Document:

SECURED
      PROMISSORY NOTE

     

    
      	$65,000.00	
              Los
                Angeles,
                California

            

    

    February
      2, 2006

    

    FOR
      VALUE
      RECEIVED, Patient Safety Technologies, Inc. (the “Maker”), a Delaware
      corporation with an office located at 1800 Century Park East, Suite 200, Los
      Angeles, CA 90067, hereby promises to pay to the order of AULT GLAZER BODNAR
      & COMPANY, INC. (the “Payee”), a Delaware corporation, the principal sum of
      sixty five thousand dollars ($65,000.00) plus any accrued interest thereon
      in
      lawful money of the United States on March 4, 2006 (the “Maturity
      Date”).

    

    Maker
      further promises to pay interest on the unpaid principal balance hereof at
      the
      rate of seven percent (7%) per annum, such interest to be paid on the Maturity
      Date. Interest shall commence accruing on the issue date and shall be calculated
      on the basis of a 365-day year and actual days elapsed. In no event shall the
      interest charged hereunder exceed the maximum permitted under the laws of the
      State of California.
      At the
      option of Maker, payments of principal and interest hereunder may be made in
      lawful money of the United States of America or, in whole or in part, of
      like-kind exchange including without limitation shares of any securities owned
      by the Maker (“Common Stock”), which shall be valued at the closing price of the
      Common Stock on the day before the Maturity Date obtained from the respective
      exchange.

    

    This
      Note
      may be prepaid in whole or in part at any time without the consent of the Maker
      provided that Payee shall pay Maker an amount in cash equal to the principal
      amount of this Note plus all accrued interest on the principal. 

    

    The
      entire unpaid principal balance of this Note and interest accrued with respect
      thereto shall be immediately due and payable upon the occurrence of any of
      the
      following (each, an “Event of Default”):

    

    a.
       The
      Maker
      filing for relief under any bankruptcy law;

    

    b. The
      filing of a lien, the issuance of a levy or execution, or the seizure,
      attachment or garnishment, or the entry of judgment on or against Maker or
      any
      of Maker’s property which shall not be released, satisfied of record or bonded
      within twenty (20) days thereafter, except liens which exist as the date hereof
      or liens to which the Payee shall consent; 

    

    c. The
      Maker
      creates, incurs, assumes or suffers to exist any liability for borrowed money,
      except borrowings in existence or committed on the date hereof and indebtedness
      to trade creditors or financial institutions incurred in the ordinary course
      of
      business; or

    

    d. The
      Maker
      has failed to pay the principal and any accrued and unpaid interest on the
      Maturity Date.

    

    The
      obligations under this Note shall be secured by certain collateral of Maker
      in
      accordance with the terms of a Security Agreement entered into on the date
      hereof. 

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    All
      rights and remedies available to the Payee pursuant to the provisions of
      applicable law and otherwise are cumulative, not exclusive and enforceable
      alternatively, successively and/or concurrently after default by Maker pursuant
      to the provisions of this Note.

    

    The
      Maker
      waives demand, presentment, protest and notice of any kind and consents to
      the
      extension of time of payments, the release, surrender or substitution of any
      and
      all security or guarantees for the obligations evidenced hereby or other
      indulgence with respect to this Note, all without notice.

    

    This
      Note
      may not be changed, modified or terminated orally, but only by an agreement
      in
      writing, signed by the party to be charged. The Maker hereby authorizes the
      Payee to complete this Note and any particulars relating thereto according
      to
      the terms of the indebtedness evidenced hereby.

    

    In
      the
      event of any litigation with respect to the obligations evidenced by this Note,
      the Maker waives the right to a trial by jury and all rights of set-off and
      rights to interpose permissive counterclaims and cross-claims. In
      the
      event this Note shall be in default, and placed with an attorney for collection,
      then Maker agrees to pay all reasonable attorney fees and costs of collection
      of
      Holder. This
      Note
      shall be governed by and construed in accordance with the laws of the State
      of
      California and shall be binding upon the successors, assigns, heirs,
      administrators and executors of the Maker and inure to the benefit of the Payee,
      his successors, endorsees, assigns, heirs, administrators and
      executors.

    

    The
      Maker
      hereby irrevocably consents to the jurisdiction of the state and federal courts
      in Los Angeles County, California in connection with any action or proceeding
      arising out of or relating to this Note. If any term or provision of this Note
      shall be held invalid, illegal or unenforceable, the validity of all other
      terms
      and provisions hereof shall in no way be affected thereby.

