Document:

EX-10.3

                             SUBSCRIPTION AGREEMENT

         This  Subscription  Agreement (this  "AGREEMENT") is entered into as of
__________,  2006 by and among  Patient  Safety  Technologies,  Inc., a Delaware
corporation  (together with its successors and permitted assigns, the "ISSUER"),
and the undersigned  investors (each, together with its successors and permitted
assigns,  the "INVESTOR" and  collectively,  together with their  successors and
permitted assigns, the "INVESTORS").

                                    RECITALS

         Subject to the terms and  conditions of this  Agreement,  the Investors
desire to subscribe for and purchase,  and the Issuer  desires to issue and sell
to the Investors,  certain shares of the Issuer's  common stock,  par value $.33
per share (the "COMMON  STOCK"),  to purchase shares of Common Stock. The Issuer
is offering One Million  ($1,000,000)  in shares of Common  Stock,  in a private
placement  to the  Investors at a purchase  price of One Dollar and  Twenty-Five
Cents ($1.25) per share and on the other terms and conditions  contained in this
Agreement (the  "OFFERING"),  including fifty percent (50%) warrant  coverage at
Two Dollars ($2.00) per share,  exercisable for a period of three (3) years (the
"WARRANT");  PROVIDED  that the  Issuer  reserves  the right to issue and sell a
lesser or greater  number of shares.  Additional  information  disclosed  in the
Company's 10-K's and 10-Q's is hereby incorporated by reference.

                               TERMS OF AGREEMENT

         In  consideration  of  the  mutual   representations   and  warranties,
covenants and agreements contained herein, the parties hereto agree as follows:

1.       SUBSCRIPTION AND ISSUANCE OF COMMON STOCK.

         1.1      SUBSCRIPTION  AND  ISSUANCE  OF COMMON  STOCK.  Subject to the
terms and conditions of this Agreement,  the Issuer shall issue and sell to each
Investor,  and each Investor  subscribes for and shall purchase from the Issuer,
that number of shares of Common Stock set forth on such  Investor's  counterpart
signature page hereof (the "SHARES" or "SECURITIES") for the aggregate  purchase
price set forth on such  counterpart  signature page,  which aggregate  purchase
price  shall be equal to the product of the number of Shares  subscribed  for by
such Investor  multiplied by the per share purchase price specified in the above
Recitals to this Agreement (the "PURCHASE  Price").  The Purchase Price includes
the Warrant.

         1.2      LEGENDS.

                  Any certificate or certificates  representing the Shares shall
                  bear the following  legend, in addition to any legend that may
                  be required by any Requirements of Law:

                  THE SHARES REPRESENTED BY THIS CERTIFICATE ARE BEING
                  ISSUED  PURSUANT  TO  THE  TERMS  OF A  SUBSCRIPTION
                  AGREEMENT  WITH THE ISSUER DATED AS OF  ___________,
                  2006,  A COPY OF WHICH IS ON FILE  WITH THE  ISSUER.
                  THE SHARES  REPRESENTED BY THIS  CERTIFICATE  ISSUED

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                  HEREWITH UNDER SUCH SUBSCRIPTION  AGREEMENT WILL NOT
                  BE SEPARATELY TRANSFERABLE.

                  IN  ADDITION,   THE  SHARES   REPRESENTED   BY  THIS
                  CERTIFICATE  MAY  NOT  BE  SOLD,   TRANSFERRED,   OR
                  OTHERWISE  DISPOSED OF BY THE HOLDER EXCEPT PURSUANT
                  TO AN EFFECTIVE  REGISTRATION  STATEMENT FILED UNDER
                  THE  SECURITIES  ACT OF  1933,  AS  AMENDED,  AND IN
                  COMPLIANCE  WITH  APPLICABLE  SECURITIES LAWS OF ANY
                  STATE WITH RESPECT  THERETO OR IN ACCORDANCE WITH AN
                  OPINION   OF   COUNSEL   IN   FORM   AND   SUBSTANCE
                  SATISFACTORY  TO THE ISSUER THAT AN  EXEMPTION  FROM
                  SUCH  REGISTRATION  IS AVAILABLE AND ALSO MAY NOT BE
                  SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
                  COMPLIANCE   WITH  ANY   APPLICABLE   RULES  OF  THE
                  SECURITIES AND EXCHANGE COMMISSION.

2.       CLOSING.

         2.1      CLOSING.  The closing of the transactions  contemplated herein
(the "CLOSING") shall take place simultaneously upon execution of this Agreement
at the  offices of Issuer  located at 1800  Century  Park East,  Suite 200,  Los
Angeles,  CA 90067.  At the Closing:  (i) each  Investor  participating  in such
Closing shall pay to the Issuer, by wire transfer of immediately available funds
to an account  designated in writing by the Issuer,  the Purchase  Price for the
Shares being purchased by such Investor  hereunder;  (ii) the Issuer shall issue
to each such Investor the Shares being  purchased by the Investor  hereunder and
shall  deliver  or cause to be  delivered  to such  Investor  a  certificate  or
certificates  representing  such  Shares  duly  registered  in the  name of such
Investor,  as  specified  on the  signature  pages  hereto;  and (iii) all other
actions  referred to in this  Agreement  which are  required to be taken at such
Closing shall be taken and all other  agreements  and  documents  referred to in
this  Agreement  that are  required  for such  Closing  shall  be  executed  and
delivered.

