Document:

Exhibit 10.1 

 

NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE
AGREEMENT (this “Agreement”), dated as of September 10, 2014, is entered into by and between Guided
Therapeutics, Inc., a Delaware corporation (“Company”), and Tonaquint,
Inc., a Utah corporation, its successors and/or assigns (“Investor”).

A.Company and
Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the
rules and regulations as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933,
as amended (the “Securities Act”).

B.Investor desires
to purchase and Company desires to issue and sell, upon the terms and conditions set forth in this Agreement a Secured Promissory
Note, in the form attached hereto as Exhibit A, in the original principal amount of $1,275,000.00 (the “Note”).
This Agreement, the Note, the Security Agreement (as defined below), and all other certificates, documents, agreements, resolutions
and instruments delivered to any party under or in connection with this Agreement, as the same may be amended from time to time,
are collectively referred to herein as the “Transaction Documents”.

NOW THEREFORE,
Company and Investor hereby agree as follows:

1.                 
Purchase and Sale of Note.

1.1.           
Purchase of Note. On the Closing Date (as defined below), Company shall issue and sell to Investor and Investor agrees
to purchase from Company the Note.

1.2.           
Form of Payment. On the Closing Date, (i) Investor shall pay $700,000.00 as full consideration for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately
available funds to Company, in accordance with Company’s written wiring instructions, against delivery of the Note, and (ii)
Company shall execute and deliver the Note on behalf of Company, to Investor, against delivery of the Purchase Price.

1.3.           
Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section ‎5
and Section ‎6 below, the date and time of the issuance and sale of the Note pursuant
to this Agreement (the “Closing Date”) shall be 5:00 p.m., Eastern Time on or about September 9, 2014, or such
other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur on the Closing Date at such location as may be agreed to by the parties.

1.4.           
Original Issue Discount; Transaction Expenses. The Note carries an original issue discount of $560,000.00 (the “OID”).
In addition, Company agrees to pay $15,000.00 to Investor to cover Investor’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase and sale of the Note (the “Transaction
Expense Amount”), all of which amount is included in the initial principal balance of the Note. The Purchase Price, therefore,
shall be $700,000.00, computed as follows: $1,275,000.00 original principal balance, less the OID, less the Transaction Expense
Amount.

1.5.           
Security. The Note will be secured by certain assets of Company, as set forth in more detail in the Security Agreement
attached hereto as Exhibit B (the “Security Agreement”).

2.                 
Investor’s Representations and Warranties. Investor represents and warrants to Company that: (i) each of this
Agreement and the Security Agreement have each been duly and validly authorized; (ii) each of this Agreement and the Security
Agreement have been duly executed and delivered on behalf of Investor, and this Agreement and the Security Agreement each constitute
a valid and binding agreement of Investor enforceable in accordance with its terms; (iii) Investor is an “accredited investor”
as that term is defined in Rule 501(a) of Regulation D; (iv) Investor is experienced, sophisticated and knowledgeable in trading
in securities of private and public companies and by reason of its respective business or financial experience or its own independent
investigation, Investor is capable of evaluating the merits and risks of the transaction contemplated by the Transaction Documents;
(v) Investor is acquiring the Note for investment, for its own account and not for the interest of any other person and not for
distribution or resale to others; (vi) the Note (a) has not been and will not be registered under the Securities Act or the securities
laws of any state, nor is any such registration contemplated and (b) is subject to restrictions on transferability and resale,
and may not be transferred or resold except as permitted under the Securities Act and applicable state securities laws, whether
pursuant to registration thereunder or an exemption therefrom; and (vii) Investor is familiar with the Company and has been given
the opportunity to ask questions of the officers and directors of the Company and to obtain (and has received to its satisfaction)
such information about the business and financial conditions of the Company as it has reasonably requested. Notwithstanding the
foregoing, nothing in this Section 2 shall be construed to modify, undermine or act as a defense to Company’s unconditional
obligation to repay the Note.

3.                  Representations
and Warranties of Company. Company represents and warrants to Investor that: (i) Company is a corporation duly organized,
validly existing and in good standing under the laws of its state of incorporation and has the requisite corporate power to
own its properties and to carry on its business as now being conducted; (ii) Company is duly qualified as a foreign
corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or
property owned by it makes such qualification necessary, and in which the failure to so qualify would have or is reasonably
likely to result in a material adverse effect upon the business, properties, operations, financial condition or results of
operations of the Company, or in its ability to perform its obligations under this Agreement; (iii) each of the Transaction
Documents and the transactions contemplated hereby and thereby have been duly and validly authorized by Company; (iv) this
Agreement, the Note and the Security Agreement have been duly executed and delivered by Company and constitute the valid and
binding obligations of Company enforceable in accordance with their terms, subject as to enforceability only to general
principles of equity and to bankruptcy, insolvency, moratorium, and other similar laws affecting the enforcement of
creditors’ rights generally; (v) the execution and delivery of the Transaction Documents by Company, the issuance of
the Note in accordance with the terms hereof, and the consummation by Company of the other transactions contemplated by the
Transaction Documents do not and will not conflict with or result in a breach by Company of any of the terms or provisions
of, or constitute a default under (a) Company’s formation documents or bylaws, each as currently in effect, (b) any
indenture, mortgage, deed of trust, or other material agreement or instrument to which Company is a party or by which it or
any of its properties or assets are bound, including any listing agreement for the Common Stock except as herein set forth,
or (c) to Company’s knowledge, any existing applicable law, rule, or regulation or any applicable decree, judgment, or
order of any court, United States federal or state regulatory body, administrative agency, or other governmental body
having jurisdiction over Company or any of Company’s properties or assets; (vi) no authorization, approval or consent
of any court, governmental body, regulatory agency, self-regulatory organization, or stock exchange or market or the
stockholders or any lender of Company is required to be obtained by Company for the issuance of the Note to Investor, except
such authorizations, approvals and consents that have been obtained; (vii) with respect to any brokerage commissions,
placement agent or finder’s fees or similar payments that will or would become due and owing by Company to any person
or entity as a result of this Agreement or the transactions contemplated hereby (“Broker Fees”), any such
Broker Fees will be made in full compliance with all applicable laws and regulations and only to a person or that is a
registered investment adviser or registered broker-dealer; and (viii) Investor shall have no obligation with respect to any
such Broker Fees or with respect to any claims made by or on behalf of other persons or entities for fees of a type
contemplated herein that may be due in connection with the transactions contemplated hereby and Company shall indemnify and
hold harmless each of Investor, Investor’s employees, officers, directors, stockholders, managers, agents, and
partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of
preparation and attorneys’ fees) and expenses suffered in respect of any such claimed or existing fees.

