Document:

Program Agreement Contract

 Exhibit 10.24 
  

			
	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  
 BAYER HEALTHCARE LLC, DIABETES CARE 
 DISTRIBUTOR MEDICAL BENEFIT 
 PATIENT TESTING COMPLIANCE PROGRAM AGREEMENT 
 CONTRACT MY 
 This Distributor Medical Benefit Patient Testing Compliance Program
Agreement – Contract MY (“Agreement”) is made by and between Bayer HealthCare, LLC, Diabetes Care located at 555 White Plains Road, Tarrytown, NY, 10591 (hereinafter “Bayer”), and Certified Diabetic Services located at 10061
Amberwood Road, Fort Myers, FL 33913 (hereinafter “Distributor”). 
 In consideration of the mutual promises and covenants contained
herein, the parties agree as follows: 
  

	1.	Introduction 

  

	1.1	Pursuant to this Agreement, Bayer agrees to sell and Distributor agrees to purchase directly from Bayer test strips, meters, controls, and ancillary products set forth
in Attachment (A), collectively “the Bayer Products” for sale and distribution directly to patients with diabetes located in the United States, District of Columbia, and Puerto Rico (“Territory”), whose diabetes management
supplies are covered as a Medical Benefit by Medicare, Medicaid or a Qualified Participating Plan (“End-users”). Distributor shall, not directly or indirectly, sell, distribute, or otherwise make available any of the Bayer Products outside
of the Territory and/or to any person or entity, except to the End-user. 

  

	1.2	Distributor is currently an Authorized Diabetes Care Center pursuant to a separate Agreement between Bayer and Distributor (Key Operating Policy and Procedure for
Diabetes Care Center Agreement), the terms of which are incorporated herein by reference. Unless otherwise specified herein, if there is any conflict between the terms in this Agreement and the terms in the Key Operating Policy and Procedures, the
terms of the Key Operating Policies and Procedures shall control. 

  

	 	1.2.1	At the time this Agreement goes into effect, the 2007 Distributor Medical Benefit Patient Testing Compliance Program Agreement, Contract MJ, Contract Number C027091
accepted by Bayer on February 14, 2007, will be automatically terminated. This termination is not a release of any existing obligations of the Distributor under the 2007 Distributor Medical Benefit Patient Testing Compliance Program Agreement,
Contract MJ, Contract Number C027091 and Bayer retains the right to review and audit claims for [allowances/chargebacks/credits] made under the 2007 Distributor Medical Benefit Patient Testing Compliance Program Agreement, Contract MJ, Contract
Number C027091 and seek repayment for any improper claims. 

  

	 	1.2.2	Distributor may not participate in any other Contract or Agreement with Bayer regarding Bayer Test Strips and/or Meters during the term of this Agreement unless agreed
to by Bayer. 

  

	1.3	Distributor shall furnish at least ninety-percent (90%) of Bayer Test Strips covered under this Agreement to End Users by Home Delivery either via a Mail Mode of
Delivery or Distributor’s Own Delivery Network. Mail Mode of Delivery shall include United States Postal Service, United Parcel Service, FedEx, DHL, or other recognized commercial delivery service. Distributor’s Own Delivery Network shall
include deliveries made to End Users’ Home by Distributor’s own employees or by other private carrier that provides home delivery service. 

  

	1.4	Distributor shall be a party to agreements with the Centers for Medicare and Medicaid Services (CMS) concerning Medicare Reimbursement. As such, the Distributor agrees
to accept Medicare/Medicaid assignment, process the Medicare paperwork on behalf of the End-user and accept eighty-percent (80%) of the authorized Medicare reimbursement plus the remaining twenty-percent (20%) directly from the End-user or
a supplementary insurance provider. 

  

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	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  

	 	1.4.1	Distributor shall be a contracted provider with the Qualified Participating Plan concerning Medical Benefit Reimbursement. As such, the Distributor agrees to accept the
contracted Medical Benefit reimbursement, process the Medical Benefit claim paperwork on behalf of the End-user and collect any copayment or coinsurance payment that is due from the End-user. 

  

	1.5	Under the conditions of paragraph 1.7 hereof, Bayer will issue an allowance to the Distributor in accordance with paragraphs 2.2, and 2.2.1 for the allowance amount set
forth on Attachment B for sales of Bayer Products made to End-users for which Distributor conducts a Patient Testing Compliance Program, as defined in Attachment C, for all End-users. 

  

	1.6	If Distributor sells Bayer Test Strips to End-users who are members of Qualified Participating Plans, as set forth on Attachment D which is in a format acceptable to
Bayer, said Qualified Participating Plans must classify Bayer Test Strips as a Medical Benefit. Participating Plans that classify Bayer Test Strips as a Pharmacy Benefit do not qualify. Distributor does not qualify for an allowance on Bayer Test
Strips sold to members of Qualified Participating Plans with which Bayer has entered into a separate Agreement for Bayer Test Strips. Distributor does not qualify for an allowance on Bayer Test Strips sold to members of Qualified Participating Plans
if Distributor does not have a written contract with the Qualified Participating Plan designating Distributor as a provider of Medical Benefits to Qualified Participating Plan members. 

  

	 	1.6.1	Distributor does not qualify for an allowance on Bayer Test Strips sold to Medicaid beneficiaries in those states where Medicaid classifies test strips as a Pharmacy
Benefit. 

