PATIENT
SAFETY TECHNOLOGIES, INC.

    2009
STOCK OPTION PLAN

    NOTICE
OF GRANT OF OPTION

    


    The
Optionee named below is hereby granted an option (the “Option”) to purchase certain shares
of common stock (“Stock”) of Patient Safety
Technologies, Inc. (the “Corporation”)
pursuant to the Corporation’s 2009 Stock Option Plan (the “Plan”) as
follows:

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              
                                                                                                                
                                                                                                                  
                                                                                                                    
                                                                                                                      
                                                                                                                        
                                                                                                                          
                                                                                                                            
                                                                                                                              
                                                                                                                                
                                                                                                                                  
                                                                                                                                    
                                                                                                                                      
                                                                                                                                        
                                                                                                                                          
                                                                                                                                            
                                                                                                                                              
                                                                                                                                                
                                                                                                                                                  	
                                                                                                                                                          Optionee:

                                                                                                                                                        	 
      	 
      	 
	 	 	 	 
	
                                                                                                                                                          Date of Grant:

                                                                                                                                                        	 
      	 
      	 
	 	 	 	 
	
                                                                                                                                                          Number of Option
      Shares:

                                                                                                                                                        	 
      	 
      	 
	 	 	 	 
	
                                                                                                                                                          Exercise Price:

                                                                                                                                                        	 
      	
                                                                                                                                                          $____
      per share

                                                                                                                                                        	 
	 	 	 	 
	
                                                                                                                                                          Type of Option:

                                                                                                                                                        	 
      	
                                                                                                                                                          ___
      Incentive Option         ___
      Non-Qualified Option     (check
    one)

                                                                                                                                                        	 
	 	 	 	 
	
                                                                                                                                                          Vesting
      Commencement Date:

                                                                                                                                                        	 
      	 
      	 
	 	 	 	 
	
                                                                                                                                                          Initial Vesting Date:

                                                                                                                                                        	 
      	
                                                                                                                                                          The
      date six months after the Vesting Commencement Date

                                                                                                                                                        	 
	 	 	 	 
	
                                                                                                                                                          Option Expiration
      Date:

                                                                                                                                                        	 
      	
                                                                                                                                                          The
      date ten (10) years after the Date of Grant

                                                                                                                                                        	 
	 	 	 	 
	
                                                                                                                                                          Vested Shares:

                                                                                                                                                        	 
      	
                                                                                                                                                          Except
      as provided in the Option Agreement, the number of Vested Shares
      (disregarding any resulting fractional share) as of any date is determined
      by multiplying the Number of Option Shares by the “Vested
      Ratio”
      determined as of such date as follows:

                                                                                                                                                        	 
	 	 	 	 	 	 
	 
      	 
      	 
      	 
      	
                                                                                                                                                          Vested Ratio

                                                                                                                                                        	 
	 
      	 
      	
                                                                                                                                                          Prior
      to Initial Vesting Date

                                                                                                                                                        	 
      	
                                                                                                                                                          0

                                                                                                                                                        	 
	 	 	 	 	 	 
	 
      	 
      	
                                                                                                                                                          On
      Initial Vesting Date, provided Optionee’s Service has not terminated prior
      to such date

                                                                                                                                                        	 
      	
                                                                                                                                                          [1/4]

                                                                                                                                                        	 
	 	 	 	 	 	 
	 
      	 
      	
                                                                                                                                                          Plus

                                                                                                                                                        	 
      	 
      	 
	 	 	 	 	 	 
	 
      	
                                                                                                                                                            

                                                                                                                                                        	
                                                                                                                                                          For
      each additional full month of Optionee’s continuous service from Initial
      Vesting Date until the Vested Ratio equals 1/1, an
    additional

                                                                                                                                                        	
                                                                                                                                                            

                                                                                                                                                        	
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    By their
signatures below, the Corporation and the Optionee agree that the Option is
governed by the Plan, this Grant Notice and the Option Agreement which is
attached to and made a part of this document.  The Optionee
acknowledges receipt of the Plan and the Option Agreement, represents that the
Optionee has read and is familiar with their provisions, and hereby accepts the
Option subject to all of their terms and conditions.

