Document:

OMNIBUS
      AMENDMENT

     

    THIS
      OMNIBUS AMENDMENT, dated as of January 29, 2008 (this “Amendment”)
      is
      entered into by and among the Transaction Parties (defined below) and relates
      to
      the following documents (the “Documents”):
      

     

    
      	 	
              (1)
                

            	
              the
                Security Agreement, dated as of March 12, 2007 (as the same has been
                amended, modified or otherwise supplemented from time to time, the
                “Security
                Agreement),
                by and among NexCen Holding Corporation, as Issuer (the “Issuer”),
                BTMU Capital Corporation, as Agent (the “Agent”),
                and certain subsidiary borrowers parties thereto, including Athlete’s Foot
                Brands, LLC (“AF
                Brands”),
                WV IP Holdings, LLC (“WV
                Brands”),
                Bill Blass Jeans, LLC (“BBJ”),
                Bill Blass International, LLC (“BBI”),
                PT Franchise Brands, LLC (“PT
                Brands”),
                PT Franchising, LLC (“PT
                Franchising”),
                PM Franchise Brands, LLC (“PM
                Brands”),
                PM Franchising, LLC (“PM
                Franchising”),
                Marble Slab Franchise Brands, LLC (“MS
                Brands”),
                Marble Slab Franchising, LLC (“MS
                Franchising”),
                MaggieMoo’s Franchise Brands, LLC (“MM
                Brands”)
                and MaggieMoo’s Franchising, LLC (“MM
                Franchising”,
                together with AF Brands, WV Brands, BBJ, BBI, PT Brands, PT Franchising,
                PM Brands, PM Franchising, MS Brands, MS Franchising and MM Brands,
                the
                “Co-Issuers”)
                made party thereto by execution of certain security agreement supplements
                (collectively, the “Security
                Agreement Supplements”);

            

    

     

    
      	 	
              (2)
                

            	
              the
                Note Funding Agreement, dated as of March 12, 2007 (as the same has
                been
                amended, modified or otherwise supplemented from time to time, the
                “Note
                Funding Agreement”),
                by and among the Issuer, the Co-Issuers, as subsidiary borrowers
                party
                thereto, Victory Receivables Corporation, as lender (the “Lender”),
                and the Agent;

            

    

     

    
      	 	
              (3)
                

            	
              the
                Franchise Management Agreement, dated as of March 12, 2007 (as the
                same
                has been amended, modified or otherwise supplemented from time to
                time,
                the “AF
                Franchise Management Agreement”),
                by and between NexCen Franchise Management, Inc. (the “Franchise
                Manager”)
                and AF Brands;

            

    

     

    
      	 	
              (4)
                

            	
              the
                Issuer Management Agreement, dated as of March 12, 2007 (as the same
                has
                been amended, modified or otherwise supplemented from time to time,
                the
                “Issuer
                Management Agreement”),
                by and between the Franchise Manager and the
                Issuer;

            

    

     

    
      	 	
              (5)
                

            	
              the
                Amended and Restated Brand Management Agreement, dated as of May
                1, 2007
                (as the same has been amended, modified or otherwise supplemented
                from
                time to time, the “BB
                Brand Management Agreement”),
                by and among NexCen Brand Management, Inc. (the “Brand
                Manager”,
                together with the Issuer, the Agent, the Lender, the Co-Issuers and
                the
                Franchise Manager, the “Transaction
                Parties”),
                the Issuer, BBI and BBJ;

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (6)
                

            	
              the
                Amended and Restated Brand Management Agreement, dated as of August
                2,
                2007 (as the same has been amended, modified or otherwise supplemented
                from time to time, the “WV
                Brand Management Agreement”),
                by and between the Brand Manager and WV Brands;

            

    

     

    
      	 	
              (7)

            	
              the
                Amended and Restated Franchise Management Agreement, dated as of
                September
                7, 2007 (as the same has been amended, modified or otherwise supplemented
                from time to time, the “PT
                Franchise Management Agreement”),
                by and among the Franchise Manager, PT Brands and PT
                Franchising;

            

    

     

    
      	 	
              (8)

            	
              the
                Amended and Restated Franchise Management Agreement, dated as of
                September
                7, 2007 (as the same has been amended, modified or otherwise supplemented
                from time to time, the “PM
                Franchise Management Agreement”),
                by and among the Franchise Manager, PM Brands and PM
                Franchising;

            

    

     

    
      	 	
              (9)

            	
              the
                Amended and Restated Franchise Management Agreement, dated as of
                November
                8, 2007 (as the same has been amended, modified or otherwise supplemented
                from time to time, the “MS
                Franchise Management Agreement”),
                by and among the Franchise Manager, MS Brands and MS
                Franchising;

            

    

     

    
      	 	
              (10)

            	
              the
                Amended and Restated Franchise Management Agreement, dated as of
                November
                8, 2007 (as the same has been amended, modified or otherwise supplemented
                from time to time, the “MM
                Franchise Management Agreement”),
                by and among the Franchise Manager, MM Brands and MM Franchising;
                and

            

    

     

    
      	 	
              (11)

            	
              any
                other ancillary documents, agreements, supplements and/or certificates
                entered into or delivered in connection with the
                foregoing.

            

    

     

    RECITALS

     

    WHEREAS,
      the Transaction Parties agree to amend certain provisions of the
      Documents;

     

    NOW,
      THEREFORE, in consideration of the mutual promises hereinafter set forth, and
      for other good and adequate consideration, the receipt and sufficiency of which
      are hereby acknowledged, the Transaction Parties hereby agree as
      follows:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Section
      1.01. Defined
      Terms.

     

    Capitalized
      terms used but not defined or modified in this Amendment shall have the
      respective meanings assigned to them in the Standard Definitions attached as
      Annex A to each of the Documents, as amended by this Amendment (the
“Standard
      Definitions”).

     

    Section
      2.01. Amendments to the Standard Definitions.

     

    (a) The
      following definitions shall be added to the Standard Definitions:

     

    “Cost
      of Goods”:
      Shall
      mean the actual costs on a cash basis of ingredients, utilities and other direct
      and indirect costs incurred by GAC Manufacturing, LLC to provide Ancillary
      Products (as defined in the Manufacturing Agreement) or produce cookie dough
      to
      be sold to GAC Supply, LLC, but shall exclude any labor and employee benefit
      costs. For the avoidance of doubt, “Cost of Goods” shall not include any portion
      of the purchase price paid by franchisees that represents any margin, as
      determined by the Supply Manager in accordance with its customary policies
      and
      procedures. 

     

    “Factory
      Borrower”:
      Each
      of GAC Supply, LLC and GAC Manufacturing, LLC.

     

    “Factory
      Note”:
      That
      certain Note issued under the Security Agreement by the Issuer and the Factory
      Borrowers.

     

    “Factory
      and Supply Distributable Cash”:
      For
      each Factory Borrower and each Payment Date, the amount deposited into the
      Issuer Collection Account from such entity’s Co-Issuer Collection Account in
      accordance with Section 3.1.1. of the related Security Agreement
      Supplement.

     

    “Franchise
      Subsidiary Borrower Distributable Cash”:
      For
      each Franchise Subsidiary Borrower and each Payment Date, the amount deposited
      into the Issuer Collection Account from such Franchise Subsidiary’s Co-Issuer
      Collection Account in accordance with Section 3.1.1. of the related Security
      Agreement Supplement.

     

    “GAC
      Entities”:
      Shall
      mean GAC Franchise Brands, LLC, GAC Franchising, LLC, GAC Manufacturing, LLC
      and
      GAC Supply, LLC.

     

    “GAC
      Manufacturing Operating Account”:
      Shall
      mean the bank account of GAC Manufacturing, LLC at Bank of America, account
      number 004832054288.

     

    “Manufacturing
      Agreement”:
      That
      certain Manufacturing Agreement, dated as of January 29, 2008, between GAC
      Manufacturing, LLC and GAC Supply, LLC.

     

    “Restricted
      Vendor Supply Funds”:
      Shall
      mean funds provided under a Vendor Supply Arrangement (which may be up front
      fees), (a) with specific requirements for use of such funds or (b) otherwise
      Unrestricted Vendor Supply Funds for which the Agent grants its written consent
      to be treated as “Restricted Vendor Supply Funds”.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Security
      Deed”:
      That
      certain Deed to Secure Debt, Assignment of Rent, Leases and Profits, and
      Security Agreement, dated as of January 29, 2008, by GAC Manufacturing, LLC
      to
      the Agent, as agent for the Lender.

