Document:

Exhibit 10.20

 

GUIDED THERAPEUTICS, INC.

Up to __________ Shares of Common Stock

__________ Warrants to Purchase up to
__________ Shares of Common Stock

Up to __________ Shares of Common Stock
Underlying Warrants

PLACEMENT AGENT AGREEMENT

__________ __, 2014

Olympus Securities LLC

405 Lexington Avenue

New York, NY 10174

(facsimile) 973-575-0730

Ladies and Gentlemen:

Guided Therapeutics,
Inc., a Delaware corporation (the “Company”), proposes to issue and sell, pursuant to the terms and conditions
of this Placement Agent Agreement (this “Agreement”) and Subscription Agreements in the form of Exhibit
A attached hereto (the “Subscription Agreements”) entered into with the purchasers identified therein
(each a “Purchaser” and, collectively, the “Purchasers”), (i) to the Purchasers, up to an
aggregate of __________ shares (the “Shares”) of common stock, par value $0.001 per share (the “Common
Stock”), of the Company, accompanied by a warrant (a “Purchaser Warrant”), in the form attached hereto
as Exhibit B, to purchase one-half of a share of Common Stock (a “Purchaser Warrant Share” and,
together with the Shares and the Purchaser Warrant Share, the “Securities”), and (ii) to Olympus Securities
LLC (the “Placement Agent”), up to ten percent (10%) of the total number of Shares and Purchaser Warrants sold
to the Purchasers under the Subscription Agreements. The Company hereby confirms its agreement with the Placement Agent to act
as Placement Agent in accordance with the terms and conditions hereof.

The Company and
the Placement Agent hereby confirm their agreement as follows:

1.                  
Registration Statement and Prospectus. The Company has prepared and filed with the Securities and Exchange Commission
(the “Commission”) a registration statement on Form S-1 (Registration File No. 333-__________) under the Securities
Act of 1933 (the “Securities Act”), which became effective on __________ __, 2014, for the registration under
the Securities Act of the Securities. At the time of such filing, the Company met the requirements of Form S-1 under the Securities
Act. The Company will file with the Commission pursuant to Rules 430A, 430B and 424(b), as applicable, under the Securities Act,
and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a Prospectus
included in such registration statement relating to the registration and sale of the Securities. Such registration statement, including
the exhibits thereto, as amended at the date of this Agreement, is hereinafter called the “Registration Statement”;
such prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Preliminary Prospectus”;
and the amended or supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rules
430A, 430B and 424(b), as applicable (including the Preliminary Prospectus as so amended or supplemented) is hereinafter called
the “Prospectus.”

2.                  
Agreement to Act as Placement Agent; Placement of the Securities. On the basis of the representations, warranties and
agreements of the Company herein contained, and subject to all the terms and conditions of this Agreement:

(a)                
The Company hereby authorizes the Placement Agent to act as its exclusive agent to solicit offers for the purchase of all
or part of the Securities from the Company in connection with the proposed offering in the United States of the Securities (the
“Offering”). Until the earlier of Closing Date (as defined in Section 5 below) or 45 days from the date hereof,
or earlier upon termination of this Agreement pursuant to Section 10, the Company shall not, without the prior written consent
of the Placement Agent, solicit or accept offers in the United States (or outside the United States if such solicitation or acceptance
relates to Securities included in the Registration Statement) to purchase any securities otherwise than through the Placement Agent.

(b)                
The Company hereby acknowledges that the Placement Agent has agreed, as agent of the Company, to use its “best efforts”
to solicit offers to purchase the Securities from the Company on the terms and subject to the conditions set forth in the Prospectus.
The Placement Agent shall use reasonable efforts to assist the Company in obtaining performance by each Purchaser whose offer to
purchase Securities has been solicited by the Placement Agent and accepted by the Company, but the Placement Agent shall not, except
as otherwise provided in this Agreement, be obligated to disclose the identity of any potential purchaser or have any liability
to the Company in the event any such purchase is not consummated for any reason. Under no circumstances will the Placement Agent
be obligated to underwrite or purchase any Securities for its own account and, in soliciting purchases of the Securities; the Placement
Agent shall act solely as the Company’s agent and not as principal.

(c)                
Subject to the provisions of this Section 2, offers for the purchase of the Securities may be solicited by the Placement
Agent as agent for the Company at such times and in such amounts as the Placement Agent deems advisable. The Placement Agent shall
communicate to the Company, orally or in writing, each reasonable offer to purchase Securities received by it as agent of the Company.
The Company shall have the sole right to accept offers to purchase Securities and may reject any such offer, in whole or in part.
The Placement Agent shall have the right, in its discretion reasonably exercised, without notice to the Company, to reject any
offer to purchase Securities received by it, in whole or in part, and any such rejection shall not be deemed a breach of this Agreement.

(d)                
Each Share and Purchaser Warrant is being sold to the Purchasers at a combined offering price of $__________ per Share (the
“Offering Price”). The purchases of the Shares and Warrants by the Purchasers shall be evidenced by the execution
of Subscription Agreements by each of the Purchasers and the Company.

(e)                
As compensation for services rendered, on the Closing Date, the Company shall pay to the Placement Agent by wire transfer
of immediately available funds to an account or accounts designated by the Placement Agent, an aggregate amount equal to 8% of
the gross proceeds received by the Company from the sale of the Shares and Purchaser Warrants (and 2% of the gross proceeds from
the non-cashless exercise of any Purchaser Warrants) to parties other than Company-introduced Purchasers and 4% if the sale is
to (2% if the non-cashless exercise is by) a Company-introduced Purchaser (whether introduced prior to or at any time during the
term of the engagement of the Placement Agent) (the “Placement Fee”) on such Closing Date (or exercise date).
A list of Company-introduced Purchasers is attached hereto as Exhibit 2(e). For the purposes of Section 2(e) and
2(f), gross proceeds shall equal the aggregate of the Purchasers’ Subscription Amounts (as defined in the Subscription Agreements)
whether paid in cash, the extinguishment of notes issued by the Company or otherwise for the relevant group of Purchasers.

(f)                 
On the Closing Date and as a condition precedent to the sale of such Securities, the Company hereby agrees to issue and
sell to the Placement Agent or its designees, as determined by the Placement Agent, warrants (the “Placement Agent Warrants”)
to purchase shares of Common Stock equal to 10% percent of the gross proceeds from the sale of Securities sold to the Purchasers
at such closing other than Company-introduced Purchasers, and 5% of the gross proceeds from the sale of Securities sold to Company-introduced
Purchasers (whether introduced prior to or at any time during the term of the engagement of the Placement Agent) in each case
divided by the Offering Price. The exercise of Purchaser Warrants or the issuance of Purchaser Warrant Shares will not constitute
a sale of Securities for the purposes of this Section 2(f). The Placement Agent’s Warrant agreement, in the form attached
hereto as Exhibit C (the “Placement Agent’s Warrant Agreement”), shall be exercisable,
in whole or in part, commencing upon issuance and expiring on the five-year anniversary of the date of the commencement of sales
of the Offering at an exercise price per share of equal to the lowest price paid for the Securities in the Offering. The Placement
Agent’s Warrant and the shares of Common Stock issuable upon exercise thereof are hereinafter referred to together as the
“Placement Agent’s Securities”. The Placement Agent understands and agrees that there are significant
restrictions pursuant to Financial Industry Regulatory Agency (“FINRA”) Rule 5110 against transferring the
Placement Agent’s Warrant and the underlying shares of Common Stock during the 180 days after the commencement of sales
of the Offering and by its acceptance thereof shall agree that it will not sell, transfer, assign, pledge or hypothecate the Placement
Agent’s Warrant, or any portion thereof, or be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of such securities for a period of 180 days following the commencement
of sales of the Offering to anyone other than (i) an underwriter or a selected dealer in connection with the Offering, or (ii)
a bona fide officer or partner of the Placement Agent or of any such underwriter or selected dealer; and only if any such transferee
agrees to the foregoing lock-up restrictions. Delivery of the Placement Agent’s Warrant Agreement shall be made on the Closing
Date and shall be issued in the name or names and in such authorized denominations as the Placement Agent may request.

(g)                
No Securities that the Company has agreed to sell pursuant to this Agreement and the Subscription Agreements shall be deemed
to have been purchased and paid for, or sold by the Company, until such Securities shall have been delivered to the Purchaser thereof
against payment by such Purchaser. If the Company shall default in its obligations to deliver Securities to a Purchaser whose offer
it has accepted, the Company shall indemnify and hold the Placement Agent harmless against any loss, claim, damage or expense arising
from or as a result of such default by the Company in accordance with the procedures set forth in Section 8(c) herein.

(h)                
If at any time within the 12 months following the expiration of this Agreement (the “Tail Period”), the
Company completes a sale of any securities to any person (i) identified to the Company by the Placement Agent during the term of
the engagement of the Placement Agent; or (ii) with whom the Placement Agent had direct, one-on-one solicitation discussions at
the request of the Company during such term, then, the Company shall (A) pay to the Placement Agent a fee on the sale equal to
equal to 8% of the gross proceeds received by the Company from such sale and (B) issue to the Placement Agent a Placement Agent’s
Warrant to purchase shares of the Company’s Common Stock equal to 10% percent of the gross proceeds from such sale divided
by the offering price of the securities in such sale. The execution price of such warrant will be equal, as applicable, to (i)
the offering price of the securities in such sale or (ii) the exercise or conversion price of such securities if such securities
are exercisable or convertible into common stock.