  

	1.7	In consideration of the allowance pricing to the Distributor by Bayer, Distributor agrees to provide in a format acceptable to Bayer, sales tracing information unique
to each End-user as defined in Attachment E. Distributor shall forward such information to Bayer on a monthly basis as set forth in paragraphs 1.8 and 2.2.1. 

  

	1.8	Bayer will provide an allowance to the Distributor only for those sales for which End-user Information is provided. Distributor will only be eligible for payment of net
price if the documentation is in a format acceptable to Bayer when End-user Information is provided and it is submitted on a monthly basis. In addition, Distributor will keep on file detailed sales tracing information, including the name of each
End-user, all End-user identifiers assigned, the End-user’s address, phone number, as well as the Bayer Products sold, date of sale, and the quantity of product sold. This information including original documentation shall be made available to
Bayer during any audit pursuant to paragraph 1.9. Distributor will be eligible for allowance pricing only for those sales for which End-user Information is provided in format acceptable to Bayer and it is submitted on a monthly basis as provided by
paragraph 2.2.1. 

  

	1.9	Distributor remains responsible for the accuracy of all End-user Information submitted to Bayer. Distributor agrees that Bayer has the right to perform random audits of
Distributor’s records including phone records, invoices and other books and records of Distributor to determine that allowances have been paid in accordance with the provisions of this Agreement including that Bayer Test Strips were sold
exclusively to End-users. Such audits will be performed by Bayer at a reasonable time and in a reasonable manner, at any time, upon 48 hours prior notice. For audits conducted at the Distributor’s site, End-users’ names, addresses,
telephone numbers, physician letters and or Medicare/Medicaid numbers will not leave the premises with an auditor or Bayer representative nor will such information be used for any other purpose other than to verify that Bayer Test Strips were sold
to End-users and that the Distributor is fully performing within the terms and conditions of this Agreement. However, the auditor or Bayer representative shall be given office and telephone access to make spot-check phone calls to verify the
aforementioned information. If the audit discloses any cases wherein allowances were issued to the Distributor for non-qualifying purchases, and/or the audit discloses any cases wherein allowances were issued to the Distributor where End-user
information cannot be traced to End-user, the Distributor shall reimburse Bayer for such allowance payments within thirty (30) days of receipt of notice from Bayer, whether or not such allowances were paid as a result of an error by
Distributor. 

  

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	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  

	1.10	Distributor agrees to purchase Bayer Products directly from Bayer as set forth on Attachment B. 

  

	1.11	Distributor agrees not to trade out End-users to competitors blood glucose monitoring products for the term of this Agreement unless specifically requested by
the End-user’s physician, the End-users health plan, or the End-user. This includes End-users currently using Bayer Systems prior to the commencement of this Agreement as well as End-users who begin using Bayer Systems after the commencement of
this Agreement. 

  

	1.12	Bayer Test Strips, as set forth in paragraph 1.1 can only be sold by Distributor to End-users under the conditions set forth in paragraph 1.4 and shall not be displayed
on retail shelf. 

  

	1.13	Distributor shall not advertise the prices of Bayer Test Strips. Distributor shall not advertise or promote any of the Bayer Products covered by this Agreement in a
manner that may appear to violate, or may violate, any applicable law or regulation. All advertising materials of Distributor which contain or refer to Bayer Products require Bayer’s prior written approval as set forth in Section 6.5 of
this Agreement. 

  

	1.14	Distributor will take all necessary steps to comply with the terms of this Agreement and any state or Federal laws or regulations, including, if necessary, obtaining
permission from End-users to participate in the Patient Testing Compliance Program as described in Attachment C, obtain from End-users’ Qualified Participating Plan written authorization to provide End-users with Patient Testing Compliance
Program services as described in Attachment C and obtaining any necessary authorization to release information to Bayer as required by this Agreement. 

  

	1.15	This Agreement is conditional upon Distributor providing Bayer an acceptable list of Qualified Participating Plans as outlined on Attachment D titled
“Participating Plans List”. The Qualified Participating Plans List can be submitted in a mutually agreeable format. If Distributor requires a Qualified Participating Plan to be added to this Agreement after the date of initial acceptance
by Bayer, such requests must be made in writing thirty (30) days prior to the beginning of the next consecutive month. Upon written approval from Bayer, the Qualified Participating Plan will then be eligible for allowances on Bayer Test Strips.
It is the Distributor’s sole responsibility to ensure that the plans listed on Attachment D meet the definition of Qualified Participating Plans. Acceptance by Bayer of a plan on Attachment D does not mean that Bayer agrees that the plan meets
the requirements of a Qualified Participating Plan. 

  

	 	1.15.1	 	For purposes of this Agreement, Qualified Participating Plans are defined as follows: 

  

	 	a.	 	Any managed care organization whose plan members do not include patients whose health care is covered, in whole or in part, by Medicare, Medicaid, any other federal or
state health insurance program, except for: 

  

	 	1.	 	Those managed care organizations located in Massachusetts, Minnesota, Missouri, Ohio, Rhode Island and Texas except such managed care organizations can be Qualified
Participating Plans if Distributor has disclosed in writing to those managed care organizations the existence of an agreement between Distributor and Bayer for discounted prices on Bayer Test Strips for their plan members. 