4.                 
Company Covenants. Until all of Company’s obligations hereunder are paid and performed in full, or within the
timeframes otherwise specifically set forth below, Company shall comply with the following covenants: (i) Company shall use the
net proceeds received under the Note for working capital and general corporate purposes only; provided, however, Company
will not use such proceeds to pay fees payable (A) to any broker or finder relating to the offer and sale of the Note unless such
broker, finder, or other party is a registered investment adviser or registered broker-dealer and such fees are paid in full compliance
with all applicable laws and regulations, or (B) to any other party relating to any financing transaction effected prior to the
date hereof; and (ii) when issued, the Note will be validly issued, fully paid for and non-assessable, free and clear of all liens,
claims, charges and encumbrances.

5.                 
Conditions to Company’s Obligation to Sell. The obligation of Company hereunder to issue and sell the Note
to Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions thereto,
provided that these conditions are for Company’s sole benefit and may be waived by Company at any time in its sole discretion:

5.1.           
Investor shall have executed this Agreement and delivered the same to Company.

5.2.           
Investor shall have executed the Security Agreement and delivered the same to Company.

5.3.           
Investor shall have delivered the Purchase Price to Company in accordance with Section ‎1.2
above.

6.                 
Conditions to Investor’s Obligation to Purchase. The obligation of Investor hereunder to purchase the Note
at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that
these conditions are for Investor’s sole benefit and may be waived by Investor at any time in its sole discretion:

6.1.           
Company shall have executed this Agreement and delivered the same to Investor.

6.2.           
Company shall have delivered to Investor the duly executed Note in accordance with Section ‎1.2
above.

6.3.           
Company shall have executed the Security Agreement and delivered the same to Investor.

6.4.           
Company shall have delivered to Investor a fully executed Secretary’s Certificate evidencing Company’s approval
of the Transaction Documents substantially in the form attached hereto as ‎Exhibit
C.

7.                 
Miscellaneous. The provisions set forth in this Section ‎7 shall apply to this Agreement, as well as all other
Transaction Documents as if these terms were fully set forth therein.

7.1.           
Original Signature Pages. Each party agrees to deliver its original signature pages to the Transaction Documents
to the other party within five (5) business days of the date hereof. Notwithstanding the foregoing, the Transaction Documents
shall be fully effective upon exchange of electronic signature pages by the parties and payment of the Purchase Price by Investor.
For the avoidance of doubt, the failure by either party to deliver its original signature pages to the other party shall not affect
in any way the validity or effectiveness of any of the Transaction Documents, provided that such failure to deliver original signatures
shall be a breach of the party’s obligations hereunder.

7.2.           
Cross Default. Any Event of Default (as defined in the Note) shall be deemed a default under this Agreement and any
default of this Agreement by Company shall be deemed an Event of Default under the Note, subject to the more-specific terms of
the Note. Upon a default of this Agreement by Company, Investor shall have all those rights and remedies available at law or in
equity, including without limitation those remedies set forth in the Note.

7.3.           
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Utah for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict
of laws. Each party consents to and expressly agrees that venue for Arbitration (as defined in ‎Exhibit
D) of any dispute arising out of or relating to any Transaction Document or the relationship of the parties or their affiliates
shall be in Salt Lake County or Utah County, Utah. Without modifying the parties obligations to resolve disputes hereunder pursuant
to the Arbitration Provisions (as defined below), for any litigation arising in connection with any of the Transaction Documents,
each party hereto hereby (a) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court
sitting in Salt Lake County, Utah, (b) expressly submits to the venue of any such court for the purposes hereof, and (c) waives
any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection
to the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding
is improper.

7.4.           
Arbitration. The parties shall submit all Claims (as defined in ‎Exhibit
D) arising under this Agreement or any other Transaction Document or other agreements between the parties and their affiliates
to binding arbitration pursuant to the arbitration provisions set forth in ‎Exhibit
D attached hereto (the “Arbitration Provisions”). The parties hereby acknowledge and agree that the Arbitration
Provisions are unconditionally binding on the parties hereto and are severable from all other provisions of this Agreement. Any
capitalized term not defined in the Arbitration Provisions shall have the meaning set forth in this Agreement. By executing this
Agreement, Company represents, warrants and covenants that Company has reviewed the Arbitration Provisions carefully, consulted
with legal counsel about such provisions (or waived its right to do so), understands that the Arbitration Provisions are intended
to allow for the expeditious and efficient resolution of any dispute hereunder, agrees to the terms and limitations set forth in
the Arbitration Provisions, and that Company will not take a position contrary to the foregoing representations. Company acknowledges
and agrees that Investor may rely upon the foregoing representations and covenants of Company regarding the Arbitration Provisions.

7.5.           
Counterparts. Each Transaction Document may be executed in any number of counterparts, each of which shall be deemed
an original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of
another party’s executed counterpart of a Transaction Document (or such party’s signature page thereof) will be deemed
to be an executed original thereof.

7.6.           
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform to such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.

7.7.           
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the parties hereto.