3.                  
Representations and Warranties of the Company Regarding the Offering.

(a)The Company
represents and warrants to, and agrees with, the Placement Agent, as of the date hereof and as of the Closing Date, except as otherwise
indicated, as follows:

(i)                  
The Registration Statement contains or incorporates by reference all exhibits and schedules as required by the Securities
Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in
all material respects with the Securities Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
and the applicable Rules and Regulations and did not and, as amended or supplemented, if applicable, will not, as of the date thereof,
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading. The Preliminary Prospectus and the Prospectus, each as of its respective date, comply
in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Preliminary
Prospectus and the Prospectus, as amended or supplemented, did not and will not contain as of the date thereof any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The Time of Sale Disclosure Package (as defined herein) as of the date hereof, at the
Closing Date, and the Prospectus, as amended or supplemented, as of its date, at the time of filing pursuant to Rule 424(b) under
the Securities Act and at the Closing Date, does not and will not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The foregoing representations and warranties in this Section 3(a)(i) shall not apply to information
contained in or omitted from the Registration Statement, the Preliminary Prospectus or the Prospectus in reliance upon, or in conformity
with, written information furnished to the Company by the Placement Agent specifically for use in the preparation thereof, which
written information is described in Section 8(f) hereof. There are no documents required to be filed with the Commission in connection
with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not
be filed within the requisite time period.

(ii)                
The Company has not distributed any prospectus or other offering material in connection with the offering and sale of the
Securities other than the Time of Sale Disclosure Package.

(iii)                               
(A) The Company has provided a copy to the Placement Agent of each Issuer Free Writing Prospectus (as defined below) used
in the sale of the Securities.  The Company has filed all Issuer Free Writing Prospectuses required to be so filed with the
Commission, and no order preventing or suspending the effectiveness or use of any Issuer Free Writing Prospectus is in effect
and no proceedings for such purpose have been instituted or are pending, or, to the knowledge of the Company, are contemplated
or threatened by the Commission.  When taken together with the rest of the Time of Sale Disclosure Package or the Prospectus, since
its first use and at all relevant times since then, no Issuer Free Writing Prospectus has, does or will include (1) any
untrue statement of a material fact or omission to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or (2) information that conflicted, conflicts
or will conflict with the information contained in the Registration Statement or the Prospectus. The representations and warranties
set forth in the immediately preceding sentence shall not apply to statements in or omissions from the Time of Sale Disclosure
Package, the Prospectus or any Issuer Free Writing Prospectus in reliance upon, and in conformity with, written information furnished
to the Company by the Placement Agent specifically for use in the preparation thereof.  As used in this paragraph and
elsewhere in this Agreement:

 

(1)         “Time
of Sale Disclosure Package” means the Prospectus most recently filed with the Commission before the time of this Agreement,
including any preliminary prospectus supplement deemed to be a part thereof, and each Issuer Free Writing Prospectus.

 

(2)         “Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 under the Securities
Act, relating to the Securities that (A) is required to be filed with the Commission by the Company, or (B) is exempt from filing
pursuant to Rule 433(d)(5)(i) or (d)(8) under the Securities Act, in each case in the form filed or required to be filed with the
Commission or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the
Securities Act.

 

(B)         At
the time of filing of the Registration Statement and at the date hereof, the Company was not and is not an “excluded issuer”
as defined in Rule 164 under the Securities Act.

 

(C)         Each
Issuer Free Writing Prospectus satisfied, as of its issue date and at all subsequent times through the Prospectus Delivery Period
(as defined below in Section 4(a)(i)), all other conditions as may be applicable to its use as set forth in Rules 164 and 433 under
the Securities Act, including any legend, record-keeping or other requirements..

(iv)              
The financial statements of the Company, together with the related notes, included in the Registration Statement, the Time
of Sale Disclosure Package and the Prospectus comply in all material respects with the applicable requirements of the Securities
Act and fairly present in all material respects the financial condition of the Company as of the dates indicated and the results
of operations and changes in cash flows for the periods therein specified in conformity with U.S. generally accepted accounting
principles consistently applied throughout the periods involved, except as otherwise specified in such financial statements or
the notes thereto and except that unaudited financial statements may not contain all footnotes required by United States generally
accepted accounting principles; and the supporting schedules included in the Registration Statement and the Time of Sale Disclosure
Package present fairly in all material respects the information required to be stated therein. No other financial statements, pro
forma financial information or schedules are required under the Securities Act to be included in the Registration Statement, the
Time of Sale Disclosure Package or the Prospectus.

(v)                
To the Company’s knowledge, UHY LLP, which has expressed its opinion with respect to the financial statements and
schedules included in the Registration Statement, is an independent public accounting firm with respect to the Company within the
meaning of the Securities Act and the Rules and Regulations.

(vi)              
The Company had a reasonable basis for, and made in good faith, each “forward-looking statement” (within the
meaning of Section 27A of the Securities Act or Section 21E of the Exchange Act) contained in the Registration Statement, the Time
of Sale Disclosure Package and the Prospectus, in each case at the time such “forward-looking statement” was made.

(vii)             
All statistical or market-related data included in the Registration Statement, the Time of Sale Disclosure Package or the
Prospectus, are based on or derived from sources that the Company reasonably believes to be reliable and accurate, and the Company
has obtained the written consent to the use of such data from such sources, to the extent required, other than such consents the
failure of which to obtain is not reasonably likely to result in a Material Adverse Effect (as defined below in Section 4(a)(i)).

(viii)           
The Common Stock is registered pursuant to Section 12(g) of the Exchange Act and is traded on the OTC Marketplace (OTCQB)
and OTC Bulletin Board. Except as set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus,
there is no action pending by the Company or, to the Company’s knowledge, to delist the Common Stock, nor has the Company
received any notification that the FINRA is contemplating terminating, halting or suspending trading.

(ix)              
The Company has not taken, directly or indirectly, any action that is designed to or that has constituted or that would
reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale of the Shares and Purchaser Warrants.

(x)                
The Company is not and, after giving effect to the offering and sale of the Shares and Purchaser Warrants and the application
of the net proceeds thereof, will not be an “investment company,” as such term is defined in the Investment Company
Act of 1940, as amended.

(b)                
Any certificate signed by any officer of the Company and delivered to the Placement Agent or to the Placement Agent’s
counsel shall be deemed a representation and warranty by the Company to the Placement Agent as to the matters covered thereby.

4.                  
Representations and Warranties Regarding the Company.

(a)                
The Company represents and warrants to and agrees with, the Placement Agent, as of the date hereof and as of the Closing
Date, except as set forth in the Registration Statement, the Time of Sale Disclosure Package or the Prospectus, as follows:

(i)                  
Each of the Company and its subsidiaries has been duly organized and is validly existing as a corporation or other entity
in good standing under the laws of its jurisdiction of organization. Each of the Company and its subsidiaries has the power and
authority (corporate or otherwise) to own its properties and conduct its business as currently being carried on and as described
in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus, and is duly qualified to do business as
a foreign corporation or other entity in good standing in each jurisdiction in which it owns or leases real property or in which
the conduct of its business makes such qualification necessary and in which the failure to so qualify would have or is reasonably
likely to result in a material adverse effect upon the business, properties, operations, financial condition or results of operations
of the Company and its subsidiaries, taken as a whole, or in its ability to perform its obligations under this Agreement (“Material
Adverse Effect”). The Company has no “significant subsidiary” (as such term is defined in Rule 1-02 of Regulation
S-X promulgated under the Securities Act).

(ii)                
The Company has the power and authority to enter into this Agreement and each of the Subscription Agreements and to perform
and to discharge its obligations hereunder and thereunder. This Agreement and each of the Subscription Agreements have been duly
authorized, executed and delivered by the Company, and constitute a valid, legal and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as rights to indemnity hereunder may be limited by federal or state securities
laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting the rights
of creditors generally and subject to general principles of equity.

(iii)               
The execution, delivery and performance of this Agreement and the Subscription Agreements and the consummation of the transactions
herein contemplated will not (A) result in a breach or violation of any of the terms and provisions of, or constitute a default
under, any law, order, rule or regulation to which the Company or any subsidiary is subject, or by which any property or asset
of the Company or any subsidiary is bound, except to the extent such breach, violation or default is not reasonably likely to
have a Material Adverse Effect, (B) conflict with, result in any violation or breach of, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or give to others any right of termination, amendment,
acceleration or cancellation (with or without notice, lapse of time or both) (a “Default Acceleration Event”)
of, any agreement, lease, credit facility, debt, note, bond, mortgage, indenture or other instrument (the “Contracts”)
or obligation or other understanding to which the Company or any subsidiary is a party or by which any property or asset of the
Company or any subsidiary is bound, except to the extent that such conflict, default or Default Acceleration Event is not reasonably
likely to result in a Material Adverse Effect, or (C) result in a breach or violation of any of the terms and provisions of, or
constitute a default under, the Company’s Restated Certificate of Incorporation, as amended or the Company’s Amended
and Restated Bylaws.

(iv)              
Neither the Company nor any of its subsidiaries is in violation, breach or default under its articles of incorporation,
as amended, by-laws, as amended, or other equivalent organizational or governing documents, except where the violation, breach
or default in the case of a subsidiary of the Company is not reasonably likely to result in a Material Adverse Effect.

(v)                
No consents, approvals, orders, authorizations or filings are required on the part of the Company and its subsidiaries in
connection with the execution, delivery or performance of this Agreement, the Subscription Agreements and the issuance and sale
of any of the Securities, except (A) the registration under the Securities Act of the Securities, (B) such consents, approvals,
authorizations, registrations or qualifications as may be required under the Exchange Act, state or foreign securities or Blue
Sky laws and the rules of FINRA in connection with the placement and distribution of the Securities by the Placement Agent and
(C) such consents, approvals, orders, authorizations and filings, in each case, the failure of which to make or obtain is not reasonably
likely to result in a Material Adverse Effect.

