Document:

August
      __, 2008

    QuantRx
      Biomedical Corporation

    100
      S.
      Main Street, Suite 300

    Doylestown,
      PA 18901

    

    

    RE: Bridge
      Loan Letter Agreement

    

    Ladies
      and Gentlemen:

    

    1.  Loan.
      This
      letter when fully executed will constitute a loan agreement (this “Agreement”)
      between __________________________
      (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 $__________ (the “Loan”).
      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.  Bridge
      Loan Documents.
      

     

    a.  Promissory
      Bridge Notes.
      The
      Loan shall be evidenced by a promissory bridge 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 “Bridge
      Note”).
      The
      principal amount of the Loan and interest thereon, calculated at the rate of
      8%
      per annum, as provided in the Bridge Note, shall be payable as set forth more
      particularly therein. 

     

    b.  Common
      Stock and Warrants.
      In
      consideration for the Loan, for each $100,000 of new principal loaned to the
      Borrower by the Lender, the Borrower shall issue to the Lender 25,000 shares
      of
      unregistered common stock of the Borrower and warrants to purchase 25,000 shares
      of common stock at an exercise price of $0.85 per share and a term of five
      years. 

     

    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 Bridge Note and any other instruments or documents required
      or
      contemplated hereunder or thereunder, whether now existing or at any time
      hereafter arising, are herein referred to as the “Bridge
      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 Bridge 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 Bridge 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 Bridge Loan Documents or on the business,
      operations, properties or financial condition of the Borrower.

     

    b.  Each
      of
      the Bridge 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 Bridge Loan Documents and to perform its obligations hereunder and
      thereunder.

     

    c.  The
      execution, delivery and performance of this Agreement and the Bridge 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.

     

    
      
         

      

      
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    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 Bridge Loan
      Documents.

     

    5.  Miscellaneous. 

     

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

     

    b.  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. 

     

    c.  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 Bridge 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 Bridge Note and agrees
      that such service shall constitute good and sufficient service of process and
      notice thereof. Nothing in this Section 5(c) shall affect or limit any right
      to
      serve process in any other manner permitted by law.

     

    d.  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.

     

    e.  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.

     

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

     

    g.  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.

     

    h.  This
      Agreement, the Bridge 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.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    i.  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.

     

    j.  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.

     

    k.  All
      remedies of the Lender under this Agreement, the Bridge Note and the other
      Bridge 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.

     

    l.  All
      notices required hereunder shall be made in accordance with Section 10 of the
      Bridge 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,

     

     

    By:     
      ___________________________

    Name:
      Walter W. Witoshkin

    Title:  
      Chairman & CEO

    QuantRx
      Biomedical Corporation 

    

    

    

    By:      
      ___________________________

    Name:

    Title:

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
 

    Exhibit
      A

    

    [Form
      of
      Note]

    

    
 

     

     

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        6Unassociated Document

    SECURED
      PROMISSORY NOTE

    [FULLY
      RECOURSE]

    

    
      	$1,350,000	New
              York, New York
	 	As of August 21,
              2008

    

     

    FOR
      VALUE RECEIVED,
      HARBREW
      IMPORTS, LTD.,
      a New
      York corporation having an address at 102 Buffalo Avenue, Freeport,
      New
      York 11520
      (“Borrower”)
      promises
      to pay to CAPSTONE
      CAPITAL GROUP I, LLC, a
      Delaware limited liability company
      and
CAPSTONE
      CAPITAL GROUP I, LLC,
      a
      Delaware limited liability company, both having an address at 1350 Avenue of
      the
      Americas, New York, New York 10019 (collectively “Lender”), or order, at said
      office, or at such other place as may be designated from time to time in writing
      by Lender, the principal sum of ONE MILLION THREE HUNDRED AND FIFTY THOUSAND
      and
      00/100 Dollars ($1,350,000.00) in lawful money of the United States of America
      (the “Loan”), without interest except to the extent set forth in Section 3
      below.. 

     

    1.    Payments.
      The
      principal amount due under this Note shall be payable by Borrower to Lender
      at
      the address above or at such other place as Lender may, from time to time,
      designate in writing, without setoff, counterclaim or any other deduction
      whatsoever, on or before October 21, 2008, TIME BEING OF THE ESSENCE. The
      principal amount of the Loan shall be subject to adjustment pursuant to Section
      1(e), Section 1(f) and Section 1(g) of the Settlement Agreement of even date
      herewith between Borrower and Lender.

     

    2.    The
      Borrower may prepay the Loan without penalty, in whole or in part, at any time
      and from time to time, upon ten (10) Business Days’ prior written notice to the
      Lender (which notice shall be irrevocable). 

     

    3.    The
      occurrence of any one or more of the following events shall constitute an event
      of default (each an “Event of Default”) hereunder:

     

    (a)    if
      Borrower makes an assignment for the benefit of creditors;

     

    (b)    if
      there
      shall be filed by Borrower or against Borrower (except by Lender) any petition
      for any relief under the bankruptcy laws of the United States now or hereafter
      in effect or any proceeding shall be commenced (except by Lender) with respect
      to Borrower under any insolvency, readjustment of debt, reorganization,
      dissolution, liquidation or similar law or statute of any jurisdiction now
      or
      hereafter in effect (whether at law or in equity), provided that in the case
      of
      any involuntary filing or the commencement of any involuntary proceeding against
      Borrower such proceeding or petition shall have continued undismissed and
      unvacated for 90 days; or

     

    (c)    if
      Borrower shall fail for any reason to make any payment of principal hereunder
      when due.