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        PATIENT
      SAFETY TECHNOLOGIES, INC.

                                      	 	
                                        OPTIONEE

                                      
	 
      	 
      	 	 
      
	
                                        By:

                                      	 
      	 	 
      
	 
      	 
      	 	
                                        Signature

                                      
	
                                        Its:

                                      	 
      	 	 
      
	 
      	 
      	 	
                                        Date

                                      
	
                                        Address:

                                      	 	 
      
	 
      	 	
                                        Address

                                      
	 
      	 	 
      


                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    PATIENT
SAFETY TECHNOLOGIES, INC.

    2009
STOCK OPTION PLAN

    OPTION
AGREEMENT

     

    Patient
Safety Technologies, Inc. has granted to the Optionee named in the Notice of Grant of Option
(the “Grant
Notice”) to which this Option Agreement (the “Option
Agreement”) is attached, an option (the “Option”)
pursuant to the Corporation’s 2009 Stock Option Plan (the “Plan”) to
purchase certain shares of common stock of the Corporation (“Stock”)
upon the terms and conditions set forth in this Option Agreement, and the terms
and conditions set forth in the Plan and the Grant Notice, which are
incorporated into this Option Agreement by reference.  By signing the
Grant Notice, the Optionee: (a) acknowledges receipt of, and represents that the
Optionee has read and is familiar with the terms and conditions of, the Plan,
the Grant Notice and this Option Agreement, (b) accepts the Option subject to
all of the terms and conditions of the Plan, the Grant Notice and this Option
Agreement, and (c) agrees to accept as binding, conclusive and final all
decisions or interpretations of the Board of Directors of the Corporation (the
“Board”) upon any
questions arising under the Plan, Grant Notice and this Option
Agreement.  In the event of a conflict between the terms and
conditions of the Plan and this Option Agreement, the terms and conditions of
the Plan shall prevail.  Capitalized terms not defined in this Option
Agreement shall have the meanings defined in the Plan.

     

    
      	
              1.

            	
              EXERCISE
      OF THE OPTION.

            


    

     

    1.1          Right to
Exercise.  Except as otherwise provided herein, the Option
shall be exercisable on and after the Initial Vesting Date and prior to the
termination of the Option (as provided in Section 3 in an amount not to exceed
the number of Vested Shares less the number of shares previously acquired upon
exercise of the Option.  In no event shall the Option be exercisable
for more shares than the Number of Option Shares, as adjusted pursuant to
Section 6 of the Plan.

     

    1.2          Method of
Exercise.  The Option shall be exercised by written notice to
the Corporation by the Optionee (or successor in the event of death) as such
written notice may be amended by the Board from time to time.  In
the event the Option shall be exercisable by any person other than the Optionee,
the required notice under this Section 1.2 shall be accompanied by
appropriate proof of the right of such person to exercise the
Option.

     

    1.3          Medium and Time of
Payment.  The Option Exercise Price shall be payable in full on
or before the Option exercise date by certified or bank cashier’s
check.

     

    1.4          Incentive Stock
Options.  If designated in the Grant Notice as an Incentive
Stock Option, this Option is intended to qualify as an Incentive Option (as
defined in the Plan).  Nonetheless, to the extent that it exceeds the
$100,000 rule of Code Section 422(d), this Option shall be treated as a
Non-Qualified Stock Option (as defined in the Plan).

     

    1.5          Tax Withholding.

     

    (a)           Withholding
Taxes.  Notwithstanding anything else to the contrary in this
Option Agreement, the exercise of the Option shall be conditioned upon payment
by Optionee in cash, or other provisions satisfactory to the Board, of all
local, state, federal or other withholding taxes applicable, in the Board’s
judgment, to the exercise or to later disposition of Stock acquired upon
exercise of the Option.