     

    “Subordinate
      Franchise Management Fee”:
      With
      respect to each Payment Date and each applicable Co-Issuer, and subject to
      the
      provisions of Section 2.2 of the applicable Management Agreement, an amount
      not
      to exceed the lesser of the sum for each Co-Issuer of (a) the actual Manager
      Costs incurred by the Franchise Manager for such Co-Issuer for the immediately
      preceding Collection Period less the Management Fees paid to the Franchise
      Manager in the then-current period and (b) the revenues received from such
      Co-Issuer during such Collection Period and deposited to the Issuer Collection
      Account pursuant to Section 3.1.1 of the applicable Security Agreement
      Supplement multiplied by that Subordinate Management Fee Percentage for such
      Co-Issuer as specified below or in Section 2.1 of the relevant Security
      Agreement Supplement; provided, however, that prior to the occurrence of a
      Manager Event of Default or a Manager Qualification Event (or an event which
      but
      for the giving of notice and/or lapse of time would result in a Manager Event
      of
      Default or Manager Qualification Event) with respect to any applicable
      Co-Issuer, the revenues received from such Co-Issuer during such Collection
      Period and deposited to the Issuer Collection Account pursuant to Section 3.1.1
      of the applicable Security Agreement Supplement multiplied by that Subordinate
      Management Fee Percentage for such Co-Issuer as specified below or in Section
      2.1 of the relevant Security Agreement Supplement shall be the amount paid
      to
      the Franchise Manager as its Subordinate Franchise Management Fee, subject
      to
      adjustment as necessary to result in the proper Subordinate Franchise Management
      Fee ultimately being paid in accordance with Section 2.2 of the applicable
      Management Agreement. With respect to Athlete’s Foot Brands, LLC, PT Franchise
      Brands, LLC, PT Franchising, LLC, PM Franchise Brands, LLC, PM Franchising,
      LLC,
      Marble Slab Franchise Brands, LLC, Marble Slab Franchising, LLC, MaggieMoo’s
      Franchise Brands, LLC and MaggieMoos’ Franchising, LLC, the Subordinate
      Management Fee Percentage shall be 10%. 

     

    “Supply
      and License Agreement”:
      That
      certain Supply and License Agreement, dated as of January 29, 2008, by and
      between GAC Supply, LLC and GAC Franchising, LLC.

     

    “Supply
      Manager”:
      NB
      Supply Management Corp., a wholly-owned subsidiary of NexCen Brands.

     

    “Supply
      Management Agreement”:
      Those
      certain management agreements entered into by and between the Supply Manager
      and
      the Factory Borrowers, satisfactory to the Agent.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Supply
      Management Fee”:
      Shall
      have the meaning set forth in the applicable Supply Management
      Agreement.

     

    “Unrestricted
      Vendor Supply Funds”:
      Shall
      mean funds provided under a Vendor Supply Arrangement with no specific
      requirements for the use of such funds.

     

    “Vendor
      Supply Arrangement”:
      Shall
      mean any arrangement, written or oral, which provides for the payment of funds
      in the forms of rebates or other similar payments from vendors who sell goods
      to
      Franchisees or Licensees based on purchases of products, supplies or services
      by
      Franchisees or Licensees of more than one Co-Issuer, including, but not limited
      to, volume based products rebates, pouring rights arrangements and payments
      for
      promotion of a vendor’s products, supplies or services.

     

    (b) The
      following definitions shall be amended by deleting the current definitions
      and
      replacing the same in their entirety as follows:

     

    “Management
      Agreement”:
      The
      Issuer Management Agreement, Brand Management Agreement, the Supply Management
      Agreement and/or the Franchise Management Agreement, as the context may
      require.

     

    “Management
      Fee”:
      Any of
      the Brand Management Fee, the Franchise Management Fee or the Supply Management
      Fee, as applicable.

     

    “Manager”:
      The
      Franchise Manager, the Brand Manager, the Supply Manager and/or the Issuer
      Manager, as the case may be.

     

    “Manager
      Costs”:
      With
      respect to a Management Agreement (other than a Supply Management Agreement,
      or,
      in the case of the Pretzel Entities, with respect to the Pretzel Management
      Agreements, or in the case of the Ice Cream Entities, with respect to the Ice
      Cream Management Agreements) all expenses incurred by the Brand Manager or
      the
      Franchise Manager, as the case may be, (other than Manager Expenses) to enhance
      the value of the Assets, to market, develop and exploit the Trademarks, to
      develop and enter into new Licenses and service and collect all Licenses and
      other similar activities, including collection, accounting and tax services
      whether performed directly or by third parties, all as specified in reasonable
      detail in the applicable Manager’s financial statements delivered pursuant to
      Section 6.1(a) of the applicable Management Agreement. With respect to the
      Factory Borrowers and their Supply Management Agreements, all expenses incurred
      by the Supply Manager to enhance the value of the Manufacturing Assets or the
      Supply Assets (each as defined in the applicable Supply Management Agreement),
      as the case may be, to service and collect all agreements and other similar
      activities, including collection, accounting and tax services whether performed
      directly or by third parties, all as specified in reasonable detail in the
      Supply Manager’s financial statements delivered pursuant to Section 6.1(a) of
      the applicable Supply Management Agreement. 

     

    “Maximum
      Facility Balance”:
      $181,000,000.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Note
      Co-Issuer DSCR”: With
      respect to any Payment Date and any Co-Issuer, the ratio of the Rolling 6 Month
      Revenues (not on an aggregate basis but solely with respect to the revenues
      of
      such Note Co-Issuer) to the Debt Service Amounts (not on an aggregate basis
      but
      solely with respect to such Co-Issuer's allocable portion of the amounts payable
      pursuant to Sections 14.1(iv) and (v) of the Security Agreement on such Payment
      Date) for such Payment Date and the most recently preceding Payment Date;
provided,
      however,
      that in
      the case of the Pretzel Entities, the Note Co-Issuer DSCR shall be calculated
      by
      aggregating Rolling 6 Month Revenues and Debt Service Amounts for all Pretzel
      Entities; provided,
      further,
      that in
      the case of the Ice Cream Entities, the Note Co-Issuer DSCR shall be calculated
      by aggregating Rolling 6 Month Revenues and Debt Service Amounts for all Ice
      Cream Entities; provided,
      further,
      that in
      the case of the GAC Entities, the Note Co-Issuer DSCR shall be calculated by
      aggregating Rolling 6 Month Revenues and Debt Service Amounts for all GAC
      Entities.

     

    “Note
      Co-Issuer DSCR Test”:
      With
      respect to any Co-Issuer, a test that is satisfied if (1) with respect to a
      Note
      Co-Issuer that is a Franchise Subsidiary Borrower, the Note Co-Issuer DSCR
      is at
      least 1.15:1.00 and (2) with respect to a Note Co-Issuer that is a Brand
      Subsidiary Borrower, the Note Co-Issuer DSCR is at least 1.20:1.00; provided,
      that if
      a Co-Issuer is a Pretzel Entity, then a test that is satisfied if the Note
      Co-Issuer DSCR with respect to all of the Pretzel Entities is at least
      1.15:1.00; provided,
      further,
      that if
      a Co-Issuer is an Ice Cream Entity, then a test that is satisfied if the Note
      Co-Issuer DSCR with respect to all of the Ice Cream Entities is at least
      1.15:1.00; provided,
      further,
      that if
      a Co-Issuer is a GAC Entity, then a test that is satisfied if the Note Co-Issuer
      DSCR with respect to all of the GAC Entities is at least 1.15:1.00.

     

    “Note
      Interest Rate Margin”:
      With
      respect to any Note (other than the Factory Note), prior to an Event of Default,
      if the Total Debt Leverage Ratio is i) greater than or equal to 5.00:1.00, 3.00%
      per annum; ii) less than 5.00:1.00 and greater than or equal to 4.50:1.00,
      2.65%
      per annum; iii) less than 4.50:1.00 and greater than or equal to 3.50:1.00,
      2.40% per annum; iv) less than 3.50:1.00 and greater than or equal to 2.50:1.00,
      2.15% per annum; v) less than 2.50:1.00 and greater than or equal to 2.00:1.00,
      1.75% per annum; and vi) less than 2.00:1.00, 1.50% per annum. For three months
      following the initial Funding Date, the Note Interest Rate Margin shall equal
      2.65% per annum; except that (x) for the Note issued by the Issuer, GAC
      Franchise Brands, LLC and GAC Franchising, LLC, the Note Interest Rate Margin
      shall equal 3.00% per annum until the date occurring six months following the
      date of issuance, which date is July 29, 2008, and (y) for the Factory Note,
      the
      Note Interest Rate Margin shall equal 3.50% per annum at all times in the
      absence of an Event of Default. Notwithstanding the foregoing, following an
      Event of Default, for all Notes, the Note Interest Rate Margin shall equal
      4.50%
      per annum,.

     

    “Note
      Principal Payment”:
      With
      respect to each Payment Date and each Note, the amount of principal then due
      as
      set forth under the heading “Principal” on a Schedule to such Note, plus all
      amounts remaining in the Issuer Collection Account after distributions described
      in clauses (i) - (v) of Section 14.1(a) of the Security Agreement have been
      made
      with respect to any Receivables deposited into the Issuer Collection Account
      in
      the related Collection Period derived from a Material License Agreement securing
      such Note as to which a Renewal Trigger Event has occurred; provided,
      however,
      that
      with respect to the Factory Note, the amount of principal due as set forth
      under
      the heading “Principal” on the Schedule to the Factory Note shall be reduced by
      an amount equal to payments made pursuant to Section 14.1(a)(vii) on the
      previous Payment Date. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Release
      Event”:
      With
      respect to any particular Asset, any representation as to such Asset in Section
      12.12 of the Security Agreement or in the Security Deed, if applicable, shall
      prove to have been incorrect as of the time made and, as a result thereof,
      the
      interests of the Agent shall be adversely affected as determined by the Agent
      in
      its reasonable discretion. 

