Document:

GUARANTY
      OF PAYMENT

    

    

    This
      Guaranty (this "Guaranty") is made as of August __ , 2007 by Surgicount Medical,
      Inc., a California corporation (the "Guarantor") and a wholly owned subsidiary
      of Patient Safety Technologies, Inc., a Delaware corporation (“Borrower”), in
      favor of Ault Glazer Capital Partners, Inc., a Delaware corporation (the
      "Company"). Unless otherwise defined herein, all capitalized terms used herein
      shall have the meaning ascribed to them in the Promissory Note, dated the even
      date hereof, issued by Borrower to the Company. 

    

    WHEREAS,
      it is a
      condition precedent to the Lender's willingness to loan the Principal Amount
      to
      Borrower under the Promissory Note, that the Guarantor agree to guarantee the
      performance of Borrower of its Obligations (as defined below) under the
      Promissory Note. 

    

    WHEREAS,
      the
      Borrower and Guarantor share an identity of interests as members of a
      consolidated group of companies engaged in substantially similar businesses.
      

    

    WHEREAS,
      the
      Borrower provides certain centralized financial, accounting and management
      services to Guarantor, and the Lender's extensions of credit to the Borrower
      have facilitated the expansion and will enhance the overall financial strength
      and stability of the Borrower's consolidated group, including Guarantor.

    

    WHEREAS,
      the
      Guarantor will derive substantial benefits as a result of the Lender's
      extensions of credit to the Borrower, which benefits are hereby acknowledged
      by
      the Guarantor, and the Guarantor, therefore, desire to enter into this Guaranty
      in order to satisfy the condition precedent described above.

    

    NOW,
      THEREFORE,
      in
      consideration of the foregoing recitals, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties, intending to be legally bound, the Guarantor hereby agrees with the
      Company as follows: 

    

    Section
      1. Guaranty of Obligations.
      The
      Guarantor hereby absolutely, unconditionally and irrevocably guarantees as
      primary obligor, and not merely as surety, the prompt performance and payment
      in
      full when due, whether at stated maturity, by acceleration or otherwise
      (including, without limitation, obligations that would become due but for the
      operation of the automatic stay under Section 362(a) of Title 11 of the United
      States Code, and including interest, fees and other charges whether or not
      a
      claim is allowed for such obligations in any such bankruptcy proceeding), of
      (i)
      all indebtedness, obligations and liabilities of the Borrower arising at any
      time, now or in the future, pursuant to the Promissory Note; (ii) all reasonable
      costs and expenses incurred by the Lender, including, without limitation,
      reasonable attorneys fees and legal expenses, in the exercise, preservation
      or
      enforcement of any of the rights, powers or remedies of the Lender, or in the
      enforcement of the obligations of the Guarantor, hereunder and under the
      Promissory Note and Security Agreement; and (iii) any renewals, continuations
      or
      extensions of any of the foregoing (all of which are referred to herein as
      the
      "Obligations")

    

    
      
         

      

      
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    Section
      2. Fraudulent Transfer Laws.
      Anything
      contained in this Guaranty to the contrary notwithstanding, the obligations
      of
      the Guarantor hereunder shall be limited to a maximum aggregate amount equal
      to
      the largest amount that would not render its obligations hereunder subject
      to
      avoidance as a fraudulent transfer or conveyance under Section 548 of Title
      11
      of the United States Code or any applicable provisions of comparable state
      law
      (collectively, the "Fraudulent Transfer Laws"), in each case after giving effect
      to all other liabilities of the Guarantor, contingent or otherwise, that are
      relevant under the Fraudulent Transfer Laws (specifically excluding, however,
      any liabilities of such Guarantor in respect of inter-company indebtedness
      to
      the Borrower or other affiliates of the Borrower to the extent that such
      indebtedness would be discharged in an amount equal to the amount paid by such
      Guarantor hereunder) and after giving effect as assets to the value (as
      determined under the applicable provisions of the Fraudulent Transfer Laws)
      of
      any rights to subrogation or contribution of the Guarantor pursuant to
      applicable law, this Guaranty or any other agreement providing for an equitable
      allocation among the Guarantor and other affiliates of the Borrower of
      obligations arising under guaranties by such parties. This Section 2 shall
      be
      construed with the goal of maximizing the amount payable by the Guarantor
      hereunder without rendering it insolvent, leaving it with an unreasonably small
      amount of capital with which to conduct its business or leaving it unable to
      pay
      its debts as they mature, and in determining the solvency or net worth of the
      Guarantor.