         All funds can be wired to Issuer's escrow agent as follows:

         Bank:    Keybank National Association
                  444 SW 5th Street
                  Portland, Oregon 97204
         Name:    TOL FBO Patient Safety Technologies
         ABA:     123002011
         Acct:    370151012967

         Any checks are to be made out to Transfer Online, Inc. and mailed to:

         Transfer Online, Inc.
         317 SW Alder Street
         Portland, Oregon 97204
         Attn: Escrow Acct. 370151012967

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3.       REPRESENTATIONS AND WARRANTIES OF THE INVESTORS.

         As a material inducement to the Issuer to enter into this Agreement and
issue the Securities,  each Investor represents,  warrants, and covenants to the
Issuer as follows:

         3.1      POWER AND AUTHORITY.  Such  Investor,  if other than a natural
person, is an entity duly organized, validly existing and in good standing under
the laws of the state of its  incorporation or formation.  Such Investor has the
corporate,  partnership  or other  power (or,  in the case of a natural  person,
legal capacity) and authority  under  applicable law to execute and deliver this
Agreement and  consummate  the  transactions  contemplated  hereby,  and has all
necessary  authority to execute,  deliver and perform its obligations under this
Agreement and to consummate the transactions  contemplated hereby. Such Investor
has  taken all  necessary  action  to  authorize  the  execution,  delivery  and
performance of this Agreement and the transactions contemplated hereby.

         3.2      NO  VIOLATION.  The execution and delivery by such Investor of
this Agreement,  the consummation of the transactions  contemplated  hereby, and
the compliance by such Investor with the terms and provisions hereof,  will not:
(i)  result in a default  under (or give any  other  party the  right,  with the
giving of notice or the  passage  of time (or  both),  to  declare a default  or
accelerate any obligation  under) any Contract to which such Investor is a party
or by which it or its  properties or assets are bound (except to the extent such
defaults  or  accelerations,   individually  or  in  the  aggregate,  would  not
reasonably be expected to have a Material Adverse Effect on such Investor); (ii)
violate any  Requirement of Law  applicable to such  Investor;  or (iii) if such
Investor is other than a natural person, violate any charter,  bylaws or similar
documents of such Investor.  At or prior to the Closing, such Investor will have
complied with all  Requirements  of Law applicable to it in connection  with the
Offering  and at all  times  thereafter  such  Investor  will  comply  with  all
Requirements  of Law applicable to it in connection  with any resale or transfer
by such Investor of any  Securities  acquired by such Investor  pursuant to this
Agreement.

         3.3      CONSENTS/APPROVALS.  No consents,  filings,  authorizations or
actions  of  any  Governmental   Authority  are  required  for  such  Investor's
execution,  delivery and  performance of this Agreement.  No consent,  approval,
waiver or other  actions by any Person under any Contract to which such Investor
is a party or by which  such  Investor  or any of its  properties  or assets are
bound is required or necessary for the  execution,  delivery and  performance by
such  Investor  of this  Agreement  and  the  consummation  of the  transactions
contemplated hereby.

         3.4      ENFORCEABILITY.  This  Agreement  has been duly  executed  and
delivered by such Investor and (assuming it has been duly authorized,  executed,
and delivered by the Issuer)  constitutes a legal,  valid and binding obligation
of such  Investor,  enforceable  against such  Investor in  accordance  with its
terms,  except as such  enforceability may be limited by applicable  bankruptcy,
insolvency, fraudulent conveyances,  reorganization,  moratorium or similar laws
from time to time in effect  affecting  the  enforcement  of  creditor's  rights
generally,   and   general   equitable   principles,   regardless   of   whether
enforceability is considered in a proceeding at law or in equity, and except for
the  indemnity  provisions  of  ARTICLE  5 of this  Agreement,  which may not be
enforceable based upon public policy considerations.

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         3.5      INVESTMENT  INTENT.  Buyer is acquiring the Shares for its own
account,  for  investment  purposes  only and not with a view to resale or other
distribution  thereof,  nor with  the  intention  of  selling,  transferring  or
otherwise  disposing of all or any part of such Shares, or any interest therein,
for any particular  price,  or at any particular  time, or upon the happening of
any  particular  event  or  circumstances,   except  selling,  transferring,  or
disposing of such Shares made in full compliance with all applicable  provisions
of the Securities Act of 1993 (the "Securities Act") and the Securities Exchange
Act of 1934,  and the Rules and  Regulations  promulgated  by the Securities and
Exchange Commission thereunder, all as amended.

         3.6      ACCREDITED INVESTOR. Such Investor is an "accredited investor"
as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
Without limiting the foregoing  representation,  such Investor  confirms that it
has  reviewed  the  partial  definition  of an  "Accredited  Investor"  which is
attached  hereto as EXHIBIT A (which is not a complete  definition  of the term,
but which includes the most likely  categories of  qualification) to confirm the
accuracy  of such  representation,  and such  Investor  has  noted by  paragraph
number, on its signature page hereto,  the category(ies)  pursuant to which such
Investor qualifies as an "Accredited  Investor"  according to the definition set
forth in  EXHIBIT  A. Such  Investor  has not been  formed  for the  purpose  of
acquiring the Securities.  Such Investor is not an officer, director,  employee,
investment  advisor,  promoter,  general  partner,  Affiliate  or  member of the
advisory board of the Issuer.

         3.7      ADEQUATE  INFORMATION.  Such Investor has received either from
the Issuer or through a search of the Issuer's  public filings with the SEC (the
"SEC REPORTS"),  and has reviewed,  such information as such Investor  considers
necessary or  appropriate  to evaluate the risks and merits of an investment in,
and make an informed investment  decision with respect to, the Securities.  Such
Investor  acknowledges that each of the SEC Reports,  including the risk factors
contained therein, are specifically incorporated herein by reference and form an
integral part of this Agreement.