(vi)              
The Company has an authorized capitalization as set forth in the Registration Statement, the Time of Sale Disclosure Package
and the Prospectus. All of the issued and outstanding shares of capital stock of the Company are duly authorized and validly issued,
fully paid and non-assessable, and have been issued in compliance with all applicable federal and state securities laws, and conform
in all material respects to the description thereof in the Registration Statement, the Time of Sale Disclosure Package and the
Prospectus. All of the issued shares of capital stock of each subsidiary of the Company have been duly and validly authorized and
issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances,
equities or claims. Except for the issuances of options or restricted stock in the ordinary course of business, since the respective
dates as of which information is provided in the Registration Statement, the Time of Sale Disclosure Package or the Prospectus,
the Company has not entered into or granted any convertible or exchangeable securities, options, warrants, agreements, contracts
or other rights in existence to purchase or acquire from the Company any shares of the capital stock of the Company. The Securities
to be issued and sold by the Company to the Purchasers hereunder and under the Subscription Agreements have been duly authorized
and, when issued, will be validly issued, fully paid and non-assessable, will be issued in compliance with all applicable federal
and state securities laws, and, except as otherwise set forth in the Registration Statement, the Time of Sale Disclosure Package
and the Prospectus, will be free of preemptive, registration or similar rights and will conform to the description of the capital
stock of the Company contained in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus. The Shares
and Purchaser Warrants, when issued, will conform in all material respects to the descriptions thereof set forth in the Registration
Statement, the Time of Sale Disclosure Package and the Prospectus. The Placement Agent’s Securities to be issued have been
duly authorized and, when issued, will be validly issued, fully paid and non-assessable, will be issued in compliance with all
applicable federal and state securities laws and, except as otherwise set forth in the Registration Statement, the Time of Sale
Disclosure Package and the Prospectus, will be free of preemptive, registration or similar rights.

(vii)             
Each of the Company and its subsidiaries has (A) filed all returns (as hereinafter defined) required to be filed with taxing
authorities prior to the date hereof or has duly obtained extensions of time for the filing thereof and (B) paid all taxes (as
hereinafter defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed against the Company
or such respective subsidiary, except, in all cases, for any such amounts that the Company or any subsidiary is contesting in
good faith and except in any case in which the failure to so file or pay would not reasonably be expected to have a Material Adverse
Effect. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration
Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates
of such consolidated financial statements. No issues have been raised and are currently pending by any taxing authority in connection
with any of the returns or taxes asserted as due from the Company or its subsidiaries, and no waivers of statutes of limitation
with respect to the returns or collection of taxes have been given by or requested from the Company or its subsidiaries. The term
“taxes” mean all federal, state, local, foreign, and other net income, gross income, gross receipts, sales,
use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise,
severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments, or charges
of any kind whatever, together with any interest and any penalties, additions to tax, or additional amounts with respect thereto.
The term “returns” means all returns, declarations, reports, statements, and other documents required to be
filed in respect to taxes.

(viii)           
Since the respective dates as of which information is given (including incorporated by reference) in the Registration Statement,
the Time of Sale Disclosure Package or the Prospectus, (a) neither the Company nor any of its subsidiaries has incurred any material
liabilities or obligations, direct or contingent, or entered into any material transactions other than in the ordinary course of
business, (b) the Company has not declared or paid any dividends or made any distribution of any kind with respect to its capital
stock, (c) there has not been any change in the capital stock of the Company or any of its subsidiaries (other than a change in
the number of outstanding shares of Common Stock due to the issuance of shares upon the exercise of outstanding options, warrants,
convertible preferred stock or convertible notes or the issuance of restricted stock awards or restricted stock units under the
Company’s existing stock awards plan, or any new grants thereof in the ordinary course of business), (d) there has not been
any material change in the Company’s long-term or short-term debt, and (e) there has not been a Material Adverse Effect.

(ix)              
Except as a set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus, there is not
pending or, to the knowledge of the Company, threatened, any action, lawsuit or proceeding to which the Company or any of its subsidiaries
is a party or of which any property or assets of the Company or its subsidiaries is the subject before or by any court or governmental
agency, authority or body, or any arbitrator or mediator, that is reasonably likely to result in a Material Adverse Effect or adversely
affect the consummation of the transactions contemplated by this Agreement.

(x)                
The Company and each of its subsidiaries holds, and is in compliance with, all franchises, grants, authorizations, licenses,
permits, easements, consents, certificates and orders (“Permits”) of any governmental or self-regulatory agency,
authority or body required for the conduct of its business, and all such Permits are in full force and effect, in each case, except
where the failure to hold, or comply with, any such Permits is not reasonably likely to result in a Material Adverse Effect.

(xi)              
The Company and its subsidiaries have good and marketable title to all property (whether real or personal) described in
the Registration Statement, the Time of Sale Disclosure Package and the Prospectus as being owned by them that is material to the
business of the Company, in each case free and clear of all liens, claims, security interests, other encumbrances or defects, except
those that are described in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus or those that are
not reasonably likely to result in a Material Adverse Effect. The property held under lease by the Company and its subsidiaries
is held by them under valid, subsisting and enforceable leases with only such exceptions with respect to any particular lease as
do not interfere in any material respect with the conduct of the business of the Company and its subsidiaries.

(xii)             
The Company and each of its subsidiaries owns or possesses or has valid right to use all patents, patent applications,
trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions,
trade secrets and similar rights (“Intellectual Property”) necessary for the conduct of the business of the
Company and its subsidiaries as currently carried on and as described in the Registration Statement, the Time of Sale Disclosure
Package and the Prospectus. To the knowledge of the Company, no action or use by the Company or any of its subsidiaries will involve
or give rise to any infringement of, or license or similar fees for, any Intellectual Property of others, except where such action,
use, license or fee is not reasonably likely to result in a Material Adverse Effect. Neither the Company nor any of its subsidiaries
has received any notice alleging any such infringement or fee.

(xiii)           
The Company and each of its subsidiaries has complied with, is not in violation of, and has not received any notice of violation
relating to any law, rule or regulation relating to the conduct of its business, or the ownership or operation of its property
and assets, including, without limitation, (A) the Currency and Foreign Transactions Reporting Act of 1970, as amended, or any
money laundering laws, rules or regulations, (B) any laws, rules or regulations related to health, safety or the environment, including
those relating to the regulation of hazardous substances, (C) the Sarbanes-Oxley Act and the rules and regulations of the Commission
thereunder, (D) the Foreign Corrupt Practices Act of 1977 and the rules and regulations thereunder, and (E) the Employment Retirement
Income Security Act of 1974 and the rules and regulations thereunder, in each case, except where the failure to be in compliance
is not reasonably likely to result in a Material Adverse Effect.

(xiv)           
Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director, officer, employee, representative,
agent or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly
use the proceeds of the offering of the Shares contemplated hereby, or lend, contribute or otherwise make available such proceeds
to any person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC.

(xv)            
The Company and each of its subsidiaries carries, or is covered by, insurance in such amounts and covering such risks as,
in the Company’s reasonable judgment, is adequate for the conduct of its business and the value of its properties and as
is customary for similarly sized companies engaged in similar businesses in similar industries.

(xvi)           
No labor dispute with the employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company,
is imminent, that is reasonably likely to result in a Material Adverse Effect

(xvii)         
Except as set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus, neither the Company,
its subsidiaries nor, to its knowledge, any other party is in violation, breach or default of any Contract that is reasonably
likely to result in a Material Adverse Effect

(xviii)        
No supplier, customer, distributor or sales agent of the Company has notified the Company that it intends to discontinue
or decrease the rate of business done with the Company, except where such decrease is not reasonably likely to result
in a Material Adverse Effect.

(xix)           
There are no claims, payments, issuances, arrangements or understandings for services in the nature of a finder’s,
consulting or origination fee with respect to the introduction of the Company to the Placement Agent or the sale of the Securities
and the Placement Agent’s Securities hereunder or any other arrangements, agreements, understandings, payments or issuances
with respect to the Company that may affect the Placement Agent’s compensation, as determined by FINRA.

(xx)            
Except as set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus, the Company has
not made any direct or indirect payments (in cash, securities or otherwise) to (i) any person, as a finder’s fee, investing
fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who provided
capital to the Company, (ii) any FINRA member, or (iii) any person or entity that has any direct or indirect affiliation or association
with any FINRA member within the 12-month period prior to the date on which the Registration Statement was filed with the Commission
(“Filing Date”) or thereafter.

(xxi)           
None of the net proceeds of the offering will be paid by the Company to any participating FINRA member or any affiliate
or associate of any participating FINRA member, except as specifically authorized herein.

(xxii)         
Except as set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus, to the Company’s
knowledge, no (i) officer or director of the Company or its subsidiaries, (ii) owner of 5% or more of the Company’s unregistered
securities or that of its subsidiaries or (iii) owner of any amount of the Company’s unregistered securities acquired within
the 180-day period prior to the Filing Date, has any direct or indirect affiliation or association with any FINRA member. The Company
will advise the Placement Agent and its counsel if it becomes aware that any officer, director or stockholder of the Company or
its subsidiaries is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

(xxiii)        
Other than the Placement Agent, no person has the right to act as a placement agent, an underwriter or as a financial advisor
to the Company in connection with the transactions contemplated hereby.

(xxiv)       
The statements set forth in the Registration Statement, the Time of Sale Disclosure Package and the Prospectus under the
caption “Description of Securities,” insofar as they purport to constitute a summary of the terms of each of the Securities
and documents referred to therein, are accurate, complete and fair descriptions of such Securities and documents.

(xxv)         
Except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package and
the Prospectus, there are no contracts, agreements or understandings between the Company and any person granting such person the
right (other than rights which have been waived in writing or otherwise satisfied) to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company owned or to be owned by such person or to require
the Company to include such securities in the securities registered pursuant to the Registration Statement or in any securities
being registered pursuant to any other registration statement filed by the Company under the Securities Act.

(xxvi)       
Except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package and
the Prospectus, the Company has not sold or issued any shares of Common Stock during the six-month period preceding the date of
the Prospectus, including any sales pursuant to Rule 144A under, or Regulations D or S of, the Securities Act, other than shares
issued pursuant to employee benefit plans, stock option plans or other employee compensation plans or pursuant to outstanding options,
rights or warrants.