7.8.           
Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein)
and shall be deemed effectively given on the earliest of: (a) the date delivered, if delivered by personal delivery as against
written receipt therefor or by e-mail to an executive officer, or by facsimile (with successful transmission confirmation), (b)
the earlier of the date delivered or the third business day after deposit, postage prepaid, in the United States Postal Service
by certified mail, or (c) the earlier of the date delivered or the third business day after mailing by express courier, with delivery
costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or
at such other addresses as such party may designate by five (5) calendar days’ advance written notice similarly given to
each of the other parties hereto):

If to Company:

 

Guided Therapeutics,
Inc.

Attn: Gene Cartwright

5835 Peachtree Corners East

Suite D

Norcross, Georgia 30092

 

If to Investor:

 

Tonaquint, Inc.

Attn: John Fife, President

303 East Wacker Drive, Suite 1200

Chicago, Illinois 60601

 

With a copy to (which copy shall not constitute notice):

 

Hansen Black Anderson
Ashcraft PLLC

Attn: Jonathan K. Hansen

3051 West Maple Loop Drive, Suite 325

Lehi, Utah 84043

 

7.9.           
Successors and Assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or
to be performed by Investor hereunder may be assigned by Investor to a third party, including its financing sources, in whole or
in part, without the need to obtain Company’s consent thereto. Company may not assign its rights or obligations under this
Agreement or delegate its duties hereunder without the prior written consent of Investor.

7.10.       
Survival. The representations and warranties of Company and the agreements and covenants set forth in this Agreement
shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of Investor. Company
agrees to indemnify and hold harmless Investor and all its officers, directors, employees, attorneys, and agents for loss or damage
arising as a result of or related to any breach or alleged breach by Company of any of its representations, warranties and covenants
set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as
they are incurred.

7.11.       
Publicity. Company and Investor shall have the right to review a reasonable period of time before issuance of any
press releases with respect to the transactions contemplated hereby.

7.12.       
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

7.13.       
Investor’s Rights and Remedies Cumulative. All rights, remedies, and powers conferred in this Agreement and
the Transaction Documents are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other
right, power, and remedy that Investor may have, whether specifically granted in this Agreement or any other Transaction Document,
or existing at law, in equity, or by statute, and any and all such rights and remedies may be exercised from time to time and as
often and in such order as Investor may deem expedient. The parties acknowledge and agree that upon Company’s failure to
comply with the provisions of the Transaction Documents, Investor’s damages would be uncertain and difficult (if not impossible)
to accurately estimate because of the parties’ inability to predict future interest rates and future share prices, Investor’s
increased risk, and the uncertainty of the availability of a suitable substitute investment opportunity for Investor, among other
reasons. Accordingly, any fees, charges, and default interest due under the Note and the other Transaction Documents are intended
by the parties to be, and shall be deemed, liquidated damages (under Company’s and Investor’s expectations that any
such liquidated damages will tack back to the Closing Date for purposes of determining the holding period under Rule 144). The
parties agree that such liquidated damages are a reasonable estimate of Investor’s actual damages and not a penalty, and
shall not be deemed in any way to limit any other right or remedy Investor may have hereunder, at law or in equity. The parties
acknowledge and agree that under the circumstances existing at the time this Agreement is entered into, such liquidated damages
are fair and reasonable and are not penalties. All fees, charges, and default interest provided for in the Transaction Documents
are agreed to by the parties to be based upon the obligations and the risks assumed by the parties as of the Closing Date and are
consistent with investments of this type. The liquidated damages provisions of the Transaction Documents shall not limit or preclude
a party from pursuing any other remedy available at law or in equity; provided, however, that the liquidated damages provided
for in the Transaction Documents are intended to be in lieu of actual damages.

7.14.       
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to enforce
or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded
the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of
the full amount of the attorneys’ fees, deposition costs, and expenses paid by such prevailing party in connection with
arbitration or litigation without reduction or apportionment based upon the individual claims or defenses giving rise to the fees
and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to award fees and expenses
for frivolous or bad faith pleading. If (a) a Note is placed in the hands of an attorney for collection or enforcement prior
to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Investor
otherwise takes action to collect amounts due under the Note or to enforce the provisions of the Note; or (b) there occurs
any bankruptcy, reorganization, receivership of Company or other proceedings affecting Company’s creditors’ rights
and involving a claim under the Note, then Company shall pay the costs incurred by Investor for such collection, enforcement or
action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation,
attorneys’ fees, deposition costs, and disbursements.

7.15.       
Waiver. No waiver of any provision of this Agreement shall be effective unless it is in the form of a writing signed
by the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

7.16.       
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS
SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT
OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY
ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH
PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

7.17.       
Time of the Essence. Time is expressly made of the essence of each and every provision of this Agreement and the
other Transaction Documents.

[Remainder of page intentionally left blank;
signature page to follow]

 

 

 

 

 

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF,
the undersigned Investor and Company have caused this Agreement to be duly executed as of the date first above written.

SUBSCRIPTION AMOUNT:

 

	Principal Amount of Note:	$1,275,000.00
	
         

        Purchase Price:
	$700,000.00

 

INVESTOR:

 

Tonaquint,
Inc.

 

 

 

By: /s/ John M. Fife

John M. Fife, President

 

 

COMPANY:

 

Guided
Therapeutics, Inc.

