| A. | Executive      is employed by Company pursuant to an Agreement dated January 5, 2009 (the      “Employment Agreement”) between Company and Executive;  and |
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| B. | Executive’s      employment with Company will terminate on May 6, 2009 (the “Termination      Date”); and |
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| C. | The      Parties wish to resolve any and all disputes, claims, complaints,      grievances, charges, actions, petitions and demands that      they  may have against each other, including, but not limited      to, any and all claims arising or in any way relating to Executive’s      employment with or separation fromCompany. |
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| 1. | Defined      Terms.  Any      capitalized terms not defined in this Separation Agreement shall have the      meanings attributed to them in the Employment  Agreement. |
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| 2. | Termination      of Employment Agreement.  Except as provided in Section 7      below, Company and Executive agree that the Employment Agreement is hereby      terminated as of the Termination Date, and except as set forth in Section      7 below, all rights and obligations of the parties pursuant to the      Employment Agreement shall terminate as of the Termination      Date.  Executive has separately tendered a letter resigning his      positions as Chief Executive Officer of the Company, and as a director of      the Company. |
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| 3. | Receipt      of All Wages Due.  Company      shall pay all wages and compensation due and owing to Executive as of the      Termination Date, including, without limitation, any and all of      Executive’s accrued but unused vacation and reimbursable business-related      expenses supported by proper documentation and submitted pursuant to the      Company’s expense reimbursement policy.  Company and Executive      agree that such wages and compensation are as set forth on Exhibit 1      attached hereto.  Executive agrees and acknowledges that, upon      payment of such amounts, Company will have paid all wages and compensation      due and owing to Executive as of the date  hereof. |
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| 4. | Additional      Separation Payment.  In      consideration for the waivers, releases and covenants set forth herein,      the Company will continue payment of Executive’s Annual Base Salary (as      defined in the Employment Agreement) for a period of thirty (30) days      following the Termination Date, in accordance with the Company’s regular      payroll practices (pro-rated for partial periods, and setting off from the      first payment the pro-rated May compensation paid pursuant to Section 3      above).  For avoidance of doubt, Executive will not be eligible      for any other additional cash compensation, whether under the Employment      Agreement or otherwise, including without limitation any entitlement under      any executive bonus plan or pension plan referenced in the Employment      Agreement. |
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| 5. | No      Equity Interest.  Executive      acknowledges and agrees that Executive is not entitled to any equity      interest in the Company or any option or right with respect to any such      equity interest, notwithstanding anything to the contrary in the      Employment Agreement or in any other agreement between the Company and      Executive. |
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| 6. | Benefits.  The      Company will      maintain health and medical insurance benefits for Executive and any of      his eligible and participating dependents, pursuant to the Company’s      health insurance plan, through the end of the month in which Executive      resigns his employment.  Thereafter, Executive and said      dependents shall cease to be active participants under the Company’s      health and medical benefit plans in accordance with the terms of those      plans, and no additional health or medical benefits shall accrue to      Executive or his dependents.  Executive will be entitled to      continue his and/or his eligible dependents’ current health and medical      insurance coverage, if any, in accordance with the provisions of COBRA, as      applicable, and will receive notice of any such COBRA continuation rights      under separate cover.  Executive’s participation in all other      benefits and incidents of employment will terminate on the Termination      Date, except as required by governinglaw. |
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| 7. | Nondisclosure,      Noncompetition and Invention Assignment.  Executive      and the Company acknowledge and agreethat: |
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|   | a. | Section      5 (b) through (e) of the Employment Agreement (“Non-Disclosure,      Inventions, Acknowledgement, and Enforceability”) will remain in effect      following the Termination Date for the periods stated in such      Section.  Executive shall continue to maintain the      confidentiality of all confidential and proprietary information of the      Company and shall continue to comply with the terms and conditions of such      Section. |
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|   | b. | Executive      shall return all of the company’s property except laptop computer, and      return or destroy confidential and proprietary information in executive’s      possession to the Company by five days after the Effective Date of this      Agreement. |
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|   | c. | Section      7(a) of the Employment Agreement (“Indemnification”) will remain in effect      for a period of 3 years following Termination  Date. |