(xxvii)      
The Company and each of its subsidiaries (i) are in compliance with all, and have not violated any, laws, regulations,
ordinances, rules, orders, judgments, decrees, permits or other legal requirements of any governmental authority, including without
limitation any international, national, state, provincial, regional, or local authority, relating to the protection of human health
or safety, the environment, or natural resources, or to hazardous or toxic substances or wastes, pollutants or contaminants (including,
without limitation, all health and safety laws) (“Environmental Laws”) applicable to such entity, which compliance
includes, without limitation, obtaining, maintaining and complying with all permits and authorizations and approvals required by
Environmental Laws to conduct their respective businesses as described in the Registration Statement, the Time of Sale Disclosure
Package and the Prospectus, except where the failure to comply would not, singularly or in the aggregate, have a Material Adverse
Effect, and (ii) have not received notice of any actual or alleged violation of Environmental Laws, or of any potential liability
for or other obligation concerning the presence, disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants.

(A)     There
are no proceedings that are pending, or known to be contemplated, against the Company or any of its subsidiaries under Environmental
Laws in which a governmental authority is also a party.

(B)     The
Company and its subsidiaries are not aware of any existing liabilities concerning hazardous or toxic substances or wastes, pollutants
or contaminants that could reasonably be expected to have a Material Adverse Effect on the capital expenditures, earnings or competitive
position of the Company and its subsidiaries.

(C)     To
the knowledge of the Company, no property which is or has been owned, leased, used, operated or occupied by the Company or its
subsidiaries has been designated as a Superfund site pursuant to the Comprehensive Environmental Response, Compensation of Liability
Act of 1980, as amended (42 U.S.C. Section 9601, et. seq.), or otherwise designated as a contaminated site under applicable state
or local law.

 

(xxviii)    
Except as disclosed in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, the
Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange
Act) that complies in all material respects with the requirements of the Exchange Act and has been designed by the Company’s
principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.
generally accepted accounting principles.

(xxix)       
Since the date of the latest audited financial statements included in the Registration Statement, the Time of Sale Disclosure
Package and the Prospectus, there has been no change in the Company’s internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

(xxx)         
Except as disclosed in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, the
Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply
with the requirements of the Exchange Act; such disclosure controls and procedures have been designed to ensure that material information
relating to the Company and its subsidiaries is made known to the Company’s principal executive officer and principal financial
officer by others within those entities.

(xxxi)       
The operations of the Company and its subsidiaries are being conducted in material compliance with applicable employment
laws, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or
enforced by any governmental agency (collectively, the “Employee Benefit Laws”) and no action, lawsuit or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries
with respect to the Employee Benefit Laws is pending or, to the knowledge of the Company, threatened that is reasonable likely
to result in a Material Adverse Effect.

(xxxii)      
Neither the Company nor any of its subsidiaries or affiliates, nor any director, officer, or employee, nor, to the Company’s
knowledge, any agent or representative of the Company or of any of its subsidiaries or affiliates, has taken any action in furtherance
of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything
else of value, directly or indirectly, to any “government official” (including any officer or employee of a government
or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity
for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence
official action or secure an improper advantage; and the Company and its subsidiaries and affiliates conduct their businesses in
compliance in all material respects with applicable anti-corruption laws and have instituted and maintain and will continue to
maintain policies and procedures designed to promote and achieve compliance in all material respects with such laws and with the
representation and warranty contained herein.

5.                  
The Closing. The time and date of closing and delivery of the documents required to be delivered to the Placement Agent
pursuant to Sections 6 and 7 hereof shall be at 10:00 A.M., Eastern Daylight Time, on ____________, 2014, or at such time as the
parties may mutually agree (the “Closing Date”) at the office of Sanders Ortoli Vaughn-Flam Rosenstadt LLP,
501 Madison Avenue, New York NY 10022.

6.                  
Covenants.

(a)                
The Company covenants and agrees with the Placement Agent as follows:

(i)                  
To prepare the Prospectus in a form approved by the Placement Agent and to file such Prospectus pursuant to Rule 424(b)
under the Securities Act not later than the Commission’s close of business on the second business day following the execution
and delivery of this Agreement, or, if applicable, such earlier time as may be required by Rule 430A(a)(3) under the Securities
Act.

(ii)                
During the period beginning on the date hereof and ending on the date that the Prospectus is no longer required by law to
be delivered in connection with sales by an underwriter or dealer (the “Prospectus Delivery Period”), prior
to amending or supplementing the Registration Statement, the Time of Sale Disclosure Package or the Prospectus, the Company shall
furnish to the Placement Agent for review and comment a copy of each such proposed amendment or supplement, and the Company shall
not file any such proposed amendment or supplement to which the Placement Agent reasonably objects.

(iii)               
From the date of this Agreement until the end of the Prospectus Delivery Period, the Company shall promptly advise the Placement
Agent in writing (A) of the receipt of any comments of, or requests for additional or supplemental information from, the Commission,
(B) of the time and date of any filing of any post-effective amendment to the Registration Statement or any amendment or supplement
to the Prospectus, the Time of Sale Disclosure Package or any Issuer Free Writing Prospectus, (C) of the time and date that any
post-effective amendment to the Registration Statement becomes effective and (D) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or of any order preventing or suspending its use or the use of
the Time of Sale Disclosure Package or any Issuer Free Writing Prospectus, or of any proceedings to remove, suspend or terminate
from listing or quotation the Common Stock from any securities exchange upon which it is listed for trading or included or designated
for quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission shall enter any
such stop order at any time during the Prospectus Delivery Period, the Company will use its reasonable efforts to obtain the lifting
of such order as soon as practicable. Additionally, the Company agrees that it shall comply with the provisions of Rules 424(b),
430A and 430B, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings made by
the Company under Rule 424(b) were received in a timely manner by the Commission.

(iv)              
(A) During the Prospectus Delivery Period, the Company will comply with all requirements imposed upon it by the Securities
Act, the Rules and Regulations and the Exchange Act so far as necessary to permit the continuance of sales of or dealings in the
Securities as contemplated by the provisions hereof, the Registration Statement, the Time of Sale Disclosure Package and the Prospectus.
If during such period any event occurs as the result of which the Prospectus (or if the Prospectus is not yet available to prospective
purchasers, the Time of Sale Disclosure Package) would include an untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which such statement was made, not misleading,
or if during such period it is necessary or appropriate in the opinion of the Company or its counsel or the Placement Agent or
its counsel to amend the Registration Statement or supplement the Prospectus (or if the Prospectus is not yet available to prospective
purchasers, the Time of Sale Disclosure Package) to comply with the Securities Act, the Company will promptly notify the Placement
Agent and will amend the Registration Statement or supplement the Prospectus (or if the Prospectus is not yet available to prospective
purchasers, the Time of Sale Disclosure Package) so as to correct such statement or omission or effect such compliance.

(B)         If
during the Prospectus Delivery Period there occurred or occurs an event or development the result of which is that such Issuer
Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or any Prospectus
or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading, the Company has promptly
notified or promptly will notify the Placement Agent and has promptly amended or will promptly amend or supplement, at its own
expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission. 

(v)                
The Company shall take or cause to be taken all necessary action to qualify the Securities and the Placement Agent’s
Securities for sale under the securities laws of such jurisdictions as the Placement Agent reasonably designates and to continue
such qualifications in effect so long as required for the distribution of the Securities and the Placement Agent’s Securities,
except that the Company shall not be required in connection therewith to qualify as a foreign corporation or as a dealer in securities
in any jurisdiction in which it is not so qualified, to execute a general consent to service of process in any state or to subject
itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise subject.

(vi)              
The Company will furnish to the Placement Agent and counsel for the Placement Agent copies of the Registration Statement,
the Prospectus, any Issuer Free Writing Prospectus and all amendments and supplements to such documents, in each case as soon as
available and in such quantities as the Placement Agent may from time to time reasonably request.

(vii)             
The Company will make generally available to its security holders as soon as practicable, but in any event not later than
15 months after the end of the Company’s current fiscal quarter, an earnings statement (which need not be audited) covering
a 12-month period that shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the Rules and Regulations.

(viii)           
Subject to the immediately following sentence, the Company, whether or not the transactions contemplated hereunder are consummated
or this Agreement is terminated, will pay or cause to be paid (A) all expenses (including transfer taxes allocated to the respective
transferees) incurred in connection with the delivery of the Securities and the Placement Agent’s Securities, (B) all expenses
and fees (including, without limitation, fees and expenses of the Company’s counsel subject to the limitations set forth
herein) in connection with the preparation, printing, filing, delivery, and shipping of the Registration Statement (including the
financial statements therein and all amendments, schedules, and exhibits thereto), the Securities and the Placement Agent’s
Securities, the Time of Sale Disclosure Package, the Prospectus, any Issuer Free Writing Prospectus, and any amendment thereof
or supplement thereto, (C) all reasonable and documented filing fees and fees and disbursements of the Placement Agent’s
counsel incurred in connection with the qualification of the Securities for offering and sale by the Placement Agent or by dealers
under the securities or blue sky laws of the states and other jurisdictions that the Placement Agent shall designate, (D) the fees
and expenses of any transfer agent or registrar, (E) the filing fees and fees and any disbursements of the Placement Agent’s
counsel incident to any required review and approval by FINRA of the terms of the sale of the Securities and the Placement Agent’s
Securities and (F) blue-sky fees and all other costs and expenses incident to the performance of its obligations hereunder that
are not otherwise specifically provided for herein. The Company will reimburse the Placement Agent for its reasonable and documented
out-of-pocket expenses, in connection with the purchase and sale of the Securities and the Placement Agent’s Securities contemplated
hereby, in an amount not to exceed $1,000 individually and $25,000 in the aggregate (which amount shall exclude payments and reimbursements
made pursuant to clauses (A) through (F) above) without the prior consent of the Company and will make direct payment to Placement
Agent’s counsel up to an aggregate of $75,000 including for its legal fees pursuant to clauses (C) and (E) above (provided
that $15,000 of such legal fees that have already been paid by the Company shall be non-refundable). If this Agreement is terminated
by the Placement Agent in accordance with the provisions of Section 7 or Section 10, the Company will reimburse the Placement Agent
for all reasonable and documented out-of-pocket disbursements (including, but not limited to, fees and disbursements of counsel
(subject to the limitations set forth herein), travel expenses, postage, facsimile and telephone charges) fees and disbursements
incurred by the Placement Agent in connection with its investigation, preparing to market and marketing the Securities or in contemplation
of performing its obligations hereunder.