    
      
         


      

      
        1

        
          

        

      

      
         


      

    


    (b)           Withholding in
Securities.  The Corporation may, in its discretion, permit or
require Optionee to satisfy all or any portion of the tax obligations related to
the Option by deducting from the shares of Stock otherwise deliverable to
Optionee in settlement of the Option a number of shares of Stock having a fair
market value, as determined by the Corporation as of the date on which the tax
obligations arise, not in excess of the amount of such tax obligations
determined by the applicable withholding rates.  In the event that the
Corporation determines that the tax obligations will not be satisfied by the
method described above, Participant authorizes the designated plan administrator
or any successor plan administrator, to sell a number of shares of Stock that
are purchased under the Option, which the Corporation determines is sufficient
to generate an amount that meets the tax obligations plus additional shares of
Stock, as necessary. To account for rounding and market fluctuation, and to pay
such tax withholding amounts to the Corporation.  The shares of Stock
may be sold as part of a block trade with other optionees of the Corporation in
which all Optionees receive an average price.  Any adverse
consequences to Optionee resulting from the procedure permitted under this
Section 1.5, including, without limitation, tax consequences, shall be the sole
responsibility of Optionee.

     

    (c)           Notice of
Disqualifying Disposition of Incentive Option Shares. If the Option granted to
Optionee herein is an Incentive Option, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the Incentive Option on or
before the later of (1) the date two years after the Date of Grant, or (2) the
date one year after the date of exercise, the Optionee shall immediately notify
the Corporation in writing of such disposition.  Optionee agrees that
Optionee may be subject to income tax withholding by the Corporation on the
compensation income recognized by the Optionee.

     

    (d)            Consultation.  Optionee
hereby acknowledges that he or she understands that Optionee may suffer adverse
tax consequences as a result of Optionee’s exercise of the Option or disposition
of the shares of Stock.  Optionee hereby represents that Optionee has
consulted with any tax consultants Optionee deems advisable in connection with
the exercise of the Option or disposition of the shares of Stock and that
Optionee is not relying on the Corporation for any tax advice.

     

    1.6          Fractional
Shares.  The Corporation shall not be required to issue
fractional shares upon the exercise of the Option.

     

    
      	
              2.

            	
              NONTRANSFERABILITY
      OF THE OPTION.

            


    

     

    Options
granted under this Option Agreement may not be sold, pledged, assigned or
transferred in any manner other than by will or by the laws of intestate
succession, and may be exercised during the lifetime of the Optionee only by
such Optionee.  Any transfer in violation of this Section shall
void the Option.  No Option shall be pledged or hypothecated in any
way, nor shall the Option be subject to execution, attachment or similar
process.


    
      
         


      

      
        2

        
          

        

      

      
         


      

    


    
      	
              3.

            	
              TERMINATION
      OF THE OPTION.

            


    

     

    The
Option shall terminate and may no longer be exercised after the first to occur
of (a) the close of business on the Option Expiration Date, (b) the close of
business on the last date for exercising the Option following termination of the
Optionee’s service as described in Section 5, or (c) a Capital Transaction to
the extent provided in Section 6 of the Plan.

     

    
      	
              4.

            	
              EFFECT
      OF TERMINATION OF SERVICE.

            


    

     

    4.1          Option
Exercisability.  The Option shall terminate immediately if
Optionee ceases to be employed by the Corporation, is no longer an officer or
member of the Board and no longer performs services for the Corporation for any
reason (collectively referred to as “Services”)
to the extent that it is then unvested and shall be exercisable after Optionee’s
termination of Service to the extent it is then vested only during the
applicable time period as determined below and thereafter shall
terminate.

