party; provided, however, that
the right to terminate this Agreement under this Section 11(k)(iii) shall not be available to the Buyer if such failure to satisfy
any of the conditions set forth in Sections 6 and 7 is the result of a breach of this Agreement by the Buyer or the failure of
any representation or warranty of the Buyer included in this Agreement to be true and correctin all material respects.

 

(iv)
At any time after the Commencement Date and after the completion of both Milestone Purchases, the Company shall have the option
to terminate this Agreement for any reason or for no reason by delivering notice (a “Company Termination Notice”)
to the Buyer electing to terminate this Agreement without any liability whatsoever of either party to the other party under this
Agreement except as set forth in Section 11(k)(viii) hereof. The Company Termination Notice shall not be effective until one (1)
Business Day after it has been received by the Buyer.

 

(v)This
Agreement shall automatically terminate on the date that the Company sells and the Buyer purchases the full Available Amount as
provided herein, without any action or notice on the part of any party and without any liability whatsoever of any party to any
other party under this Agreement except as set forth in Section 11(k)(viii) hereof.

 

    	-23-

    	 

    

 

(vi)If
by the Maturity Date for any reason or for no reason the full Available Amount under this Agreement has not been purchased as provided
for in Section 1 of this Agreement, this Agreement shall automatically terminate on the Maturity Date, without any action or notice
on the part of any party and without any liability whatsoever of any party to any other party under this Agreement except as set
forth in Section 11(k)(viii) hereof.

 

(vii)Except
as set forth in Sections 11(k)(i) (in respect of an Event of Default under Sections 9(f), 9(g) and 9(h)), 11(k)(v) and 11(k)(vi),
any termination of this Agreement pursuant to this Section 11(k) shall be effected by written notice from the Company to the Buyer,
or the Buyer to the Company, as the case may be, setting forth the basis for the termination hereof.

 

(viii)The
representations and warranties of the Company and the Buyer contained in Sections 2, 3 and 5 hereof, the indemnification provisions
set forth in Section 8 hereof and the agreements and covenants set forth in Sections 4(e) and 11, shall survive the Commencement
and any termination of this Agreement. No termination of this Agreement shall affect the Company’s or the Buyer’s rights
or obligations (A) under the Registration Rights Agreement which shall survive any such termination in accordance with its terms
or (B) under this Agreement with respect to pending purchases and the Company and the Buyer shall complete their respective obligations
with respect to any pending purchases under this Agreement.

 

(l)No Financial
Advisor, Placement Agent, Broker or Finder. The Company represents and warrants to the Buyer that it has not engaged any financial
advisor, placement agent, broker or finder in connection with the transactions contemplated hereby. The Buyer represents and warrants
to the Company that it has not engaged any financial advisor, placement agent, broker or finder in connection with the transactions
contemplated hereby. Each party shall be responsible for the payment of any fees or commissions, if any, of any financial advisor,
placement agent, broker or finder engaged by such party relating to or arising out of the transactions contemplated hereby. Each
party shall pay, and hold the other party harmless against, any liability, loss or expense (including, without limitation, attorneys'
fees and out of pocket expenses) arising in connection with any such claim.

 

(m)No Strict
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party.

 

(n)Failure or Indulgence Not
Waiver. No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any
other right, power or privilege.

 

 

* * * * *

    	-24-

    	 

    

 

IN WITNESS WHEREOF, the Buyer and
the Company have caused this Common Stock Purchase Agreement to be duly executed as of the date first written above.

 

	 	THE COMPANY:	 
	 	 	 	 
	 	ATOSSA GENETICS, INC.	 
	 	 	 	 
	 	By:	 /s/ Steven C. Quay	 
	 	Name:  	Steven C. Quay	 
	 	Title:	Chairman, Chief Executive Officer and President	 

 

	 	 	BUYER:
	 	 	 
	 	 	ASPIRE CAPITAL FUND, LLC
	 	 	BY: ASPIRE CAPITAL PARTNERS, LLC
	 	 	BY:
     SGM Holdings Corp.

 

	 	By:	/s/ Steve Martin	 
	 	Name:   	Steve Martin	 
	 	Title:  	President	 

 

 

 

    	-25-

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