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|  8. | Release      of Claims.  Executive      agrees that the additional consideration provided for in this Agreement      represents settlement in full of all outstanding obligations owed to      Executive by the Company and/or its officers, managers, supervisors,      members, agents and employees.  Executive, on Executive’s own      behalf, and on behalf of Executive’s heirs, representatives, executors,      administrators, attorneys, family members, executors, agents, successors      in interest, and assigns, hereby fully, knowingly and forever releases the      Company and its past, present and future owners, parents, subsidiaries,      divisions, affiliates, related entities, joint ventures, partners and      members, as well as each of their respective past, present and future      directors, officers, investors, shareholders, administrators, agents,      associates, representatives, employees, attorneys, predecessors,      successors and assigns, and any and all of them (the “Releasees”) from any      and all liability, actions, causes of action, claims, charges, complaints,      demands, grievances, promises, obligations, losses, damages, injuries and      legal responsibilities, of any type whatsoever, whether known or unknown,      unforeseen, unanticipated, unsuspected or latent, that are based upon,      relate to or arise out of any matters of any kind (collectively,      “Claims”), that Executive may possess arising from any omissions, acts or      facts that have occurred up until and including the Effective Date of this      Agreement including, withoutlimitation: |
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|  | (a) | any      and all claims relating to or arising from Executive’s employment      relationship with the Company and the termination of that relationship,      including, without limitation, Executive’s employment agreement and the      termination of that agreement;and |
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|  | (b) | any      and all claims under the law of any jurisdiction including, but not      limited to, wrongful discharge of employment, retaliation, constructive      discharge from employment, termination in violation of public policy,      discrimination, harassment, breach of contract (both express and implied),      breach of a covenant of good faith and fair dealing (both express and      implied), whistleblowing claims, promissory estoppel, negligent or      intentional infliction of emotional distress, negligent or intentional      misrepresentation, negligent or intentional interference with contract or      prospective economic advantage, fraud, breach of fiduciary duty, breach of      the duty of loyalty, unfair business practices, defamation, libel,      slander, negligence, personal injury, assault, battery, invasion of      privacy, false imprisonment, and conversion;and |
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|  | (c) | any      and all claims for violation of any federal, state or municipal statute,      laws, or ordinances, including, but not limited to, Title VII of the Civil      Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination      in Employment Act of 1967, the Americans with Disabilities Act of 1990,      the Fair Labor Standards Act, the Executive Retirement Income Security Act      of 1974, The Worker Adjustment and Retraining Notification Act, the Older      Workers Benefit Protection Act, the Family and Medical Leave Act, the      California Family Rights Act, the California Fair Employment and Housing      Act, and the California Labor Code, Section 1981 of the Civil Rights Act      of 1866, the Equal Pay Act of 1963, the Consolidated Omnibus Budget      Reconciliation Act of 1985 (COBRA), Executive Order 11141, the Executive      Retirement Income Security Act  of 1974, the California Civil      Code, the California Business & Professions Code, the Code of Federal      Regulations, the California Code of Regulations, and any applicable      California Industrial Welfare Commission Order;  and |
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|  | (d) | any      and all claims for violation of the federal, or any state, constitution;      and |
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|  | (e) | any      and all claims arising out of any other laws and regulations relating to      compensation, wages and hours of work, leaves, employment or employment      discrimination, harassment or retaliation;and |
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|  | (f) | any      claim for any loss, cost, damage, or expense arising out of any dispute      over the non-withholding or other tax treatment of any of the proceeds      received by Executive as a result of this Agreement;  and |
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|  | (g) | any      claim as to any equity interest in the Company or its subsidiaries, or any      option or right with respect thereto;and |
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|  | (h) | any      and all claims for attorneys’ fees andcosts. |
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| 9. | Acknowledgement      of Waiver of Claims Under ADEA.  Executive      acknowledges that Executive is waiving and releasing any rights Executive      may have under the Age Discrimination in Employment Act of 1967 (“ADEA”)      and that this waiver and release is knowing and      voluntary.  Executive and the Company agree that this waiver and      release does not apply to any rights or claims that may arise under ADEA      after the Effective Date of this Agreement.  Executive      acknowledges that the consideration given for this waiver and release      Agreement is in addition to anything of value to which Executive was      already entitled.  Executive further acknowledges that Executive      has been advised by this writingthat: |
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|  | (a) | he      should consult with an attorney prior to executing this Agreement;      and |
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|  | (b) | he      has up to twenty-one (21) days within which to consider this Agreement;      and |
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|  | (c) | to      the extent that Executive takes less than twenty-one (21) days to consider      this Agreement prior to execution, Executive acknowledges that Executive      had sufficient time to consider this Agreement and that Executive      expressly, voluntarily and knowingly waives any additional time,      and |
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|  | (d) | he      has seven (7) days following Executive’s execution of this Agreement to      revoke the Agreement; and |
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|  | (e) | this      Agreement shall not be effective until the revocation period has expired;      and |