 

 

 

By:/s/ Gene S. Cartwright

Printed Name: Gene S. Cartwright

Title: President and CEO

 

 

ATTACHED EXHIBITS:

 

		Exhibit	A                 
Note

		Exhibit	B                  
Security Agreement

		Exhibit	C                  
Secretary’s Certificate

		Exhibit	D                 
Arbitration Provisions

 

    	 

    	 

    

 

‎Exhibit
D

 

ARBITRATION PROVISIONS

 

1.Dispute
Resolution. For purposes of this ‎Exhibit D,
the term “Claims” means any disputes, claims, demands, causes of action, liabilities, damages, losses, or controversies
whatsoever arising from related to or connected with the transactions contemplated in the Transaction Documents and any communications
between the parties related thereto, including without limitation any claims of mutual mistake, mistake, fraud, misrepresentation,
failure of formation, failure of consideration, promissory estoppel, unconscionability, failure of condition precedent, rescission,
and any statutory claims, tort claims, contract claims, or claims to void, invalidate or terminate the Agreement or any of the
other Transaction Documents. The parties hereby agree that the arbitration provisions set forth in this ‎Exhibit
D (“Arbitration Provisions”) are binding on the
parties hereto and are severable from all other provisions in the Transaction Documents. As a result, any attempt to rescind the
Agreement or declare the Agreement or any other Transaction Document invalid or unenforceable for any reason is subject to these
Arbitration Provisions. These Arbitration Provisions shall also survive any termination or expiration of the Agreement.

2.Arbitration. Except as otherwise
provided herein, all Claims must be submitted to arbitration (“Arbitration”) to be conducted in Salt Lake County,
Utah or Utah County, Utah and pursuant to the terms set forth in these Arbitration Provisions. The parties agree that the award
of the Arbitration Panel (as defined below) shall be final and binding upon the parties; shall be the sole and exclusive remedy
between them regarding any Claims, counterclaims, issues, or accountings presented or pleaded to the Arbitration Panel; and shall
promptly be payable in United States dollars free of any tax, deduction or offset (with respect to monetary awards). Any costs
or fees, including without limitation attorneys’ fees, incident to enforcing the Arbitration Panel’s award shall, to
the maximum extent permitted by law, be charged against the party resisting such enforcement. The award shall include Default Interest
(as defined in the Note) both before and after the award. Judgment upon the award of the Arbitration Panel will be entered and
enforced by a state court sitting in Salt Lake County, Utah. The parties hereby incorporate herein the provisions and procedures
set forth in the Utah Uniform Arbitration Act, U.C.A. § 78B-11-101 et seq. (as amended or superseded from time to time,
the “Arbitration Act”). Pursuant to Section 78B-11-105 of the Arbitration Act, in the event of conflict between
the terms of these Arbitration Provisions and the provisions of the Arbitration Act, the terms of these Arbitration Provisions
shall control.

3.Arbitration Proceedings. Arbitration
between the parties will be subject to the following procedures:

3.1Pursuant
to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written notice to the
other party (“Arbitration Notice”) in the same manner that notice is permitted under Section ‎7.8
of the Agreement; provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed
initiated as of the date that the Arbitration Notice is deemed delivered under Section ‎7.8
of the Agreement (the “Service Date”). After the Service Date, information may be delivered, and notices may
be given, by email or fax pursuant to Section ‎7.8 of the Agreement
or any other method permitted thereunder. The Arbitration Notice must describe the nature of the controversy, the remedies sought,
and the election to commence Arbitration proceedings. All Claims in the Arbitration Notice must be pleaded consistent with the
Utah Rules of Civil Procedure.

3.2The final Arbitration
hearing will be heard by a three (3) person arbitration panel (“Arbitration Panel”). Within ten (10) calendar
days after the Service Date, Investor shall select and submit to Company the names of five (5) arbitrators that are designated
as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such five designated
persons hereunder are referred to herein as the “Proposed Arbitrators”). For the avoidance of doubt, each Proposed
Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar days after Investor has
submitted to Company the names of the Proposed Arbitrators, Company must select, by written notice to Investor, three (3) of the
Proposed Arbitrators to act as the members of the Arbitration Panel. If Company fails to select three of the Proposed Arbitrators
in writing within such 10-day period, then Investor may select such three arbitrators from the Proposed Arbitrators by providing
written notice of such selection to Company. If Investor fails to identify the Proposed Arbitrators within the time period required
above, then Company may at any time prior to Investor designating the Proposed Arbitrators, select the names of the five (5) Proposed
Arbitrators.

 

Arbitration Provisions,
Page 9

    	 

    	 

    

 

Investor may then, within ten (10) calendar days
after Company has submitted notice of its Proposed Arbitrators to Investor, select, by written notice to Company, three (3) of
the Proposed Arbitrators to serve on the Arbitration Panel. If Investor fails to select in writing and within such 10-day period
the three members of the Arbitration Panel, then Company may select such three members of the Arbitration Panel by providing written
notice of such selection to Investor. After the three members of the Arbitration Panel are selected, Investor shall designate in
writing to Company the name of one of such three arbitrators to serve as the lead arbitrator (the “Lead Arbitrator”).
Subject to Paragraph 3.12 below, the cost of the arbitrators must be paid equally by both parties; provided, however, that
if one party refuses or fails to pay its portion of the arbitrators’ fees, then the other party can advance such unpaid amounts
(subject to the accrual of Default Interest thereupon), with such amount added to or subtracted from, as applicable, the award
granted by the Arbitration Panel. If Utah ADR Services ceases to exist or to provide a list of neutrals, then the arbitrators shall
be selected under the then prevailing rules of the American Arbitration Association. The date that all three selected arbitrators
agree in writing to serve as the arbitrators hereunder is referred to herein as the “Arbitration Commencement Date”.

3.3An answer and any
counterclaims to the Arbitration Notice, which must be pleaded consistent with the Utah Rules of Civil Procedure, shall be required
to be delivered to the other party within twenty (20) calendar days after the Service Date. Upon request, the Arbitration Panel
is hereby instructed to render a default award, consistent with the relief requested in the Arbitration Notice, against a party
that fails to submit an answer within such time period.