     

    (a)           If
Optionee ceases to perform Services for the Corporation for any reason (other
than for “cause,” as hereinafter defined, or such Optionee’s death), any vested
Option granted hereunder to Optionee shall expire three (3) months after the
date the occurrence giving rise to such termination of eligibility (or 1 year in
the event an optionee is “disabled,” as defined in Section 22(e)(3) of
the Internal Revenue Code of 1986, as amended (the “Code”) or
upon the date it expires by its terms, whichever is earlier.  This
Option shall expire as to any shares that have not vested in the Optionee as of
the date of such termination.  The Board shall, in its sole and
absolute discretion, decide, using the provisions set forth in Treasury
Regulations Section 1.421-7(h), whether an authorized leave of absence or
absence for military or governmental service, or absence for any other reason,
shall constitute termination of eligibility for purposes of this
Section.

     

    (b)           If
Optionee ceases to performs Services for the Corporation, and such termination
is as a result of “cause,” as hereinafter defined, then all Options granted
hereunder to such Optionee shall expire on the date of the occurrence giving
rise to such termination of eligibility or upon the date it expires by its
terms, whichever is earlier, and such Optionee shall have no rights with respect
to any unexercised Options.  For purposes of this Option Agreement,
“cause” shall mean an Optionee’s personal dishonesty, misconduct, breach of
fiduciary duty, incompetence, intentional failure to perform stated obligations,
willful violation of any law, rule, regulation or final cease and desist order,
or any material breach of any provision of this Option Agreement or any
employment agreement.  The Board shall have complete discretion and
authority to determine whether the termination of the Optionee is for
cause.

     

    (c)           Death of Optionee
and Transfer of Option.  In the event Optionee shall die, a
vested Option may be exercised (subject to the condition that no Option shall be
exercisable after its expiration and only to the extent that the Optionee’s
right to exercise such Option had accrued at the time of the Optionee’s death)
at any time within six months after the Optionee’s death by the executors or
administrators of the Optionee or by any person or persons who shall have
acquired the Option directly from the Optionee by bequest or
inheritance.  Any Option that has not vested in the Optionee as of the
date of death or termination of employment, whichever is earlier, shall
immediately expire and shall be null and void.  No option shall be
transferable by the optionee other than by will or the laws of intestate
succession.


    
      
         


      

      
        3

        
          

        

      

      
         


      

    


    4.2          Extension if Exercise Prevented by
Law.  Notwithstanding the foregoing other than termination of
Service for Cause, if the exercise of the Option within the applicable time
periods set forth in Section 4.1 is prevented by the provisions of Section 7,
the Option shall remain exercisable until the later of (a) thirty (30) days
after the date such exercise first would no longer be prevented by such
provisions or (b) the end of the applicable time period under Section 4.1, but
in any event no later than the Option Expiration Date.

     

    
      	
              5.

            	
              RIGHTS
      AS A STOCKHOLDER, DIRECTOR, EMPLOYEE OR CONSULTANT.

            


    

     

    Optionee
shall have no rights as a stockholder with respect to any shares covered by the
Option until the date of the issuance of the shares for which the Option has
been exercised (as evidenced by the appropriate entry on the books of the
Corporation or of a duly authorized transfer agent of the
Corporation).  No adjustment shall be made for dividends,
distributions or other rights for which the record date is prior to the date the
shares are issued (except to the extent, if any, provided in Section 6 of the
Plan).  If Optionee is an employee, Optionee understands and
acknowledges that, except as otherwise provided in a separate, written
employment agreement between Corporation and Optionee, Optionee’s employment is
“at will” and is for no specified term.  Nothing in this Option
Agreement shall confer upon Optionee any right to continue in the service of the
Corporation or interfere in any way with any right of the Corporation to
terminate Optionee’s service as a director, an employee or consultant, as the
case may be, at any time.

     

    
      	
              6.

            	
              RESTRICTIVE
      LEGENDS.

            


    

     

    The certificates representing the Stock
issued upon exercise of the Options granted pursuant to this Option Agreement
will bear any legends required by applicable securities laws as determined by
the Board.