     

    
      	 	 	 
	 	PATIENT SAFETY TECHNOLOGIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Louis Glazer M.D.
	 	
              
Name:
              Dr. Louis Glazer
	 	Title:
              Chief Executive Officer and Chairman

    

    
 

    
      
         

      

      
        -2-SECURITY
      AGREEMENT

    BY
      AND BETWEEN AULT GLAZER BODNAR ACQUISITION FUND LLC 

    AND
      PATIENT SAFETY TECHNOLOGIES, INC.

    

    Ault
      Glazer Bodnar Acquisition Fund, LLC (“Secured Party”) and Patient Safety
      Technologies, Inc., a Delaware corporation (“Debtor”) agree as follows on
      February 1, 2006:

    

    
      
        1.
          GRANT
          OF SECURITY INTEREST.

      

    

    

    1.1
      The
      Debtor, jointly and severally, hereby grants to the Secured Party a security
      interest in personal property and fixtures, inventory, products and proceeds
      (including proceeds of proceeds, the “Collateral”) of Debtor, as security
      for:

     

    1.1.1
      The
      satisfaction and the prompt and full performance of all of Debtor’s obligations
      under that certain Secured Promissory Note (the “Note”) dated February 1, 2006
      in the principal amount of forty five thousand seven hundred fifty dollars
      ($45,750.00) plus interest at the rate of seven percent (7% ) per annum, as
      the
      Note may be amended, modified, or extended from time to time (including, without
      limitation, the obligation to make payments of principal and interest thereon);
      and

    

    1.1.2
      The
      full, faithful, true and exact performance and observance of all of the
      obligations, covenants and duties of Debtor under this Security Agreement,
      as
      the same may be amended, modified, or extended from time to time.

    

    2. DEFAULT.
      Any of
      the following events shall constitute an event of default
      hereunder:

    

    2.1
      The
      failure by Debtor to make full and timely payment when due of any sum as
      required to be paid to Secured Party under the Note after any applicable notice
      of non-payment provided for in the Note has been given, and any period within
      which to cure the non-payment has elapsed, if applicable. A true and correct
      copy of the Note is attached hereto as Exhibit “A” and incorporated herein by
      this reference.

    2.2
      The
      failure by Debtor to fully and timely perform any covenant, agreement,
      obligation or duty imposed on Debtor by this Security Agreement or any other
      agreement by and between Debtor and Secured Party now existing or hereinafter
      made.

    

    2.3
      The
      filing by Debtor of any petition, or commencement by Debtor of any proceeding,
      under the Bankruptcy Act or any state insolvency law.

    

    2.4
      The
      making by Debtor of any general assignment for the benefit of
      creditors.

    

    2.5
      The
      filing of any petition, or commencement of any proceeding, under the Bankruptcy
      Act or any state insolvency law, against Debtor, or the appointment of any
      receiver or trustee, which petition, proceeding or appointment is not fully
      and
      completely discharged, dismissed or vacated within sixty (60) days.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    2.6
      Any
      warranties made by Debtor are untrue in any material respect, or any schedule,
      statement, report, notice, or writing furnished by Debtor to the Secured Party
      are untrue in any material respect on the date as of which the facts set forth
      are stated or certified.

    

    3. INSPECTION
      OF RECORDS.
      Secured
      Party shall have the right without 

    notice
      to
      inspect all financial books, records and reports of Debtor at Debtor’s premises
      or wherever the same may be maintained during normal business
      hours.

    

    
      
        4.
          REMEDIES
          UPON DEFAULT.

      

    

    

    4.1
      Upon
      the occurrence of an event of default, in addition to any and all other remedies
      at law or in equity available to Secured Party, Debtors hereby authorize and
      empower Secured Party, at Secured Party’s option and without notice to Debtor,
      except as specifically provided herein (and, to the extent necessary, hereby
      irrevocably appoint Secured Party as Debtor’s attorney-in-fact for such
      purposes):

    

    4.1.1
      To
      require Debtor to assemble any and all of the Collateral and make the same
      available to Secured Party at the premises wherein the same is located, or
      any
      other place designated by Secured Party; Secured Party may enter upon any
      premises where any of the Collateral is located and may take possession of
      the
      same without judicial process and without the need to post any bond or security
      as an incident thereto; and