         3.8      OPPORTUNITY TO QUESTION. Such Investor has had the opportunity
to question, and has questioned,  to the extent deemed necessary or appropriate,
representatives  of the  Issuer  so as to  receive  answers  from  the  Issuer's
representatives  regarding  the terms and  conditions  of an  investment  in the
Securities and to verify information obtained in such Investor's  examination of
the Issuer,  including,  without limitation,  the information that such Investor
may have  received and reviewed as  referenced in SECTION 3.7 in relation to its
investment in the Securities.

         3.9      NO OTHER REPRESENTATIONS.  No oral or written  representations
have been made to such Investor in connection with such  Investor's  acquisition
of the  Securities  which  were in any way  inconsistent  with  the  information
reviewed by such Investor.  Such Investor acknowledges that, in deciding whether
to enter into this Agreement and to acquire the Securities hereunder, it has not
relied on any  representations  or warranties of any type or description made by
the  Issuer  or any of its  representatives  with  regard  to the  Issuer or its
business,  property or prospects of the investment  contemplated  herein,  other
than the  representations and warranties of the Issuer set forth in this ARTICLE
3.

         3.10     KNOWLEDGE AND EXPERIENCE.  Such Investor  understands  that an
investment in the Securities  involves  substantial risk. Such Investor has such
knowledge and experience in

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financial,  tax  and  business  matters,  including  substantial  experience  in
evaluating  and investing in common stock and other  securities  (including  the
common stock and other  securities of  speculative  companies),  so as to enable
such Investor to utilize the  information  referred to in SECTION 3.7 hereof and
any other  information made available by the Issuer to such Investor in order to
evaluate the merits and risks of an investment in the  Securities and to make an
informed investment decision with respect thereto.  Specifically,  such Investor
has given  appropriate  consideration  to the early stage of  development of the
Issuer's primary business as well as the Issuer's financial  condition including
its ability to continue as a going concern.

         3.11     INDEPENDENT  DECISION.  Such  Investor  is not  relying on the
Issuer  or on any  legal or other  opinion  in the  materials  reviewed  by such
Investor  with respect to the financial or tax  considerations  of such Investor
relating to its investment in the Securities. Such Investor has relied solely on
the  representations  and warranties,  covenants and agreements of the Issuer in
this  Agreement  (including  the  exhibits  and  schedules  hereto)  and  on its
examination and independent  investigation in making its decision to acquire the
Securities.

4.       REGISTRATION RIGHTS.

         In the event the Issuer files a registration  statement pursuant to the
Securities  Act of 1933, as amended,  the  Securities,  including any securities
acquired  pursuant to exercise of the  Warrant,  shall be included for resale in
such  registration  statement,  as provided  in EXHIBIT B hereto.  A form of the
Warrant to be issued pursuant hereto is attached as EXHIBIT C.

5.       INDEMNIFICATION.

         5.1      INDEMNIFICATION  BY THE ISSUER.  The Issuer will indemnify and
hold  harmless  each  Holder  or  Selling  Stockholder  of Shares  covered  by a
Registration  Statement  pursuant to the provisions of ARTICLE 6, any Person who
controls such Holder or Selling Stockholder within the meaning of the Securities
Act, and any officer,  director,  investment adviser,  employee, agent, partner,
member  or  Affiliate   of  such  Holder  or  Selling   Stockholder   (each,   a
"HOLDER/SELLING  STOCKHOLDER  INDEMNIFIED  PARTY"),  from and against,  and will
reimburse each such  Holder/Selling  Stockholder  Indemnified Party with respect
to, any and all claims, actions,  demands, losses, damages,  liabilities,  costs
and expenses to which such Holder/Selling Stockholder or any such Holder/Selling
Stockholder  Indemnified  Party may become  subject under the  Securities Act or
otherwise,   insofar  as  such  claims,  actions,   demands,   losses,  damages,
liabilities,  costs or expenses  arise out of or are based upon:  (a) any untrue
statement or alleged  untrue  statement of any material  fact  contained in such
registration  statement,  any prospectus  contained  therein or any amendment or
supplement  thereto;  (b) the  omission or alleged  omission to state  therein a
material fact required to be stated  therein or necessary to make the statements
therein (in the case of any  preliminary  prospectus or prospectus,  in light of
the  circumstances  under  which  they  were  made) not  misleading;  or (c) any
materially  inaccurate  representation  or  breach  of  any  material  warranty,
agreement or covenant of the Issuer contained  herein;  PROVIDED that the Issuer
will not be liable in any such case to the extent that any such  claim,  action,
demand, loss, damage,  liability, cost or expense arises out of or is based upon
an untrue  statement or alleged untrue statement or omission or alleged omission
(i)  made in  reliance  on and  conformity  with  information  furnished  by any
Holder/Selling  Stockholder in writing  specifically  for use in the preparation
thereof or (ii) which was cured in an amendment or supplement to the

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prospectus   (or  any  amendment  or  supplement   thereto)   delivered  to  the
Holder/Selling  Stockholder on a timely basis to permit proper delivery  thereof
prior to the date on which any Shares were transferred or sold.

