January
      23, 2008

    QuantRx
      Biomedical Corporation

    100
      S.
      Main Street, Suite 300

    Doylestown,
      PA 18901


    


    RE: Letter
      Loan Agreement

    


    Ladies
      and Gentlemen:

    


    1.     Loan.
      This
      letter when fully executed will constitute a loan agreement (this “Agreement”)
      between Platinum
      Long Term Growth VII LLC
      (the
“Lender”)
      and
      QuantRx Biomedical Corporation, a Nevada corporation (the “Borrower”),
      pursuant to which the Lender, on the terms and conditions provided herein,
      shall
      agree to make one or more loans to or for the benefit of the Borrower hereunder
      in an amount not to exceed $1,407,246.58 (the “Loan”).
      The
      day on which the Lender makes the Loan is referred to herein as the
“Closing
      Date.”
The
      Lender’s obligation to make the Loan is subject to the Borrower’s fulfillment of
      each of the applicable conditions set forth in Section 3 hereof.

     

    2.     Loan
      Documents.
      

     

    a. Notes.
      The
      Loan shall be evidenced by a senior secured convertible promissory note issued
      to the Lender in the principal amount of the Loan, dated the date the Borrower
      receives the funds from the Lender, in the form attached hereto as Exhibit
      A
      (together with any replacements and substitutes therefore, the “Note”).
      The
      principal amount of the Loan and interest thereon, calculated at the rate of
      10%
      per annum, as provided in the Note, shall be payable as set forth more
      particularly therein. A portion of the Loan shall be made by the Lender’s
      cancellation and surrender to the Borrower of the Senior Secured Convertible
      Promissory Note, dated October 15, 2007, of the Borrower issued to the Lender
      upon exercise of the exchange rights of the Lender set forth in Section 7 of
      such surrender note. On or before February 13, 2008, the Lender may, in its
      discretion, elect to make an additional loan (the “Platinum
      Follow-On Investment”)
      in the
      amount of $500,000, which additional loan shall be on substantially the same
      terms as the Loan hereunder (including with respect to Section 2(b) below)
      and
      evidenced by a senior secured convertible promissory note in substantially
      the
      form of the Note (and be deemed an “Other Note” hereunder and under the Note).


     

    b. Warrants.
      In
      consideration for the Loan, for each $100,000 of new principal loaned to the
      Borrower by the Lender (including the Platinum Follow-On Investment, if made),
      the Borrower shall issue to the Lender a warrant (the “Warrant”),
      in
      the form attached hereto as Exhibit
      B,
      for the
      issuance of 25,000 shares of common stock of the Borrower at an exercise price
      of $1.25 per share and a five-year term. 

     

    c. Accredited
      Investor.
      The
      Lender hereby represents and warrants that it is an “accredited investor” as
      defined in Rule 501 of Regulation D promulgated under the Securities Act of
      1933, as amended

     

    d. This
      Agreement, the Note and any other instruments or documents required or
      contemplated hereunder or thereunder (including, without limitation, the Pledge
      Agreement and the IP Security Agreement (each as defined below)), whether now
      existing or at any time hereafter arising, are herein referred to as the
“Loan
      Documents.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.     Conditions
      Precedent.
      

     

    a. Documents
      to be Delivered.
      The
      obligation of the Lender to make the Loan is subject to the due execution and
      delivery by the Borrower (or the Borrower causing the due execution and
      delivery) to the Lender of each of the following (all documents to be in form
      and substance satisfactory to the Lender): 

     

    i. This
      Agreement, the Note and each other instrument, agreement and document to be
      executed and/or delivered pursuant to this Agreement and/or the instruments,
      agreements and documents referred to in this Agreement.

     

    ii. A
      certified copy of the resolutions of the Board of Directors (or if the Board
      of
      Directors takes action by unanimous written consent, a copy of such unanimous
      written consent containing all of the signatures of the members of the Board
      of
      Directors) of the Borrower, dated as of the Closing Date, authorizing the
      execution, delivery and performance of the Loan Documents.