    4.1.2
      To
      sell, assign, transfer and deliver the whole or any part of the Collateral
      at
      public or private sale, for cash, upon credit, or for future delivery, in bulk
      or item by item, at such prices and upon such terms as are commercially
      reasonable, given the nature of the Collateral and the market therefor, with
      or
      without warranties, without the necessity of the Collateral being present at
      any
      such sale or in view of the prospective purchasers thereof, and without any
      presentment, demand for performance, protest, notice of protest, or notice
      of
      dishonor except as set forth herein, any other such advertisement, presentment,
      demand or notice being expressly waived by Debtors to the extent permitted
      by
      law. At any public sale or sales of the Collateral, Secured Party or Secured
      Party’s assigns may bid for and purchase all or any part of the Collateral
      offered for sale and upon compliance with the terms of such sale, may hold,
      exploit and dispose of such Collateral discharged from all claims of Debtor,
      except to the extent that Debtor has rights in the proceeds of such sale or
      sales, and free from any right or redemption, all of which are hereby expressly
      waived and released, and may in paying the purchase price thereof, in lieu
      of
      cash assignment at the face amount thereof, together with any interest accrued
      thereon, all or any part of unpaid principal or interest or both, payable under
      the Note. Secured Party may also purchase all or any part of the Collateral
      at
      any private sale thereof to the extent that such Collateral is customarily
      sold
      in a recognized market or is the subject of a widely or regularly distributed
      standard price quotation. Upon conclusion of any such public or private sale,
      Secured Party may execute and deliver a bill of sale to the assets so sold,
      in
      the name of Debtor. Secured Party may use Debtor’s premises for the purpose of
      conducting of any such sale. Secured Party shall give Debtor seven (7) days’
notice, in writing, of the time and place thereof, and in the case of a public
      sale, the date thereof and the name of the purchaser. Notice shall be deemed
      given when deposited in the United States mail, postage prepaid, certified
      or
      registered, and addressed to Debtor at 1800 Century Park East, Suite 200, Los
      Angeles, CA 90067. Secured Party shall only be required to publish an
      advertisement of a public sale, which advertisement may be published in a
      newspaper of general circulation no later than seven (7) days prior to the
      date
      of sale, and an advertisement so published shall be deemed commercially
      reasonable if it merely gives the place, time, and date of sale, merely
      identifies the Collateral by classification without describing quantity or
      quality; provided, however that such advertisement may, at Secured Party’s
      option, contain additional information. Debtor acknowledges that Secured Party
      may accept any offer received, provided it is commercially reasonable, that
      Secured Party, at Secured Party’s option, need not approach more than one
      possible purchaser, and that Secured Party shall, to the fullest extent
      permitted by law, be relieved from all liability or claim for inadequacy of
      price if the manner and terms of sale comply with the terms of this Security
      Agreement.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.2
      In
      the event of any such sale by Secured Party of all or any of said Collateral
      on
      credit, or for future delivery, such property so sold may be retained by Secured
      Party until the selling price is paid by the purchaser. Secured Party shall
      incur no liability in case of the failure of the purchaser to take up and pay
      for the property so sold. In case of any such failure, said Collateral may
      be
      again, and from time to time, sold.

    4.3
      In
      the event of any such sale or disposition, the proceeds thereof shall be applied
      first to the payment of the expenses of the sale, commissions, actual attorneys’
fees, and all other charges paid or incurred by Secured Party in taking,
      holding, selling , advertising, or otherwise preparing such Collateral for
      sale
      or otherwise in connection with maintaining the security of such Collateral,
      including any taxes or other charges imposed by law upon the Collateral and/or
      the ownership, holding or transfer thereof; secondly, to pay, satisfy and
      discharge all indebtedness of Debtor to Secured Party secured hereby then due
      and payable pursuant to the Note; thirdly, to the extent that Debtor may still
      have monetary obligations to Secured Party not yet due and payable, Secured
      Party may retain any surplus as collateral for the payment of such sums when
      due; and fourthly, if all of the secured obligations are then discharged and
      satisfied, to pay the surplus, if any, to Debtor. Secured Party shall look
      only
      to the assets of the business then operated and/or owned by Debtor to satisfy
      any and all claims, defaults or breaches regarding the Note and shall not in
      any
      event, look to any other assets of Debtor to satisfy same.

    

    4.4
      Secured Party shall not be liable or responsible for safeguarding the
      Collateral, or any portion thereof, or maintaining the condition thereof, or
      for
      any loss or damage thereto and diminution in value of the Collateral either
      through loss or non-collection. Secured Party shall not be liable or responsible
      for any act or default of any carrier or warehouseman or of any other person,
      other than that occasioned by the gross negligence and willful misconduct of
      Secured Party. 