         5.2      INDEMNIFICATION  BY THE  HOLDER OR SELLING  STOCKHOLDER.  Each
Holder  and  each  Selling  Stockholder  of  Shares  covered  by a  Registration
Statement  pursuant  to the  provisions  of  ARTICLE 4 will  indemnify  and hold
harmless the Issuer,  any Person who  controls the Issuer  within the meaning of
the Securities Act, and any officer, director,  employee, agent, partner, member
or  Affiliate  of the Issuer  (each,  an "ISSUER  INDEMNIFIED  Party")  from and
against,  and will reimburse the Issuer Indemnified Parties with respect to, any
and all  claims,  actions,  demands,  losses,  damages,  liabilities,  costs  or
expenses to which such Issuer  Indemnified  Parties may become subject under the
Securities Act or otherwise, insofar as such losses, damages, liabilities, costs
or  expenses  arise out of or are based upon:  (a) any untrue or alleged  untrue
statement of any material fact  contained in such  Registration  Statement,  any
prospectus  contained therein or any amendment or supplement thereto; or (b) the
omission or the alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein,  (in the case of any
preliminary prospectus or prospectus,  in light of the circumstances under which
they were  made) not  misleading,  in each case to the  extent,  but only to the
extent,  that such untrue  statement or alleged untrue  statement or omission or
alleged  omission  was so  made  in  reliance  on and  conformity  with  written
information furnished by such Holder or Selling Stockholder specifically for use
in the preparation thereof; PROVIDED that the liability of any Holder or Selling
Stockholder  pursuant  to this  SECTION 5.2 shall be limited to an amount not to
exceed the net proceeds received by such Holder or Selling  Stockholder from the
sale of Registrable  Securities  pursuant to the  Registration  Statement  which
gives rise to such obligation to indemnify.

         5.3      PROCEDURES.  Promptly  after  receipt  by a party  indemnified
pursuant  to the  provisions  of  SECTION  5.1 or  SECTION  5.2 of notice of the
commencement  of any  action  involving  the  subject  matter  of the  foregoing
indemnity  provisions,  such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of SECTION 5.1 or
SECTION 5.2, notify the indemnifying party of the commencement thereof; PROVIDED
the  omission to so notify the  indemnifying  party will not relieve it from any
liability  which it may have to an indemnified  party  otherwise than under this
ARTICLE 5, and shall not relieve the  indemnifying  party from  liability  under
this ARTICLE 5, except to the extent that such indemnifying  party is materially
prejudiced  by such  omission.  In case  such  action  is  brought  against  any
indemnified  party and it notifies the  indemnifying  party of the  commencement
thereof,  the indemnifying party shall have the right to participate in, and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified  party,  and after notice from the  indemnifying  party to such
indemnified   party  of  its  election  to  assume  the  defense  thereof,   the
indemnifying  party will not be liable to such indemnified party pursuant to the
provisions  of  SECTION  5.1 or  SECTION  5.2 for any  legal  or  other  expense
subsequently  incurred by such indemnified  party in connection with the defense
thereof.  No indemnifying  party shall be liable to an indemnified party for any
settlement of any action or claim without the consent of the indemnifying party.
No  indemnifying  party will  consent to entry of any judgment or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such

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indemnified  party of an unconditional  release from all liability in respect to
such action, claim or litigation.

6.       MISCELLANEOUS.

         6.1      DEFINED TERMS.  As used herein the following  terms shall have
the following meanings:

                  (a)      "AFFILIATE"  has the  meaning  ascribed to it in Rule
12b-2 of the General Rules and Regulations  under the Exchange Act, as in effect
on the date hereof.

                  (b)      "AGREEMENT" has the meaning specified in the preamble
to this Agreement.

                  (c)      "AMEX" has the meaning  specified  in SECTION 6.12 of
this Agreement.

                  (d)      "BUSINESS DAY" means any day except Saturday,  Sunday
and any day which shall be a federal  legal holiday or a day on which either (i)
the SEC or (ii) banking  institutions in the State of New York are authorized or
required by law or other governmental action to close.

                  (e)      "BYLAWS" means the Bylaws of the Issuer,  as the same
may be supplemented, amended, or restated from time to time.

                  (f)      "CERTIFICATE  OF  INCORPORATION"  means the  Issuer's
Certificate  of  Incorporation,  as the same  may be  supplemented,  amended  or
restated from time to time.

                  (g)      "CLOSING" has the meaning specified in SECTION 2.1 of
this Agreement.

                  (h)      "COMMON  STOCK"  has  the  meaning  specified  in the
Recitals to this Agreement.

                  (i)      "CONFIDENTIAL  INFORMATION" has the meaning specified
in SECTION 6.13 of this Agreement.

                  (j)      "CONTRACT" means any indenture, lease, sublease, loan
agreement,  mortgage,  note,  restriction,   commitment,   obligation  or  other
contract, agreement or instrument.

                  (k)      Intentionally deleted.

                  (l)      "EXCHANGE ACT" means the  Securities  Exchange Act of
1934, as amended.

                  (m)      "GAAP" means generally accepted accounting principles
in effect in the United States of America.

                  (n)      "GOVERNMENTAL   AUTHORITY"   means   any   nation  or
government,  any state or other political subdivision thereof, and any entity or
official   exercising   executive,   legislative,    judicial,   regulatory   or
administrative functions of or pertaining to government.

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                  (o)      "HOLDER/SELLING  STOCKHOLDER  INDEMNIFIED  PARTY" has
the meaning specified in SECTION 5.1 of this Agreement.

                  (p)      "INVESTOR" has the meaning  specified in the preamble
to this Agreement.

                  (q)      "ISSUER" means Patient Safety  Technologies,  Inc., a
Delaware corporation.

                  (r)      "ISSUER  INDEMNIFIED PARTY" has the meaning specified
in SECTION 5.2 of this Agreement.

                  (s)      "KNOWLEDGE"  means,  with respect to the Issuer,  the
actual knowledge of Milton "Todd" Ault III.

                  (t)      "MATERIAL   ADVERSE  EFFECT"  means  a  material  and
adverse change in, or effect on, the financial  condition,  properties,  assets,
liabilities, rights, obligations, operations or business, of a Person.

