Document:

Exhibit 10.7

 

EXHIBIT
10.7 

LEASE AGREEMENT
ADDENDUM 

LESSOR: Parrish
Reality, Inc. a property management company 

LESSES: Global Food
Technologies, Inc., represented by Mark Terry, an authorized agent thereof

This document serves as
an addendum as provided under the terms of Section 38 as written notices of
change "This agreement contains the entire agreement of the parties and
merges any prior oral agreements between the parties concerning the same subject
matter. This document shall not be modified except in writing as mutually agreed
by both parties." 

Effective April 1,
2002, the following Lease Agreement changes have been agreed upon by both
parties, and authorized by the signatures below: 

	 	1.	 	Page 1, Paragraph 3, Subsection A, shall now
read:

	 	a.	 	A Research and Development company, with the rental space on the main
      floor only consisting of approximately 40,000 sq. ft. of the Parrish Park
      Processing Facility, at 1656 Kraft Road located in Pocatello, Idaho and
      compromising parking facility and area surrounding the facility and
      associated therewith, as outlined on attached
Exhibit A.

	 	2.	 	Paragraph 2, shall now read:

	 	a.	 	LESSEES: Global Food Technologies, Inc., represented by Mark Terry, an
      authorized agent thereof

	 	 	 	This addendum is binding and limited to the parties
  hereto.

	 	 	 	 	 	 	 
	
       
	 	/s/ Mark Terry 	 	 	 	4/22/02
	
       
	 	  	 	 	 	 
	 	 	Mark Terry - Chief Technical
      Officer/Chief Operations Manager, Global Food Technologies, Inc.,
      authorized agent for Global Food Technologies, LESSEE
	
       
	 	 	 	 	 	 
	
       
	 	/s/ Fred J. Parrish 	 	 	 	4/24/02
	
       
	 	  	 	 	 	 
	 	 	Fred J. Parrish, authorized agent for
      Parrish Reality, Inc.
LESSOR[CAPSTONE INVESTMENTS LETTERHEAD]

June 29, 2006

Via Email
tault@agbco.com

Dr. Louis Glazer
Chairman
Patient Safety Technologies, Inc./
SurgiCount Medical, Inc.
1800 Century Park East
Suite 200
Los Angeles, California 90067

      Re:   Private Placement - Private Investment in Public Equity ("PIPE")

Dear Dr. Glazer:

      This letter agreement (this "Agreement") will confirm the arrangements
under which CapStone Investments ("CapStone") is authorized to act as exclusive
placement agent ("Agent" or "Agency") for Patient Safety Technologies,
Inc./SurgiCount Medical, Inc., and its affiliates and subsidiaries
("SurgiCount") in connection with the proposed offering of private investments
in the public equity of SurgiCount (the "Securities") having the terms and
conditions set forth herein. The terms of the offering will be set forth in a
separate term sheet upon completion of due diligence. The terms of this letter
will expire at 5:00 p.m. on Friday, June 30, 2006, unless fully executed by duly
authorized representatives of both parties.

      CapStone will provide the following services: deal financing (due
diligence has already been completed by others). A description of CapStone's
functions and activities and the applicable compensation to CapStone are
described as follows:

<PAGE>

Dr. Louis Glazer
June 29, 2006                                                             Page 2

      DEAL FINANCING

      SurgiCount will prepare all required documentation required by the
investor(s). The equity Securities, in whatever form, shall have the following
terms and conditions, among others:

      The offering of Securities is estimated to be in the range of $2,000,000
to $6,000,000. The intended date for the closing of the first tranche and
initial funding to SurgiCount is to be not later than July 31, 2006.

      FEES

      As compensation for the services of CapStone hereunder, SurgiCount shall
pay to CapStone the following fees:

      CapStone will receive eight percent (8%) of the total cash invested in the
Securities to be paid at close of the transaction. The Fees will be paid
according to the following wire transfer instructions:

            ABA Routing No.:            122 000 496
            Bank:                       Union Bank of California
                                        4660 La Jolla Village Drive, Suite 175
                                        San Diego, CA 92122
            Account No.:                4760000448
            Account Name:               CapStone Investments
            Address:                    4660 La Jolla Village Drive, Suite 1040
                                        San Diego, CA 92122

      Additionally, SurgiCount shall issue CapStone warrants to purchase free
trading shares of SurgiCount common stock equal to eight percent (8%) of the
total number of shares issued pursuant to the PIPE. The warrants shall have a
strike price equal to the price paid by the investors in the PIPE. The warrants
shall be issued and delivered to CapStone at close of the transaction and shall
be exercisable at any time for a period of five (5) years from the date of
closing.

      Final Closing shall be deemed to have occurred as of the date when all
conditions to the initial funding of SurgiCount from the offering of the
Securities have been satisfied.