 

	 	b.	 	Any managed care plan whose plan members include patients whose health care is covered, in whole or in part, by Medicare, Medicaid or any other federal or state health
insurance program, provided that the managed care organization is: 

  

	 	1.	 	An HMO or CMP with a risk based contract in accordance with section 1876 of the Act; 

  

	 	2.	 	Any Medicare Part C health plan that receives a capitated payment from Medicare and which must have its total Medicare beneficiary cost sharing approved by HCFA under
section 1854 of the Social Security Act; 

  

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	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  

	 	3.	 	Medicaid managed care organizations as defined in section 1903(m)(1)(A) that provide or arrange for items or services for Medicaid enrollees under a contract in
accordance with section 1903(m) of the Social Security Act (except for fee-for-service plans or medical savings accounts); 

  

	 	4.	 	Any other health plans that provide or arrange for items and services for Medicaid enrollees in accordance with a risk-based contract with a State agency subject to the
upper payment limits in Sec. 447.361 of Section 42 of the Code of Federal Regulations or an equivalent payment cap approved by the Federal government; 

  

	 	5.	 	Programs For All Inclusive Care For The Elderly (PACE) under sections 1894 and 1934 of the Social Security Act, except for for-profit demonstrations under sections
4801(h) and 4802(h) of Pub. L. 105-33; or 

  

	 	6.	 	A Federally qualified HMO with a risk-based contract under sections 1854 or 1876 of the Social Security Act. Except that a Qualified Participating Plan does not
include any Federally qualified health center receiving supplemental payments 

  

	 	1.15.2	 	Bayer reserves the right, with ninety (90) days written notice to Distributor, to disallow any Qualified Participating Plan previously listed on Attachment D.

  

	2.	Allowances 

  

	2.1	Distributor agrees to purchase Bayer Products directly from Bayer in the quantities and at the prices designated in Attachment A. Bayer has no control over the prices
for which the Bayer Test Strips, Controls and Ancillary Products are sold by the Distributor to the End-users. 

  

	 	2.1.1	See Attachment B for Payment terms. 

  

	 	2.1.2	New products introduced by Bayer after the effective date of this Agreement, at Bayer’s discretion, may be included under the terms of this Agreement.

  

	 	2.1.3	Bayer reserves the right to remove any product offered under the terms of this Agreement. Products so removed will no longer be eligible for allowance pricing under
this Agreement. 

  

	 	2.1.4	At Bayer’s discretion and upon 30 days notice from Bayer, Bayer may change the Net Price after Allowance for any of the Bayer Products covered by this Agreement.

  

	 	2.1.5	If Distributor fails to meet the Committed Yearly Volume in 50s in the given contract year as set forth on Attachment B, Bayer will invoice Distributor in the amount of
shortfall within 10 days after notification letter is sent. Distributor will remit payment within 30 days of the invoice date. If payment is not received within 30 days of the invoice date all new orders will be held until payment is received.

  

	2.2	In consideration of the Distributor’s purchases and services set forth herein and the submission of documentation which is acceptable to Bayer, Bayer will provide
an allowance to the Distributor as per pricing levels indicated on Attachment B. 

  

	 	2.2.1	Distributor shall submit documentation as required in Attachment E, in a format acceptable to Bayer, to Bayer HealthCare LLC, Diabetes Care via
diabetescaremailorderbayer.com not later than the fifteenth day of the month following the month that Bayer Test Strips were sold to End-user. 

  

	 	2.2.2	If documentation submitted to Bayer is 90 days or more after Distributor sold Bayer Test Strips to End-user, these will be considered unearned allowances and will be
billed back to Distributor. Payments will be due to Bayer 30 days after notification by Bayer to Distributor. 

  

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	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  

	2.3	If the documentation submitted by Distributor is insufficient to support the claimed allowances for sales to End-users, or if Bayer’s periodic audits, as detailed
in paragraph 1.9, fail to substantiate such information, Bayer will so notify the Distributor who will have ten (10) days from the date of such notification to provide any additional documentation. If Bayer does not receive the documentation
within this period, the allowances issued will be billed back for the unearned allowance and the Distributor shall pay same within thirty (30) days thereof. 

  

	2.4	Bayer will not ship any Bayer Test Strips with less than 6 months dating. 

  

	2.5	The parties intend for this Agreement to comply with the requirements of the Office of Inspector General’s Safe Harbors (“Safe Harbors”), and any safe
harbors available under state law. Therefore the parties agree as follows: 

  

	 	2.5.1	If Distributor sells to an End-user who claims Medicare or Medicaid coverage, Distributor recognizes that any allowances or other price reductions issued by Bayer to
Distributor under this Agreement may constitute a discount under Section 1128B (b) (3) (A) of the Social Security Act [42 USC 1320a-7b (b) (3) (A)]. Accordingly, Distributor agrees, to the extent it may be required, to
properly disclose and appropriately reflect the allowance or reduction in price in any costs claimed or charges made to Medicare, Medicaid, or other federal or state health insurance programs that cover End-users which reimburse the Bayer Meters
and/or Bayer Test Strips and require such disclosure. Distributor shall retain all allowance or other price reduction information and make it available to Medicare, Medicaid or other government agencies in compliance with the discount disclosure
requirement. 