     

    “Rolling
      6 Month Revenue”:
      With
      respect to any Payment Date or other date of determination, and without
      duplication, the sum of the Collection Period Revenues for the two most recently
      ending Collection Periods as of such date, less
      the sum
      of the aggregate amounts payable pursuant to Sections 14.1(a)(i) and (ii) of
      the
      Security Agreement on such Payment Date and the immediately prior Payment Date,
      provided,
      however,
      if
      there are no Collection Period Revenues for two Collection Periods, then the
      Rolling 6 Month Revenue shall be determined using the actual revenues for the
      previous 6 months, and if actual revenues are not available, the Rolling 6
      Month
      Revenue shall be determined using a pro forma calculation, reasonably acceptable
      to the Agent, based on actual revenues available. 

     

    “Transaction
      Documents”:
      The
      collective reference to the Note Funding Agreement, the Security Agreement,
      the
      Security Agreement Supplements, the Security Deed, the Notes, the Management
      Agreements, the Hedge Agreements, the Indemnity Agreement, the Contribution
      Agreement, the Advisory Agreement, the Manufacturing Agreement, the Supply
      and
      License Agreement, any blocked account agreement and other facility documents
      to
      which the Issuer, any Co-Issuer, NexCen Brands or Manager is a
      party.

     

    (c) The
      following Standard Definitions are hereby amended as follows:

     

    (i) the
      definition of “Borrowing Base” is amended by replacing “$150,000,000” with “the
      Maximum Facility Balance”;

     

    (ii) the
      definition of “Incentive Management Fee” is amended by replacing “Section
      14.1(a)(x) or Section 14.1(d)(x)(i)” with “Section 14(a)(xiii) or Section
      14(d)(xiii)”;

     

    (iii) the
      definition of “Manage” is amended by adding the text “operate” immediately after
      the world “lease”;

     

    (iv) the
      definition of “Release Date” is amended by adding the text “and/or the Security
      Deed, as applicable,” immediately after the text “the Security Agreement”;
      and

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (v) the
      definition of “Total Debt Leverage” is amended by replacing “14.1(a)(xi)” with
“14.1(a)(xiv) or 14.1(d)(xiv), as applicable”.

     

    Section
      2.02. Amendments to Security Agreement and Security Agreement
      Supplements.

     

    (a) Section
      3.1 of the Security Agreement is hereby amended by deleting the reference to
      “$150,000,000” and replacing the same with “the Maximum Facility
      Balance”.

     

    (b) Section
      4.1 of the Security Agreement is hereby amended by inserting “or such other form
      approved by the Agent” after the words “in the form attached as Exhibit
      D
      hereto.

     

    (c) Section
      6.1(7) of the Security Agreement is hereby amended by adding, immediately
      following the test “in this Security Agreement” the text “or in the Security
      Deed, if applicable,”

     

    (d) Section
      12.4(a)(iv) of the Security Agreement is hereby amended by adding the following
      to the end of the subsection: “, except as previously disclosed in writing to,
      and consented to, by the Agent”.

     

    (e) Section
      12.4(a)(viii) of the Security Agreement is hereby amended by adding the
      following to the end of the subsection: “, except as expressly permitted in the
      Security Deed for the Co-Issuer party thereto”.

     

    (f) Section
      12.4(a)(xiv) of the Security Agreement is hereby amended by inserting the
      following at the end of such subsection: “provided, further, that such consent
      of the Agent shall not required for GAC Manufacturing, LLC to enter into any
      reasonable agreement or instrument in connection with the purchase of goods
      and
      raw materials in the ordinary course of GAC Manufacturing, LLC’s
      business”.

     

    (g) Section
      12.4(a) of the Security Agreement Supplement is hereby amended by adding the
      following new Section 12.4(a)(xvi):

     

    “(xvi) be
      party
      to any Vendor Supply Arrangement.”

     

    (h) Section
      12.4(b) of the Security Agreement is hereby amended by adding the following
      new
      Section 12.4(b)(xvii):

     

    “(xvii) be
      party
      to any Vendor Supply Arrangement that would impose any liability or obligations
      on the Issuer whatsoever without the prior written consent of the Agent (such
      consent not to be unreasonably withheld), unless such liability or obligation
      is
      the application of funds that the related counterparty provided in full in
      accordance with such Vendor Supply Arrangement.”

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (i) Section
      12.9(a) of the Security Agreement is hereby amended by adding the following
      to
      the end of the subsection: “, except as expressly permitted in the Security Deed
      for the Co-Issuer party thereto”.

     

    (j) Section
      12.9(g) of the Security Agreement is hereby amended by adding the following
      to
      the end of such subsection: “, except as expressly permitted in the Security
      Deed for the Co-Issuer party thereto”.

     

      (k) Section
      12.9(dd) of the Security Agreement is hereby amended by adding the following
      to
      the end of such subsection: “, except as expressly permitted in the Security
      Deed for the Co-Issuer party thereto”.

     

    (l) Section
      12.10 of the Security Agreement is hereby amended by adding the following new
      Section 12.10(u) thereto:

     

    “(u) The
      Issuer shall enter into each Vendor Supply Arrangement that the Issuer Manager,
      on its behalf, deems beneficial to the conduct of the business of any
      Co-Issuer.”

     

    (m) The
      Security Agreement is hereby amended by adding the following new Section 12.16
      thereto:

     

    “Section
      12.16  Vendor
      Supply Arrangements.
      

     

    The
      Issuer or the Issuer Manager on its behalf shall allocate Restricted Vendor
      Supply Funds to each relevant Co-Issuer in accordance with the applicable
      requirements or restrictions. Each Co-Issuer or the appropriate Manager shall,
      in turn, apply such Restricted Vendor Supply Funds, including the reallocation
      of such funds to franchisees and licensees for their use of such funds, if
      required, in accordance with the applicable requirements or restrictions. To
      the
      extent that such Restricted Vendor Supply Funds are required to be allocated
      to
      more than one Co-Issuer, the Issuer shall allocate such funds among the relevant
      Co-Issuers in accordance with each such Co-Issuer’s pro rata consumption, or its
      franchisees or licensees pro rata consumption, as applicable, of the related
      products, supplies or services determined based on aggregate sales thereof
      per
      annum. The Issuer shall deposit all Unrestricted Vendor Supply Funds into the
      applicable Franchise Subsidiary’s Co-Issuer Collection Account within two
      Business Days after the receipt of such funds pro rata in accordance with each
      such Co-Issuer’s pro rata consumption, or its franchisees’ or licensees’ pro
      rata consumption, as applicable, of the related products, supplies or services
      determined based on aggregate sales thereof per annum.”

     

    (n) Section
      13.1 of the Security Agreement is hereby amended by adding the following at
      the
      end of the first parenthetical in the first sentence therein: “and (iv) with
      respect to the Co-Issuer Account in the name of GAC Manufacturing, LLC and
      so
      long as the Manufacturing Agreement is in full force and effect, to the GAC
      Manufacturing Operating Account to reimburse GAC Manufacturing, LLC for Costs
      of
      Goods and (v) with respect to each Co-Issuer Account to which Restricted Vendor
      Supply Funds are allocated by the Issuer or the Issuer Manager on its behalf,
      to
      apply such funds in accordance with Section
      12.16.”
      

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (o) Section
      14.1(a) of the Security Agreement is hereby amended by deleting Section 14.1(a)
      in its entirety and replacing the same with the following:

     

    “(a) On
      each
      Payment Date, prior to a Deal Rapid Amortization Event, Wilmington Trust
      Company, shall, pursuant to the Manager Report (or if one is not timely
      provided, then at the direction of the Agent), withdraw funds from the Issuer
      Collection Account, and pay the following amounts from such funds in the
      following order of priority, in all cases to the extent of the Distributable
      Cash in the Issuer Collection Account on such Payment Date:

     

    (i) to
      the
      appropriate financial institutions, all fees and expenses charged in connection
      with its maintenance of the Issuer Collection Account, all Co-Issuer Collection
      Accounts and any other accounts provided for under the Transaction Documents
      not
      to exceed $20,000.00 per annum;

     

    (ii) to
      each
      Manager, the applicable Management Fee and, to the extent not previously
      distributed, the applicable Management Fee due on each prior Payment
      Date;

     

    (iii) to
      the
      Agent for distribution to the Noteholders, payment of all indemnity payments
      and
      reasonable out-of-pocket costs and expenses incurred in connection with the
      enforcement of its rights hereunder or under the Notes, ratably, without
      preference or priority of any kind;

     

    (iv) to
      the
      Agent for distribution to the Noteholders, interest accrued on the Notes for
      the
      related Interest Period plus any accrued interest thereon remaining unpaid
      from
      any previous Interest Period, and interest on such overdue interest to the
      date
      such payment is made, at the Note Interest Rate, but only to the extent that
      payment of such interest on interest shall be legally enforceable;

     