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      
        5.
          REPRESENTATIONS
          AND WARRANTIES.
          Debtor
          represents and warrants that
          this
          Security Agreement has been duly and validly authorized, executed and delivered
          by Debtor and constitutes a valid and binding agreement, enforceable in
          accordance with its terms, and the execution and delivery of this Security
          Agreement do not violate, or constitute a default (with or without the
          giving of
          notice, the passage of time, or both) under any order, judgment, agreement,
          contract, or instrument to which Debtor is a party or by which Debtor is
          affected or may be bound. Debtor represents that Debtor will at all times
          maintain the Collateral in good state of repair and condition consistent
          with
          good business practice, including replacement of damaged, destroyed, or
          obsolete
          parts thereof, will pay any and all taxes thereon or applicable thereto
          prior to
          delinquency, and shall maintain at all times insurance thereon against
          risk of
          fire and other such risks as are covered by “extended coverage”, theft, burglary
          and vandalism. Such policy or policies shall provide that any loss thereunder
          and proceeds payable thereunder shall be payable to Secured Party as Secured
          Party’s interest may appear.

      

    

    

    
      
        6.
          INDEMNITY.
          In the
          case of any adverse claim with respect to the Collateral or any
          portion thereof arising out of any act done, or permitted or acquiesced
          in by
          Debtor, Debtor indemnifies and agrees to hold Secured Party harmless from
          and
          against any and all claims, losses, liabilities, damages, expenses, costs
          and
          actual attorneys’ fees incurred by Secured Party in or by virtue of exercising
          any right, power or remedy of Secured Party hereunder or defending, protecting,
          enforcing or prosecuting the security interest hereby created. Any such
          loss,
          cost, liability, damage or expense so incurred shall be repaid upon demand
          by
          Secured Party and until so paid shall be deemed a secured obligation
          hereunder.

      

    

    

    
      
        7.
          NO
          WAIVER BY SECURED PARTY.
          Any
          forbearance, failure, or delay by Secured
          Party in exercising any right, power or remedy hereunder shall not be deemed
          to
          be a waiver of such right, power, or remedy, and any single or partial
          exercise
          of any right, power, or remedy of Secured Party shall not preclude the
          later
          exercise of any other right, power, or remedy, each of which shall continue
          in
          full force and effect until such right, power, or remedy is specifically
          waived
          by an instrument in writing, executed by Secured Party.

      

    

    

    
      
        8.
          EFFECTIVENESS
          OF AGREEMENT.
          This
          Security Agreement and Debtors’ duties
          and obligations and Secured Party’s powers to dispose of the Collateral, and all
          other rights, powers and remedies granted to Secured Party hereunder shall
          remain in full force and effect until Debtor has satisfied and discharged
          all of
          Debtor’s obligations to Secured Party secured thereby.

      

    

    

    
      
        9.
          WAIVER
          BY DEBTOR.
          All
          provisions of law, in equity and by statute providing
          for, relating to, or pertaining to pledges or security interests and the
          sale of
          pledged property or property in which a security interest is granted, or
          which
          prescribe, prohibit, limit or restrict the right to, or conditions, notice
          or
          manner of sale, together with all limitations of law, in equity, or by
          statute,
          on the right of attachment in the case of secured obligations, are hereby
          expressly waived by Debtor to the fullest extent Debtor may lawfully waive
          same.

      

    

    

    
      
        10.
          RELEASE
          OF COLLATERAL.
          Upon
          payment in full by Debtor, in lawful money
          of
          the United States of America, to Secured Party at the address set forth
          in the
          Note of all amounts secured hereby, and performance of all other obligations
          of
          Debtor under this Security Agreement, together with any interest thereon
          and any
          costs and expenses incurred by Secured Party in the enforcement of this
          Security
          Agreement or of any of Secured Party’s rights hereunder, or in the enforcement
          of any other agreements (whether heretofore or hereafter entered into)
          between
          Debtor and Secured Party, or any of the rights of Secured Party thereunder,
          and
          upon the request of Debtor therefore, Secured Party will deliver to Debtor,
          at
          Debtor’s sole cost and expense, such termination statements and such other
          documents of release, reconveyance and reassignments as shall be sufficient
          to
          discharge Debtor of the liabilities secured hereby and to terminate and
          release
          the security interest in the Collateral created hereby.

      

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      
        11.
          MISCELLANEOUS. 