    

    If
      any
      Event of Default shall occur for any reason, then and in any such event, in
      addition to all rights and remedies of Lender under applicable law or otherwise,
      all such rights and remedies being cumulative, not exclusive and enforceable
      alternatively, successively and concurrently, all amounts owing under this
      Note
      shall be immediately due and payable, whereupon the then unpaid balance hereof
      shall bear interest, accruing from the date of this Note, at a rate per annum
      which is equal to the rate of interest provided for in Section 1.10 of the
      Purchase Order Financing Agreement dated as of January 22, 2007, by and between
      Borrower and Lender (the “PO Financing Agreement”) or such other lower rate as a
      court may impose, in each case from the date of such nonpayment until such
      amount is paid in full; provided however that in no event shall any interest
      to
      be paid pursuant to this Note exceed the maximum rate permitted by
      law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    4.    This
      Note
      is secured by the Lender’s Collateral, as that term is deferred in the PO
      Financing Agreement and the Discount Factoring Agreement dated as of January
      22,
      2007, by and between Borrower and Lender.

     

    5.    Borrower
      hereby waives presentment and demand for payment, notice of dishonor, protest
      and notice of protest of this Note and agrees to pay all costs of collection
      when incurred, including reasonable attorneys’ fees (which costs may be added to
      the amount due under this Note and be receivable therewith) and to perform
      and
      comply with each of the terms, covenants and provisions contained in this Note,
      on the part of Borrower to be observed or performed. No release of any security
      for the principal sum due under this Note or extension of time for payment
      of
      this Note, or any installment hereof, and no alteration, amendment or waiver
      of
      any provision of this Note made by agreement between Lender and any other person
      or party shall release, discharge, modify, change or affect the liability of
      Borrower under this Note.

     

    6.    This
      Note
      is subject to the express condition that at no time shall Borrower be obligated
      or required to pay interest on the principal balance of the Loan at a rate
      which
      could subject Lender to either civil or criminal liability as a result of being
      in excess of the maximum rate which Borrower is permitted by law to contract
      or
      agree to pay. If by the terms of this Note Borrower is at any time required
      or
      obligated to pay interest on the principal balance at a rate in excess of such
      maximum rate, the rate of interest under this Note shall be deemed to be
      immediately reduced to such maximum rate and interest payable hereunder shall
      be
      computed at such maximum rate and the portion of all prior interest payments
      in
      excess of such maximum rate shall be applied and shall be deemed to have been
      paid in reduction of the principal balance.

     

    7.    Borrower
      hereby irrevocably submits to the jurisdiction of any court of the State of
      New
      York or federal court sitting in the State of New York in any action or
      proceeding arising out of or relating to this Note. Borrower hereby irrevocably
      agrees that all claims in respect of such action or proceeding may be heard
      and
      determined in such court of the State of New York or, to the extent permitted
      by
      law, in such federal court. Borrower hereby irrevocably waives, to the fullest
      extent it may effectively do so, the defense of an inconvenient forum to the
      maintenance of such action or proceeding. To the extent permitted by law,
      Borrower also irrevocably consents to the service of any and all process in
      any
      such action or proceeding arising out of or in connection with this Note by
      the
      mailing (by certified mail, return receipt requested and postage prepaid) of
      copies of such process to the undersigned at the address of Borrower set forth
      above. Borrower agrees that a final and non-appealable judgment (or a judgment
      whose time to appeal has expired) in any such action or proceeding shall be
      conclusive and may be enforced in other jurisdictions by suit on the judgment
      or
      in any other manner provided by law.

     

    
      
         

      

      
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    8.    BORROWER
      AND LENDER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR
      COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, WITH RESPECT
      TO,
      IN CONNECTION WITH OR ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR
      THE
      VALIDITY, PROTECTION, INTERPRETATION, ADMINISTRATION, COLLECTION OR ENFORCEMENT
      HEREOF OR THEREOF, OR ANY CLAIM OR DISPUTE HEREUNDER OR THEREUNDER.

     

    9.    The
      terms
      of this Note shall be governed and construed under the laws of the State of
      New
      York.

     

    10.    This
      Note
      may not be changed or terminated orally, but only by an agreement in writing
      signed by the party against whom enforcement of such change or termination
      is
      sought.

     

    11.    Borrower
      represents that Borrower has full power, authority and legal right to execute
      and deliver this Note and that the debt hereunder constitutes a valid and
      binding obligation of Borrower.

     

    12.    Whenever
      used, the singular number shall include the plural, the plural the singular,
      and
      the words “Lender” and “Borrower” shall include their respective successors and
      assigns.

     

    13.    Notices
      hereunder shall be given as provided in the PO Financing Agreement.

    

     

    REMAINDER
      OF PAGE LEFT INTENTIONALLY BLANK

     

    SIGNATURES
      ON FOLLOWING PAGE

     

    
      
         

      

      
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    [Signature
      Page to Secured Promissory Note]

    

     

    

    IN
      WITNESS WHEREOF,
      Borrower has duly executed this Note the day and year first above
      written.

     

     

    
      	 	 	 
	 	
              HARBREW
                IMPORTS, LTD. 

              a New York corporation

            
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              John DeCicco
	 	
              
Name:
              Richard John DeCicco
	 	Title:
              President

    

    

    
      
         

      

      
        4

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