    (v) to
      the
      Agent for distribution to the Noteholders, the Note Principal Payment for such
      Payment Date in reduction of the Note Principal Balance of the Notes; provided
      that, if a Note Co-Issuer Rapid Amortization Event has occurred, all remaining
      Distributable Cash allocable to such Note Co-Issuer shall be distributed to
      the
      Noteholders until the Outstanding Note Balance of such Note Co-Issuer's Note
      has
      been paid in full;

     

    (vi) to
      the
      Franchise Manager, the applicable Subordinate Franchise Management
      Fee;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (vii) to
      the
      Agent for distribution to the Noteholders of the Factory Note if the Factory
      Note is outstanding, an amount (not to exceed the current principal balance
      of
      the Factory Note) up to the aggregate Franchise Subsidiary Borrower’s
      Distributable Cash and the Factory and Supply Distributable Cash after the
      distributions in clauses (i) - (vi) above;

     

    (viii) to
      the
      Issuer, payment of all reasonable costs and expenses incurred by any Co-Issuer,
      including legal expenses in connection with the enforcement of its rights
      directly incurred by any such Co-Issuer;

     

    (ix) to
      the
      Franchise Subsidiary Borrowers and the Factory Borrowers, an amount to cover
      each Franchise Subsidiary Borrower’s and each Factory Borrower’s state, local
      and property taxes;

     

    (x) to
      any
      Hedge Counterparty, all amounts due pursuant to the related Hedge
      Agreement;

     

    (xi) to
      each
      Indemnified Party, pro rata, any Secured Obligations (not otherwise provided
      for
      specifically above) owed to it;

     

    (xii) to
      the
      Issuer, the fee due it pursuant to the Advisory Agreement;

     

    (xiii) pro
      rata
      to: (A) the Brand Manager, the Incentive Management Fee in an amount equal
      to
      the sum of (1) 50% of the first $500,000 and (2) 75% of each $1.00 above
      $500,000 of Brand Subsidiary Borrowers Distributable Cash available after the
      distributions are made pursuant to clauses (i)-(xii) above, plus any amount
      to
      which the Brand Manager is entitled pursuant to the provisions of Section 2.2
      of
      the applicable Management Agreement and (B) the Franchise Manager, the Incentive
      Management Fee in an amount equal to the sum of (1) 50% of the first $500,000
      and (2) 75% of each $1.00 above $500,000 of Franchise Subsidiary Borrowers
      Distributable Cash available after the distributions are made pursuant to
      clauses (i)-(xii) above, plus any amount to which the Franchise Manager is
      entitled pursuant to the provisions of Section 2.2 of the applicable Management
      Agreement; 

     

    (xiv) to
      the
      Managers, an amount sufficient to reimburse the Managers for any advertising
      expenses incurred by it on behalf of a Co-Issuer and not previously reimbursed
      hereunder; 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (xv) to
      the
      Issuer Manager, the Issuer Management Fee and, to the extent not previously
      distributed, the Issuer Management Fee due on each prior Payment Date;
      and

     

    (xvi) to
      the
      Issuer or such party as the Issuer may direct, all remaining Distributable
      Cash.”

     

    (p) Section
      14.1(d) of the Security Agreement is hereby amended by deleting Section 14.1(d)
      in its entirety and replacing the same with the following:

     

    “(d) On
      each
      Payment Date, subsequent to a Deal Rapid Amortization Event, Wilmington Trust
      Company, shall, upon direction of the Agent withdraw funds from the Issuer
      Collection Account and pay the following amounts from such funds in the
      following order of priority in all cases to the extent of the remaining
      Distributable Cash in the Issuer Collection Account on such Payment
      Date:

     

    (i) to
      the
      appropriate financial institutions, all fees and expenses charged in connection
      with its maintenance of the Issuer Collection Account, all Co-Issuer Collection
      Accounts and any other accounts provided for under the Transaction Documents
      not
      to exceed $20,000.00 per annum;

     

    (ii) to
      each
      Manager, the applicable Management Fee and, to the extent not previously
      distributed, the applicable Management Fee due on each prior Payment
      Date;

     

    (iii) to
      the
      Agent for distribution to the Noteholders, payment of all indemnity payments
      and
      reasonable costs and expenses incurred in connection with the enforcement of
      its
      rights hereunder or under the Notes, ratably, without preference or priority
      of
      any kind;

     

    (iv) to
      the
      Agent for distribution to the Noteholders, interest accrued on the Notes for
      the
      related Interest Period plus any accrued interest thereon remaining unpaid
      from
      any previous Interest Period, and interest on such overdue interest to the
      date
      such payment is made, at the Note Interest Rate, but only to the extent that
      payment of such interest on interest shall be legally enforceable;

     

    (v) to
      the
      Agent for distribution to the Noteholders, the Note Principal Payment for such
      Payment Date in reduction of the Note Principal Balance of the
      Notes;

     

    (vi) to
      the
      Agent for distribution to the Noteholders, all remaining Distributable Cash
      until the Outstanding Note Balance has been paid in full;

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (vii) to
      the
      Franchise Manager, the applicable Subordinate Franchise Management
      Fees;

     

    (viii) to
      the
      Franchise Subsidiary Borrowers and the Factory Borrowers, an amount to cover
      each Franchise Subsidiary Borrower’s and each Factory Borrower’s state, local
      and property taxes;

     

    (ix) to
      any
      Hedge Counterparty, all amounts due pursuant to the related Hedge
      Agreement;

     

    (x) to
      each
      Indemnified Party, pro rata, any Secured Obligations (not otherwise provided
      for
      specifically above) owed to it;

     

    (xi) to
      the
      Issuer, payment of all reasonable costs and expenses incurred by any Co-Issuer
      relating to legal expenses in connection with the enforcement of its rights
      directly incurred by such Co-Issuer;

     

    (xii) to
      the
      Issuer, the fee due it pursuant to the Advisory Agreement;

     

    (xiii) pro
      rata
      to: (A) the Brand Manager, the Incentive Management Fee in an amount equal
      to
      the sum of (1) 50% of the first $500,000 and (2) 75% of each $1.00 above
      $500,000 of Brand Subsidiary Borrowers Distributable Cash available after the
      distributions are made pursuant to clauses (i)-(xii) above, plus any amount
      to
      which the Brand Manager is entitled pursuant to the provisions of Section 2.2
      of
      the applicable Management Agreement and (B) the Franchise Manager, the Incentive
      Management Fee in an amount equal to the sum of (1) 50% of the first $500,000
      and (2) 75% of each $1.00 above $500,000 of Franchise Subsidiary Borrowers
      Distributable Cash available after the distributions are made pursuant to
      clauses (i)-(xii) above, plus any amount to which the Franchise Manager is
      entitled pursuant to the provisions of Section 2.2 of the applicable Management
      Agreement;

     

    (xiv) to
      the
      Manager, an amount sufficient to reimburse the Manager for any advertising
      expenses incurred by it on behalf of a Co-Issuer and not previously reimbursed
      hereunder; and

     

    (xv) to
      the
      Issuer Manager, the Issuer Management Fee and, to the extent not previously
      distributed, the Issuer Management Fee due on each prior Payment Date;
      and

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (xvi) to
      the
      Issuer or such party as the Issuer may direct, all remaining Distributable
      Cash.

     

    (q) Section
      3.9(a) of that certain Security Agreement Supplement, dated as of May 1, 2007
      (the “BB
      Supplement”),
      by
      and among the Issuer, BBJ, BBI and the Agent, is hereby amended by:

     

    (i) deleting
      the reference to “Section 14.1(a)(i) - (ix)” on the third line thereof and
      replacing it with “Section 14.1(a)(i) - (xii)”;

     

    (ii) deleting
      the reference to “Section 14.1(a)(i) - (viii)” on the fifth and sixth lines
      thereof and replacing it with “Section 14.1(a)(i) - (xi)”; and

     

    (iii) deleting
      the reference to “Section 14.1(d)(i) - (ix)” on the sixth line thereof and
      replacing it with “Section 14.1(d)(i) - (xi)”.

     

    (r) Section
      3.9(b) of the BB Supplement is hereby amended by deleting the reference to
      “Section 14.1(a)(i) - (ix)” on the second line thereof and replacing it with
“Section 14.1(a)(i) - (xii)”.

     

    (s)
       Section
      3.2 of each Security Agreement Supplement is hereby amended by deleting “funds
      on deposit in the Co-Issuer Lockbox Account, if any, at the end of each Business
      Day” in the last sentence thereof and replacing the same with “funds on deposit
      in the Co-Issuer Lockbox Account in excess of $10,000, if any, at the end of
      each Business Day, but for the avoidance of doubt, amounts not in excess of
      $10,000 remain part of the Collateral”. 

     

    (t) 
      Section
      2.1 of the Security Agreement Supplement, dated as of March 14, 2007, by and
      among the Issuer, AF Brands and the Agent is hereby amended by deleting the
      reference to “40%” and replacing the same with “30%”.

     

    (u) Section
      2.1 of each of the Security Agreement Supplement, dated as of September 7,
      2007,
      by and among the Issuer, PT Brands, PT Franchising and the Agent, the Security
      Agreement Supplement, dated as of September 7, 2007, by and among the Issuer,
      PM
      Brands, PM Franchising and the Agent, the Security Agreement Supplement, dated
      as of November 8, 2007, by and among the Issuer, MS Brands, MS Franchising
      and
      the Agent and the Security Agreement Supplement, dated as of November 8, 2007,
      by and among the Issuer, MM Brands, MM Franchising and the Agent, is hereby
      amended by deleting the reference to “40%” and replacing the same with “30%” and
      deleting the reference to “36%” and replacing the same with “27%”.