    

    Section
      3. Nature of Guaranty: Continuing, Absolute and
      Unconditional.

    

    (a)
      This
      Guaranty is and is intended to be a continuing guaranty of payment when due
      of
      the Obligations, and not of collection, and is independent of and in addition
      to
      any other guaranty, endorsement, collateral or other agreement held by the
      Lender therefor or with respect thereto, whether or not furnished by a
      Guarantor. Upon the occurrence and during the continuance of any Event of
      Default, the Lender may, at its sole election, proceed directly and at once,
      without notice, against any or all of the Guarantors to collect and recover
      the
      full amount or any portion of the Guaranteed Obligations, without first
      proceeding against the Borrower or against any security or collateral for the
      Obligations. All Obligations shall be conclusively presumed to have been created
      in reliance hereon.

     

    (b)
      This
      Guaranty shall not be changed or affected by any representation, oral agreement,
      act or thing whatsoever, except as herein provided. This Guaranty is intended
      by
      the Guarantor to be the final, complete and exclusive expression of the
      agreement between the Guarantor and the Lender with respect to the subject
      matter hereof.

     

    (c)
      The
      obligations of the Guarantor under this Guaranty are absolute and unconditional
      and shall not be impaired or discharged by:

    

    (i)
      the
      failure of the Lender to assert any claim or demand or to enforce any right
      or
      remedy against the Borrower;

    

    (ii)
      any
      extension, renewal or other alteration of any provision of the Promissory Note
      or Security Agreement;

    

    
      
         

      

      
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    (iii)
      any
      rescission, waiver, amendment or modification of any of the terms or provisions
      of the Promissory Note or Security Agreement;

    

    (iv)
      the
      failure of the Lender to assert any claim or demand or to exercise or enforce
      any right or remedy under the Promissory Note or the Security
      Agreement;

    

    (v)
      the
      sale, exchange, release, surrender, realization of or upon or the failure to
      perfect with respect to or otherwise deal with in any manner and in any order
      any property by whomsoever at any time pledged or mortgaged to secure, or
      howsoever securing, the Obligations;

    

    (vi)
      the
      settlement or compromise of any of the Obligations, any security therefore
      or
      any liability (including any of those hereunder) incurred directly or indirectly
      in respect thereof or hereof, or any subordination of the payment of all or
      any
      part thereof to the payment of any liability (whether due or not) of the
      Borrower to creditors of the Borrower other than the Lender and the
      Guarantor;

    

    (vii)
      application of any sums by whomsoever paid or howsoever realized to any
      liability or liabilities of the Borrower to the Lender regardless of what
      liability or liabilities of the Borrower remain unpaid;

    

    (viii)
      the act or failure to act in any manner referred to in this Guaranty which
      may
      deprive any Guarantor of its right to subrogation or contribution against the
      Borrower to recover any payments made pursuant to this Guaranty; or

    

    (ix)
      or
      any other act, agreement, thing, omission or delay to do any other act or thing
      that may or might in any manner or to any extent vary the risk of any Guarantor
      or that would otherwise operate as a discharge of a guarantor as a matter of
      law
      or equity.

    

    (d)
      The
      Guarantor's obligation hereunder is to pay the Obligations in full when due
      according to the Promissory Note to the extent provided herein, and such
      obligation shall not be affected by any stay or extension of time for payment
      by
      the Borrower resulting from any proceeding under Title 11 of the United States
      Code, as now constituted or hereafter amended or replaced, or any similar
      federal or state law.

    

    Section
      4. No Discharge or Diminishment of Guaranty.
      The
      obligations of the Guarantor under this Guaranty shall not be subject to any
      reduction, limitation, impairment or termination for any reason (other than
      if
      the Obligations have been indefeasibly paid in full in cash), including, without
      limitation, any claim of waiver, release, surrender, alteration or compromise
      of
      any of the Obligations, and shall not be subject to any defense or setoff,
      counterclaim, recoupment or termination whatsoever by reason of the invalidity,
      illegality or unenforceability of any of the Obligations or any discharge of
      the
      Borrower from any of the Obligations in a bankruptcy or similar proceeding
      or
      otherwise.