     

    iii. A
      certificate, dated as of the Closing Date, signed by an executive officer of
      the
      Borrower to
      the
      effect that the representations and warranties set forth in Section 4 of this
      Agreement are true and correct as of the Closing Date.

     

    b. Absence
      of Certain Events.
      The
      occurrence of a Material Adverse Effect (as defined below) shall not have
      occurred or be occurring as of the Closing Date.

     

    4.     Representations
      and Warranties of the Borrower.
      To
      induce the Lender to make the Loan, the Borrower hereby represents and warrants
      to the Lender that at and as of the date hereof:

     

    a. The
      Borrower has been duly incorporated and is validly existing and in good standing
      under the laws of the state of Nevada, with full corporate power and authority
      to own, lease and operate its properties and to conduct its business as
      currently conducted.
      The
      Borrower is duly qualified as a foreign entity 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 and where
      the
      failure so to qualify would have a Material Adverse Effect. “Material
      Adverse Effect”
means
      any material adverse effect on the ability of the Borrower to perform its
      obligations hereunder or under the Loan Documents or on the business,
      operations, properties or financial condition of the Borrower.

     

    b. Each
      of
      the Loan Documents has been duly authorized, validly executed and delivered
      on
      behalf of the Borrower and is a valid and binding obligation of the Borrower
      enforceable against the Borrower in accordance with its terms, subject to
      limitations on enforcement by general principles of equity and by bankruptcy
      or
      other laws affecting the enforcement of creditors’ rights generally, and the
      Borrower has full power and authority to execute and deliver this Agreement
      and
      the Loan Documents and to perform its obligations hereunder and
      thereunder.

     

    c. The
      execution, delivery and performance of this Agreement and the Loan Documents
      will not (i) conflict with or result in a breach of or a default under any
      of
      the terms or provisions of (A) the Borrower’s articles of incorporation or
      by-laws, or (B) any material provision of any indenture, mortgage, deed of
      trust
      or other material agreement or instrument to which the Borrower is a party
      or by
      which it or any of its material properties or assets is bound, (ii) result
      in a
      violation of any material provision of any law, statute, rule, regulation,
      or
      any existing applicable decree, judgment or order by any court, Federal or
      state
      regulatory body, administrative agency, or other governmental body having
      jurisdiction over the Borrower, or any of its material properties or assets
      or
      (iii) result in the creation or imposition of any material lien, charge or
      encumbrance upon any material property or assets of the Borrower or any of
      its
      subsidiaries pursuant to the terms of any agreement or instrument to which
      any
      of them is a party or by which any of them may be bound or to which any of
      their
      property or any of them is subject, except, in the cases of (i), (ii) and (iii)
      above, as would not have a Material Adverse Effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    d. No
      consent, approval or authorization of or designation, declaration or filing
      with
      any governmental authority on the part of the Borrower is required in connection
      with the valid execution and delivery of this Agreement or the Loan
      Documents.

     

    5.     Miscellaneous. 

     

    a. The
      Borrower has executed and delivered to the Lender a Stock Pledge Agreement
      (the
“Pledge
      Agreement”),
      substantially in the form attached hereto as Exhibit
      C,
      and the
      Patent, Trademark and Copyright Security Agreement (the “IP
      Security Agreement”
and,
      together with the Pledge Agreement, the “Security
      Documents”),
      substantially in the form attached hereto as Exhibit
      D,
      together with all certificates and documentation required under each such
      document (including, without limitation, stock certificates and stock powers
      referenced therein). The
      Borrower hereby authorizes the Lender to file any UCC financing statements
      evidencing the security interests granted in the Security
      Documents.