     

    Section
      2.03. Amendment to Note Funding Agreement

     

    Section
      2.1(d) of the Note Funding Agreement is hereby amended by deleting the reference
      to “$150,000,000” and replacing the same with “the Maximum Facility
      Balance”.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Section
      3.01.  References
      in all Documents.

     

    The
      parties hereto agree that any reference to the Standard Definitions in each
      of
      the other Transaction Documents shall now refer to the Standard Definitions
      as
      amended herein. To the extent any Transaction Document contains a provision
      that
      conflicts with the intent of this Amendment, the parties hereby agree that
      the
      provisions herein shall govern.

     

    Section
      4.01. Counterparts.

     

    This
      Amendment may be executed (by facsimile or otherwise) in any number of
      counterparts, each of which counterparts shall be deemed to be an original,
      and
      such counterparts shall constitute but one and the same instrument.

     

    Section
      4.02. Governing
      Law.

     

    THIS
      AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT
      SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
      LAW
      OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF
      LAW
      OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE
      STATE OF NEW YORK.

     

    Section
      4.03. Severability
      of Provisions.

     

    Any
      provisions of this Amendment which are prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provisions in
      any
      other jurisdiction. 

     

    Section
      4.04. Continuing
      Effect.

     

    Except
      as
      expressly amended hereby, each Transaction Document shall continue in full
      force
      and effect in accordance with the provisions thereof and each Transaction
      Document is in all respects hereby ratified, confirmed and preserved.

     

    Section
      4.05. Successors
      and Assigns.

     

    This
      Amendment shall be binding upon and inure to the benefit of the Transaction
      Parties and their respective successors and permitted assigns, except that
      neither the Issuer nor any Co-Issuer may assign or transfer any of their
      respective rights or obligations under this Amendment except as provided herein
      and in the Security Agreement without the prior written consent of the
      Agent.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Section
      4.06. Franchise
      Subsidiary Borrowers.

     

    As
      of the
      date hereof, after giving effect to all transactions contemplated on the date
      hereof, the Franchise Subsidiary Borrowers are the Pretzel Entities, the Ice
      Cream Entities, Athlete’s Foot Brands, LLC, GAC Franchise Brands, LLC and GAC
      Franchising, LLC.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties below have caused this Amendment to be duly
      executed by their respective duly authorized officers.

    

    
      	 	
              NEXCEN
                HOLDING CORPORATION

            
	 	 
	 	
              By: 
                 /s/ David B. Meister

            
	 	
              
                
                  

                

              

              Name:
                David B. Meister

            
	 	
              Title:
                Secretary

            
	 	 
	 	 
	 	
              BTMU
                CAPITAL CORPORATION, as Agent

            
	 	 
	 	
              By: 
                 /s/ Cheryl A. Behan

            
	 	
              
                
                  

                
Name:
                Cheryl A. Behan

            
	 	
              Title:
                Senior Vice President

            
	 	 
	 	 
	 	
              VICTORY
                RECEIVABLES CORPORATION, as Lender

            
	 	 
	 	
              By: 
                 /s/ Franklin P. Collazo

            
	 	
              
                
                  

                

              

              Name:
                Franklin P. Collazo

            
	 	
              Title:
                Secretary

            
	 	 
	 	 
	 	
              NEXCEN
                FRANCHISE MANAGEMENT, INC. 

            
	 	 
	 	
              By: 
                 /s/ David B. Meister

            
	 	
              
                
                  

                
Name:
                David B. Meister

            
	 	
              Title:
                Secretary

            
	 	 
	 	 
	 	
              NEXCEN
                BRAND MANAGEMENT, INC.

            
	 	 
	 	
              By: 
                 /s/ David B. Meister

            
	 	
              
                
                  

                
Name:
                David B. Meister

            
	 	
              Title:
                Vice President

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    
      	 	
              ATHLETE’S
                FOOT BRANDS, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              BILL
                BLASS JEANS, LLC

            
	 	 
	 	
              By: 
                NexCen Holding Corporation, its Managing 

            
	 	
              Member

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              BILL
                BLASS INTERNATIONAL, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              WV
                IP HOLDINGS, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              PT
                FRANCHISE BRANDS, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              PT
                FRANCHISING, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            

    

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	 	
              PM
                FRANCHISE BRANDS, LLC

            
	 	 
	 	
              By: 
                 /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              PM
                FRANCHISING, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              MS
                FRANCHISE BRANDS, LLC

            
	 	 
	 	
              By: 
                 /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              MS
                FRANCHISING, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              MM
                FRANCHISE BRANDS, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            
	 	 
	 	 
	 	
              MM
                FRANCHISING, LLC

            
	 	 
	 	
              By:  
                /s/ James Haran

            
	 	
              
                
                  

                
Name:
                James Haran

            
	 	
              Title:
                Vice President

            

    

    

    
      
        
        

      

      
        19THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED
      OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
      APPLICABLE STATE SECURITIES LAWS OR QUANTRX BIOMEDICAL CORPORATION SHALL HAVE
      RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER
      THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
      LAWS
      IS NOT REQUIRED.

    

      QUANTRX
        BIOMEDICAL
        CORPORATION

    

    

    Senior
      Secured Convertible Promissory Note

    

      
        	
                U.S.
                  $1,407,246.58

              	 	
                Issuance
                  Date: January 23, 2008

              
	
                No.:

              	 	
                Maturity
                  Date: January 23,
                  2009

              

      

    

     

    FOR
      VALUE RECEIVED,
      the
      undersigned, QuantRx Biomedical Corporation, a Nevada corporation (the
“Company”),
      hereby promises to pay to the order of Platinum Long Term Growth VII LLC, or
      any
      future permitted holder of this Senior Secured Convertible Promissory Note
      (the
“Payee”),
      at
      the principal office of the Payee set forth herein, or at such other place
      as
      the holder may designate in writing to the Company, the principal sum of One
      Million Four Hundred and Seven Thousand Two Hundred Forty Six Dollars and
      Fifty-Eight Cents ($1,407,246.58) or such other amount as may be outstanding
      hereunder, together with all accrued but unpaid interest, in such coin or
      currency of the United States of America as at the time shall be legal tender
      for the payment of public and private debts and in immediately available funds,
      as provided in this Senior Secured Convertible Promissory Note (this
“Note”).
      

    

    1. Automatic
      Exchange of Principal and Interest into Qualified Financing.
       The
      outstanding principal amount of this Note together with all accrued but unpaid
      interest hereunder (the “Outstanding
      Balance”),
      shall
      automatically, without any action on the part of the Payee or the Company be
      exchanged into securities issued in an Equity Financing (as defined below)
      or a
      combination of Equity Financings following the Issuance Date with gross proceeds
      totaling at least $5,660,000 (the “Qualified
      Financing”);
      provided,
      however,
      such
      $5,660,000 shall be reduced by the principal amount represented by this Note
      and
      the Other Notes (as defined below) up to an aggregate maximum (together with
      this Note) of $2,250,000 issued by the Company; provided,
      further,
      that
      for purposes of determining the number of equity
      securities, including warrants issued in such Qualified Financing,
      to be
      received by the Payee upon such exchange, the Payee shall be deemed to have
      tendered 115% of the Outstanding Balance of this Note as payment of the purchase
      price in the Qualified Financing. Upon such exchange pursuant to a Qualified
      Financing, the Payee shall be deemed to be a purchaser in such Qualified
      Financing and shall be granted all material rights afforded a purchaser in
      the
      Qualified Financing. For purposes of this Note, “Equity
      Financing”
shall
      mean the issuance and sale by the Company of its equity securities, or
      securities convertible into its equity securities, the primary purpose of which
      is to raise capital for the Company, provided, however, that an Equity Financing
      shall not be deemed to include the following issuances: (1) shares of common
      stock issuable or issued to employees, independent contractors, consultants,
      directors or vendors of this Company directly or pursuant to a stock option
      plan, restricted stock plan or other agreement approved by the Board of
      Directors of this Company; (2) shares of common stock issued for the purpose
      of
      (I) a joint venture, technology licensing or research and development activity,
      (II) distribution or manufacture of the Company’s products or services, or (III)
      any other transaction involving a corporate partner that is primarily for a
      purpose other than raising capital through the sale of equity securities; (3)
      shares of common stock issuable upon conversion of shares of preferred stock;
      (4) securities issued for the acquisition of another corporation by the Company
      by merger, purchase of substantially all of the assets of such corporation
      or
      other reorganization; (5) securities issued as a dividend or distribution on
      preferred stock; (6) securities issued as a dividend on common stock where
      the
      Company declares or pays a common stock dividend on the preferred stock in
      the
      same manner as declared or paid on the common stock; (7) shares of common stock
      issuable or shares of preferred stock issuable upon conversion or exercise
      of
      options, warrants, notes or other securities or rights granted pursuant to
      a
      loan or commercial lease transaction; or (8) by way of dividend or other
      distribution on shares of common stock excluded from the definition of
      additional stock by the foregoing clauses (1), (2), (3), (4), (5), (6), (7),
      or
      this clause (8). Notwithstanding the above, the Company shall give the Payee
      at
      least 10 business days’ prior written notice of a Qualified Financing and shall
      honor all Conversion Notices delivered by the Payee prior to the date of such
      Qualified Financing. If a Qualified Financing is comprised of a combination
      of
      Equity Financings, the Payee may elect the Equity Financing into which the
      Outstanding Balance automatically converts, provided that such Equity Financing
      has gross proceeds totaling at least $1 million (exclusive of the conversion
      of
      the Outstanding Balance). Notwithstanding anything to the contrary contained
      herein, the Platinum Follow-On Investment and the issuance of the Other Notes
      shall not be deemed to be an Equity Financing hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Voluntary
      Conversion of Principal and Interest.
      Subject
      to the terms of this Section 2, the Payee shall have the right, prior to the
      Maturity Date, at the Payee’s sole option, to convert the Outstanding Balance
      (the “Conversion
      Option”)
      into
      such number of fully paid and non-assessable shares of the Company’s common
      stock (the “Conversion
      Shares”)
      as is
      determined in accordance with the following formula: the Outstanding Balance
      divided
      by
      $0.50
      (the “Conversion
      Price”).
      If
      the Payee desires to exercise the Conversion Option, the Payee shall, by
      personal delivery or nationally-recognized overnight carrier, surrender the
      original of this Note and give written notice to the Company (the “Conversion
      Notice”),
      which
      Conversion Notice shall (a) state the Payee’s election to exercise the
      Conversion Option, and (b) provide for a representation and warranty
      of the Payee to the Company that, as of the date of the Conversion Notice,
      the
      Payee has not assigned or otherwise transferred all or any portion of the
      Payee’s rights under this Note to any third parties. The Company shall, as soon
      as practicable thereafter, but in no event greater than seven (7) business
      days,
      issue and deliver to the Payee the number of Conversion Shares to which the
      Payee shall be entitled upon exercise of the Conversion Option. 