  

	 	2.5.2	If Distributor sells to an End-user who claims coverage as a member of a Qualified Participating Plan or those End-users who are also covered by Medicare/Medicaid, then
Distributor agrees not to submit claims for reimbursement for Bayer Test Strips to any Federal or State health insurance program, unless permitted by law or regulation. 

  

	 	2.5.3	Where required by law or regulation (e.g., Massachusetts, Minnesota, Missouri, Ohio, Rhode Island and Texas), Distributor will disclose in writing to Participating
Plans located in those States the existence of an agreement between Distributor and Bayer for discounted prices on Bayer Test Strips, and, where appropriate, the availability of free meters, for those Participating Plans’ members.

  

	 	2.5.4	If any federal or state law or regulation changes or is interpreted in such a way as to call into question whether this Agreement complies with any applicable law or
regulations including Safe Harbors, then Bayer and Distributor will promptly take all necessary steps to bring the requirements of this Agreement into compliance with such applicable laws. 

  

	2.6	Bayer Test Strips are for distribution in the Territory only. 

  

	2.7	If Bayer is unable to supply 3871 “HEALTH PLAN / CONTRACT, Patient Use Only” Ascensia ELITE Test Strips 50’s or 3622 “HEALTH PLAN I CONTRACT,
Patient Use Only” AUTODISC Test Strips 50’s or 7098 “HEALTH PLAN / CONTRACT, Patient Use Only” CONTOUR Test Strips 50’s or 1467 “HEALTH PLAN I CONTRACT, Patient Use Only” labeled BREEZE 2 Test Strips to Distributor
within fourteen (14) days after receipt of order due to an unexpected backorder, Bayer, at its discretion may substitute Ascensia ELITE Test Strips, Product Code Number 3918, and/or AUTODISC Test Strips, Product Code Number 3610, and/or CONTOUR
Test Strips, Product Code Number 7080 and/or BREEZE 2 Test Strips, Product Code Number 1465. Dating applies as noted in Paragraph 2.4. 

  

	3.	Bayer Meters 

  

	3.1	 As an authorized Distributor of Bayer’s products, as set forth in paragraph 1.2, Distributor can purchase directly from Bayer the CONTOUR Blood
Glucose Monitoring System and/or BREEZE 2 Blood Glucose Monitoring System and/or CONTOUR TS Blood Glucose Monitoring System, in accordance with the applicable Distributor

  

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	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  
 Operating
Policy and Procedures of the Bayer Reagent and Instrument Price List, effective at the time of order placement. Bayer has no control over the prices for which the Bayer Meters are sold by the Distributor to End-users. 
  

	3.2	During the contract period of this Agreement upon Distributor’s written request, Bayer may provide to Distributor CONTOUR Blood Glucose Monitoring Systems and/or
BREEZE 2 Blood Glucose Monitoring System and/or CONTOUR TS Blood Glucose Monitoring Systems (“Bayer Meters”) at no cost to Distributor for distribution directly to End-users and at no cost to End-users. 

  

	 	3.2.1	New products introduced by Bayer after the effective date of this Agreement, at Bayer’s discretion, may be included under the terms of this Agreement.

  

	 	3.2.2	Bayer reserves the right to remove any Bayer Meter offered under the terms of this Agreement. Bayer Meters so removed shall no longer be subject to this Agreement.

  

	3.3	Bayer, at its sole discretion, reserves the right to limit the number of Bayer Meters provided at no cost to Distributor during the term of this Agreement.

  

	3.4	Bayer Meters provided at no cost to Distributor by Bayer for distribution directly to End-users, including those distributed through healthcare professional offices at
no cost to End-users may not be billed to Medicare, Medicaid or any other third party insurance held by an End-user and, are not eligible for any Bayer manufacturer’s mail-in rebate/trade-in offer, and each meter will have a sticker indicating
the aforementioned. Distributor may complete warranty card in each End-user’s name and return completed cards to Bayer. 

  

	 	3.4.1	Bayer Meters provided to Distributor by Bayer at no cost for distribution directly to End-users, including those distributed through healthcare professional offices are
not for resale and as such it is the sole responsibility of the Distributor to guarantee that the no cost Bayer Meters provided under this Agreement will be provided only to End-users. 

  

	3.5	In some situations, where Bayer Meters are provided at no cost to Distributor by Bayer for distribution directly to End-users at no cost to End-users, Distributor may
request in writing from Bayer additional sample Bayer Test Strips. Such sample Bayer Test Strips may be required for End-user training and in-service needs and/or to provide End-user a sufficient quantity of Bayer Test Strips in order to adhere to
End-user physician’s recommended level of testing until End-user is able to obtain prescribed quantity from a distributor. 

  

	 	3.5.1	Such sample Bayer Test Strips are provided at no cost to Distributor by Bayer for distribution directly to End-users, including those distributed through healthcare
professional offices, and at no cost to End-users and may not be billed to Medicare, Medicaid or any other third party insurance held by an End-user. Sample Bayer Test Strips provided to Distributor by Bayer at no cost for distribution directly to
End-users, including those distributed through healthcare professional offices are not for resale and as such it is the sole responsibility of the Distributor to guarantee that the no cost sample Bayer Test Strips provided to Distributor will be
provided only to End-users and are not sold. Where required by law or regulation (e.g., Massachusetts, Minnesota, Missouri, Ohio, Rhode Island and Texas), Distributor will disclose, as required, in writing to managed care plans located in those
States the availability of free Sample Bayer Test Strips for those Participating Plans’ members. 