                  (u)      "OFFERING" has the meaning  specified in the Recitals
to this Agreement.

                  (v)      "PERMIT"  means  any  permit,  certificate,  consent,
approval,  authorization,  order, license, variance,  franchise or other similar
indicia of authority issued or granted by any Governmental Authority.

                  (w)      "PERSON"   means  a  natural   person,   partnership,
corporation,  limited liability  company,  business trust,  joint stock company,
estate, trust, unincorporated association, joint venture, Governmental Authority
or other entity, of whatever nature.

                  (x)      "PURCHASE PRICE" has the meaning specified in SECTION
1.1 of this Agreement.

                  (y)      "RULE  144"  means  Rule 144  promulgated  under  the
Securities Act, or any successor thereto.

                  (z)      "SEC" means the Securities and Exchange Commission.

                  (aa)     "SECURITIES" has the meaning specified in SECTION 1.2
of this Agreement.

                  (bb)     "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                  (cc)     "SHARES" has the meaning  specified in SECTION 1.1 of
this Agreement.

                  (dd)     "WARRANT"  has the meaning  specified in the Recitals
to this Agreement.

         6.2      OTHER DEFINITIONAL PROVISIONS.

                  (a)      All terms  defined in this  Agreement  shall have the
defined meanings when used in any certificates,  reports or other documents made
or delivered pursuant hereto or thereto, unless the context otherwise requires.

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                  (b)      Terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

                  (c)      All accounting terms shall have a meaning  determined
in accordance with GAAP.

                  (d)      The words  "hereof,"  "herein" and  "hereunder,"  and
words  of  similar  import,  when  used in this  Agreement  shall  refer to this
Agreement as a whole  (including  any exhibits and schedules  hereto) and not to
any particular provision of this Agreement.

         6.3      NOTICES.  All notices,  requests,  demands,  claims, and other
communications hereunder shall be in writing and shall be delivered by certified
or  registered  mail  (first  class  postage  pre-paid),   guaranteed  overnight
delivery,  or  facsimile  transmission  if such  transmission  is  confirmed  by
delivery by  certified or  registered  mail (first  class  postage  pre-paid) or
guaranteed  overnight delivery,  to the following addresses and telecopy numbers
(or to  such  other  addresses  or  telecopy  numbers  which  such  party  shall
subsequently designate in writing to the other party):

                  (a)      if to the Issuer to:

                           Patient Safety Technologies, Inc.
                           c/o Milton "Todd" Ault III
                           1800 Century Park East
                           Suite 200
                           Los Angeles, CA 90067
                           Facsimile: (310) 895-7751

                  (b)      if to an  Investor,  to the address set forth next to
such Investor's name on such Investor's counterpart signature page hereto.

         Each such notice or other  communication shall for all purposes of this
Agreement  be treated as  effective  or having  been  given  when  delivered  if
delivered by hand,  by messenger or by courier,  or if sent by  facsimile,  upon
confirmation of receipt.

         6.4      ENTIRE AGREEMENT.  This Agreement  (including the exhibits and
schedules attached hereto) and other documents delivered at the Closing pursuant
hereto,  contain  the  entire  understanding  of the  parties  in respect of its
subject matter and supersede all prior agreements and understandings between the
parties with respect to such subject matter.

         6.5      EXPENSES;   TAXES.   Except  as  otherwise  provided  in  this
Agreement,  the parties shall pay their own fees and expenses,  including  their
own counsel fees,  incurred in connection with this Agreement or any transaction
contemplated  hereby;  PROVIDED  that the Issuer  shall pay at the  Closing  the
reasonable  legal fees (up to a maximum of $20,000) of a single special  counsel
to the Investors.  Any sales tax, stamp duty, deed transfer or other tax (except
taxes based on the income of the  Investors)  arising out of the issuance of the
Securities  (but not with respect to subsequent  transfers) by the Issuer to the
Investors and  consummation of the  transactions  contemplated by this Agreement
shall be paid by the Issuer.

                                       9
<PAGE>

         6.6      AMENDMENT;   WAIVER.  This  Agreement  may  not  be  modified,
amended,  supplemented,  canceled or  discharged,  except by written  instrument
executed by the parties to this Agreement.  No failure to exercise, and no delay
in exercising,  any right, power or privilege under this Agreement shall operate
as a waiver,  nor shall any single or partial  exercise  of any right,  power or
privilege  hereunder  preclude  the  exercise  of  any  other  right,  power  or
privilege.  No waiver of any  breach  of any  provision  shall be deemed to be a
waiver of any preceding or succeeding breach of the same or any other provision,
nor shall any waiver be implied from any course of dealing  between the parties.
No extension of time for  performance of any obligations or other acts hereunder
or under any other  agreement shall be deemed to be an extension of the time for
performance of any other  obligations or any other acts. The rights and remedies
of the parties  under this  Agreement  are in  addition to all other  rights and
remedies, at law or equity, that they may have against each other.

         6.7      BINDING EFFECT; ASSIGNMENT. The rights and obligations of this
Agreement  shall  bind  and  inure  to the  benefit  of the  parties  and  their
respective  successors  and legal  assigns.  The rights and  obligations  of the
Issuer pursuant to this Agreement may not be assigned to any third party without
the prior  written  consent  of the  Holders of a  majority  of the  Registrable
Securities.

         6.8      COUNTERPARTS;  FACSIMILE  SIGNATURE.  This  Agreement  may  be
executed by facsimile signature and in any number of counterparts, each of which
shall be an original but all of which together shall constitute one and the same
instrument.