(ix)              
The Company intends to apply the net proceeds from the sale of the Securities to be sold by it hereunder for the purposes
set forth in the Time of Sale Disclosure Package or the Prospectus.

(x)                
The Company has not taken and will not take, directly or indirectly, during the Prospectus Delivery Period, any action designed
to or which might reasonably be expected to cause or result in, or that has constituted, the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of any of the Securities.

(xi)              
The Company represents and agrees that, unless it obtains the prior written consent of the Placement Agent, and the Placement
Agent represents and agrees that, unless it obtains, the prior written consent of the Company, it has not made and will not make
any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus .

(xii)             
The Company represents and agrees that, unless it obtains the prior written consent of the Placement Agent, and the Placement
Agent represents and agrees that, unless it obtains, the prior written consent of the Company, it has not made and will not make
any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus. Any such free writing prospectus
consented to by the Company and the Placement Agent is hereinafter referred to as a “Permitted Free Writing Prospectus”.
The Company represents that it has treated or agrees that it will treat each Permitted Free Writing Prospectus as an “issuer
free writing prospectus,” as defined in Rule 433, and has complied or will comply with the requirements of Rule 433 applicable
to any Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record-keeping.

(xiii)           
The Company hereby agrees that, without the prior written consent of the Placement Agent, it will not, during the period
ending 90 days after the date hereof (“Lock-Up Period”), (i) offer, pledge, issue, sell, contract to sell, purchase,
contract to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock; or (ii) enter into any swap or other arrangement that transfers
to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction
described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise;
or (iii) file any registration statement with the Commission relating to the offering of any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock (other than (A) a registration statement on Form S-4 and Form
S-8 or (B) a post-effective amendment on Form S-1 to a previously filed and effective registration statement on Form S-1
solely for purposes of keeping such prior effective registration statement current). The restrictions contained in the preceding
sentence shall not apply to (1) the Securities and the Placement Agent’s Securities to be sold hereunder, (2) the issuance
of Common Stock upon the exercise of options, warrants, convertible preferred stock, convertible notes or other exchange rights
as disclosed as outstanding in the Registration Statement or the Prospectus, or (3) the issuance of employee stock options not
exercisable during the Lock-Up Period and the grant of restricted stock awards or restricted stock units pursuant to equity incentive
plans described in the Registration Statement and the Prospectus. Notwithstanding the foregoing, to the extent that the Placement
Agent is at such time providing research coverage to the Company or intends to commence research coverage to the Company and is
subject to restrictions set forth by FINRA Rule 2711, if (x) the Company issues an earnings release or material news, or a material
event relating to the Company occurs, during the last 17 days of the Lock-Up Period, or (y) prior to the expiration of the Lock-Up
Period, the Company announces that it will release earnings results during the 16-day period beginning on the last day of the Lock-Up
Period, the restrictions imposed by this clause shall continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or material event, unless the Placement Agent waives
such extension in writing; provided, however, that this sentence shall not apply if the research published or distributed on the
Company is compliant with Rule 139 of the Securities Act and the Company’s securities are “actively traded” as
defined in Rule 101(c)(1) of Regulation M of the Exchange Act.

(xiv)           
To engage and maintain, at its expense, a registrar and transfer agent for the Common Stock.

(xv)            
To use its best efforts to maintain its listing on the OTC Marketplace (OTCQB) or the OTC Bulletin Board or become listed
on a recognized national exchange.

(xvi)           
To not take, directly or indirectly, any action designed to cause or result in, or that has constituted or might reasonably
be expected to constitute, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any securities
of the Company to facilitate the sale or resale of the Securities.

7.                  
Conditions of the Placement Agent’s Obligations. The obligations of the Placement Agent hereunder, and the Closing
of the sale of the Shares and Purchaser Warrants, are subject to the accuracy, as of the date hereof and at the Closing Date, of
and compliance in all material respects with all representations, warranties and agreements of the Company contained herein, the
performance by the Company of its obligations hereunder and the following additional conditions:

The Prospectus (in accordance
with Rules 430A, 430B and 424(b), as applicable) shall have been duly filed with the Commission, as appropriate; no stop order
suspending the effectiveness of the Registration Statement or any part thereof nor suspending or preventing the use of the Time
of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no proceeding for that
purpose shall have been initiated or threatened by the Commission; no order preventing or suspending the use of the Prospectus
shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; all requests
for additional information (to be included in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus,
any Issuer Free Writing Prospectus or otherwise) on the part of the Commission shall have been complied with to the Placement Agent’s
reasonable satisfaction.

(a)                
 

(b)                
The Shares shall continue to be listed on the OTC Marketplace (OTCQB) or the OTC Bulletin Board.

(c)                
The Company shall have entered into Subscription Agreements with each of the Purchasers and such agreements shall be in
full force and effect.

(d)                
FINRA shall have raised no objection to the fairness and reasonableness of the terms of this Agreement or the transactions
contemplated thereby.

(e)                
The Placement Agent shall not have reasonably determined, and advised the Company, that the Registration Statement, the
Time of Sale Disclosure Package or the Prospectus, or any amendment thereof or supplement thereto, or any Issuer Free Writing Prospectus
contains an untrue statement of fact which, in the Placement Agent’s reasonable opinion, is material, or omits to state a
fact which, in the Placement Agent’s reasonable opinion, is material and is required to be stated therein or necessary to
make the statements therein not misleading.

(f)                 
On the Closing Date, there shall have been furnished to the Placement Agent the opinion and negative assurance letter of
Jones Day, counsel for the Company dated the Closing Date, and addressed to the Placement Agent, in form and substance reasonably
satisfactory to the Placement Agent.

(g)                
The Placement Agent shall have received a letter of UHY LLP on the date hereof and on the Closing Date, addressed to the
Placement Agent, confirming that they are independent public accountants within the meaning of the Securities Act and are in compliance
with the applicable requirements relating to the qualifications of accountants under Rule 2-01 of Regulation S-X of the Commission,
and confirming, as of the date of each such letter (or, with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Time of Sale Disclosure Package, as of a date not prior to the
date hereof or more than five days prior to the date of such letter), the conclusions and findings of said firm with respect to
the financial information and other matters required by the Placement Agent.

(h)                
On the Closing Date, there shall have been furnished to the Placement Agent a certificate, dated the Closing Date, and addressed
to the Placement Agent, signed by the chief executive officer and the chief financial officer of the Company, in their capacity
as officers of the Company, to the effect that:

(i)                  
The representations and warranties of the Company in this Agreement that are qualified by materiality or by reference to
any Material Adverse Effect are true and correct in all respects, and all other representations and warranties of the Company
in this Agreement are true and correct, in all material respects, as if made at and as of the Closing Date, and the Company has
complied in all material respects with all the agreements and satisfied all the conditions on its part to be performed or satisfied
at or prior to the Closing Date;

(ii)                
No stop order or other order (A) suspending the effectiveness of the Registration Statement or any part thereof or any amendment
thereof, (B) suspending the qualification of the Securities for offering or sale, or (C) suspending or preventing the use of the
Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus has been issued, and no proceeding for that
purpose has been instituted or, to their knowledge, is contemplated by the Commission or any state or regulatory body; and

(iii)               
There has been no occurrence of any event resulting or reasonably likely to result in a Material Adverse Effect during the
period from and after the date of this Agreement and prior to the Closing Date.

(i)                  
On or before the date hereof, the Placement Agent shall have received duly executed “lock-up” agreements, in
a form set forth on Schedule IV, among the Placement Agent and each of the individuals specified in Schedule V.

(j)                 
The Company shall have furnished to the Placement Agent and its counsel such additional documents, certificates and evidence
as the Placement Agent or its counsel may have reasonably requested.

If any condition
specified in this Section 7 shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated
by the Placement Agent by notice to the Company at any time at or prior to the Closing Date, and such termination shall be without
liability of any party to any other party, except that Section 6(a)(viii), Section 8 and Section 9 shall survive any such
termination and remain in full force and effect.

8.                  
Indemnification and Contribution.

(a)                
The Company agrees to indemnify, defend and hold harmless the Placement Agent, its affiliates, directors and officers and
employees, and each person, if any, who controls the Placement Agent within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, from and against any losses, claims, damages or liabilities to which the Placement Agent or such
person may become subject, under the Securities Act or otherwise (including in settlement of any litigation if such settlement
is effected with the written consent of the Company), insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, including the information deemed to be a part of the Registration Statement at the time of effectiveness
and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, or arise out of or are based upon the
omission from the Registration Statement, or alleged omission to state therein, a material fact required to be stated therein
or necessary to make the statements therein not misleading, (ii) an untrue statement or alleged untrue statement of a material
fact contained in the Time of Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto, any Issuer Free
Writing Prospectus or in any other materials used in connection with the offering of the Securities, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, (iii) an untrue statement or alleged
untrue statement of a material fact contained in any materials or information provided to investors by, or with the approval of,
the Company in connection with the marketing of the offering of the Securities, including any roadshow or investor presentations
made to investors by the Company (whether in person or electronically), or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, or (iv) in whole or in part, any material breach in the representations
and warranties of the Company contained herein or in the Subscription Agreements and will reimburse the Placement Agent for any
legal or other expenses reasonably incurred by it in connection with evaluating, investigating or defending against such loss,
claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to
the extent that any such loss, claim, damage, liability or action arises out of or is based upon (A) an untrue statement or alleged
untrue statement or omission or alleged omission made in the Registration Statement, the Time of Sale Disclosure Package, the
Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, or any amendment or supplement thereto,
in reliance upon, or in conformity with, written information furnished to the Company by the Placement Agent specifically for
use in the preparation thereof, which written information is described in Section 8(f) or (B) the Placement Agent’s bad
faith, willful misconduct or gross negligence in performing the services described in this Agreement.