    

    
      
         

      

      
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    Section
      5. Representations and Warranties.
      The
      Guarantor represents and warrants that: 

    

    (a)
      Organization and Good Standing.
      The
      Guarantor is a corporation duly organized and validly existing in good standing
      under the laws of the State of California and has full power and authority
      to
      own its properties and to conduct its business as such properties are presently
      owned and such business is presently conducted. 

    

    (b)
      Due Qualification.
      The
      Guarantor is duly qualified to do business and is in good standing as a foreign
      corporation, and has obtained all necessary licenses and approvals, in all
      jurisdictions in which the ownership or lease of property or the conduct of
      its
      business requires such qualification, licenses or approvals, except where the
      failure to so qualify to obtain such licenses and approvals or to preserve
      and
      maintain such qualification, licenses or approvals could not reasonably be
      expected to give rise to a material adverse effect with respect to the
      Guarantor. 

    

    (c)
      Power and Authority; Due Authorization.
      The
      Guarantor has all necessary limited partnership power and authority to execute
      and deliver this Guaranty and to perform all its obligations hereunder. The
      execution, delivery and performance of this Guaranty has been duly authorized
      by
      all necessary limited partnership action. 

    

    (d)
      Binding Obligations.
      This
      Guaranty constitutes the legal, valid and binding obligation of the Guarantor,
      enforceable against the Guarantor in accordance with its terms, except as such
      enforceability may be limited by bankruptcy, insolvency, reorganization or
      other
      similar laws affecting the enforcement of creditors rights generally and by
      general principles of equity, regardless of whether such enforceability is
      considered in a proceeding in equity or at law. 

    

    (e)
      No Conflict or Violation.
      The
      execution, delivery and performance of this Guaranty, and the fulfillment of
      the
      terms hereof, will not (i) conflict with, violate, result in any breach of
      any
      of the terms and provisions of, or constitute (with or without notice or lapse
      of time or both) a default under, (A) the certificate incorporation or Bylaws,
      as amended, of the Guarantor or (B) any indenture, loan agreement, mortgage,
      deed of trust, or other material agreement or instrument to which the Guarantor
      is a party or by which it or any of its properties is bound or (ii) conflict
      with or violate any federal, state, local or foreign law or any decision,
      decree, order, rule or regulation applicable to the Guarantor or any of its
      properties of any court or of any federal, state, local or foreign regulatory
      body, administrative agency or other governmental instrumentality having
      jurisdiction over the Guarantor or any of its properties, except such conflict
      or violation described in clause (i)(B) and clause (ii), individually or in
      the
      aggregate, could not reasonably be expected to have a material adverse effect
      on
      the ability of the Guarantor to perform its obligations under this Guaranty
      or
      the validity or enforceability of this Guaranty. 

    

    Section
      6. Guarantor's Acknowledgment.
      The
      Guarantor hereby acknowledges that the Company entered into the transactions
      contemplated by the Agreement in reliance upon the execution of this Guaranty.
      

    

    Section
      7. Termination of Guaranty.
      The
      Guarantor's obligations hereunder shall continue in full force and effect until
      the Promissory Note and all interest due thereon is paid in full. 

    

    
      
         

      

      
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    Section
      8. Successors and Assigns.
      This
      Guaranty shall be binding upon the Guarantor and its successors and assigns,
      and
      shall inure to the benefit of and be enforceable by the Company and its
      respective successors, transferees and assigns. The Guarantor may not assign
      or
      transfer any of its obligations hereunder. 

    

    Section
      9. Amendments and Waivers.
      No
      amendment or waiver of any provision of this Guaranty nor consent to any
      departure by the Guarantor therefrom shall be effective unless the same shall
      be
      in writing and signed by the Company. No failure on the part of the Company
      to
      exercise, and no delay in exercising, any right hereunder shall operate as
      a
      waiver thereof, nor shall any single or partial exercise of any right hereunder
      preclude any other or further exercise thereof or the exercise of any other
      right. 