      RETENTION

      SurgiCount hereby retains CapStone, and CapStone agrees to act, in
accordance with the provisions of this paragraph, as representative and
placement agent in connection with the private issuance or sale of the
Securities during the term of this Agreement. SurgiCount will remain the sole
owner and author of all offering materials.

                                        2
<PAGE>

Dr. Louis Glazer
June 29, 2006                                                             Page 3

      CapStone acknowledges and agrees that SurgiCount shall retain the sole and
exclusive right to accept or reject any proposed sale of Securities and
SurgiCount shall not incur any liability (other than incurred reimbursable
expenses as described herein) to CapStone for such rejection. SurgiCount may
terminate the offer and sale of the Securities at any time in its sole
discretion.

      SurgiCount understands that CapStone will be acting as the exclusive Agent
of SurgiCount in the offering and sale of the Securities and acknowledges and
agrees that in connection therewith CapStone will use its "best efforts" to
place the Securities. SurgiCount expressly acknowledges and agrees that
CapStone's obligations hereunder are not on a firm commitment basis and that the
execution of this Agreement does not constitute a commitment by CapStone to
purchase the Securities and does not ensure the successful placement of the
Securities or any portion thereof.

      ADDITIONAL TERMS AND CONDITIONS

      Term. CapStone will, on a "best efforts" basis through its registered
personnel or through separate registered broker-dealers, arrange for the Private
Offering within 180 days following the completion and approval of the pricing of
the Securities or the completion of the transaction documents ("Term").

      If a Letter of Intent is signed or funds placed into escrow relating to an
offering of Securities that are the subject of CapStone's exclusive agency
during the Term or within twenty-four (24) months of the termination of this
Agreement with or by a third party with whom SurgiCount has any discussions
(whether initiated by SurgiCount or anyone else) relating to an offering of
securities that are the subject of CapStone's exclusive agency during the term
of this Agreement, then CapStone's fee will be due and payable as provided
herein.

      Escrow. It is agreed and understood that CapStone can require that an
escrow agent or investment fund hold the investor proceeds and CapStone can
require that the escrow agent or fund manager holding the investor proceeds
available for distribution to the issuer directly distribute to CapStone and any
other placement Agent any fee due on the funds raised.

      Information. During the course of the Term of this Agreement, SurgiCount
agrees to furnish CapStone with such information about SurgiCount as CapStone
reasonably requests, including information to be included in a offering circular
or other disclosure document ("Company Information"). SurgiCount represents and
warrants to CapStone that all Company Information will be accurate and complete
in all material respects and will not contain any untrue statements of a
material fact or omit to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which such statements are
made, not misleading, in each case at the time such information is furnished.
SurgiCount agrees to advise CapStone during the period of the engagement of all
developments materially affecting SurgiCount or the accuracy of the Company
Information previously furnished to CapStone or prospective purchasers of the
Securities located by Agent. In addition, any opinions delivered by or on behalf
of SurgiCount to the purchasers of any such Securities shall expressly provide
that CapStone may rely upon such opinions. SurgiCount acknowledges and confirms
that CapStone (i) will be relying solely on such information and other
information available from generally recognized public sources in performing the
services contemplated hereunder, (ii) will not independently verify the accuracy
or completeness of such information, (iii) does not assume responsibility for
the accuracy or completeness thereof, and (iv) will make appropriate disclaimers
consistent with the foregoing and their affiliates may share with each other,
any information related to SurgiCount or SurgiCount's affiliates (including
information relating to creditworthiness).

                                        3
<PAGE>

Dr. Louis Glazer
June 29, 2006                                                             Page 4

      Other Fees and Expenses. SurgiCount will, if applicable, endeavor in good
faith, in cooperation with CapStone and its counsel, to qualify, to the extent
required by applicable law, the sale of the Securities for Offer and Sale under
the applicable securities or "blue sky" laws of such jurisdictions as CapStone
may reasonably designate, and SurgiCount will use its best efforts to maintain
such qualifications in effect for as long as may be required for the
distribution of the Securities. In each jurisdiction where the Securities shall
have been qualified as above provided, SurgiCount will make and file such
statements and reports in each year as are or may be required by the laws of
such jurisdiction.

      In addition, SurgiCount shall be responsible for all actual, out-of-pocket
third party fees, charges, expenses and disbursements relating to the Offering,
including, without limitation, all actual, out-of-pocket third party fees,
charges, expenses and disbursements in connection with (i) the preparation
(including but not limited to attorneys' fees, accountants' fees, and other
related consultants' fees), printing, filing, distribution and mailing of the
transaction documents and any supplement and amendment thereto and all other
documents relating to the Offering and the purchase, sale and delivery of the
Securities, including the cost of all copies thereof; (ii) the issuance, sale,
transfer and delivery of the Securities, including any transfer of other taxes
payable thereon and the fees of any transfer agent or registrar; (iii) the
registration or qualification of the Securities for Offer and Sale under the
securities laws of such countries, states, and other jurisdictions as CapStone
may reasonably designate (including, without limitation, all filing and
registration fees and the reasonable "blue sky" fees and disbursements; and (iv)
any third party costs incurred by CapStone (collectively "Costs")).