(b)                
The Placement Agent will indemnify, defend and hold harmless the Company, its affiliates, directors, officers and employees,
and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, from and against any losses, claims, damages or liabilities to which the Company may become subject, under the Securities
Act or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Placement
Agent), insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i)
an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, the Time of Sale Disclosure
Package, the Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Time of
Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto or any Issuer Free Writing Prospectus, or any amendment
or supplement thereto in reliance upon, or in conformity with, written information furnished to the Company by the Placement Agent
specifically for use in the preparation thereof, which written information is described in Section 8(f), or (ii) the Placement
Agent’s bad faith, willful misconduct or gross negligence in performing the services described in this Agreement, and will
reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with defending against any
such loss, claim, damage, liability or action.

(c)                
Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action,
such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection,
notify the indemnifying party in writing of the commencement thereof; but the failure to notify the indemnifying party shall not
relieve the indemnifying party from any liability that it may have to any indemnified party except to the extent such indemnifying
party has been materially prejudiced by such failure. In case any such action shall be brought against any indemnified party, and
it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in,
and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof,
with counsel satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of
the indemnifying party’s election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified
party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof; provided, however, that if (i) the indemnified party has reasonably concluded (based on advice
of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition
to those available to the indemnifying party, (ii) a conflict or potential conflict exists (based on advice of counsel to the indemnified
party) between the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to
direct the defense of such action on behalf of the indemnified party), or (iii) the indemnifying party has not in fact employed
counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving
notice of the commencement of the action or the indemnifying party does not diligently defend the action after the assumption of
the defense, the indemnified party shall have the right to employ a single counsel to represent it in any claim in respect of which
indemnity may be sought under subsection (a) or (b) of this Section 8, in which event the reasonable fees and expenses of such
separate counsel shall be borne by the indemnifying party or parties and reimbursed to the indemnified party as incurred.

The indemnifying
party under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent, but
if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry
of judgment in any pending or threatened action, lawsuit or proceeding in respect of which any indemnified party is a party or
could be named and indemnity was or would be sought hereunder by such indemnified party, unless such settlement, compromise or
consent (a) includes an unconditional release of such indemnified party from all liability for claims that are the subject matter
of such action, lawsuit or proceeding and (b) does not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party.

(d)                
If the indemnification provided for in this Section 8 is unavailable or insufficient to hold harmless an indemnified party
under subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above, (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agent on the other
from the offering and sale of the Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company on the one hand and the Placement Agent on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Placement Agent on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering received by the Company bear to the total fees and commissions received by the Placement
Agent, in each case as set forth in the table on the cover page of the Prospectus. The relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company or the Placement Agent and the parties’ relevant intent,
knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Placement
Agent agree that it would not be just and equitable if contributions pursuant to this subsection (d) were to be determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in
the first sentence of this subsection (d). The amount paid by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending against any action or claim that is the subject
of this subsection (d). Notwithstanding the provisions of this subsection (d), the Placement Agent shall be required to contribute
any amount in excess of the amount of the Placement Agent’s commissions referenced in Section 2 actually received by the
Placement Agent pursuant to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

(e)                
The obligations of the Company under this Section 8 shall be in addition to any liability that the Company may otherwise
have and the benefits of such obligations shall extend, upon the same terms and conditions, to each person, if any, who controls
the Placement Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; and the several obligations
of the Placement Agent under this Section 8 shall be in addition to any liability that the Placement Agent may otherwise have and
the benefits of such obligations shall extend, upon the same terms and conditions, to the Company, and its officers, directors
and each person who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act.

(f)                 
For purposes of this Agreement, the Placement Agent confirms, and the Company acknowledges, that there is no information
concerning the Placement Agent furnished in writing to the Company by the Placement Agent specifically for preparation of or inclusion
in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus, or any amendment or supplement thereto or any
Issuer Free Writing Prospectus other than the statements set forth in the third paragraph on the cover page of the Prospectus,
and the third, fourth, fifth and sixth paragraphs under the heading “Plan of Distribution” in the Registration Statement
and the Prospectus.

9.                  
Representations and Agreements to Survive Delivery. All representations, warranties, and agreements of the Company herein
or in certificates delivered pursuant hereto, including, but not limited to, the agreements of the Placement Agent and the Company
contained in Section 6(a)(viii) and Section 8 hereof, shall remain operative and in full force and effect regardless of any investigation
made by or on behalf of the Placement Agent or any controlling person thereof, or the Company or any of its officers, directors,
or controlling persons, and shall survive delivery of, and payment for, the Securities and the Placement Agent’s Securities
to and by the Placement Agent hereunder.

10.               
Termination of this Agreement.

(a)                
The Placement Agent shall have the right to terminate this Agreement by giving notice to the Company as hereinafter specified
at any time at or prior to the Closing Date, if in the discretion of the Placement Agent, (i) there has occurred any material adverse
change in the securities markets or any event, act or occurrence that has materially disrupted, or in the reasonable opinion of
the Placement Agent, will in the future materially disrupt, the securities markets or there shall be such a material adverse change
in general financial, political or economic conditions or the effect of international conditions on the financial markets in the
United States is such as to make it, in the reasonable judgment of the Placement Agent, inadvisable or impracticable to market
the Shares or Purchaser Warrants or enforce contracts for the sale of thereof, (ii) trading in the Company’s common stock
shall have been suspended by the Commission, or trading in securities generally on the OTC Bulletin Board, NASDAQ Global Market,
New York Stock Exchange or NYSE MKT shall have been suspended, (iii) minimum or maximum prices for trading shall have been fixed,
or maximum ranges for prices for securities shall have been required, on the OTC Bulletin Board, NASDAQ Global Market, New York
Stock Exchange, or NYSE MKT, by such exchange or by order of the Commission or any other governmental authority having jurisdiction,
(iv) a banking moratorium shall have been declared by federal or New York or Washington state authorities, (v) there shall have
occurred any attack on, outbreak or escalation of hostilities or act of terrorism involving the United States, any declaration
by the United States of a national emergency or war, any substantial change or development involving a prospective substantial
change in United States or international political, financial or economic conditions or any other calamity or crisis, (vi) in the
judgment of the Placement Agent, there has been, since the time of execution of this Agreement or since the respective dates as
of which information is given in the Prospectus, any Material Adverse Change, or (vii) the Purchasers shall decline to purchase
the Shares or Purchaser Warrants for any reason permitted under this Agreement or the Subscription Agreements. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 6(a)(viii) and Section 7 hereof
shall at all times be effective and shall survive such termination.

(b)                
If the Placement Agent elects to terminate this Agreement as provided in this Section, the Company shall be notified promptly
by the Placement Agent by telephone, confirmed by letter.

11.               
Notices. Except as otherwise provided herein, all communications hereunder shall be in writing and, (i) if to the Placement
Agent, shall be mailed, delivered or telecopied to Olympus Securities LLC, telecopy number: __________, Attention: Jeffrey Berman,
Director, and (ii) if to the Company, shall be mailed, delivered or faxed to it at Guided Therapeutics, Inc., 5835 Peachtree Corners
East, Suite D, Norcross, GA 30092, fax number: 770-242-8639, Attention: Chief Executive Officer; or in each case to such other
address as the person to be notified may have requested in writing. Any party to this Agreement may change such address for notices
by sending to the parties to this Agreement written notice of a new address for such purpose.

12.               
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns and the controlling persons, officers and directors referred to in Section 8.
Except as expressly provided in the Subscription Agreements, nothing in this Agreement is intended or shall be construed to give
to any other person, firm or corporation any legal or equitable remedy or claim under or in respect of this Agreement or any provision
herein contained.

13.               
Absence of Fiduciary Relationship. The Company acknowledges and agrees that: (a) the Placement Agent has been retained
solely to act as placement agent in connection with the Offering and no fiduciary, advisory or agency relationship between the
Company and the Placement Agent has been created in respect of any of the transactions contemplated by this Agreement, irrespective
of whether the Placement Agent has advised or is advising the Company on other matters; (b) the price and other terms of the Shares
and Purchaser Warrants set forth in this Agreement were established by the Company following discussions and arms-length negotiations
with the Placement Agent and the Company is capable of evaluating and understanding and understands and accepts the terms, risks
and conditions of the transactions contemplated by this Agreement; (c) it has been advised that the Placement Agent and its affiliates
are engaged in a broad range of transactions that may involve interests that differ from those of the Company and that the Placement
Agent does not have any obligation to disclose such interest and transactions to the Company by virtue of any fiduciary, advisory
or agency relationship; (d) it has been advised that the Placement Agent is acting, in respect of the transactions contemplated
by this Agreement, solely for the benefit of the Placement Agent, and not on behalf of the Company.

14.               
Amendments and Waivers. No supplement, modification or waiver of this Agreement shall be binding unless executed in
writing by the party to be bound thereby. The failure of a party to exercise any right or remedy shall not be deemed or constitute
a waiver of such right or remedy in the future. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver be deemed or constitute
a continuing waiver unless otherwise expressly provided.

15.               
Partial Unenforceability. The invalidity or unenforceability of any section, paragraph, clause or provision of this
Agreement shall not affect the validity or enforceability of any other section, paragraph, clause or provision.

