**Exhibit      10.43**

**CONFIDENTIAL      SETTLEMENT AGREEMENT**

**Confidential      Settlement Agreement**

**A.**

**B.**

**C.**

**D.**

**E.**

**F.**

**NOW,      THEREFORE, IN CONSIDERATION OF THE PROMISES AND COVENANTS SET FORTH BELOW,      THE      PARTIES MUTUALLY AGREE AS FOLLOWS:**

**1.**
**Payment      of Separation Benefit**

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**2.**
**Guillen      Covenants, Promises and Acknowledgments**

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**3.**
**Mutual      Release**

*Age      Discrimination in Employment Act*
*Older      Workers Benefits Protection Act*
*the      Fair Employment and Housing Act*
*the      Americans with Disabilities Act*
*Title      VII of the Civil Rights Act of 1964*
*The      Fair Labor Standards Acts*
*the      National Labor Relations Act*
*the      Labor - Management Relations Act*
*the      Worker Adjustment and Retraining Notification Act of 1988*
*the      Rehabilitation Act of 1973*
*the      Equal Pay Act*
*the      Pregnancy Discrimination Act*
*the      Employee Retirement Income Security Act of 1974*
*the      Family Medical Leave Act of 1993*
*the      California Family Rights Act*
*the      California Labor Code.*

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**4.**
**Conditional      Dismissal and Covenant Not to Sue. **

**5.**
**Default.**

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**6.**
**Enforcement/Attorneys’      Fees.**
** **

**7.**
**Entire      Agreement**

**8.**
**Nonadmission      of Liability**

**9.**
**Confidentiality      of Agreement**

**10.**
**Confidentiality      of Employment**
**.**

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**11.**
**Future      Cooperation Clause**
** **

**12.**
**Response      to Solicitation for References**

**13.**
**Waiver,      Modification and Amendment**

**14.**
**Collaborative      Effort**

**15.**
**Execution**

**16.**
**Successors      and Assigns**

**17.**
**Authority**

**18.**
**Severability**

**19.**
**Independent      Counsel**

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**20.**
**Execution      and Revocation**

**21.**
**Notice.**

|                                              |                                            |                                                 |
|---------------------------------------------------|-------------------------------------------------|------------------------------------------------------|
|  Dated:               February 27, 2007 | **STEVEN              T.              GUILLEN** |
|                                         |                                       |                                            |
|                                                   |                                       | /s/ Steven              T.              Guillen |

|                                          |                                      |                                   |
|-----------------------------------------------|-------------------------------------------|----------------------------------------|
|  Dated:               March 8, 2007 | **OXIS              INTERNATIONAL, INC.** |
|                                     |                                 |                              |
|                                          |  By:                            |  /s/ Marvin S. Hausman, M.D. |
|                                               |                                      | CEO                                    |

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