         6.9      HEADINGS.  The headings  contained in this  Agreement  are for
convenience of reference only and are not to be given any legal effect and shall
not affect the meaning or interpretation of this Agreement.

         6.10     GOVERNING  LAW;   INTERPRETATION.   This  Agreement  shall  be
construed  in  accordance  with and governed for all purposes by the laws of the
State of California  applicable to contracts executed and to be wholly performed
within such state.

         6.11     SEVERABILITY.   The  parties  stipulate  that  the  terms  and
provisions  of this  Agreement  are fair and  reasonable  as of the date of this
Agreement.  However,  any provision of this  Agreement  shall be determined by a
court of  competent  jurisdiction  to be  invalid,  void or  unenforceable,  the
remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected,  impaired
or invalidated.  If,  moreover,  any of those provisions shall for any reason be
determined  by a court of competent  jurisdiction  to be  unenforceable  because
excessively  broad or vague as to  duration,  activity or  subject,  it shall be
construed by limiting, reducing or defining it, so as to be enforceable.

         6.12     FURTHER  ASSURANCES.  Each of the parties hereto shall execute
and deliver such additional  instruments and other documents and shall take such
further  actions as may be reasonably  necessary or  appropriate  to effectuate,
carry  out  and  comply  with  all  of the  terms  of  this  Agreement  and  the
transactions  contemplated  hereby.  Each of the  Investors and the Issuer shall
make on a prompt and timely basis all  governmental or regulatory  notifications
and filings required to be made by it with or to any  Governmental  Authority in
connection with the consummation of the transactions  contemplated  hereby.  The
Issuer and the Investors agree to

                                       10
<PAGE>

cooperate  with  one  another  in the  preparation  and  filing  of  all  forms,
notifications,  reports and information,  if any,  required or reasonably deemed
advisable  pursuant to any  Requirement  of Law or the American  Stock  Exchange
("AMEX")  rules  in  connection  with  the  transactions  contemplated  by  this
Agreement and to use their respective  commercially  reasonable efforts to agree
jointly on a method to overcome any objections by any Governmental  Authority to
any such transactions.

         6.13     CONFIDENTIAL  INFORMATION.  Each Investor confirms that it has
entered into a confidentiality agreement with the Issuer, pursuant to which such
Investor has agreed to keep  confidential  certain  information  relating to the
Issuer that has been disclosed by the Issuer to the Investor in connection  with
such  Investor's  investment in the  Securities,  and that such  Investor  shall
continue to be bound by such  confidentiality  agreement  after the Closing.  In
addition,  each Investor agrees that no portion of the Confidential  Information
(as  defined  below)  shall be  disclosed  to third  parties,  except  as may be
required  by law,  without  the prior  express  written  consent of the  Issuer;
PROVIDED that each Investor may share such information with such of its officers
and  professional  advisors as may need to know such  information to assist such
Investor in its evaluation  thereof, on the condition that such parties agree to
be bound by the terms of this SECTION 6.13. "CONFIDENTIAL INFORMATION" means the
existence and terms of this Agreement, the transactions contemplated hereby, and
the  disclosures  and  other  information   contained   herein,   excluding  any
disclosures or other information that is publicly available.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have caused this  Subscription
Agreement to be duly executed and delivered as of the date set forth below.

                                         ISSUER:

                                         PATIENT SAFETY TECHNOLOGIES, INC.

                                         By:_________________________________

                                         Name:_______________________________

                                         Title:______________________________

                                       12
<PAGE>

                      [INVESTOR COUNTERPART SIGNATURE PAGE]

NAME OF INVESTOR (please print)                ADDRESS FOR NOTICE (please print)
                                               _____________________________
                                               _____________________________
_____________________________                  _____________________________
                                               Attention:___________________
                                               Tax Identification #:________
SIGNATURE

By:__________________________

Name:________________________

Title:_______________________

Date:________________________

Exact name to appear on stock certificate:     Number of Shares subscribed for:

_____________________________                  _____________________________

Aggregate Purchase Price (see SECTION 1.1):    Categories pursuant to which
                                               Investor qualifies as an
                                               Accredited Investor as defined in
                                               EXHIBIT A to this Agreement
                                               (please indicate the applicable
                                               section numbers noted on
                                               EXHIBIT A to this Agreement):

$_________________                             _____________________________

                                       13
<PAGE>

                                    EXHIBIT A

                       DEFINITION OF "ACCREDITED INVESTOR"

         "ACCREDITED INVESTOR" shall mean any person who comes within any of the
following categories,  or who the Issuer reasonably believes comes within any of
the  following  categories,  at the time of the sale of the  Securities  to that
person:

                  1.       Any bank as defined in section 3(a)(2) of the Act, or
any  savings and loan  association  or other  institution  as defined in section
3(a)(5)(A) of the Act whether  acting in its  individual or fiduciary  capacity;
any  broker  or dealer  registered  pursuant  to  section  15 of the  Securities
Exchange Act of 1934;  any insurance  company as defined in section 2(13) of the
Act; any investment  company registered under the Investment Company Act of 1940
or a business  development  company as defined in section  2(a)(48) of that Act;
any Small  Business  Investment  Company  licensed  by the U.S.  Small  Business
Administration  under section 301(c) or (d) of the Small Business Investment Act
of  1958;  any  plan  established  and  maintained  by a  state,  its  political
subdivisions,  or any  agency  or  instrumentality  of a state or its  political
subdivisions, for the benefit of its employees, if such plan has total assets in
excess of  $5,000,000;  any  employee  benefit  plan  within the  meaning of the
Employee  Retirement  Income Security Act of 1974 if the investment  decision is
made by a plan  fiduciary,  as defined in  section  3(21) of such act,  which is
either a bank, savings and loan association,  insurance  company,  or registered
investment  adviser,  or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are Accredited Investors;