  

	 	3.5.2	All requests by Distributor for sample Bayer Test Strips should be made in writing to Bayer, and include a description and basis for need for sample Bayer Test Strips.

  

	 	3.5.3	3.5.3 Bayer, at its sole discretion, reserves the right to limit the quantity of sample Bayer Test Strips provided at no cost to Distributor during the term of this
Agreement. 

  

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	Certified Diabetic Services	  	 January 23, 2009

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	3.6	For the term of this Agreement, Distributor agrees to provide only Bayer Test Strips to patients with diabetes for use on a Bayer Meter provided at no cost to
Distributor. 

  

	 	3.6.1	If the Distributor sells any non Bayer Test Strips to a patient with diabetes for use on a Bayer Meter that was distributed by Bayer at no cost to Distributor, such
action shall constitute grounds for termination of this Agreement immediately upon written notice and removal of Distributor as an Authorized Distributor of Bayer. Bayer has the right to recover all allowances for Bayer Test Strips, Controls and
Ancillary Products as well as the value of all no cost Bayer Meters and Bayer Test Strips provided under this agreement. 

  

	4.	Term 

  

	4.1	This Agreement will commence on the date of acceptance and counter signature by Bayer in accordance with paragraph 8 and shall terminate 36 months from the date of
acceptance and counter signature by Bayer. It may be extended or modified only upon execution on a writing by authorized representatives of both parties. 

  

	4.2	Either party may terminate this Agreement upon thirty (30) days prior written notice. 

  

	4.3	Should Distributor terminate this agreement prior to the end of the (36) month term, or should Bayer terminate this agreement pursuant to sections 4.4, 4.5, or 4.6
prior to the expiration of the (36) month term, upon termination the Distributor will be charged back as described in 4.3.1, 4.3.2, and/or 4.3.3. 

  

	 	4.3.1	If Distributor elects an early termination or if this contract is terminated by Bayer pursuant to sections 4.4, 4.5, or 4.6 during the first year of the contract, the
Distributor will be charged back the difference between the Net Pricing at the volume level achieved (Refer to Table B) minus the Contracted Net Price, multiplied by the quantity of the Distributor’s actual product purchases for the first year
of the contract unless the total three year volume commitment has been obtained. 

  

	 	4.3.2	If Distributor elects an early termination or if this contract is terminated by Bayer pursuant to sections 4.4, 4.5, or 4.6 during the second year of the contract, the
Distributor will be charged back the difference between the Net Pricing at the year one volume commitment level (Refer to Table B) minus the Contracted Net Price, multiplied by the quantity of the Distributor’s actual product purchases during
year one and year two of the contract unless the total three year volume commitment has been obtained. If Distributor received a chargeback for not reaching the committed volume in year one, only the Distributor’s actual product purchases in
year two will be subject to charge back. 

  

	 	4.3.3	If Distributor elects an early termination or if this contract is terminated by Bayer pursuant to sections 4.4, 4.5, or 4.6 during the third year of the contract, the
Distributor will be charged back the difference between the Net Pricing at the year one volume commitment level (Refer to Table B) minus the Contracted Net Price, multiplied by the quantity of the Distributor’s actual product purchases during
year two and year three of the contract unless the total three year volume commitment has been obtained. If Distributor received a chargeback for not reaching the committed volume in previous years, only the Distributor’s actual product
purchases in the non-charge back years will be subject to charge back. 

  

	 	4.3.4	Distributor agrees to pay for charge backs described in Sections 4.3.1, 4.3.2, or 4.3.3 within thirty (30) days, upon receipt of an invoice from Bayer HealthCare.

  

	4.4	Bayer may terminate this Agreement immediately upon written notice to the Distributor and recover all allowances received by Distributor under this Agreement and the
value of all free Bayer Meters and free sample Bayer Test Strips provided under this Agreement if Bayer, in its sole judgment, determines that the Distributor has: 

  

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	 	4.4.1	Collected or attempted to collect from End-users an amount in excess of the Medicare/Medicaid reimbursement rate and co-payment rate; or 

  

	 	4.4.2	Submitted claims for End-users covered under Qualified Participating Plans or Medicaid Programs that classify Bayer Test Strips as a Pharmacy Benefit; or

  

	 	4.4.3	Sold the Bayer Test Strips provided to Distributor under this Agreement to parties other than End-users; or 

  

	 	4.4.4	Failed to keep and provide access to Bayer of the documentation set forth in paragraphs 1.5, 1.6, 1.7, and/or 2.2.1.; or 

  

	 	4.4.5	Failed to meet any current or new Medicare/Medicaid regulations or other requirements pertaining to this Agreement or diabetes care services; or

  

	 	4.4.6	Diverted or sold any Bayer Test Strips intended for Distributor’s End-users and/or Bayer Meters, and/or sample Bayer Test Strips received at no cost from Bayer and
intended to be provided at no cost directly to End-users, to any other Distributor, distribution channel, long term care facility, nursing home, home health agency, physician office, medical clinic, health care professional office, pharmacy, or
third party; except to health care professionals as provided in paragraphs 3.4 and 3.5 or 

  

	 	4.4.7	Displayed or advertised Bayer’s “HEALTH PLAN I CONTRACT, Patient Use Only labeled product and/or CONTOUR TS Test Strips to End-users; or

  

	 	4.4.8	Failed to provide completed documentation to Bayer on a monthly basis as set forth in paragraphs 1.7 and 2.2.1. 

  

	 	4.4.9	Failed to meet Home Delivery requirement of at least ninety-percent (90%) of Bayer Test Strips covered under this agreement furnished to End User by Mail Mode of
Delivery or Distributor’s Own Delivery Network as described in 1.3. 