     

    3. Mandatory
      Conversion of Principal and Interest.
      Subject
      to an effective registration statement covering all of the Conversion Shares,
      if
      the closing bid price of the Company's common stock is equal to or greater
      than
      250% of the Conversion Price for ten (10) consecutive trading days, then the
      Outstanding Balance shall be automatically converted, without any action on
      the
      part of the Payee or the Company, into Conversion Shares as is determined in
      accordance with the following formula: the Outstanding Balance divided
      by
      the
      Conversion Price.

     

    4. Seniority
      and Ranking; Covenants.
      This
      Note shall rank senior to the Company’s currently issued and outstanding
      indebtedness and equity securities; provided, however, this Note shall rank
      pari-passu with respect to certain other senior secured convertible promissory
      notes of the Company of like tenor herewith and on substantially the same terms
      hereof (including, without limitation, with respect to conversion price) (the
      “Other
      Notes”),
      in an
      aggregate principal amount not to exceed $2,250,000, inclusive of this Note
      and
      excluding the PIK Notes (as defined below in Section 5(b)) (this Note together
      with the Other Notes and the PIK Notes shall be referred to as the “Notes”).
      The
      Company may not issue any new indebtedness while at least 50% of the original
      principal amount of the issued Notes in the aggregate remain outstanding, other
      than the PIK Notes, the Other Notes and indebtedness incurred in the ordinary
      course of business, without the consent of the holders of at least 75% of the
      principal amount of the then outstanding Notes. Further, the Company agrees
      that, for so long as this Note is outstanding, without the consent of the
      holders of at least 75% of the principal amount of the then outstanding
      Notes:

     

    (a) the
      Company shall not enter into, create, incur, assume or suffer to exist any
      liens, security interests, charges, claims or other encumbrances of any kind
      (collectively, “Liens”) on or with respect to any of its assets now owned or
      hereafter acquired or any interest therein or any income or profits therefrom
      other than (i) Liens for taxes, assessments and other governmental charges
      or
      levies not yet due or Liens for taxes, assessments and other governmental
      charges or levies being contested in good faith and by appropriate proceedings
      for which adequate reserves (in the good faith judgment of the management of
      the
      Company) have been established in accordance with GAAP; (ii) Liens imposed
      by
      law which were incurred in the ordinary course of the Company’s business, such
      as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens,
      and other similar Liens arising in the ordinary course of the Company’s
      business, and which (x) do not individually or in the aggregate materially
      detract from the value of such property or assets or materially impair the
      use
      thereof in the operation of the business of the Company and its consolidated
      subsidiaries or (y) are being contested in good faith by appropriate
      proceedings, which proceedings have the effect of preventing for the foreseeable
      future the forfeiture or sale of the property or asset subject to such Lien;
      and
      (iii) Liens arising pursuant to the Security Documents (as defined in the Letter
      Loan Agreement, dated as of the date hereof, between the Company and the
      Payee);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) the
      Company shall comply in all material respects with its obligations under this
      Note, the Other Notes and the other Loan Documents (as defined in the Letter
      Loan Agreement, dated as of the date hereof, between the Company and the
      Payee);

     

    (c) the
      Company shall not (i) merge or consolidate or, other than in the ordinary course
      of its business, sell or dispose of all its assets or any substantial portion
      thereof (other than, with respect to its intellectual property, pursuant to
      licensing agreements determined to be in the best interests of the Company
      by
      its Board of Directors) or (ii) in any way or manner alter its organizational
      structure or effect a change of entity; 

     

    (d) the
      Company shall comply with law in all material respects and duly observe and
      conform in all material respects to all valid requirements of governmental
      authorities relating to the conduct of its business or to its properties or
      assets; and

     

    (e) other
      than with respect to transactions with Fluoropharma, Inc. and Genomics USA,
      Inc., the Company shall not engage in any transactions with any officer,
      director, employee or any affiliate of the Company, including any contract,
      agreement or other arrangement providing for the furnishing of services to
      or
      by, providing for rental of real or personal property to or from, or otherwise
      requiring payments to or from any officer, director or such employee or, to
      the
      knowledge of the Company, any entity in which any officer, director, or any
      such
      employee has a substantial interest or is an officer, director, trustee or
      partner, in each case in excess of $50,000, other than (i) for payment of
      reasonable salary for services actually rendered, and the issuance of options
      to
      purchase shares of Common Stock pursuant to the Company’s equity compensation
      plans, each as approved by the Board of Directors of the Company as fair in
      all
      respects to the Company, and (ii) reimbursement for expenses incurred on behalf
      of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Principal
      and Interest Payments.
      

     

    (a) The
      Company shall repay the entire Outstanding Balance on January 23, 2009 (the
      “Maturity
      Date”).
      

     

    (b)  Interest
      on the outstanding principal balance of this Note shall accrue at a rate of
      ten
      percent (10%) per annum. Interest on the outstanding principal balance of this
      Note shall be computed on the basis of the actual number of days elapsed and
      a
      year of three hundred and sixty-five (365) days and shall be payable quarterly
      in arrears, on the last day of each calendar quarter, in cash. At the Payee’s
      sole option, the Payee may elect to receive the accrued and unpaid interest
      in
      additional Senior Secured Convertible Promissory Notes (the “PIK
      Notes”)
      with a
      principal amount equal to the calculated interest amount. Furthermore, upon
      the
      occurrence of an Event of Default, then to the extent permitted by law, the
      Company will pay interest to the Payee, payable on demand, on the outstanding
      principal balance of this Note from the date of the Event of Default until
      payment in full at the rate of twelve percent (12%) per annum.

     

    (c) At
      any
      time prior to the Maturity Date, with ten (10) days prior written notice, the
      Company, at its sole option, may prepay this Note in cash for an amount equal
      to
      106% of the outstanding principal balance of the Notes plus 100% of all accrued
      but unpaid interest on such Note(s). All payments made on account of the
      indebtedness evidenced by this Note shall be applied first to accrued but unpaid
      interest, if any, and the remainder shall be applied to principal. The Company
      shall honor all Conversion Notices delivered by the Payee prior to the date
      of
      such prepayment.

     

    6. Issuance
      of Warrants.
      In
      consideration of the loan evidenced by this Note, the Payee shall be issued
      25,000 common stock purchase warrants for every $100,000 of new principal
      invested in the Notes in the form attached as Exhibit
      B
      to the
      Letter Loan Agreement, dated as of the date hereof, between the Company and
      the
      Payee. 

     

    7. Most
      Favored Nations Exchange Right.
      So long
      as this Note remains outstanding,
      if the Company enters into any Equity Financing that is not a Qualified
      Financing, then the Payee in its sole discretion may exchange this Note for
      the
      securities issued or to be issued in such Equity Financing. In the event of
      such
      exchange, the Payee shall be deemed to have tendered 115% of the Outstanding
      Balance of this Note as payment of the purchase price in such financing.