    

    Section
      10. Notices.
      All
      notices, consents, or other communications provided for in this Note or
      otherwise required by law shall be in writing and may be given to or made upon
      the respective parties, if to Guarantor, at 27555 Ynez Road, Suite 330,
      Temecula, CA 92591 ("Borrower"), promises to pay to Ault Glazer Capital
      Partners, LLC., if to Lender, at 1800 Century Park East, Suite 200 Los Angeles,
      CA 90067. Such addresses may be changed by notice given as provided in this
      Section. Notices shall be effective upon the date of receipt; provided, however,
      that a notice (other than a notice of a changed address) sent by certified
      or
      registered U.S. mail, with postage prepaid, shall be presumed received not
      later
      than three (3) business days following the date of sending.

    

    Section
      11. Governing Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware (without giving effect to choice of law principles thereof
      that would result in the application of the laws of another jurisdiction).
      

    

    Section
      12. Submission to Jurisdiction.
      Each of
      the parties hereto (a) consents to submit itself to the personal jurisdiction
      of
      any Delaware chancery or federal court located in the City of Wilmington in
      the
      event any dispute arises out of this Agreement or any transaction contemplated
      by this Guaranty, (b) agrees that it will not attempt to deny or defeat such
      personal jurisdiction by motion or other request for leave from any such court,
      (c) agrees that it will not bring any action relating to this Guaranty or any
      transaction contemplated by this Guaranty in any court other than any such
      court
      and (d) waives any right to trial by jury with respect to any action related
      to
      or arising out of this Guaranty or any transaction contemplated by this
      Guaranty. Each of the parties irrevocably and unconditionally waives any
      objection to the laying of venue of any action, suit or proceeding arising
      out
      of this Guaranty or the transactions contemplated hereby in Delaware chancery
      or
      federal courts located in the City of Wilmington, and hereby further irrevocably
      and unconditionally waives and agree not to plead or claim in any such court
      that any such action, suit or proceeding brought in any such court has been
      brought in an inconvenient forum. 

    

    Section
      13. WAIVER OF JURY TRIAL.
      EACH
      PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      TO
      ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS GUARANTY, OR ANY
      AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
      FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY
      COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
      ACTIONS OF EITHER OF THE PARTIES HERETO OR ANY OTHER RELATIONSHIP EXISTING
      IN
      CONNECTION WITH THIS GUARANTY, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
      SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 

    

    
      
         

      

      
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    Section
      14. Counterparts.
      This
      Guaranty may be executed in counterparts, each of which shall be deemed to
      be an
      original, but all of which, taken together, shall constitute one and the same
      agreement. 

    

    Section
      15. Miscellaneous.
      This
      Guaranty constitutes the entire agreement of the Guarantor with respect to
      the
      matters set forth herein. The rights and remedies herein provided are cumulative
      and not exclusive of any remedies provided by law or any other agreement. The
      provisions of this Guaranty are severable, and in any action or proceeding
      involving any state corporate law, or any state or federal bankruptcy,
      insolvency, reorganization or other law affecting the rights of creditors
      generally, if the obligations of the Guarantor hereunder would otherwise be
      held
      or determined to be avoidable, invalid or unenforceable on account of the amount
      of the guaranty, the amount of such liability shall, without any further action
      by the Guarantor be automatically limited and reduced to the highest amount
      that
      is valid and enforceable as determined in such action or proceeding. The
      invalidity or unenforceability of any one or more sections of this Guaranty
      shall not affect the validity or enforceability of its remaining provisions.
      Captions are for ease of reference only and shall not affect the meaning of
      the
      relevant provisions. 

    

    [Signature
      Page Follows]

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed and
      delivered as of the date first above written.

    

    
      	
              SURGICOUNT
                MEDICAL,
                INC.

            
	 	 
	 	 
	 	
              By:
                ________________________________

              Name:
                William B. Horne

              Title:
                Chief Financial Officer

            
	 	 
	
              AULT
                GLAZER CAPITAL PARTNERS,
                INC.