     

    
      	
              7.

            	
              SECURITIES
      LAWS COMPLIANCE.

            


    

     

    Notwithstanding anything contained
herein, the Corporation shall not be obligated to  sell, issue or
effect any transfer of any Stock unless (i) such grant, sale, issuance or
transfer is at such time effectively registered or exempt from registration
under the Securities Act of 1933, as amended (the “Act”), (ii) the shares shall
have been listed (or authorized for listing upon official notice of issuance)
upon each stock exchange, if any, on which the Stock may then be listed and
(iii) the grant, sale and/or issuance complies with all other applicable
laws, regulations, rules and orders which may then be in effect.  As a
condition to exercise of any option, each optionee shall make such
representations as may be deemed appropriate by counsel to the Corporation for
the Corporation to use any available exemption from registration under the Act
or qualification under any applicable state securities law.


    
      
         


      

      
        4

        
          

        

      

      
         


      

    


    
      	
              8.

            	
              MISCELLANEOUS
      PROVISIONS.

            


    

     

    8.1          Termination or
Amendment.  The Board may terminate or amend the Option at any
time; provided, however, that except as provided in Section 6 of the Plan in
connection with a Capital Transaction, no such termination or amendment may
adversely affect the Option or any unexercised portion hereof without the
consent of Optionee unless such termination or amendment is necessary to comply
with any applicable law or government regulation, including, but not limited to
Section 409A of the Code.  No amendment or addition to this Option
Agreement shall be effective unless in writing.

     

    8.2          Compliance with Section
409A.  The Corporation intends that income realized by Optionee
pursuant to this Option Agreement will not be subject to taxation under Section
409A of the Code.  The provisions of this Option Agreement shall be
interpreted and construed in favor of satisfying any applicable requirements of
Section 409A of the Code.  The Corporation, in its reasonable
discretion, may amend (including retroactively) the Option Agreement in order to
conform to the applicable requirements of Section 409A of the Code, including
amendments to facilitate Optionee’s ability to avoid taxation under Section 409A
of the Code.  However, the preceding provisions shall not be construed
as a guarantee by the Corporation of any particular tax result for income
realized by Optionee pursuant to this Option Agreement.  In any event,
the Corporation shall be responsible for the payment of any applicable taxes on
income realized by Optionee pursuant to this Option Agreement.

     

    8.3          Binding
Effect.  Subject to the restrictions on transfer set forth
herein, this Option Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective heirs, executors, administrators,
successors and assigns.

     

    8.4          Integrated
Agreement.  The Plan, Grant Notice and this Option Agreement,
together with any employment, service or other agreement with Optionee and
Corporation referring to the Option, shall constitute the entire understanding
and agreement of Optionee and the Corporation with respect to the subject matter
contained herein or therein and supersede any prior agreements, understandings,
restrictions, representations, or warranties among Optionee and the Corporation
with respect to such subject matter.  To the extent contemplated
herein or therein, the provisions of the Plan, the Grant Notice and the Option
Agreement shall survive any exercise of the Option and shall remain in full
force and effect.

     

    8.5          Applicable
Law.  This Option Agreement shall be governed by the laws of
the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within the State
of California.

     

    8.6          Counterparts.  The
Grant Notice may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.


    
      
         


      

      
        5

        
          

        

      

      
         


      

    


    8.7          Construction.  Captions
and titles contained herein are for convenience only and shall not affect the
meaning or interpretation of any provision of this Option
Agreement.  Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the
singular.  Use of the term “or” is not intended to be exclusive,
unless the context clearly requires otherwise.

     


    
      
         


      

      
        6

        
          

        

      

      
         


      

    


    Optionee:
___________________________

    


    Date:
___________________________

    


    STOCK
OPTION EXERCISE NOTICE

    


    PATIENT
SAFETY TECHNOLOGIES, INC.