     

    b. In
      the
      event that Other Notes (as defined in the Note) are issued, the security
      interest granted pursuant to the Security Documents shall be deemed to be
      granted pro rata for the benefit of the Lender and each purchaser of such Other
      Notes (collectively, and together with the Lender, the “Purchasers”)
      pro
      rata, based on the aggregate principal amount of the Notes, PIK Notes (as
      defined in the Notes) and Other Notes (collectively, the “Notes”)
      held
      by each Purchaser. The Borrower shall not issue any Other Notes unless the
      Purchaser(s) of such Other Notes shall have agreed to the terms set forth below
      regarding the Collateral Agent (as defined below): 

     

    i. Each
      Purchaser shall be deemed to appoint the Lender as the Collateral Agent under
      the Security Documents (the “Collateral
      Agent”)
      and
      each Purchaser authorizes the Collateral Agent to take such action as agent
      on
      its behalf and to exercise such powers under the Security Documents as are
      delegated to the Collateral Agent under such agreements and to exercise such
      powers as are reasonably incidental thereto. Without limiting the foregoing,
      each Secured Party hereby authorizes the Collateral Agent to execute and
      deliver, and to perform its obligations under, each of the documents to which
      the Collateral Agent is a party relating to security for the obligations under
      the Notes, to exercise all rights, powers and remedies that the Collateral
      Agent
      may have under such Security Documents and, in the case of the Security
      Documents, to act as agent for the Purchasers under such Loan
      Documents.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    ii. The
      Collateral Agent shall not be required to exercise any discretion or take any
      action, but shall be required to act or to refrain from acting (and shall be
      fully protected in so acting or refraining from acting) upon the instructions
      of
      the Purchasers holding at least 51% of the aggregate amount of the Notes then
      outstanding, and such instructions shall be binding upon all Purchasers;
provided,
      however,
      that
      the Collateral Agent shall not be required to take any action that (i) the
      Collateral Agent in good faith believes exposes it to personal liability unless
      the Collateral Agent receives an indemnification satisfactory to it from the
      Purchasers with respect to such action or (ii) is contrary to this Agreement
      or
      applicable law.

     

    iii. In
      performing its functions and duties under the Security Documents and the other
      documents required to be executed or delivered in connection therewith, the
      Collateral Agent is acting solely on behalf of the Purchasers and its duties
      are
      entirely administrative in nature. The Collateral Agent does not assume and
      shall not be deemed to have assumed any obligation other than as expressly
      set
      forth herein. The Collateral Agent may perform any of its duties under any
      Security Document by or through its agents or employees.

     

    iv. None
      of
      the Collateral Agent, any of its affiliates or any of their respective
      directors, officers, agents or employees shall be liable for any action taken
      or
      omitted to be taken by it, him, her or them under or in connection with the
      Security Documents, except for its, his, her or their own gross negligence
      or
      willful misconduct.

     

    v. Each
      Secured Party acknowledges that it shall, independently and without reliance
      upon the Collateral Agent or any other Secured Party conduct its own independent
      investigation of the financial condition and affairs of the Company and its
      Subsidiaries in connection with the issuance of the Securities. Each Secured
      Party also acknowledges that it shall, independently and without reliance upon
      the Collateral Agent or any other Secured Party and based on such documents
      and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit decisions in taking or not taking action under this Agreement and other
      Loan Documents.

     

    vi. Each
      Purchaser agrees to indemnify the Collateral Agent and each of its affiliates,
      and each of their respective directors, officers, employees, agents and advisors
      (to the extent not reimbursed by the Borrower), from any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses and disbursements (including fees, expenses and disbursements of
      financial and legal advisors) of any kind or nature whatsoever that may be
      imposed on, incurred by, or asserted against, the Collateral Agent or any of
      its
      affiliates, directors, officers, employees, agents and advisors in any way
      relating to or arising out of the Security Documents or any action taken or
      omitted by the Collateral Agent under the Security Documents or the document
      related thereto; provided,
      however,
      that no
      Purchaser shall be liable for any portion of such liabilities, obligations,
      losses, damages, penalties, actions, judgments, suits, costs, expenses or
      disbursements resulting from the Collateral Agent’s or such Affiliate’s gross
      negligence or willful misconduct.