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|  | (f) | nothing      in this Agreement prevents or precludes Executive from challenging or      seeking a determination in good faith of the validity of this waiver under      the ADEA, nor does it impose any condition precedent, penalties or costs      from doing so, unless specifically authorized by federal    law. |
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| 10. | Civil      Code Section 1542.  Executive      represents that Executive is not aware of any claim by Executive’s other      than the claims that are released by this Agreement.  Executive      acknowledges that Executive has had the opportunity to be advised by legal      counsel and is familiar with the provisions of California Civil Code      Section 1542, which provides asfollows: |
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| 11. | No      Pending or Future Lawsuits.  Executive      represents that Executive has no lawsuits, Claims, or actions pending in      Executive’s name, or on behalf of any other person or entity, against the      Company or any other person or entity referred to      herein.  Executive also represents that Executive will not bring      any Claims on Executive’s own behalf or on behalf of any other person or      entity against the Company, the Releasees, or any other person or entity      referred to herein. |
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| 12. | Confidentiality.  The Parties      acknowledge that Executive’s agreement to keep the terms and conditions of      this Agreement confidential, and to refrain from any defamation or      disparagement of the Company, its officers and directors, is a material      factor on which all Parties relied in entering into this      Agreement.  Executive hereto agrees to use Executive’s best      efforts to maintain in confidence the existence of this Agreement, the      contents and terms of this Agreement, and the consideration for this      Agreement (hereinafter collectively referred to as “Severance      Information”).  Executive agrees to take every reasonable      precaution to prevent disclosure of any Severance Information to third      parties, and agrees that there will be no publicity, directly or      indirectly, concerning any Severance Information.  Executive      agrees to take every precaution to disclose Severance Information only to      those attorneys, accountants, governmental entities, and family members      who have a reasonable need to know of such Severance      Information. |
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| 13. | No      Cooperation.  Executive      agrees Executive will not act in any manner that might damage the business      of the Company.  Executive agrees that Executive will not      encourage, counsel or assist any attorneys or their clients in the      presentation or prosecution of any disputes, differences, grievances,      claims, charges, or complaints by any third party against any of the      Releasees, unless under a subpoena or other court order to do      so.  Executive shall inform the Company in writing within three      (3) days of receiving any such subpoena or other court    order. |
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| 14. | Mutual      Non-Disparagement Commitment.  Each of      Executive and the Company agrees to refrain from any defamation, libel or      slander of the other Party and/or the Releasees, and any tortious      interference with the contracts, relationships and prospective economic      advantage of the other Party and/or the Releasees.   The      Company shall only provide dates of employment, title and salary      information to potential future employers of Executive, unless otherwise      mutually agreed. |
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| 15. | Breach.  Executive      acknowledges and agrees that any breach of any provision of this      Agreement, except as permitted by Paragraph 9(f), shall constitute a      material breach of this Agreement and shall entitle the Company      immediately to recover and/or cease the severance benefits provided to      Executive under this Agreement and will further entitle the Company and/or      its officers and/or its directors to recover any additional damages,      including attorney’s fees and costs, allowed by law.  Executive      shall also be responsible to the Company and/or its officers and/or its      directors for all costs, attorneys’ fees and any and all damages incurred      by the Company (a) enforcing the obligation, including the bringing      of any suit to recover the monetary consideration, and (b) defending      against a claim or suit brought or pursued by Executive in violation of      this Agreement. |
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| 16. | No      Admission of Liability.  The Parties      understand and acknowledge that this Agreement constitutes a compromise      and settlement of actual or potential disputed claims.  No      action taken by the Parties hereto, or either of them, either previously      or in connection with this Agreement shall be deemed or construed to      be: |
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|  | (a) | an      admission of the truth or falsity of any claims made or any potential      claims; or |
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|  | (b) | an      acknowledgment or admission by either party of any fault or liability      whatsoever to the other party or to any third  party. |
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| 17. | Costs.  The Parties      shall each bear their own costs, expert fees, attorneys’ fees and other      fees incurred in connection with this Agreement, except as provided      herein. |
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| 18. | Arbitration.  The Parties      agree that any and all disputes arising out of the terms of this      Agreement, their interpretation, and any of the matters herein released,      shall be subject to binding arbitration in Los Angeles County before the      American Arbitration Association under its National Rules for the      Resolution of Employment Disputes, supplemented by the California Code of      Civil Procedure.  The Parties agree that the prevailing party in      any arbitration shall be entitled to injunctive relief in any court of      competent jurisdiction to enforce the arbitration award.  The      Parties agree that the prevailing party in any arbitration shall be      awarded its reasonable attorneys’ fees and costs.  The Parties hereby agree to      waive their right to have any dispute between them resolved in a court of      law by a judge or jury.  This Paragraph will not prevent      either party from seeking injunctive relief (or any other provisional      remedy) from any court having jurisdiction over the Parties and the      subject matter of their dispute relating to the obligations of either of      the Parties under this Agreement and the Employment    Agreement. |