            
	 	 
	 	 
	 	
              By:
                ________________________________ 

              Name:
                Milton C. Ault III

              Title:
                Chairman and CEO

            
	 	 

    

     

    

    
      
         

      

      
        7Unassociated Document

    Exhibit
      10.1

    

    REAL
      PROPERTY PURCHASE AGREEMENT

    (English
      Translation)

    

    This
      Real
      Estate Purchase Agreement (the “Agreement”),
      dated
      effective as of June 2, 2007, is entered by and between Mr. Zhao Li (the
“Seller”)
      and
      Beijing PKU ChinaFront High Technology Co. Ltd. (the “Buyer”).

    

    WHEREAS,
      the
      Seller has agreed to sell to the Buyer, the Buyer has agreed to buy from the
      Seller, the real property owned by the Seller with the address of Room 717,
      Tower B, E-Wing Center, 113 Zhichunlu, Haidian District, Beijing 100086 (the
      “Real
      Property”)
      with
      the area of 513 square meters.

    

    NOW,
      THEREFORE,
      according to the Contract Law of the People’s Republic of China (“PRC”)
      and
      Urban Property Administration Law of PRC, in consideration of the mutual
      promises of the parties and the terms and conditions hereof, the parties agree
      as follows:

    

    1. Purchase
      Price of the Real Property.
      The
      purchase price is RMB 19,000 per square meter and the total purchase price
      is
      RMB 9,747,000. 

    

    2. Payment
      Term.
      The
      Buyer shall pay the down payment with the amount of RMB 5,848,200 (including
      the
      deposit of RMB 42,147), 60% of the total purchase price, within three days
      following the execution of the Agreement. The rest RMB 3,898,800 shall be paid
      off by the Buyer within six months following the change in title to the Real
      Property from the Seller to the Buyer. 

    

    3.
      Other
      Selling Expenses.
      The
      Seller shall provide the Real Property in good condition to the Buyer within
      30
      days after receiving the total purchase price of RMB 9,747,000. The Seller
      is
      responsible for all other related expenses, including the real estate tax,
      property management fees and electric charges etc.

    

    4. Real
      Estate Tax.
      All the
      real estate tax relevant to the transaction shall be paid off by the Seller.
      The
      Buyer is responsible for any real estate agent fees.

    

    5. Liability
      for Breaching the Agreement.
      In any
      event that the execution of the Agreement is not possible, each Party hereto
      shall be obligated to inform the other one in written form. If the Buyer
      breaches the Agreement, the Seller shall pay to the Buyer the entire sum paid
      with no interest while deducting the deposit within the 10 days after receiving
      the Buyer’s written notice of breach. If the Seller breaches the Agreement, the
      Buyer shall have the right to get back the sum paid with double amount of the
      deposits from the Seller within 10 days after receiving the Seller’s written
      notice of breach. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6. Delivery.
      The
      Agreement has three copies and shall be delivered to the Seller one copy and
      to
      the Buyer two copies.

     

    If
      to the
      Seller, to: 

    c/o
      Mr.
      Zhao Li

    Mobile:
      86-13520334581

    

    If
      to the
      Buyer, to:

    Beijing
      PKU ChinaFront High Technology Co. Ltd.

    Rm
      717,
      Tower B, E-Wing Center,

    113
      Zhichunlu, Haidian District, Beijing 100086

    Attn:
      Mr.
      Shudong Xia

    Tel:
      86-10-82671299

    Fax:
      86-10-62637657

    

    7. Amendments
      and Additional Consideration.
      Any
      amendments and additional consideration to the Agreement shall be offered in
      written form and signed by the parties hereto.

    

    The
      parties hereto have executed and delivered this Real Property Purchase Agreement
      as of the date first above written.

     

     

    
      	
              The
                Seller:

            	 	Mr.
              Zhao
              Li
	 	 	 
	 	 	 
	
            	By:  	/s/ Zhao Li
	 	
              
Name:
              Zhao Li

    

    
       

       

      
        	
                The
                  Buyer:

              	 	
                Beijing PKU ChinaFront High Technology Co. Ltd.

              
	 	 	 
	 	 	 
	
              	By:  	/s/ Shudong Xia
	 	
                

                Name:
                  Shudong Xia

                Title:
                  CEO and President

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