    Attention:
________________

    ________________________

    ________________________

    


    Ladies
and Gentlemen:

    


    1.           Option.  I was granted an
option (the “Option”) to purchase shares of the
common stock (the “Shares”) of Patient Safety
Technologies, Inc. (the “Corporation”) pursuant to the
Corporation’s 2009 Stock Option Plan (the “Plan”), my
Notice of Grant of Stock Option (the “Grant
Notice”) and my
Option Agreement (the “Option
Agreement”) as
follows:

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Date
      of Grant:

                                    	 	 
      	 	 
      	 
	 
      	 	 
      	 	 
      	 
	
                                      Number
      of Option Shares:

                                    	 	 
      	 	 
      	 
	 
      	 	 
      	 	 
      	 
	
                                      Exercise
      Price per Share:

                                    	 	
                                       

                                    	 $	 
      	 


                            

                          

                        

                      

                    

                  

                

              

            

          

        

      



    2.           Exercise
of Option.  I hereby elect to
exercise the Option to purchase the following number of Shares, all of which are
Vested Shares, in accordance with the Grant Notice and the Option
Agreement:

    


    
      
        
          	Total Shares Purchased:	 	 
      	 	 
      	 
	 
      	 	 
      	 	 
      	 
	Total Exercise Price (Total Shares X Price
      per Share)	 	
                   

                	 $	 
      	 


        

      

    

     

    3.           Payments.  I enclose payment
in full of the total exercise price for the Shares in the following form(s), as
authorized by my Option Agreement:

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Ô  Cash:

                                	 	
                                   

                                	 $	 
      	 
      
	 
      	 	 
      	 	 
      	 
      
	
                                  Ô  Check:

                                	 	
                                   

                                	 $	
                                    

                                	 
      


                        

                      

                    

                  

                

              

            

          

        

      

    
 

    
      
         


      

      
        1

        
          

        

      

      
         


      

    


    4.           Tax
Withholding.

    


    
      	
               
      

            	
              Ô

            	
              I
      authorize payroll withholding and otherwise will make adequate provision
      for the federal, state, local and foreign tax withholding obligations of
      the Corporation, if any, in connection with the
  Option.

            


    

    


    Ô      I
enclose payment in full of my withholding taxes, as follows:

    


    (Contact
Plan Administrator for amount of tax due.)

    


    
      	
              Ô  Cash:

            	 	
               

            	 $	 
      	 
      
	 
      	 	 
      	 	 
      	 
      
	
              Ô  Check:

            	 	
               

            	 $	
                

            	 
      


    

     

    5.           Participant
Information.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      My
      address is:

                                    	 
      
	  	 


                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	
                        My
      Social Security Number is:

                      	 
      


              

            

             

          

        

      

    

    6.           Binding Effect.  I
agree that the shares of Stock are being acquired in accordance with and subject
to the terms, provisions and conditions of the Plan, the Grant Notice and the
Option Agreement, to all of which I hereby expressly assent.  This
Agreement shall inure to the benefit of and be binding upon my heirs, executors,
administrators, successors and assigns.

    


    I understand that I am purchasing the
Shares pursuant to the terms of the Plan, the Grant Notice and Option Agreement,
copies of which I have received and carefully read and understand.

    


    
      
        
          	 
      	
                  Very
      truly yours,

                
	 
      	 
      
	      	
                   

                
	 
      	
                  (Signature)

                


        

      

    

    


    Receipt
of the above is hereby acknowledged.

    


    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    PATIENT
      SAFETY TECHNOLOGIES, INC.

                                  	 
	 
      	 
      	 
	
                                    By:

                                  	 
      	 
	 
      	 
      	 
	
                                    Title:

                                  	 
      	 
	 
      	 
      	 
	
                                    Dated:

                                  	 	 
      	 


                          

                        

                      

                    

                  

                

              

            

          

        

      

    


    
      
         


      

      
        2