16.               
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

17.               
Submission to Jurisdiction. The Company irrevocably (a) submits to the jurisdiction of any court of the State of New
York for the purpose of any lawsuit, action, or other proceeding arising out of this Agreement, or any of the agreements or transactions
contemplated by this Agreement, the Registration Statement and the Prospectus (each a “Proceeding”), (b) agrees
that all claims in respect of any Proceeding may be heard and determined in any such court, (c) waives, to the fullest extent permitted
by law, any immunity from jurisdiction of any such court or from any legal process therein, (d) agrees not to commence any Proceeding
other than in such courts, and (e) waives, to the fullest extent permitted by law, any claim that such Proceeding is brought in
an inconvenient forum. THE COMPANY (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS RESPECTIVE
EQUITY HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT, THE
TIME OF SALE DISCLOSURE PACKAGE AND THE PROSPECTUS.

18.               
Counterparts. This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart,
the executed counterparts shall each be deemed to be an original and all such counterparts shall together constitute one and the
same instrument.

[Signature Page Follows]

    	 

    	 

    

 

Please sign and
return to the Company the enclosed duplicates of this letter whereupon this letter will become a binding agreement between the
Company and the Placement Agent in accordance with its terms.

	
        Very truly yours,

        GUIDED THERAPEUTICS, INC.

	By:	
 

	 	Name:	 
	 	Title:	 

 

	Confirmed as of the date first above mentioned by the Placement Agent
	OLYMPUS SECURITIES LLC
	By:	
 

	 	Name:	Jeffrey Berman
	 	Title:	DirectorEXHIBIT 4.1

 

EXECUTION COPY

BA CREDIT CARD TRUST

as Issuer

CLASS A(2014-3) TERMS DOCUMENT

dated as of September 15, 2014

to

AMENDED AND RESTATED BASERIES INDENTURE SUPPLEMENT

dated as of June 10, 2006

to

SECOND AMENDED AND RESTATED INDENTURE

dated as of October 20, 2006

THE BANK OF NEW YORK MELLON

as Indenture Trustee

 

TABLE OF CONTENTS

Page

 

	
ARTICLE I

	
Definitions And Other Provisions Of General Application

	
1

	
Section 1.01.

	
Definitions 

	
1

	
Section 1.02.

	
Governing Law; Submission to Jurisdiction; Agent for Service of Process

	
6

	
Section 1.03.

	
Counterparts

	
6

	
Section 1.04.

	
Ratification of Indenture and Indenture Supplement

	
6

	
ARTICLE II

	
The Class A(2014 3) Notes

	
7

	
Section 2.01.

	
Creation and Designation

	
7

	
Section 2.02.

	
Specification of Required Subordinated Amount and other Terms

	
7

	
Section 2.03.

	
Interest Payment

	
7

	
Section 2.04.

	
Calculation Agent; Determination of LIBOR

	
8

	
Section 2.05.

	
Payments of Interest and Principal

	
9

	
Section 2.06.

	
Form of Delivery of Class A(2014 3) Notes; Depository; Denominations

	
9

	
Section 2.07.

	
Delivery and Payment for the Class A(2014 3) Notes

	
9

	
Section 2.08.

	
Targeted Deposits to the Accumulation Reserve Account

	
9

	
ARTICLE III

	
Representations and Warranties

	
10

	
Section 3.01.

	
Issuer's Representations and Warranties

	
10

- i -

THIS CLASS A(2014-3) TERMS DOCUMENT (this "Terms Document"), by and between BA CREDIT CARD TRUST, a statutory trust created under the laws of the State of Delaware (the "Issuer"), having its principal office at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee ( the "Indenture Trustee"), is made and entered into as of September 15, 2014.

Pursuant to this Terms Document, the Issuer and the Indenture Trustee shall create a new tranche of Class A Notes and shall specify the principal terms thereof.

ARTICLE I

Definitions and Other Provisions of General Application

  Section 1.01.  Definitions.  For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires:

	
 

	
(1)

	
the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

 

	
 

	
(2)

	
all other terms used herein which are defined in the Amended and Restated BAseries Indenture Supplement, dated as of June 10, 2006 (as modified, amended or supplemented from time to time, the "Indenture Supplement"), between the Issuer and the Indenture Trustee, or the Second Amended and Restated Indenture, dated as of October 20, 2006 (as modified, amended or supplemented from time to time, the "Indenture"), between the Issuer and the Indenture Trustee, as acknowledged and accepted by FIA, as Servicer, either directly or by reference therein, have the meanings assigned to them therein;

 

	
 

	
(3)

	
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States of America at the date of such computation;

 

	
 

	
(4)

	
all references in this Terms Document to designated "Articles," "Sections" and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document as originally executed;

 

	
 

	
(5)

	
the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision;

 

	
 

	
(6)

	
in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this Terms Document shall be controlling;

 

	
 

	
(7)

	
each capitalized term defined herein shall relate only to the Class A(2014‐3) Notes and no other tranche of Notes issued by the Issuer; and

 

	
 

	
(8)

	
"including" and words of similar import will be deemed to be followed by "without limitation."

 

"Accumulation Reserve Funding Period" shall mean, (a) if the Accumulation Period Length is determined to be one (1) month, there shall be no Accumulation Reserve Funding Period and (b) otherwise, the period (x) commencing on the earliest to occur of (i) the Monthly Period beginning three (3) calendar months prior to the first Transfer Date for which a budgeted deposit is targeted to be made into the Principal Funding sub-Account of the Class A(2014-3) Notes pursuant to Section 3.10(b) of the Indenture Supplement, (ii) the Monthly Period following the first Transfer Date following and including the July 2015 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 2%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 24 months prior to the Expected Principal Payment Date, (iii) the Monthly Period following the first Transfer Date following and including the January 2016 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the first Transfer Date following and including the March 2016 Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 16 months prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding the earlier to occur of (i) the Expected Principal Payment Date for the Class A(2014-3) Notes and (ii) the date on which the Class A(2014-3) Notes are paid in full.

"Base Rate" means, with respect to any Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding BAseries Notes and the Class D Certificate (as such term is defined in the Series 2001-D Supplement), (ii) the Net Servicing Fee Rate (as such term is defined in the Series 2001-D Supplement) and (iii) so long as FIA or The Bank of New York Mellon is the Servicer, the Servicer Interchange Rate, in each case, for such Monthly Period.

"BAseries Servicer Interchange" means, with respect to any Monthly Period, an amount equal to the product of (a) the Servicer Interchange (as such term is defined in the Series 2001-D Supplement) with respect to such Monthly Period and (b) a fraction the numerator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period and the denominator of which is the Weighted Average Available Funds Allocation Amount for all series of Notes for such Monthly Period.

- 2 -

"Calculation Agent" is defined in Section 2.04(a).

"Class A(2014-3) Note" means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2014-3) Note and duly executed and authenticated in accordance with the Indenture.

"Class A(2014-3) Noteholder" means a Person in whose name a Class A(2014-3) Note is registered in the Note Register.

"Class A(2014-3) Termination Date" means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2014-3) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof.

"Class A Required Subordinated Amount of Class B Notes" is defined in Section 2.02(a). 

"Class A Required Subordinated Amount of Class C Notes" is defined in Section 2.02(b).

"Controlled Accumulation Amount" means $91,666,666.67; provided, however, if the Accumulation Period Length is determined to be less than twelve (12) months pursuant to Section 3.10(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount shall be the amount specified in the definition of "Controlled Accumulation Amount" in the Indenture Supplement.

"Excess Available Funds Percentage" means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the preceding Monthly Period exceeds the Base Rate for such Monthly Period.

"Expected Principal Payment Date" means August 15, 2017.

"Initial Dollar Principal Amount" means $1,100,000,000.

"Interest Payment Date" means the fifteenth day of each month, or if such fifteenth day is not a Business Day, the next succeeding Business Day, commencing October 15, 2014.

"Interest Period" means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance Date) through the day preceding such Interest Payment Date.

"Issuance Date" means September 15, 2014.

"Legal Maturity Date" means January 15, 2020.

- 3 -

"LIBOR" means, for any Interest Period, the London interbank offered rate for one-month United States dollar deposits or, for the first Interest Period, the rate that corresponds to the actual number of days in the first Interest Period determined by the Calculation Agent on the LIBOR Determination Date for that Interest Period in accordance with the provisions of Section 2.04.

"LIBOR Determination Date" means September 11, 2014 for the period from and including the Issuance Date to but excluding October 15, 2014, and for each Interest Period thereafter, the second London Business Day prior to the Interest Payment Date on which such Interest Period commences.

"London Business Day" means any Business Day on which dealings in deposits in United States Dollars are transacted in the London interbank market.

"Note Interest Rate" means a per annum rate equal to 0.29% in excess of LIBOR as determined by the Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period.

"Paying Agent" means The Bank of New York Mellon.

"Portfolio Yield" means, with respect to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which is (a) the amount of Available Funds allocated to the BAseries pursuant to Section 501 of the Indenture, plus (b) the amount of Available Funds distributed pursuant to Sections 4.06(a)(ii) and (iii) of the Series 2001-D Supplement, plus (c) any Interest Funding sub-Account Earnings on the related Transfer Date, plus (d) any amounts to be treated as BAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (e) the BAseries Servicer Interchange for such Monthly Period, minus (f) the excess, if any, of the sum of the PFA Prefunding Earnings Shortfall plus the PFA Accumulation Earnings Shortfall over the sum of the aggregate amount to be treated as BAseries Available Funds for such Monthly Period pursuant to Sections 3.04(a)(ii) and 3.25(a) of the Indenture Supplement plus any other amounts applied to cover earnings shortfalls on amounts in the Principal Funding sub-Account for any tranche of BAseries Notes for such Monthly Period, minus (g) the BAseries Investor Default Amount for such Monthly Period, minus (h) the Aggregate Class D Investor Default Amount (as such term is defined in the Series 2001-D Supplement) for such Monthly Period, and the denominator of which is the Weighted Average Floating Allocation Investor Interest (as such term is defined in the Series 2001-D Supplement) for such Monthly Period.

"Predecessor Note" means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 306 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

"Quarterly Excess Available Funds Percentage" means, with respect to the July 2015 Transfer Date and each Transfer Date thereafter, the percentage equivalent of a fraction the 

 

- 4 -

numerator of which is the sum of the Excess Available Funds Percentages with respect to the immediately preceding three Monthly Periods and the denominator of which is three.