3.4The party that delivers
the Arbitration Notice to the other party shall have the option to also commence legal proceedings with any state court sitting
in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following: (i) the complaint in the Litigation
Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice, provided that an additional cause
of action to compel arbitration will also be included therein, (ii) so long as the other party files an answer to the complaint
in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings will be stayed pending an award
of the Arbitration Panel hereunder, (iii) if the other party fails to file an answer in the Litigation Proceedings or an answer
in the Arbitration Proceedings, then the party initiating Arbitration shall be entitled to a default judgment consistent with the
relief requested, to be entered in the Litigation Proceedings, and (iv) any legal or procedural issue arising under the Arbitration
Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation Proceedings. Any award of
the Arbitration Panel may be entered in such Litigation Proceedings pursuant to the Arbitration Act.

3.5Pursuant to Section
118(8) of the Arbitration Act, the parties agree that discovery shall be conducted in accordance with the Utah Rules of Civil Procedure;
provided, however, that incorporation of such rules will in no event supersede the Arbitration Provisions set forth herein,
including without limitation the time limitation set forth in Paragraph 3.9 below, and the following:

(a)The Lead Arbitrator
will be responsible for determining all issues regarding discovery.

(b)Discovery will only
be allowed if the likely benefits of the proposed discovery outweigh the burden or expense, and the discovery sought is likely
to reveal information that will satisfy a specific element of a claim or defense already pleaded in the Arbitration. The party
seeking discovery shall always have the burden of showing that all of the standards and limitations set forth in these Arbitration
Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited as follows:

(i)To facts directly
connected with the transactions contemplated by the Agreement.

(ii)To facts and
information that cannot be obtained from another source that is more convenient, less burdensome or less expensive.

(c)No party shall be
allowed (a) more than fifteen (15) interrogatories (including discrete subparts), (b) more than fifteen (15) requests for admission
(including discrete subparts), (c) more than ten (10) document requests (including discrete subparts), or (d) more than three depositions
(excluding expert depositions) for a maximum of seven (7) hours per deposition.

3.6Any party submitting
any written discovery requests, including interrogatories, requests for production, subpoenas to a party or a third party, or requests
for admissions, must prepay the estimated attorneys’ fees and costs, as determined by the Lead Arbitrator, before the responding
party has any obligation to produce or respond.

 

Arbitration Provisions,
Page 10

    	 

    	 

    

 

(a)All discovery requests
must be submitted in writing to the Lead Arbitrator and the other party before issuing or serving such discovery requests. The
party issuing the written discovery requests must include with such discovery requests a detailed explanation of how the proposed
discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules of Civil Procedure. Any party will
then be allowed, within ten (10) calendar days of receiving the proposed discovery requests, to submit to the Lead Arbitrator an
estimate of the attorneys’ fees and costs associated with responding to such written discovery requests and a written challenge
to each applicable discovery request. After receipt of an estimate of attorneys’ fees and costs and/or challenge(s) to one
or more discovery requests, the Lead Arbitrator will make a finding as to the likely attorneys’ fees and costs associated
with responding to the discovery requests and issue an order that (A) requires the requesting party to prepay the attorneys’
fees and costs associated with responding to the discovery requests, and (B) requires the responding party to respond to the discovery
requests as limited by the Lead Arbitrator within a certain period of time after receiving payment from the requesting party. If
a party entitled to submit an estimate of attorneys’ fees and costs and/or a challenge to discovery requests fails to do
so within such 10-day period, the Lead Arbitrator will make a finding that (A) there are no attorneys’ fees or costs associated
with responding to such discovery requests, and (B) the responding party must respond to such discovery requests (as may be limited
by the Lead Arbitrator) within a certain period of time as determined by the Lead Arbitrator.

(b)In order to allow
a written discovery request, the Lead Arbitrator must find that the discovery request satisfies the standards set forth in these
Arbitration Provisions and the Utah Rules of Civil Procedure. The Lead Arbitrator must strictly enforce these standards. If a discovery
request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules of Civil Procedure, the
Lead Arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery request in whole
or in part.

(c)Discovery deadlines
will be set forth in a scheduling order issued by the Lead Arbitrator. The parties hereby authorize and direct the Lead Arbitrator
to take such actions and make such rulings as may be necessary to carry out the parties’ intent for the arbitration proceedings
to be efficient and expeditious.

3.7Each party may submit
expert reports (and rebuttals thereto), provided that such reports must be submitted by the deadlines established by the Lead Arbitrator.
Expert reports must contain the following: (a) a complete statement of all opinions the expert will offer at trial and the basis
and reasons for them; (b) the expert’s name and qualifications, including a list of all publications within the preceding
10 years, and a list of any other cases in which the expert has testified at trial or in a deposition or prepared a report within
the preceding 10 years; and (c) the compensation to be paid for the expert’s study and testimony. The parties are entitled
to depose any other party’s expert witness one time for no more than 4 hours. An expert may not testify in a party’s
case-in-chief concerning any matter not fairly disclosed in the expert report.

3.8All information disclosed
by either party during the Arbitration process (including without limitation information disclosed during the discovery process)
shall be considered confidential in nature. Each party agrees not to disclose any confidential information received from the other
party during the discovery process unless (i) prior to or after the time of disclosure such information becomes public knowledge
or part of the public domain, not as a result of any inaction or action of the receiving party, (ii) such information is required
by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified the other party thereof
in writing and given it a reasonable opportunity to obtain a protective order from a court of competent jurisdiction prior to disclosure;
or (iii) disclosed to the receiving party’s agents, representatives and legal counsel on a need to know basis who each agree
in writing not to disclose such information to any third party. Pursuant to Section 118(5) of the Arbitration Act, the Lead Arbitrator
is hereby authorized and directed to issue a protective order to prevent the disclosure of privileged information and confidential
information upon the written request of either party.

3.9The parties
hereby authorize and direct the Arbitration Panel to take such actions and make such rulings as may be necessary to carry out
the parties’ intent for the arbitration proceedings to be efficient and expeditious. Pursuant to Section 120 of the
Arbitration Act, the parties hereby agree that an award of the Arbitration Panel must be made within 150 days after the
Arbitration Commencement Date. The Lead Arbitrator is hereby authorized and directed to hold a scheduling conference within
ten (10) calendar days after the Arbitration Commencement Date in order to establish a scheduling order with various binding
deadlines for discovery, expert testimony, and the submission of documents by the parties to enable the Arbitration Panel to
render a decision prior to the end of such 150-day period. The Utah Rules of Evidence will apply to any final hearing before
the Arbitration Panel.