     

    8. Certain
      Conversion Restrictions.

     

       (a)
       Notwithstanding
      anything to the contrary set forth in this Note, at no time may a Payee of
      this
      Note convert this Note if the number of shares of the Company’s common stock to
      be issued pursuant to such conversion would cause the number of shares of the
      Company’s common stock beneficially owned by the Payee at such time to exceed,
      when aggregated with all other shares of the Company’s common stock beneficially
      owned by such Payee at such time, the number of shares of the Common Stock
      which
      would result in such Payee beneficially owning (as determined in accordance
      with
      Section 13(d) of the Exchange Act and the rules thereunder) in excess of 4.99%
      of all of the Company’s common stock outstanding at such time; provided,
      however, that upon the Payee of this Note providing the Company with sixty-one
      (61) days notice (pursuant to Section 17 hereof) (the “4.99%
      Waiver Notice”)
      that
      such Payee would like to waive this Section 8(a) with regard to any or all
      shares of the Company’s common stock issuable upon conversion of this Note, this
      Section 8(a) will be of no force or effect with regard to all or a portion
      of
      this Note referenced in the 4.99% Waiver Notice.

    

    (b) Notwithstanding
      anything to the contrary set forth in this Note, at no time may a Payee of
      this
      Note convert this Note if the number of shares of the Company’s common stock to
      be issued pursuant to such conversion would cause the number of shares of the
      Company’s common stock beneficially owned by the Payee at such time to exceed,
      when aggregated with all other shares of the Company’s common stock beneficially
      owned by such Payee at such time, the number of shares of the Common Stock
      which
      would result in such Payee beneficially owning (as determined in accordance
      with
      Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.99%
      of all of the Company’s common stock outstanding at such time; provided,
      however, that upon the Payee of this Note providing the Company with sixty-one
      (61) days notice (pursuant to Section 17 hereof) (the “9.99%
      Waiver Notice”)
      that
      such Payee would like to waive this Section 8(b) with regard to any or all
      shares of the Company’s common stock issuable upon conversion of this Note, this
      Section 8(b) will be of no force or effect with regard to all or a portion
      of
      this Note referenced in the 9.99% Waiver Notice.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)
       In
      the
      event of an automatic exchange pursuant to Section 1 hereof or a mandatory
      conversion pursuant to Section 3 hereof, if the Payee would beneficially own,
      upon such conversion or exchange, as the case may be, when aggregated with
      all
      other shares of the Company’s common stock beneficially owned by such Payee at
      such time, the number of shares of he Company’s common stock which would result
      in such Payee beneficially owning (as determined in accordance with Section
      13(d) of the Exchange Act and the rules thereunder) in excess of 4.99% or 9.99%
      of all of the Company’s common stock outstanding at such time, the Payee shall
      be issued (i) the number of shares of the Company’s common stock, rounded to the
      nearest whole share, that would bring such Holder’s beneficial ownership of
      share of the Company’s common stock as close to, but not exceeding 4.99% or
      9.99%, as the case may be, and (ii) shares of series of convertible preferred
      stock with a nominal liquidation preference substantially in the form attached
      hereto as Exhibit
      A,
      convertible into the number of shares of the Company’s common stock equal to the
      difference between the aggregate number of shares of the Company’s common stock
      to be issued to such Holder pursuant to the automatic exchange pursuant to
      Section 1 or a mandatory conversion pursuant to Section 3 as the case may be,
      and the actual number of shares of the Company’s common stock issued in
      accordance with this Section 8(c)(i).

    

    9. Registration
      Rights.
      Provided that the Qualified Financing has not been completed on or before the
      March 31, 2008, the holders of the Notes together as a class (subject to
      majority approval of the then Outstanding Balance of the Notes) shall have
      a
      one-time demand registration right covering the Conversion Shares of the Notes
      (the “Demand
      Registration Right”).
      If
      such majority of the holders desire to exercise the Demand Registration Right,
      a
      representative of the holders as a class shall, by personal delivery or
      nationally-recognized overnight carrier, give written notice to the Company
      (the
“Demand
      Registration Notice”),
      which
      Demand Registration Notice shall state the holders election to exercise the
      Demand Registration Right. The Company shall, within thirty (30) days of
      receiving the Demand Registration Notice, file a registration statement covering
      the Conversion Shares to which the holders shall be entitled upon exercise
      of
      the Conversion Option. 

     

    10. Non-Business
      Days.
      Whenever any payment to be made shall be due on a Saturday, Sunday or a public
      holiday under the laws of the State of New York, such payment may be due on
      the
      next succeeding business day and such next succeeding day shall be included
      in
      the calculation of the amount of accrued interest payable on such
      date.

     

    11. Representations
      and Warranties of the Company.
      The
      Company represents and warrants to the Payee as follows:

     

    (a) The
      Company has been duly incorporated and is validly existing and in good standing
      under the laws of the state of Nevada, with full corporate power and authority
      to own, lease and operate its properties and to conduct its business as
      currently conducted.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (d) No
      consent, approval or authorization of or designation, declaration or filing
      with
      any governmental authority on the part of the Company is required in connection
      with the valid execution and delivery of this Note.

     

    12. Events
      of Default.
      The
      occurrence of any of the following events shall be an “Event
      of Default”
under
      this Note:

     

    (a) the
      Company shall fail to make the payment of any amount of any principal
      outstanding for a period of seven (7) business days after the date such payment
      shall become due and payable hereunder; or

     

    (b) the
      Company shall fail to make any payment of interest for a period of seven (7)
      business days after the date such interest shall become due and payable
      hereunder; or

     

    (c) any
      representation, warranty or certification made by the Company herein or in
      any
      certificate or financial statement shall prove to have been materially false
      or
      incorrect or breached in a material respect on the date as of which made, or
      the
      Company shall have failed to comply with any of its material obligations
      hereunder; or

     

    (d) the
      holder of any indebtedness of the Company or any of its subsidiaries shall
      accelerate any payment of any amount or amounts of principal or interest on
      any
      indebtedness (the “Indebtedness”)
      (other
      than the Indebtedness hereunder) prior to its stated maturity or payment date
      the aggregate principal amount of which Indebtedness of all such persons is
      in
      excess of $100,000, whether such Indebtedness now exists or shall hereinafter
      be
      created, and such accelerated payment entitles the holder thereof to immediate
      payment of such Indebtedness which is due and owing and such indebtedness has
      not been discharged in full or such acceleration has not been stayed, rescinded
      or annulled within ten (10) business days of such acceleration; or 

     

    (e) A
      judgment or order for the payment of money shall be rendered against the Company
      or any of its subsidiaries in excess of $100,000 in the aggregate (net of any
      applicable insurance coverage) for all such judgments or orders against all
      such
      persons (treating any deductibles, self insurance or retention as not so
      covered) that shall not be discharged, and all such judgments and orders remain
      outstanding, and there shall be any period of sixty (60) consecutive days
      following entry of the judgment or order in excess of $100,000 or the judgment
      or order which causes the aggregate amount described above to exceed $100,000
      during which a stay of enforcement of such judgment or order, by reason of
      a
      pending appeal or otherwise, shall not be in effect; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f) the
      Company shall (i) apply for or consent to the appointment of, or the taking
      of
      possession by, a receiver, custodian, trustee or liquidator of itself or of
      all
      or a substantial part of its property or assets, (ii) make a general assignment
      for the benefit of its creditors, (iii) commence a voluntary case under the
      Bankruptcy Code or under the comparable laws of any jurisdiction (foreign or
      domestic), (iv) file a petition seeking to take advantage of any bankruptcy,
      insolvency, moratorium, reorganization or other similar law affecting the
      enforcement of creditors' rights generally, (v) acquiesce in writing to any
      petition filed against it in an involuntary case under the Bankruptcy Code
      or
      under the comparable laws of any jurisdiction (foreign or domestic), or (vi)
      take any action under the laws of any jurisdiction (foreign or domestic)
      analogous to any of the foregoing; or

     

    (g) a
      proceeding or case shall be commenced in respect of the Company or any of its
      subsidiaries without its application or consent, in any court of competent
      jurisdiction, seeking (i) the liquidation, reorganization, moratorium,
      dissolution, winding up, or composition or readjustment of its debts, (ii)
      the
      appointment of a trustee, receiver, custodian, liquidator or the like of it
      or
      of all or any substantial part of its assets or (iii) similar relief in respect
      of it under any law providing for the relief of debtors, and such proceeding
      or
      case described in clause (i), (ii) or (iii) shall continue undismissed, or
      unstayed and in effect, for a period of thirty (30) consecutive days or any
      order for relief shall be entered in an involuntary case under the Bankruptcy
      Code or under the comparable laws of any jurisdiction (foreign or domestic)
      against the Company or any of its subsidiaries or action under the laws of
      any
      jurisdiction (foreign or domestic) analogous to any of the foregoing shall
      be
      taken with respect to the Company or any of its subsidiaries and shall continue
      undismissed, or unstayed and in effect for a period of thirty (30) consecutive
      days.