  

	4.5	If Distributor violates any terms of this Agreement (including without limitation the failure to make any payment required under this Agreement when such payment
becomes due) Bayer may, in its discretion and without further liability whatsoever, immediately terminate this Agreement. Distributor waives prior notice, service of process and preseizure hearing as prior conditions to repossessions of all Bayer
Products still in Distributor’s possession provided hereunder through this Agreement and shall pay all costs incurred in connection with such repossession (including reasonable attorneys’ fees). If Bayer becomes aware of any breach other
than those identified in paragraph 4.2, Bayer will so notify the Distributor in writing so the Distributor may immediately correct the breach. 

  

	4.6	If Distributor fails to pay for charge back as described in Attachment B within thirty (30) days upon receipt of an invoice from Bayer, Bayer may immediately
terminate this Agreement. Termination by Bayer pursuant to this provision does not relieve Distributor of it’s obligation to the charge back owed to Bayer and Bayer may pursue all available remedies in law or equity. Distributor waives prior
notice, service of process and preseizure hearing as prior conditions to repossessions of all Bayer Meters and Bayer Test Strips still in Distributor’s possession provided hereunder through this Agreement and shall pay all costs incurred in
connection with such repossession (including reasonable attorneys’ fees). 

  

	5.	Warranty 

  

	5.1	Bayer’s standard warranty terms shall apply to Bayer Products provided under this Agreement. 

  

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	6.	General 

  

	6.1	Governing Law: This Agreement will be governed by the laws of the State of New York, without reference to its choice of law provisions. 

 

	6.2	Assignment: This Agreement shall not be assigned by Distributor without the prior written consent of Bayer. 

  

	6.3	Modification: This Agreement contains all the agreements and conditions applicable to this undertaking. All prior oral and written agreements of any kind are
superseded. The terms and conditions of this Agreement shall not be added to, modified, superseded or otherwise altered except by a written modification signed by authorized representatives of both parties except that the products available under
this Agreement may be modified by Bayer, who must give thirty (30) days written notice to Distributor of any changes. The sales representative who represents Bayer HealthCare LLC is not authorized to modify the terms of this Agreement.

  

	6.4	No Waiver of Conditions: Failure of Bayer to insist on strict performance shall not constitute a waiver of any of the provisions of this Agreement or waiver of
any other default of the Distributor. 

  

	6.5	Trademarks: Bayer retains the exclusive right to its own trademarks, tradenames, servicemarks and symbols, whether existing now or in the future. Distributor may
not advertise or use any tradename, trademark, servicemark or symbol belonging to Bayer without first receiving Bayer’s written consent. 

  

	6.6	Independent Contractor and Indemnification 

  

	 	6.6.1	This Agreement does not create a special or fiduciary relationship between the parties; Distributor is an independent contractor, and nothing in this Agreement is
intended to constitute either party as an agent, legal representative, subsidiary, joint venture, partner, employee, or servant of the other for any purpose whatsoever. 

  

	 	6.6.2	Nothing in this Agreement authorizes Distributor to make any contract, warranty, or representation on Bayer’s behalf or to incur any debt or other obligation in
Bayer’s name. Distributor shall indemnify, defend and hold harmless Bayer, its parent, affiliates, officers, directors, shareholders, employees, successors and assigns from and against any and all claims, demands, losses, costs, expenses
(including reasonable attorneys’ fees and costs), liabilities, judgments and damages arising, directly or indirectly, from, as a result of, or in connection with: (a) the Distributor’s failure to properly perform its obligations under
this Agreement, including a material breach of this Agreement, or (b) a violation of applicable law, rule or regulation by the Distributor and/or its employees or agents. 

  

	 	6.6.3	Nothing in this Agreement authorizes Bayer to make any contract, warranty, or representation on Distributor’s behalf or to incur any debt or other obligation in
Distributor’s name. 

  

	6.7	Distributor and Bayer shall maintain confidentiality of all the terms and conditions of the Agreement throughout the duration hereof and for a period of two
(2) years following the effective date of expiration or termination. 

  

	6.8	Distributor represents and warrants that it has not been excluded from participation in the Medicaid, Medicare or other federal or state health insurance programs, nor
has the Distributor been sanctioned in any way by federal or state health care programs. If any such programs initiate action to exclude or sanction the Distributor, written notice shall be sent within ten (10) days of receipt of notice of such
action, as indicated in paragraph 7. 

  

	6.9	The headings contained in this Agreement and in any Exhibit or Schedule hereto are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. 