     

    vii. The
      Collateral Agent may resign at any time by giving written notice thereof to
      the
      Purchasers and the Company. Upon any such resignation, the Purchasers shall
      have
      the right to appoint a successor Collateral Agent. If no successor Collateral
      Agent shall have been so appointed by the Purchasers, and shall have accepted
      such appointment, within 30 days after the retiring Collateral Agent’s giving of
      notice of resignation, then the retiring Collateral Agent may, on behalf of
      the
      Purchasers, appoint a successor Collateral Agent, selected from among the
      Purchasers. Upon the acceptance of any appointment as Collateral Agent by a
      successor Collateral Agent, such successor Collateral Agent shall succeed to,
      and become vested with, all the rights, powers, privileges and duties of the
      retiring Collateral Agent, and the retiring Collateral Agent shall be discharged
      from its duties and obligations under this Agreement, the Loan Documents and
      any
      other documents required to be executed or delivered in connection therewith.
      Prior to any retiring Collateral Agent’s resignation hereunder as Collateral
      Agent, the retiring Collateral Agent shall take such action as may be reasonably
      necessary to assign to the successor Collateral Agent its rights as Collateral
      Agent under the Loan Documents. After such resignation, the retiring Collateral
      Agent shall continue to have the benefit of this Agreement as to any actions
      taken or omitted to be taken by it while it was Collateral Agent under this
      Agreement, the Security Documents and any other documents required to be
      executed or delivered in connection therewith.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    viii. Each
      Purchaser agrees that any action taken by the Collateral Agent in accordance
      with the provisions of this Agreement or of the other document relating thereto,
      and the exercise by the Collateral Agent or the Purchasers of the powers set
      forth herein or therein, together with such other powers as are reasonably
      incidental thereto, shall be authorized and binding upon all of the
      Purchasers.

     

    ix. Each
      of
      the Purchasers hereby directs, in accordance with the terms hereof, the
      Collateral Agent to release (or in the case of clause (ii) below, release or
      subordinate) any Lien held by the Collateral Agent for the benefit of the
      Purchasers against any of the following: (i) all of the Collateral upon payment
      and satisfaction in full of all obligations under the Notes and all other
      obligations under the Loan Documents that the Collateral Agent has been notified
      in writing are then due and payable; (ii) any assets that are subject to a
      Lien;
      and (iii) any part of the Collateral sold or disposed of by the Company if
      such
      sale or disposition is permitted by this Agreement and the other Loan Documents
      (or permitted pursuant to a waiver or consent of a transaction otherwise
      prohibited by this Agreement and the other Loan Documents). Each of the
      Purchasers hereby directs the Collateral Agent to execute and deliver or file
      such termination and partial release statements and do such other things as
      are
      necessary to release Liens to be released pursuant to this Section promptly
      upon
      the effectiveness of any such release.

     

    x. Each
      Purchaser acknowledges that the security interests evidenced by the Security
      Documents is subject to termination as set forth in Section 5(c)
      below.

     

    c. Notwithstanding
      anything to the contrary contained herein, in the Security Documents or in
      any
      documents evidencing the Other Notes (including any agreements with Purchasers
      other than the Lender), the security interest evidenced by the Security
      Documents shall be terminated and of no further force and effect on and after
      February 14, 2008 unless, (i) an Event of Default shall have occurred under
      the
      Notes and be continuing or (ii) on or prior to February 13, 2008, the Lender
      shall have fully funded the Platinum Follow-On Investment. Upon any such
      termination, Lender shall promptly return any collateral under the Security
      Documents to the Company and take any action reasonably requested by the Company
      to cause the release of the security interests created under the Security
      Documents. In the event the Lender shall have funded the Platinum Follow-On
      Investment, the security interests created under the Security Documents will
      remain in full force and effect.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    d. The
      Company shall pay the legal fees and expenses of the Lender in an amount equal
      to $7,500 (which amount may be withheld from funds delivered by the Lender
      at
      closing hereunder or delivered by the Company promptly following closing
      hereunder); provided that it is understood that no additional legal fees and
      expenses shall be due to Lender in connection with the Platinum Follow-On
      Investment.