     

    13. Remedies
      Upon An Event of Default.
      If an
      Event of Default shall have occurred and shall be continuing, the Payee of
      this
      Note may at any time at its option, (a) declare the entire unpaid principal
      balance of this Note, together with all interest accrued hereon, due and
      payable, and thereupon, the same shall be accelerated and so due and payable;
      provided,
      however,
      that
      upon the occurrence of an Event of Default described in (i) Sections 12(f)
      and
      (g), without presentment, demand, protest, or notice, all of which are hereby
      expressly unconditionally and irrevocably waived by the Company, the outstanding
      principal balance and accrued interest hereunder shall be automatically due
      and
      payable, and (ii) Sections 12(a) through (e), the Payee may exercise or
      otherwise enforce any one or more of the Payee's rights, powers, privileges,
      remedies and interests under this Note or applicable law. No course of delay
      on
      the part of the Payee shall operate as a waiver thereof or otherwise prejudice
      the right of the Payee. No remedy conferred hereby shall be exclusive of any
      other remedy referred to herein or now or hereafter available at law, in equity,
      by statute or otherwise. Notwithstanding the foregoing, Payee agrees that its
      rights and remedies hereunder are limited to receipt of cash or shares of the
      Company’s equity securities, at the Payee’s option, in the amounts described
      herein.

     

    14. Replacement.
      Upon
      receipt by the Company of (i) evidence of the loss, theft, destruction or
      mutilation of any Note and (ii) (y) in the case of loss, theft or destruction,
      of indemnity (without any bond or other security) reasonably satisfactory to
      the
      Company, or (z) in the case of mutilation, the Note (surrendered for
      cancellation), the Company shall execute and deliver a new Note of like tenor
      and date. However, the Company shall not be obligated to reissue such lost,
      stolen, destroyed or mutilated Note if the Payee contemporaneously requests
      the
      Company to convert such Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    15. Parties
      in Interest, Transferability.
      This
      Note shall be binding upon the Company and its successors and assigns and the
      terms hereof shall inure to the benefit of the Payee and its successors and
      permitted assigns. This Note may be transferred or sold, subject to the
      provisions of Section 24 of this Note, or pledged, hypothecated or otherwise
      granted as security by the Payee.

     

    16. Amendments.
      This
      Note may not be modified or amended in any manner except in writing executed
      by
      the Company and the Payee.

     

    17. Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telecopy or facsimile at the address or number designated below
      (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business day during normal business hours where such notice
      is
      to be received) or (b) on the second business day following the date of mailing
      by express courier service, fully prepaid, addressed to such address, or upon
      actual receipt of such mailing, whichever shall first occur. The Company will
      give written notice to the Payee at least thirty (30) days prior to the date
      on
      which the Company closes its books or takes a record (x) with respect to any
      dividend or distribution upon the common stock of the Company, (y) with respect
      to any pro rata subscription offer to holders of common stock of the Company
      or
      (z) for determining rights to vote with respect to a dissolution, liquidation
      or
      winding-up and in no event shall such notice be provided to such holder prior
      to
      such information being made known to the public. The Company will also give
      written notice to the Payee at least twenty (20) days prior to the date on
      which
      dissolution, liquidation or winding-up will take place and in no event shall
      such notice be provided to the Payee prior to such information being made known
      to the public.

     

    
      	
              Address
                of the Payee:

            	
              Platinum
                Long Term Growth VII LLC

            

    

    152
      West
      57th Street, 54th Floor

    New
      York,
      New York 10019

    Attention:
      Michael Goldberg

    Tel.
      No.:
      (212) 271-7895

    Fax
      No.:
      (212) 271-7855

    

    
      	
              Address
                of the Company:

            	
              QuantRx
                Biomedical Corporation

            

    

    100
      S.
      Main Street, Suite 300 

    Doylestown,
      PA 18901 

    Attn.:
      Mr. Walter Witoshkin

    Tel.
      No.:
      (267) 880-1595

    Fax
      No.:
      (267) 880-1596

    

    
      	
              With
                a copy to:

            	
              Greenberg
                Traurig, LLP

            

    

    The
      MetLife Building

    200
      Park
      Avenue, Floor 14

    New
      York,
      NY 10166

    Attn.:
      Michael D. Helsel, Esq.

     

    18. Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the internal laws
      of
      the State of New York, without giving effect to the choice of law provisions.
      This Note shall not be interpreted or construed with any presumption against
      the
      party causing this Note to be drafted.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    19. Headings.
      Article
      and section headings in this Note are included herein for purposes of
      convenience of reference only and shall not constitute a part of this Note
      for
      any other purpose.

     

    20. Remedies,
      Characterizations, Other Obligations, Breaches and Injunctive
      Relief.
      The
      remedies provided in this Note shall be cumulative and in addition to all other
      remedies available under this Note, at law or in equity (including, without
      limitation, a decree of specific performance and/or other injunctive relief),
      no
      remedy contained herein shall be deemed a waiver of compliance with the
      provisions giving rise to such remedy and nothing herein shall limit a Payee's
      right to pursue actual damages for any failure by the Company to comply with
      the
      terms of this Note. Amounts set forth or provided for herein with respect to
      payments and the like (and the computation thereof) shall be the amounts to
      be
      received by the Payee and shall not, except as expressly provided herein, be
      subject to any other obligation of the Company (or the performance thereof).
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable and material harm to the Payee and that the remedy at law for any
      such breach may be inadequate. Therefore the Company agrees that, in the event
      of any such breach or threatened breach, the Payee shall be entitled, in
      addition to all other available rights and remedies, at law or in equity, to
      seek and obtain such equitable relief, including but not limited to an
      injunction restraining any such breach or threatened breach, without the
      necessity of showing economic loss and without any bond or other security being
      required.

     

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

     

    22. Enforcement
      Expenses.
      The
      Company agrees to pay all costs and expenses of enforcement of this Note,
      including, without limitation, reasonable attorneys' fees and
      expenses.

     

    23. Binding
      Effect.
      The
      obligations of the Company and the Payee set forth herein shall be binding
      upon
      the successors and assigns of each such party, whether or not such successors
      or
      assigns are permitted by the terms hereof.

     

    24. Compliance
      with Securities Laws.
      The
      Payee of this Note acknowledges that this Note is being acquired solely for
      the
      Payee's own account and not as a nominee for any other party, and for
      investment, and that the Payee shall not offer, sell or otherwise dispose of
      this Note other than in compliance with the laws of the United States of America
      and as guided by the rules of the Securities and Exchange Commission. This
      Note
      and any Note issued in substitution or replacement therefore shall be stamped
      or
      imprinted with a legend in substantially the following form:

     

    “THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED
      OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
      APPLICABLE STATE SECURITIES LAWS OR QUANTRX BIOMEDICAL CORPORATION SHALL HAVE
      RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER
      THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
      LAWS
      IS NOT REQUIRED.”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    25. Severability.
      The
      provisions of this Note are severable, and if any provision shall be held
      invalid or unenforceable in whole or in part in any jurisdiction, then such
      invalidity or unenforceability shall not in any manner affect such provision
      in
      any other jurisdiction or any other provision of this Note in any
      jurisdiction.

     

    26. Consent
      to Jurisdiction.
      Each of
      the Company and the Payee (i) hereby irrevocably submits to the jurisdiction
      of
      the United States District Court sitting in the Southern District of New York
      and the courts of the State of New York located in New York county for the
      purposes of any suit, action or proceeding arising out of or relating to this
      Note and (ii) hereby waives, and agrees not to assert in any such suit, action
      or proceeding, any claim that it is not personally subject to the jurisdiction
      of such court, that the suit, action or proceeding is brought in an inconvenient
      forum or that the venue of the suit, action or proceeding is improper. Each
      of
      the Company and the Payee consents to process being served in any such suit,
      action or proceeding by mailing a copy thereof to such party at the address
      set
      forth in Section 17 hereof and agrees that such service shall constitute good
      and sufficient service of process and notice thereof. Nothing in this Section
      26
      shall affect or limit any right to serve process in any other manner permitted
      by law.

     

    27. Company
      Waivers.
      Except
      as otherwise specifically provided herein, the Company and all others that
      may
      become liable for all or any part of the obligations evidenced by this Note,
      hereby waive presentment, demand, notice of nonpayment, protest and all other
      demands and notices in connection with the delivery, acceptance, performance
      and
      enforcement of this Note, and do hereby consent to any number of renewals of
      extensions of the time or payment hereof and agree that any such renewals or
      extensions may be made without notice to any such persons and without affecting
      their liability herein and do further consent to the release of any person
      liable hereon, all without affecting the liability of the other persons, firms
      or Company liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY
      JURY.

     

    (a) No
      delay
      or omission on the part of the Payee in exercising its rights under this Note,
      or course of conduct relating hereto, shall operate as a waiver of such rights
      or any other right of the Payee, nor shall any waiver by the Payee of any such
      right or rights on any one occasion be deemed a waiver of the same right or
      rights on any future occasion.

     

    (b) THE
      COMPANY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A
      COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED BY APPLICABLE LAW, HEREBY
      WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY
      WHICH THE PAYEE OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has executed and delivered this Note as of the date first written
      above.

    
      	 	 	 
	 	QuantRx
              Biomedical Corporation
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Walter
              W. Witoshkin
	 	Chairman
              & CEO

      	 	 	 
	 	ACCEPTED AND AGREED:
	 	 
	 	Platinum
              Long Term Growth VII LLC
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Exhibit
      A

    

    [Form
      of
      Certificate of Designation]

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