3.10The decision of
the Arbitration Panel shall be determined by majority vote of the arbitrators. The Arbitration Panel shall have the right to award
or include in the Arbitration Panel’s award any relief which the Arbitration Panel deems proper under the circumstances,
including, without limitation, specific performance and injunctive relief, provided that the Arbitration Panel may not award exemplary
or punitive damages. The Arbitration Panel shall select a single arbitrator to prepare the written decision of the Arbitration
Panel.

Arbitration Provisions,
Page 11

    	 

    	 

    

 

3.11If any part of these
Arbitration Provisions is found to violate applicable law or to be illegal, then such provision shall be modified to the minimum
extent necessary to make such provision enforceable under applicable law.

3.12The Arbitration
Panel is hereby directed to require the losing party to (i) pay the full amount of the costs and fees of the arbitrators, and (ii)
reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs, and other discovery costs
incurred by the prevailing party.

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Arbitration Provisions, Page 12Exhibit 10.2

 

Security Agreement

This
Security Agreement (this “Agreement”), dated as of September 10, 2014, is executed by Guided Therapeutics,
Inc., a Delaware corporation (“Debtor”), in favor of Tonaquint, Inc., a Utah corporation (“Secured
Party”).

A.Debtor has
issued to Secured Party a certain Secured Promissory Note of even date herewith, as may be amended from time to time, in the original
face amount of $1,275,000.00 (the “Note”).

B.In order to
induce Secured Party to extend the credit evidenced by the Note, Debtor has agreed to enter into this Agreement and to grant Secured
Party a security interest in the Collateral (as defined below).

NOW, THEREFORE,
in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor hereby agrees with Secured Party as follows:

1.                 
Definitions and Interpretation. When used in this Agreement, the following terms have the following respective meanings:

“Collateral”
has the meaning given to that term in Section 2 hereof.

“Lien”
shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in,
of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional
sale agreement, capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing
of any financing statement or similar instrument under the UCC or comparable law of any jurisdiction.

“Obligations”
means (a) all loans, advances, future advances, debts, liabilities and obligations, howsoever arising, owed by Debtor to Secured
Party or any affiliate of Secured Party of every kind and description, now existing or hereafter arising, whether created by the
Note, this Agreement, that certain Note Purchase Agreement of even date herewith, entered into by and between Debtor and Secured
Party (the “Purchase Agreement”), any other Transaction Documents (as defined in the Purchase Agreement), any
modification or amendment to any of the foregoing, guaranty of payment or other contract or by a quasi-contract, tort, statute
or other operation of law, whether incurred or owed directly to Secured Party or as an affiliate of Secured Party or acquired by
Secured Party or an affiliate of Secured Party by purchase, pledge or otherwise, (b) all costs and expenses, including attorneys’
fees, incurred by Secured Party or any affiliate of Secured Party in connection with the Note or in connection with the collection
or enforcement of any portion of the indebtedness, liabilities or obligations described in the foregoing clause (a), (c) the payment
of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Agreement, and (d) the
performance of the covenants and agreements of Debtor contained in this Agreement and all other Transaction Documents.

“Permitted
Liens” means (a) Liens for taxes not yet delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves have been established, and (b) Liens in favor of Secured Party under this Agreement or
arising under the other Transaction Documents.

“UCC”
means the Uniform Commercial Code as in effect in the state whose laws would govern the security interest in, including without
limitation the perfection thereof, and foreclosure of the applicable Collateral.

Unless otherwise defined
herein, all terms defined in the UCC have the respective meanings given to those terms in the UCC.

2.                 
Grant of Security Interest. As security for the Obligations, Debtor hereby pledges to Secured Party and grants to
Secured Party a security interest in all right, title, interest, claims and demands of Debtor in and to the property described
in Schedule A hereto, and all replacements, proceeds, products, and accessions thereof (collectively, the “Collateral”).

3.                 
Authorization to File Financing Statements. Debtor hereby irrevocably authorizes Secured Party at any time and from
time to time to file in any filing office in any Uniform Commercial Code jurisdiction or other jurisdiction of Debtor or its subsidiaries
(including without limitation Delaware and Georgia) any financing statements or documents having a similar effect and amendments
thereto that provide any other information required by the Uniform Commercial Code (or similar law of any non-United States jurisdiction,
if applicable) of such state or jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment,
including whether Debtor is an organization, the type of organization and any organization identification number issued to Debtor.
Debtor agrees to furnish any such information to Secured Party promptly upon Secured Party’s request.

4.                 
General Representations and Warranties. Debtor represents and warrants to Secured Party that (a) Debtor is the owner
of the Collateral and that no other person has any right, title, claim or interest (by way of Lien or otherwise) in, against or
to the Collateral, other than Permitted Liens, and (b) upon the filing of UCC-1 financing statements with the Delaware Secretary
of State, Secured Party shall have a perfected first-position security interest in the Collateral to the extent that a security
interest in the Collateral can be perfected by such filing, except for Permitted Liens.