      

    

    11.1
      This
      Security Agreement and all of the rights and duties in connection herewith
      shall
      be governed by and construed in accordance with the laws of the State of
      California thereof without giving effect to principles governing conflicts
      of
      law.

    

    11.2
      This
      Security Agreement and all of its terms and provisions shall be binding upon
      the
      heirs, successors, transferees and assigns of each of the parties
      hereto.

    

    11.3
      In
      the event any portion of this Security Agreement is held invalid, the remaining
      portions shall remain in full force and effect as if that invalid portion had
      never been a part hereof.

    

    11.4
      In
      the event litigation is commenced to enforce or interpret this Security
      Agreement, or any provision hereof, the prevailing party shall be entitled
      to
      recover its actual costs and attorneys’ fees.

    

    11.5
      This
      Security Agreement may be amended only by written consent of each of the parties
      hereto.

    11.6
      Any
      and all notices, demands, requests, or other communications required or
      permitted by this Security Agreement or by law to be served on, given to, or
      delivered to any party hereto by any other party to this Security Agreement
      shall be in writing and shall be deemed duly served, given, or delivered when
      personally delivered to the party, or in lieu of such personal delivery, when
      deposited in the United States mail, first-class postage prepaid addressed
      to
      the party at the address herein appearing.

    

    11.7
      This
      Security Agreement constitutes the entire agreement between the parties
      pertaining to the subject matter contained herein and supercedes all prior
      and
      contemporaneous agreements, representations and understandings of the parties.
      No waiver of any of the provisions of this Security Agreement shall be deemed,
      or shall constitute a waiver of any other provision, whether or not similar,
      nor
      shall any waiver constitute a continuing waiver. No waiver shall be binding
      unless executed in writing by the party making the waiver.

    

    11.8
      This
      Security Agreement may be executed simultaneously in one or more counterparts,
      each of which shall be deemed an original, but all of which together shall
      constitute one and the same instrument. The exhibits attached hereto are made
      a
      part hereof and incorporated herein.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    11.9
      Nothing in this Security Agreement, whether express or implied, is intended
      to
      confer any rights or remedies under or by reason of this Security Agreement
      on
      any persons other than the parties to it and their respective successors and
      assigns, nor is anything in this Security Agreement intended to relieve or
      discharge the obligations or liability of any third persons to any party to
      this
      Security Agreement, nor shall any provision give any third person any right
      of
      subrogation or action against any party to this Security Agreement.

    

    11.10
      Each party’s obligations under this Security Agreement is unique. If any party
      should default in its obligations under this Security Agreement, the parties
      each acknowledge that it would be extremely impracticable to measure the
      resulting damages; accordingly, the non-defaulting party, in addition any other
      available rights or remedies, may sue in equity for specific performance without
      the necessity of posting a bond or other security, and the parties each
      expressly waive the defense that a remedy in damages will be adequate.

    

    11.11
      All
      representations, warranties and agreements of the parties contained in this
      Security Agreement, or in any instrument, certificate, opinion or other writing
      provided for in it, shall survive the completion of all acts contemplated
      herein.

    

    11.12
      Whenever the context of this Security Agreement requires, the masculine gender
      includes the feminine or neuter gender, and the singular number includes the
      plural.

    

    11.13
      As
      used herein, the word “days” shall refer to calendar day, including holidays,
      weekends, non-business days, etc.

    11.14
      The
      captions contained herein do not constitute part of this Security Agreement
      and
      are used solely for convenience and shall in no way be used to construe, modify,
      limit or otherwise affect this Security Agreement.

    

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        6

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, this Security Agreement is executed on the date first set
      forth
      above at Los Angeles County, California.

     

    
      	DEBTOR	 	 	SECURED PARTY
	PATIENT SAFETY TECHNOLOGIES, INC.	 	 	AULT GLAZER BODNAR ACQUISITION FUND,
              LLC
	 	 	 	 
	/s/
              Louis Glazer
              M.D.	 	 	By:
              Ault Glazer
              Bodnar & Company 
	
              
BY:
              Dr. Louis Glazer	 	 	Investment Management,
              LLC,
              managing member
	TITLE:
              Chairman
              and Chief Executive Officer	 	 	 

    

    
      	 	 	 	 
	 	 	 	/s/
              Milton
              Ault
	
            	 	 	
              
BY:
              Milton “Todd” Ault III
	
            	 	 	TITLE:
              Managing
              Member

    

     

     

    
      
         

      

      
        7

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