  

 Page 9 

			
	Certified Diabetic Services	  	 January 23, 2009

	Account Number 3155115	  	

  

	7.	All notices to the respective parties shall be in writing and shall be mailed to the addresses below. 

  

			
	To Bayer HealthCare LLC:	  	To Distributor:
		
	Bayer HealthCare LLC,	  	Certified Diabetic Services Diabetes Care
	430 South Beiger Street	  	10061 Amberwood Road
	Mishawaka, Indiana 46544	  	Fort Myers, FL 33913
	Attn.: R.W. Anderson	  	Attn.: Fran Ryan,
	Strategic Contracts	  	Chief Operating Officer

  

	7.1	Bayer reserves the right, prior to acceptance of this Agreement by Bayer, to conduct an on-site inspection to verify that Distributor can comply with the terms and
requirements of this Agreement. 

  

	8.	This Agreement will be effective only upon receipt of the requisite information on Attachments B and D, and an example of End-user Information data report format, and
counter signature of Bayer hereon. Distributor should acknowledge their acceptance of this Agreement by signing both copies and returning them to Bayer HealthCare LLC by the close of business February 23, 2009, after which time this
proposal will be considered null and void. If the required information is acceptable to Bayer, Bayer will countersign both copies of the Agreement and return one to Distributor for its records. 

  

									
	 Bayer Healthcare LLC
 Diabetes Care
	  		  	Certified Diabetic Services
					
	By:	 	 /s/    R.W. Anderson
	  		  	By:	 	 /s/    Francine M. Ryan

		 	Authorized Signature	  		  		 	Authorized Signature
					
		 	 R. W. Anderson
	  		  		 	 Francine M. Ryan

		 	Print Name	  		  		 	Print Name
					
		 	 Manager, Strategic Contracts
	  		  		 	 Chief Operations Officer

		 	Print Title	  		  		 	Print Title
					
		 	 2/13/09
	  		  		 	 2/6/09

		 	Date	  		  		 	Date
					
		 		  		  		 	Franr@cdiabetic.com

  

 Page 10Distributor Purchasing Agreement

 Exhibit 10.28 
 DISTRIBUTOR 
 PURCHASING AGREEMENT 

 THIS AGREEMENT is made this 6 day of June , 2007 by and between Specialty Medical Supplies located at 3882
NW 124th Ave, Coral Springs, FL 33065 (hereinafter
“SMS”) and Certified Diabetic Services, Inc.
located at 3030 Horseshoe Drive South, Suite 200, Naples, FL 34104 (hereinafter Distributor”) 
 RECITALS:

 SMS is a manufacturer of the “SureChek” blood glucose monitor and test strips, “Safety Seal” lancets, other lancets, lancing devices and
other related products (hereinafter “Products”), which Distributor desires to purchase on a regular basis and to assure itself a continued source of these Products. 
 Distributor by definition in this agreement is a party to agreements with the Centers for Medicare and Medicaid Services (CMS) concerning Medicare Reimbursement and may also have similar agreements with
Managed Health Care Plans. As such, Distributor accepts Medicare/Medicaid assignment and process’s Medicare paperwork on behalf of the End-user. Distributor may also process paperwork and perform similar services on behalf of the End user for
Managed Health Care Plans. 
  

	1.	PRICING AND PURCHASING. To maintain pricing as set forth in Exhibit A, Distributor shall purchase the Products on the basis and pricing as set
forth on Exhibit A and as set forth in this paragraph. Payment for all orders that are placed and received by Distributor will be net 90 days. Distributor shall issue purchase commitments for three-month periods during the term of this agreement.
Such three-month purchase commitments shall be received by SMS not later than sixty (60) days prior to commencement of the three-month period. Distributor agrees that to maintain pricing, by the ninth (9th) month following the signature date of this
contract it shall purchase at least * boxes of test strips on a monthly basis for the remainder of this contract. If Distributor’s volume does not reach the required * boxes of SureChek test strips on a monthly basis by the ninth (9th) month
following the execution of the contract, Distributor and SMS shall meet and agree on pricing going forward. Notwithstanding the pricing as set forth in Exhibit A, if Distributor receives a bona fide offer to purchase the Products at a price that is
less than the price set forth in Exhibit A of this agreement for similar quality and features which are purchased in similar quantities to those set forth in this paragraph, with similar terms, SMS shall have the option to meet such new pricing
within thirty (30) days as set forth in a bona fide written offer to Distributor and forwarded to SMS. 

  

	2.	TERM. This Agreement shall commence on the effective date hereof and shall extend for a period of three (3) years and shall automatically renew for a
successive three (3) year term, unless terminated as per the terms stated in # 8 below of this agreement. 

  

	3.	CONFIDENTIALITY. Each party hereto agrees that confidential information, including pricing, purchasing ratios and payment terms, shared between the
parties shall not be divulged by either party. 

  

	4.	LIABILITY AND WARRANTIES. SMS shall indemnify and hold harmless Distributor and its affiliates, officers, directors, employees and agents from any claims,
losses, liabilities and damages of any nature arising out of any product liability or other claim relating to a defect in the Products except with respect to claims based on Distributor’s misrepresentations regarding the Products. Distributor
shall indemnify and hold SMS its officers, directors, employees and agents harmless from any claims, losses, liabilities and damages of any nature arising out of material misrepresentations of the Products by Distributor. 