                  2.       Any private business  development  company as defined
in section 202(a)(22) of the Investment Advisers Act of 1940;

                  3.       Any  organization  described in section  501(c)(3) of
the Internal Revenue Code, corporation, Massachusetts or similar business trust,
or partnership,  not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000;

                  4.       Any director,  executive officer,  or general partner
of the Issuer,  or any  director,  executive  officer,  or general  partner of a
general partner of the Issuer;

                  5.       Any natural  person whose  individual  net worth,  or
joint net worth with that person's  spouse,  at the time of his purchase exceeds
$1,000,000;

                  6.       Any natural  person who had an  individual  income in
excess of  $200,000 in each of the two most  recent  years or joint  income with
that  person's  spouse in excess of  $300,000  in each of those  years and has a
reasonable expectation of reaching the same income level in the current year;

                  7.       Any trust, with total assets in excess of $5,000,000,
not formed for the specific purpose of acquiring the Securities,  whose purchase
is directed by a sophisticated person as described in 230.506(b)(2)(ii); and

                  8.       Any  entity in which  all of the  equity  owners  are
Accredited Investors.

<PAGE>

                                    EXHIBIT B

                            NOTICE AND QUESTIONNAIRE

         The undersigned  beneficial holder of Registrable Securities of Patient
Safety Technologies,  Inc. (the "ISSUER")  understands that the Issuer has filed
or intends to file with the  Securities  and  Exchange  Commission  (the "SEC"),
within ninety (90) days of an equity raise with gross  proceeds of at least Four
Million Dollars ($4,000,000),  a Registration Statement under the Securities Act
of 1933, as amended (the  "SECURITIES  ACT"), for the registration and resale of
the  Registrable  Securities  in accordance  with the terms of the  Subscription
Agreement  (the  "SUBSCRIPTION  AGREEMENT")  by and  among  the  Issuer  and the
purchasers of the Issuer's securities thereunder.  The Subscription Agreement is
available  from the Issuer  upon  request at the address  set forth  below.  All
capitalized  terms  used  but  not  otherwise  defined  herein  shall  have  the
respective meanings given to them in the Subscription Agreement.

         Each beneficial  owner of Registrable  Securities that has agreed to be
bound by certain  provisions  of the  Subscription  Agreement is entitled to the
benefits of the Subscription  Agreement under such provisions.  In order to sell
or otherwise dispose of any Registrable  Securities pursuant to the Registration
Statement,  a  beneficial  owner of  Registrable  Securities  generally  will be
required  to be named as a selling  securityholder  in the  related  prospectus,
deliver a prospectus  to purchasers of  Registrable  Securities  and be bound by
those  provisions of the  Subscription  Agreement  applicable to such beneficial
owner  (including  certain  indemnification   provisions  as  described  below).
Beneficial owners that do not complete this Notice and Questionnaire and deliver
it to the Issuer as provided below will not be named as selling  securityholders
in the prospectus  and therefore  will not be permitted to sell any  Registrable
Securities pursuant to the Registration Statement.

         Certain  legal  consequences  may arise  from  being  named as  selling
securityholders  in the  Registration  Statement  and  the  related  prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel  regarding the consequences of being
named  or not  being  named  as a  selling  securityholder  in the  Registration
Statement and the related prospectus.

NOTICE

         The  undersigned   beneficial  owner  (the  "SELLING  STOCKHOLDER")  of
Registrable   Securities   hereby  requests  that  the  Issuer  include  in  the
Registration Statement the Registrable  Securities  beneficially owned by it and
listed below in Item 3 (unless otherwise specified under Item 3) pursuant to the
Registration  Statement.  The undersigned  Selling  Stockholder,  by signing and
returning this Notice and  Questionnaire,  understands  that it will be bound by
the terms and conditions of this Notice and  Questionnaire  and the Subscription
Agreement.

<PAGE>

         The  undersigned  Selling  Stockholder  hereby  provides the  following
information to the Issuer and  represents and warrants that such  information is
accurate and complete:

QUESTIONNAIRE

      1.   (a)    Full Legal Name of Selling Stockholder: ______________________

           (b)    Full legal name of  registered  holder (if not the same as (a)
                  above)  through  which  Registrable  Securities  listed in (3)
                  below are held: _________________________

           (c)    Full legal name of  broker-dealer or other third party through
                  which  Registrable  Securities  listed  in (3) below are held:
                  __________________________________

           (d)    Full legal name of DTC  participant  (if applicable and if not
                  the  same  as (b)  or (c)  above)  through  which  Registrable
                  Securities listed in (3) below are held:

      2.   Address for Notices to Selling Stockholder:

           Telephone:___________________________________________________________

           Fax:_________________________________________________________________

           Contact Person:______________________________________________________

      3.   Beneficial ownership of Registrable Securities:______________________

           _____________________________________________________________________

           _____________________________________________________________________

           UNLESS OTHERWISE INDICATED IN THE SPACE PROVIDED BELOW, ALL SHARES OF
           COMMON STOCK LISTED IN RESPONSE TO ITEM (3) ABOVE WILL BE INCLUDED IN
           THE REGISTRATION STATEMENT. IF THE UNDERSIGNED DOES NOT WISH ALL SUCH
           SHARES OF COMMON STOCK TO BE SO INCLUDED,  PLEASE  INDICATE BELOW THE
           PRINCIPAL AMOUNT OR THE NUMBER OF SHARES TO BE INCLUDED:_____________

      4.   Beneficial Ownership of the Issuer's securities owned by the Selling
           Stockholder:__________________________________________________

                  EXCEPT AS SET FORTH BELOW IN THIS ITEM (4), THE UNDERSIGNED IS
                  NOT THE  BENEFICIAL OR REGISTERED  OWNER OF ANY  SECURITIES OF
                  THE ISSUER OTHER THAN THE REGISTRABLE  SECURITIES LISTED ABOVE
                  IN ITEM (3).