      Notwithstanding the foregoing, CapStone acknowledges that its aggregate
out-of-pocket expenses, including third party costs (including, but not limited
to, fees related to consultants and outside counsel to CapStone, and travel
expenses) shall be capped at $50,000.

      Indemnification. SurgiCount agrees to indemnify CapStone and its
affiliates and each person in control of CapStone and its affiliates and their
respective officers, directors, employees, Agent and representatives and their
respective affiliates and control persons, arising out of or based upon any
untrue statement of any material fact contained in the Offering Materials or
Confidential Information or the omission or alleged omission to state therein a
material fact to be stated therein or necessary to make the statements therein
in the light of the circumstances under which they are made, not misleading;
provided, however, that SurgiCount shall not be liable in any such case to the
extent that any such loss, claim, damage, liability, or action arises out of, or
is based upon, an untrue statement or alleged untrue statement or omission or
alleged omission made therein upon, and conformity with, information relating to
any CapStone Indemnified party furnished to SurgiCount by any CapStone
Indemnified party specifically for the use in the preparation thereof; provided,
further, that no such indemnity shall be provided against negligent acts of, or
willful conduct by, the CapStone Indemnified.

                                        4
<PAGE>

Dr. Louis Glazer
June 29, 2006                                                             Page 5

      CapStone agrees to indemnify SurgiCount and its affiliates and each person
in control of SurgiCount and its affiliates and there respective officers,
directors, employees, Agent and representatives and their respective affiliates
and control persons arising out of or based upon any information furnished to
SurgiCount in writing by such indemnifying party specifically for use in the
preparation of the Offering Materials or Confidential Information, if such
information constituted an untrue statement or alleged untrue statement of any
material fact therein or the omission or alleged omission to state therein a
material fact required to be therein or necessary to make the statements
therein, in the light of the circumstances under which they are made, not
misleading; provided, however, that no such indemnity shall be provided against
negligent acts of, or willful conduct by, such parties otherwise entitled to
indemnification herein.

      Other Services. SurgiCount acknowledges and agrees that CapStone and/or
its affiliates may be requested by SurgiCount to provide additional services
with respect to SurgiCount or other matters contemplated hereby. Any such
services will be set out in and governed by a separate agreement(s) (containing
terms relating, without limitation, to services, fees and indemnification) in
form and substance satisfactory to SurgiCount and CapStone (or any such
affiliate). Nothing in this Agreement is intended to obligate or commit CapStone
or any of its affiliates to provide any services or financing other than as set
out herein.

      No Shareholder Rights. SurgiCount acknowledges and agrees that CapStone
has been retained only by SurgiCount and that SurgiCount's engagement of
CapStone is not deemed to be on behalf of and is not intended to confer rights
upon any shareholder, owner or partner of SurgiCount or CapStone or any other
person not a party hereto. Unless otherwise expressly agreed, no person or
entity other than SurgiCount is authorized to rely upon SurgiCount's engagement
of CapStone or any statements, advice, opinions, or conduct by CapStone.

      Successors and Assigns. This engagement agreement is binding on all
successors and assigns. However, it shall not be assigned without the prior
written consent of the other party. This agreement shall be construed in
accordance with and enforceable under the laws of the State of California.

                                        5
<PAGE>

Dr. Louis Glazer
June 29, 2006                                                             Page 6

      Governing Law. This Agreement constitutes the entire agreement between us,
and supersedes all other prior agreements and understandings, other written and
oral, between the parties hereto with respect to the subject matter hereof and
cannot be amended or otherwise modified except in writing executed by the
parties hereof. Any dispute arising from the interpretation, validity or
performance of this Agreement or any of its terms and provisions shall be
submitted to arbitration in Los Angeles County, California before
JAMS/Endispute, Inc.

      Miscellaneous. This Agreement may be executed in two or more counterparts,
including electronically transmitted counterparts, all of which together shall
be considered a single instrument. The term "affiliate" as used herein shall
have the meaning ascribed to such term in the rules and regulations promulgated
under the Securities Exchange Act of 1934, as amended.

                          *****************************

      We are delighted to accept this engagement and look forward to working
with you on this assignment. Please confirm that the foregoing is in accordance
with your understanding by signing and returning to us the enclosed duplicate of
this letter.

Very truly yours,

CapStone Investments

By: ______________________________________
         Steven P. Capozza, President

AGREED AND ACCEPTED:

Patient Safety Technologies, Inc.

By: ______________________________________        Dated: _______________________

                                        6

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