     

    e. The
      representations and warranties of the Borrower contained herein shall not
      survive the Closing Date.

     

    f. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without
      giving effect to conflicts of laws principles that would result in the
      application of the substantive laws of another jurisdiction. This Agreement
      shall not be interpreted or construed with any presumption against the party
      causing this Agreement to be drafted. 

     

    g. Each
      of
      the Borrower and the Lender (i) hereby irrevocably submits to the jurisdiction
      of the United States District Court sitting in the Southern District of New
      York
      and the courts of the State of New York located in New York county for the
      purposes of any suit, action or proceeding arising out of or relating to this
      Agreement or the Loan Documents and (ii) hereby waives, and agrees not to assert
      in any such suit, action or proceeding, any claim that it is not personally
      subject to the jurisdiction of such court, that the suit, action or proceeding
      is brought in an inconvenient forum or that the venue of the suit, action or
      proceeding is improper. Each of the Borrower and the Lender consents to process
      being served in any such suit, action or proceeding by mailing a copy thereof
      to
      such party at the address set forth in the Note and agrees that such service
      shall constitute good and sufficient service of process and notice thereof.
      Nothing in this Section 5(d) shall affect or limit any right to serve process
      in
      any other manner permitted by law.

     

    h. Any
      forbearance, failure, or delay by the Lender in exercising any right, power,
      or
      remedy shall not preclude the further exercise thereof, and all of the Lender’s
      rights, powers, and remedies shall continue in full force and effect until
      specifically waived in writing by the Lender.

     

    i. This
      Agreement may be executed in two or more 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.

     

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

     

    k. 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 or the validity or
      enforceability of this Agreement in any other jurisdiction.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    l. This
      Agreement, the Note and the instruments referenced herein contain the entire
      understanding of the parties with respect to the matters covered herein and
      therein. No provision of this Agreement may be waived or amended other than
      by
      an instrument in writing signed by the party to be charged with
      enforcement.

     

    m. This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns. The Borrower shall not assign this Agreement
      or
      any rights or obligations hereunder without the prior written consent of the
      Lender. Notwithstanding the foregoing, the Lender may assign its rights
      hereunder to any other person or entity without the consent of the
      Borrower.

     

    n. 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.

     

    o. All
      remedies of the Lender under this Agreement, the Note and the other Loan
      Documents (i) are cumulative and concurrent, (ii) may be exercised
      independently, successively or together with other lenders against the Borrower,
      (iii) shall not be exhausted by any exercise thereof, but may be exercised
      as
      often as occasion therefore may occur, and (iv) shall not be construed to be
      waived or released by the Lender’s delay in exercising, or failure to exercise,
      them or any of them at any time it may be entitled to do so.

     

    p. All
      notices required hereunder shall be made in accordance with Section 17 of the
      Note.

     

    
      
        
        

      

      
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    By
      executing the appropriate signature line below, the Borrower, intending to
      be
      legally bound hereby, agrees to the terms and conditions of this Agreement
      as of
      the date hereof.

    
      	 	 	 
	 	
              Very
                truly yours,

               

              Platinum
                Long Term Growth VII LLC

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name:
	 	Title: 


    

    


    QuantRx
      Biomedical Corporation 

     

    


    By:   

    
      

    

    Name:
      Walter W. Witoshkin

    Title:
      Chairman & CEO

    



    
      
        
        

      

      
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    Exhibit
      A

    


    [Form
      of
      Note]



    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    


    Exhibit
      B

    


    [Form
      of
      Warrant]


    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    


    Exhibit
      C

    


    [Stock
      Pledge Agreement]


    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    


    Exhibit
      D

    


    [IP
      Security Agreement]

     

    
      
        
        

      

      
        12