Guided Therapeutics Inc (GTHP)

[Pacjd]

That Shenghou is the original license holder with GTHP and because Shenghou had no expertise to satisfy its obligation under the same, Shenghou had to find a substitute like SMI. SMI became a new Licensee and substituted into a New Licensing Agreement between SMI and GTHP, under which SMI was to pay GTHP $ I million which it never fully paid. Because Shenghou Medical, LLC (now K2) gave up rights it became untitled to receive and participate in fees SMI is obligated to pay to GTHP,.

When and if GTHP collects fees under its agreement with SMI, GTHP is obligated to share fees with Shenghou Medical, LLC now K2, which Richard Blumberg is both a manager and owner in K2. Mark Faupel at one time was both a manager and owner in K2, now Faupel is just an owner in K2.

GTHP is obligated to share fees (it receives from SMI) with Shenghou Medical, LLC now K2. Those are undisputed facts.