"Record Date" means, for any Transfer Date, the last day of the preceding Monthly Period.

"Reference Banks" means four major banks in the London interbank market selected by the Beneficiary.

"Required Accumulation Reserve sub-Account Amount" means, with respect to any Monthly Period during the Accumulation Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2014-3) Notes as of the close of business on the last day of the preceding Monthly Period or (ii) any other amount designated by the Issuer; provided, however, that if such designation is of a lesser amount, the Note Rating Agencies shall have provided prior written confirmation that a Ratings Effect will not occur with respect to such change.

"Reuters Screen LIBOR01 Page" means the display page currently so designated on the Reuters Monitor Money Rates (or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purpose of displaying comparable rates or prices).

"Servicer Interchange Rate" means, for any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the BAseries Servicer Interchange for such Monthly Period, and the denominator of which is the Weighted Average Floating Allocation Investor Interest (as such term is defined in the Series 2001-D Supplement) for such Monthly Period.

"Stated Principal Amount" means $1,100,000,000.

"Weighted Average Interest Rates" means, with respect to any Outstanding Notes of a class or tranche of the BAseries or the Class D Certificate (as such term is defined in the Series 2001-D Supplement), or of all of the Outstanding Notes of the BAseries and the Class D Certificate, on any date, the weighted average (weighted based on the Outstanding Dollar Principal Amount of the related Notes on such date or, in the case of the Class D Certificate, based on the Class D Investor Interest (as such term is defined in the Series 2001-D Supplement) on such date) of the following rates of interest:

(a)  in the case of the Class D Certificate or a tranche of Dollar Interest-bearing Notes with no Derivative Agreement for interest, the rate of interest applicable to that tranche or the Class D Certificate on that date;

(b)  in the case of a tranche of Discount Notes, the rate of accretion (converted to an accrual rate) of that tranche on that date;

- 5 -

(c)  in the case of a tranche of Notes with a payment due under a Performing Derivative Agreement for interest, the rate at which payments by the Issuer to the applicable Derivative Counterparty accrue on that date (prior to the netting of such payments, if applicable); and 

(d)  in the case of a tranche of Notes with a non-Performing Derivative Agreement for interest, the rate specified for that date in the related terms document.

  Section 1.02.  Governing Law; Submission to Jurisdiction; Agent for Service of Process.  This Terms Document shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws.  The parties hereto declare that it is their intention that this Terms Document shall be regarded as made under the laws of the State of Delaware and that the laws of said State shall be applied in interpreting its provisions in all cases where legal interpretation shall be required.  Each of the parties hereto agrees (a) that this Terms Document involves at least $100,000.00, and (b) that this Terms Document has been entered into by the parties hereto in express reliance upon 6 DEL. C. § 2708.  Each of the parties hereto hereby irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware, and (b)(1) to the extent such party is not otherwise subject to service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party's agent for acceptance of legal process, and (2) that, to the fullest extent permitted by applicable law, service of process may also be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence of valid service, and that service made pursuant to (b)(1) or (2) above shall, to the fullest extent permitted by applicable law, have the same legal force and effect as if served upon such party personally within the State of Delaware.

  Section 1.03.  Counterparts.  This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument.

  Section 1.04.  Ratification of Indenture and Indenture Supplement.  As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented and this Terms Document shall be read, taken and construed as one and the same instrument.

[END OF ARTICLE I]

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ARTICLE II

The Class A(2014-3) Notes

  Section 2.01.  Creation and Designation.  There is hereby created a tranche of BAseries Class A Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the "BAseries Class A(2014-3) Notes."

  Section 2.02.  Specification of Required Subordinated Amount and other Terms.

(a)  For the Class A(2014-3) Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal to 14.28571% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2014-3) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2014-3) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2014-3) Notes shall have occurred or if the Class A Usage of the Class B Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2014-3) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class B Required Subordinated Amount exceeded zero.

(b)  For the Class A(2014-3) Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal to 12.69841% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2014-3) Notes on such date or (ii) if an Early Redemption Event with respect to the Class A(2014-3) Notes shall have occurred, if an Event of Default and acceleration of the Class A(2014-3) Notes shall have occurred or if the Class A Usage of the Class C Required Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount of the Class A(2014-3) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption Event, such Event of Default and acceleration or the date on which the Class A Usage of Class C Required Subordinated Amount exceeded zero.

(c)  The Issuer may change the percentages set forth in clause (a) or (b) above without the consent of any Noteholder so long as the Issuer has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the BAseries that the change in either of such percentages will not result in a Ratings Effect with respect to any Outstanding Notes of the BAseries and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion. 

  Section 2.03.  Interest Payment.

(a)  For each Interest Payment Date, the amount of interest due with respect to the Class A(2014-3) Notes shall be an amount equal to the product of (i)(A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, times (B) the Note Interest Rate in effect with respect to the related 

 

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Interest Period, times (ii) the Outstanding Dollar Principal Amount of the Class A(2014-3) Notes determined as of the Record Date preceding the related Transfer Date.  Interest on the Class A(2014-3) Notes will be calculated on the basis of the actual number of days in the related Interest Period and a 360-day year.

(b)  Pursuant to Section 3.03 of the Indenture Supplement, on each Transfer Date, the Indenture Trustee shall deposit into the Class A(2014-3) Interest Funding sub-Account the portion of BAseries Available Funds allocable to the Class A(2014-3) Notes. 

  Section 2.04.  Calculation Agent; Determination of LIBOR.  

(a)  The Issuer hereby agrees that for so long as any Class A(2014-3) Notes are Outstanding, there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the "Calculation Agent").  The Issuer hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period.  The Calculation Agent may be removed by the Issuer at any time.  If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuer shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates.  The Calculation Agent may not resign its duties, and the Issuer may not remove the Calculation Agent, without a successor having been duly appointed.

(b)  On each LIBOR Determination Date, the Calculation Agent shall determine LIBOR on the basis of the rate for deposits in United States dollars for a one-month period which appears on Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such date (or, for the first Interest Period, the rate that corresponds to the actual number of days in the first Interest Period).  If such rate does not appear on Reuters Screen LIBOR01 Page, the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London time, on that day to prime banks in the London interbank market for a one-month period.  The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate.  If at least two such quotations are provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations.  If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the rates quoted by four major banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a one-month period.

(c)  The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture Trustee at its corporate trust office at (800) 254-2826 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time.

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(d)  On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee, the Beneficiary and the Servicer, by facsimile transmission, notification of LIBOR for the following Interest Period.

  Section 2.05.  Payments of Interest and Principal.  

Any installment of interest or principal, if any, payable on any Class A(2014-3) Note which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class A(2014-3) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person's account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person's address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee.

The right of the Class A(2014-3) Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2014-3) Termination Date.

  Section 2.06.  Form of Delivery of Class A(2014-3) Notes; Depository; Denominations.

(a)  The Class A(2014-3) Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and 301(i) of the Indenture, respectively.

(b)  The Depository for the Class A(2014-3) Notes shall be The Depository Trust Company, and the Class A(2014-3) Notes shall initially be registered in the name of Cede & Co., its nominee.

(c)  The Class A(2014-3) Notes will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount.

  Section 2.07.  Delivery and Payment for the Class A(2014-3) Notes.  The Issuer shall execute and deliver the Class A(2014-3) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2014-3) Notes when authenticated, each in accordance with Section 303 of the Indenture.

  Section 2.08.  Targeted Deposits to the Accumulation Reserve Account.

The deposit targeted to be made to the Accumulation Reserve Account for any Monthly Period during the Accumulation Reserve Funding Period will be an amount equal to the Required Accumulation Reserve sub-Account Amount.

[END OF ARTICLE II]

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ARTICLE III

Representations and Warranties

  Section 3.01.  Issuer's Representations and Warranties.  The Issuer makes the following representations and warranties as to the Collateral Certificate on which the Indenture Trustee is deemed to have relied in acquiring the Collateral Certificate.  Such representations and warranties speak as of the execution and delivery of this Terms Document, but shall survive until the termination of this Terms Document.  Such representations and warranties shall not be waived by any of the parties to this Terms Document unless the Issuer has obtained written confirmation from each Note Rating Agency that there will be no Ratings Effect with respect to such waiver.

(a)  The Indenture creates a valid and continuing security interest (as defined in the Delaware UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and purchasers from the Issuer.

(b)  The Collateral Certificate constitutes either an "account," a "general intangible," an "instrument," or a "certificated security," each within the meaning of the Delaware UCC.

(c)  At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Issuer owned and had good and marketable title to the Collateral Certificate free and clear of any lien, claim or encumbrance of any Person.

(d)  The Issuer has caused, within ten days of the execution of the Indenture, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Collateral Certificate granted to the Indenture Trustee pursuant to the Indenture.

(e)  Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Collateral Certificate.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering the Collateral Certificate other than any financing statement relating to the security interest granted to the Indenture Trustee pursuant to the Indenture or any financing statement that has been terminated.  The Issuer is not aware of any judgment or tax lien filings against the Issuer.

(f)  All original executed copies of the Collateral Certificate have been delivered to the Indenture Trustee.

(g)  At the time of the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Collateral Certificate had no marks or 

 

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notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture Trustee.

[END OF ARTICLE III]

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IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the day and year first above written.

BA CREDIT CARD TRUST,

by BA CREDIT CARD FUNDING, LLC,

as Beneficiary and not in its individual capacity

By:      /s/ Keith W. Landis                                      

Name:  Keith W. Landis

Title:  Vice President

 

 

[Signature Page to the Class A(2014-3) Terms Document]

THE BANK OF NEW YORK MELLON, as Indenture Trustee

and not in its individual capacity

By:      /s/ Leslie Morales                                    

Name:  Leslie Morales

Title:    Vice President

 

 

[Signature Page to the Class A(2014-3) Terms Document]

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