5.                 
Additional Covenants. Debtor hereby agrees:

5.1.           
to perform all acts that may be necessary to maintain, preserve, protect and perfect in the Collateral, the Lien granted
to Secured Party therein, and the perfection and priority of such Lien, except for Permitted Liens;

5.2.           
to procure, execute (including endorse, as applicable), and deliver from time to time any endorsements, assignments, financing
statements, certificates of title, and all other instruments, documents and/or writings reasonably deemed necessary or appropriate
by Secured Party to perfect, maintain and protect Secured Party’s Lien hereunder and the priority thereof;

5.3.           
to provide at least fifteen (15) days prior written notice to Secured Party of any of the following events: (a) any changes
or alterations of Debtor’s name, (b) any changes with respect to Debtor’s address or principal place of business, or
(c) the formation of any subsidiaries of Debtor;

5.4.           
upon the occurrence of an Event of Default (as defined in the Note) under the Note and, thereafter, at Secured Party’s
request, to endorse (up to the outstanding amount under such promissory notes at the time of Secured Party’s request), assign
and deliver any promissory notes included in the Collateral to Secured Party, accompanied by such instruments of transfer or assignment
duly executed in blank as Secured Party may from time to time specify;

5.5.           
to the extent the Collateral is not delivered to Secured Party pursuant to this Agreement, to keep the Collateral at the
principal office of Debtor (unless otherwise agreed to by Secured Party in writing), and not to relocate the Collateral to any
other locations without the prior written consent of Secured Party;

5.6.           
not to sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral or any interest therein (other
than inventory in the ordinary course of business); and

5.7.           
not to, directly or indirectly, allow, grant or suffer to exist any Lien upon any of the Collateral, other than Permitted
Liens.

6.                 
Authorized Action by Secured Party. Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact (which
appointment is coupled with an interest) and agrees that Secured Party may perform (but Secured Party shall not be obligated to
and shall incur no liability to Debtor or any third party for failure so to do) any act which Debtor is obligated by this Agreement
to perform, and to exercise such rights and powers as Debtor might exercise with respect to the Collateral, including the right
to (a) collect by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds
and other sums and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension, reorganization,
deposit, merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in
exchange for the Collateral; (c) make any compromise or settlement, and take any action Secured Party deems advisable, with respect
to the Collateral, including without limitation bringing suit in Secured Party’s own name to enforce any intellectual property;
(d) endorse Debtor’s name on all applications, documents, papers and instruments necessary or desirable for Secured Party
in the use of any intellectual property; (e) grant or issue any exclusive or non-exclusive license under any intellectual property
to any person or entity; (f) assign, pledge, sell, convey or otherwise transfer title in or dispose of any intellectual property
to any person or entity; (g) insure, process and preserve the Collateral; (h) pay any indebtedness of Debtor relating to the
Collateral; (i) execute and file UCC financing statements and other documents, certificates, instruments and agreements with respect
to the Collateral or as otherwise required or permitted hereunder; and (j) take any and all appropriate action and execute any
and all documents and instruments that may be necessary or useful to accomplish the purposes of this Agreement; provided, however,
that Secured Party shall not exercise any such powers granted pursuant to clauses (a) through (f) above prior to the occurrence
of an Event of Default and shall only exercise such powers during the continuance of an Event of Default. The powers conferred
on Secured Party under this Section 6 are solely to protect its interests in the Collateral and shall not impose any duty upon
it to exercise any such powers. Secured Party shall be accountable only for the amounts that it actually receives as a result of
the exercise of such powers, and neither Secured Party nor any of its stockholders, directors, officers, managers, employees or
agents shall be responsible to Debtor for any act or failure to act, except with respect to Secured Party’s own gross negligence
or willful misconduct. Nothing in this Section 6 shall be deemed an authorization for Debtor to take any action that it is otherwise
expressly prohibited from undertaking by way of other provision of this Agreement.

7.                 
Default and Remedies.

7.1.           
Default. Debtor shall be deemed in default under this Agreement upon the occurrence of an Event of Default (as defined
in the Note).

7.2.           
Remedies. Upon the occurrence of any such Event of Default, Secured Party shall have the rights of a secured creditor
under the UCC, all rights granted by this Agreement and by law, including, without limiting the foregoing, (a) the right to require
Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party, and (b)
the right to take possession of the Collateral, and for that purpose Secured Party may enter upon premises on which the Collateral
may be situated and remove the Collateral therefrom. Debtor hereby agrees that fifteen (15) days’ notice of a public sale
of any Collateral or notice of the date after which a private sale of any Collateral may take place is reasonable. In addition,
Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of Secured Party’s
rights and remedies hereunder, including, without limitation, Secured Party’s right following an Event of Default to take
immediate possession of Collateral and to exercise Secured Party’s rights and remedies with respect thereto. Secured Party
may also have a receiver appointed to take charge of all or any portion of the Collateral and to exercise all rights of Secured
Party under this Agreement. Secured Party may exercise any of its rights under this Section 7.2 without demand or notice of any
kind. The remedies in this Agreement, including without limitation this Section 7.2, are in addition to, not in limitation of,
any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which Secured Party may be entitled.
No failure or delay on the part of Secured Party in exercising any right, power, or remedy will operate as a waiver thereof, nor
will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right
hereunder. All of Secured Party’s rights and remedies, whether evidenced by this Agreement or by any other agreement, instrument
or document shall be cumulative and may be exercised singularly or concurrently.

7.3.           
Standards for Exercising Rights and Remedies. To the extent that applicable law imposes duties on Secured Party to
exercise remedies in a commercially reasonable manner, Debtor acknowledges and agrees that it is not commercially unreasonable
for Secured Party (a) to fail to incur expenses reasonably deemed significant by Secured Party to prepare Collateral for disposition,
(b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other
law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or
disposed of, (c) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral or to
fail to remove liens or encumbrances on or any adverse claims against Collateral, (d) to exercise collection remedies against account
debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists,
(e) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral
is of a specialized nature, (f) to contact other persons, whether or not in the same business as Debtor, for expressions of interest
in acquiring all or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing
so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim
disposition warranties, (k) to purchase insurance or credit enhancements to insure Secured Party against risks of loss, collection
or disposition of Collateral or to provide to Secured Party a guaranteed return from the collection or disposition of Collateral,
or (l) to the extent deemed appropriate by Secured Party, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist Secured Party in the collection or disposition of any of the Collateral. Debtor acknowledges
that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Secured Party would fulfill
Secured Party’s duties under the UCC in Secured Party’s exercise of remedies against the Collateral and that other
actions or omissions by Secured Party shall not be deemed to fail to fulfill such duties solely on account of not being indicated
in this Section. Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights
to Debtor or to impose any duties on Secured Party that would not have been granted or imposed by this Agreement or by applicable
law in the absence of this Section.