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| 19. | Authority.  Each of the      Company and Executive represents and warrants that they have the capacity      to act on their own behalf and on behalf of all who might claim through      them and to bind them to the terms and conditions of this      Agreement.  Each party warrants and represents that there are no      liens or claims of lien or assignments in law or equity or otherwise of or      against any of the Claims or causes of action released    herein. |
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| 20. | No      Representations.  Each party      represents that it has had the opportunity to consult with an attorney,      and has carefully read and understands the scope and effect of the      provisions of this Agreement.  In entering into this Agreement,      neither party has relied upon any representations or statements made by      the other party hereto which are not specifically set forth in this      Agreement.  Further, Executive acknowledges and agrees that      Executive has made such investigation of the facts pertaining to this      Agreement and all matters contained herein as Executive deems necessary,      desirable or appropriate and agrees that the release provided for herein      shall remain in all respects effective and enforceable and not subject to      termination or rescission by reason of any later discovery of new,      different or additional facts. |
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| 21. | Severability.  In the      event that any provision, or any portion thereof, becomes or is declared      by a court of competent jurisdiction to be illegal, unenforceable or void,      this Agreement shall continue in full force and effect without said      provision or portion of saidprovision. |
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| 22. | Entire      Agreement.  This      Agreement represents the entire agreement and understanding between the      Company and Executive concerning the subject matter of this Agreement and      Executive’s relationship with the Company, and supersedes and replaces any      and all prior agreements and understandings between the Parties concerning      the subject matter of this Agreement and Executive’s relationship with the      Company, with the exception of Section 5 of the Employment      Agreement. |
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| 23. | No      Waiver.  The failure      of the Company to insist upon the performance of any of the terms and      conditions in this Agreement, or the failure to prosecute any breach of      any of the terms and conditions of this Agreement, shall not be construed      thereafter as a waiver of any such terms or conditions.  This      entire Agreement shall remain in full force and effect as if no such      forbearance or failure of performance had  occurred. |
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| 24. | No      Oral Modification.  This      Agreement may only be amended in a writing signed by Executive and the      Company. |
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| 25. | Governing      Law.  This      Agreement shall be construed, interpreted, governed, and enforced in      accordance with the laws of the State of California, without regard to      choice-of-law provisions.  Executive hereby consents to personal      and exclusive jurisdiction and venue in the State of      California. |
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| 26. | Effective      Date. This      Agreement will become effective seven (7) days after the date on which it      is last signed below (the “Effective Date”), unless revoked in writing by      Executive prior to that time. |
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| 27. | Counterparts.  This      Agreement may be executed in counterparts, and each counterpart shall have      the same force and effect as an original and shall constitute an      effective, binding agreement on the part of each of the      undersigned. |
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| 28. | Voluntary      Execution of Agreement.  This      Agreement is executed voluntarily and without any duress or undue      influence on the part or behalf of the Parties hereto, with the full      intent of releasing all claims.  The Parties acknowledge      that: |
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|  | (a) | They      have read this Agreement, and have had a full and ample opportunity to      study this Agreement; and |
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|  | (b) | They      have been represented in the preparation, negotiation, and execution of      this Agreement by legal counsel of their own choice or that they have      voluntarily declined to seek such counsel;and |
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|  | (c) | They      understand the terms and consequences of this Agreement and of the      releases it contains; and |
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|  | (d) | They      are fully aware of the legal and binding effect of this      Agreement. |
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| PATIENT      SAFETY TECHNOLOGIES, INC. | DAVID      I. BRUCE           |
|----------------------------------------|-------------------------------|
|                                   |                          |
| Dated:      May 6, 2009                | Dated:      May 6, 2009       |
|                                   |                          |
| By:                                    | /s/ Steven H. Kan             |   | By: | /s/ David I. Bruce |
|                                   | Steven      H. Kane, Chairman |   |

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