 

	5.	INSURANCE. SMS shall have and maintain in force during the term of this Agreement Comprehensive General Liability Insurance coverage’s, on an
occurrence basis, with a minimum combined single limit per occurrence of One Million Dollars ($1,000,000) and a minimum combined single aggregate limit of Three Million Dollars ($3,000,000). This coverage shall be endorsed to name Distributor as
additional insured. 

  

	*	Redacted materials have been omitted pursuant to a Confidential Treatment Request filed under 17 C.F.R. § 230.406. The omitted materials have been filed separately
with the Office of the Secretary of the Securities and Exchange Commission. 

	6.	BINDING EFFECT. This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but
neither this Agreement nor any of the rights, interests or obligations hereto shall be assigned by either party without the prior written consent of the other. 

  

	7.	PRODUCT PROMOTION. Distributor as defined above in this agreement agrees to offer the Products to its new and existing end user customers. Distributor will not
resell the products to any supplier, wholesaler or any party other than its end users unless such distribution is approved in writing by SMS. 

  

	8.	TERMINATION. Either party may terminate this Agreement for cause effective ninety (90) days from the date of notice of breach of this Agreement by the other
party, or there is a failure to cure such breach within a curative period. Upon notice by one party to the other party of a breach of this Agreement, the alleged breaching party shall have sixty (60) days to cure the alleged breaches of this
Agreement. Upon failure of the alleged breaching party to cure the default, the termination shall continue to be effective ninety (90) days from receipt of notice of breach. Should the alleged breaching party cure the breach within sixty
(60) days cure period, the termination notice shall be withdrawn, and the Agreement shall continue in full force and effect for the remainder of the terms and any renewal terms in accordance with this Agreement. In the event this agreement is
terminated as provided herein, Distributor shall be required to complete the then existing purchase commitments and any outstanding monetary amounts, including all terms and conditions as stated in Section #1 of this agreement, shall become
immediately due. 

  

	9.	ENTIRE AGREEMENTWAIVER AND MODIFICATION. This Agreement contains the entire understanding of the parties regarding the sale of products by SMS to Distributor. No
cancellation, modification amendment, deletion, addition or other change in this Agreement or any provision hereof, or waiver of any right or remedy herein provided, shall be effective for any purpose unless specifically set forth in writing, signed
by the party to be bound thereby. No waiver of any right in respect to any occurrence or event on one occasion shall be deemed a waiver of such rights or remedy in respect of such occurrence or event on any other occasion. All prior agreements
between the parties hereof, whether oral or in writing, are hereby superseded by the terms and conditions of this Agreement. Any prior contract between the said parties, as well as any amendment(s) thereto, shall be null and void as of the effective
date of this Agreement. 

  

	10.	CONTROLLING LAW. All questions concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder will
be governed by the laws of the State of Florida. 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on June 7,
2007 to be effective as o the day and year first above written. 

			
	Specialty Medical Supplies - SMS
		
	By:	 	 /s/    Charles D. Starney

	Print Name:	 	Charles D. Starney
	Title:	 	President SMS
	
	Certified Diabetic Services, Inc.
		
	By:	 	 /s/    Lowell M. Fisher

	Print Name:	 	Lowell M. Fisher
	Title:	 	Chairman & CEO

 EXHIBIT A 
  

											
	 	  	 	  	 	  	Certified
Diabetic
Services	  	 	  	 
	 	  	GENERAL
PRICING	  	 	  	SPECIAL
PRICING	  	 PURCHASING
 COMMITMENTS
	  	 
	 PRODUCTS**
	  	$$ PRICES Ea.	  	RATIOS	  	$$ PRICES Ea.	  	  	RATIOS
	 Lancets:
	  		  		  		  		  	
	 Safety Seal Lancets
	  		  		  		  		  	
	 28gauge box 100
	  	*	  		  	*	  		  	
	 30gauge box 100
	  	*	  		  	*	  		  	
	 Assure Lancets box 100
	  	*	  		  	*	  		  	
	 EZ     & Cap Lancets box 100
	  	*	  		  	*	  		  	
	 Safety—Let Lancets box 100
	  	*	  		  	*	  		  	
	 3ullseye Safety lancets box 100
	  	*	  		  	*	  		  	
	 Lancing Devices:
	  	*	  		  		  		  	
	 Universal
	  	*	  		  	*	  		  	
	 Safety-Let
	  		  		  		  		  	
	 Clear Cap
	  		  		  		  		  	
						
	 SureChek Products:
	  		  		  		  		  	
	 Glucose Monitor
	  	*	  		  	*	  		  	
	 SureChekTest Strips 50 Ct.
	  	*	  		  	*	  	*	  	*
	 SureChek Control Solution
	  	*	  		  	*	  		  	
						
	 Generic Control Solutions:
	  	*	  		  	*	  		  	
						
	 Acohol Prep Pads:
	  		  		  	*	  		  	
	 100ct.
	  	*	  		  	*	  		  	
	 200ct.
	  	*	  		  	*	  		  	

  

	**	Products may be labeled as Certified’s choice and agreed to by SMS. 

  

	*	Redacted materials have been omitted pursuant to a Confidential Treatment Request filed under 17 C.F.R. § 230.406. The omitted materials have been filed separately with the
Office of the Secretary of the Securities and Exchange Commission.

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