7.4.           
Marshalling. Secured Party shall not be required to marshal any present or future Collateral for, or other assurances
of payment of, the Obligations or to resort to such Collateral or other assurances of payment in any particular order, and all
of its rights and remedies hereunder and in respect of such Collateral and other assurances of payment shall be cumulative and
in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, Debtor hereby agrees
that it will not invoke any law relating to the marshalling of Collateral which might cause delay in or impede the enforcement
of Secured Party’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of
the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment
thereof is otherwise assured, and, to the extent that it lawfully may, Debtor hereby irrevocably waives the benefits of all such
laws.

7.5.           
Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds
and the avails of any remedy hereunder (as well as any other amounts of any kind held by Secured Party at the time of, or received
by Secured Party after, the occurrence of an Event of Default) shall be paid to and applied as follows:

(a)               
First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral,
of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses,
liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Secured Party;

(b)              
Second, to the payment to Secured Party of the amount then owing or unpaid on the Note (to be applied first to accrued interest,
fees and costs incurred thereunder and second to outstanding principal) and all amounts owed under any of the other Transaction
Documents; and

(c)               
Third, to the payment of the surplus, if any, to Debtor, its successors and assigns, or to whosoever may be lawfully entitled
to receive the same.

In the absence of
final payment and satisfaction in full of all of the Obligations, Debtor shall remain liable for any deficiency.

8.                 
Miscellaneous.

8.1.           
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled
“Notices” in the Purchase Agreement, the terms of which are incorporated herein by this reference.

8.2.           
Non-waiver. No failure or delay on Secured Party’s part in exercising any right hereunder shall operate as
a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise
thereof or of any other right.

8.3.           
Amendments and Waivers. This Agreement may not be amended or modified, nor may any of its terms be waived, except
by written instruments signed by Debtor and Secured Party. Each waiver or consent under any provision hereof shall be effective
only in the specific instances for the purpose for which given.

8.4.           
Assignment. This Agreement shall be binding upon and inure to the benefit of Secured Party and Debtor and their respective
successors and assigns; provided, however, that Debtor may not sell, assign or delegate rights and obligations hereunder
without the prior written consent of Secured Party.

8.5.            Cumulative
Rights, etc. The rights, powers and remedies of Secured Party under this Agreement shall be in addition to all rights,
powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental authority,
or the Note, all of which rights, powers, and remedies shall be cumulative and may be exercised successively or
concurrently without impairing Secured Party’s rights hereunder. Debtor waives any right to require Secured Party to
proceed against any person or entity or to exhaust any Collateral or to pursue any remedy in Secured Party’s power.

8.6.           
Partial Invalidity. If any part of this Agreement is construed to be in violation of any law, such part shall be
modified to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain
in full force and effect.

8.7.           
Expenses. Debtor shall pay on demand all reasonable fees and expenses, including reasonable attorneys’ fees
and expenses, incurred by Secured Party in connection with the custody, preservation or sale of, or other realization on, any of
the Collateral or the enforcement or attempt to enforce any of the Obligations which are not performed as and when required by
this Agreement.

8.8.           
Entire Agreement. This Agreement and the other Transaction Documents, taken together, constitute and contain the
entire agreement of Debtor and Secured Party with respect to this particular matter and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject
matter hereof.

8.9.           
Governing Law. Except as otherwise specifically set forth herein, the parties expressly agree that this Agreement
shall be governed solely by the laws of the State of Utah, without giving effect to the principles thereof regarding the conflict
of laws; provided, however, that enforcement of Secured Party’s rights and remedies against the Collateral as provided
herein will be subject to the UCC.

8.10.       
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES
HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT
TO DEMAND TRIAL BY JURY.

8.11.       
Purchase Agreement; Arbitration of Disputes. By executing this Agreement, each party agrees to be bound by the terms,
conditions and general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the
Arbitration Provisions (as defined in the Purchase Agreement) set forth as an Exhibit to the Purchase Agreement.

8.12.       
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and
all of which together shall constitute one instrument. Any electronic copy of a party’s executed counterpart will be deemed
to be an executed original.

8.13.       
Termination of Security Interest. Upon the payment in full of all Obligations, the security interest granted herein
shall terminate and all rights to the Collateral shall revert to Debtor. Upon such termination, Secured Party hereby authorizes
Debtor to file any UCC termination statements necessary to effect such termination and Secured Party will execute and deliver to
Debtor any additional documents or instruments as Debtor shall reasonably request to evidence such termination.

8.14.       
Time of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement.

[Remainder of page intentionally left blank;
signature page follows]

 

 

 

 

 

 

    	 

    	 

    

 

 

 

IN WITNESS WHEREOF,
Secured Party and Debtor have caused this Agreement to be executed as of the day and year first above written.

SECURED PARTY:

 

Tonaquint,
Inc.

 

 

By:/s/ John M. Fife

John M. Fife, President

 

 

DEBTOR:

 

Guided
Therapeutics, Inc.

 

 

By:/s/ Gene S. Cartwright

Name: Gene S. Cartwright

Title: President and CEO

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Security Agreement]

 

    	 

    	 

    

 

 

 

SCHEDULE A

TO SECURITY AGREEMENT

 

All accounts receivable and inventory of Debtor,
whether now owned or hereafter acquired, including without limitation the accounts receivable and inventory more specifically described
on Schedule A-1 hereto, including any documents of title representing, and books and records relating to, the foregoing,
as well as any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to,
and proceeds thereof.

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