           (a)    Type and  amount of other securities beneficially owned by the
                  Selling Stockholder:__________________________________________

           (b)    CUSIP No(s). of such other securities beneficially owned:_____

      5.   Relationship with the Issuer:________________________________________

                                       2
<PAGE>

           EXCEPT AS SET FORTH  BELOW,  NEITHER THE  UNDERSIGNED  NOR ANY OF ITS
           AFFILIATES,  DIRECTORS OR PRINCIPAL  EQUITY  HOLDERS (5% OR MORE) HAS
           HELD  ANY   POSITION  OR  OFFICE  OR  HAS  HAD  ANY  OTHER   MATERIAL
           RELATIONSHIP  WITH THE ISSUER  (OR ITS  PREDECESSORS  OR  AFFILIATES)
           DURING THE PAST THREE YEARS.

State any exceptions to the foregoing here:__________________________________

         The undersigned  Selling  Stockholder  acknowledges that it understands
its  obligation to comply with the provisions of the Exchange Act, and the rules
thereunder relating to stock manipulation,  particularly Regulation M thereunder
(or any successor rules or regulations) and the provisions of the Securities Act
relating to prospectus delivery,  in connection with any offering of Registrable
Securities  pursuant to the  Registration  Statement.  The  undersigned  Selling
Stockholder  agrees  that  neither it nor any person  acting on its behalf  will
engage in any transaction in violation of such provisions.

         The Selling  Stockholder hereby  acknowledges its obligations under the
Subscription  Agreement to indemnify and hold harmless certain persons set forth
therein.  Pursuant to the  Subscription  Agreement,  the Issuer has agreed under
certain  circumstances  to indemnify the Selling  Stockholders  against  certain
liabilities.

         In accordance with the  undersigned  Selling  Stockholder's  obligation
under the  Subscription  Agreement to provide such information as maybe required
by law for inclusion in the  Registration  Statement,  the  undersigned  Selling
Stockholder  agrees to promptly notify the Issuer of any inaccuracies or changes
in the information  provided herein that may occur subsequent to the date hereof
at any time while the  Registration  Statement  remains  effective.  All notices
hereunder and pursuant to the Subscription Agreement shall be made in writing at
the address set forth below.

         In the event any Selling  Stockholder  transfers  all or any portion of
the Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Issuer,  the Selling  Stockholder will notify the
transferees  at the time of  transfer of its rights and  obligations  under this
Notice and Questionnaire and the Subscription Agreement.

         By signing below, the undersigned Selling  Stockholder  consents to the
disclosure  of the  information  contained  herein in its  answers  to items (1)
through (5) above and the  inclusion  of such  information  in the  Registration
Statement  and any  related  prospectus.  The  undersigned  Selling  Stockholder
understands  that such  information  will be relied  upon by the Issuer  without
independent  investigation  or inquiry in  connection  with the  preparation  or
amendment of the Registration Statement and any related prospectus.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       3
<PAGE>

         IN WITNESS WHEREOF, the undersigned Selling  Stockholder,  by authority
duly  given,  has  caused  this  Notice and  Questionnaire  to be  executed  and
delivered either in person or by its authorized agent.

                                      Selling Stockholder:

                                      By:_______________________________________
                                         Name:
                                         Title:

    Dated:_________________

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

                       PATIENT SAFETY TECHNOLOGIES, INC.
                       c/o MILTON "TODD" AULT III
                       1800 CENTURY PARK EAST
                       SUITE 200
                       LOS ANGELES, CA 90067

                                       4
<PAGE>

                                    EXHIBIT C

                                     WARRANT

         THE SECURITIES  REPRESENTED  HEREBY MAY NOT BE  TRANSFERRED  UNLESS (I)
SUCH  SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF
1933, AS AMENDED,  (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K),  OR
(III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO
IT THAT SUCH  TRANSFER  MAY  LAWFULLY  BE MADE  WITHOUT  REGISTRATION  UNDER THE
SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

         SUBJECT TO THE  PROVISIONS OF SECTION 10 HEREOF,  THIS WARRANT SHALL BE
VOID AFTER 5:00 P.M.  EASTERN  TIME THREE YEARS FROM THE DATE OF  ISSUANCE  (the
"EXPIRATION DATE").

                        PATIENT SAFETY TECHNOLOGIES, INC.

                      WARRANT TO PURCHASE _______ SHARES OF
                     COMMON STOCK, PAR VALUE $0.33 PER SHARE

         FOR VALUE RECEIVED, ___________________ ("Warrantholder"),  is entitled
to purchase,  subject to the  provisions  of this Warrant,  from Patient  Safety
Technologies,  Inc., a Delaware  corporation  (the  "Company"),  at any time not
later than 5:00 P.M.,  Eastern time, on the Expiration  Date (as defined above),
at an  exercise  price of $2.00 per share (the  exercise  price in effect  being
herein called the "Warrant  Price"),  ________ shares ("Warrant  Shares") of the
Company's Common Stock, par value $0.33 per share ("Common  Stock").  The number
of Warrant  Shares  purchasable  upon  exercise of this  Warrant and the Warrant
Price shall be subject to adjustment from time to time as described herein.

         Section 1.  REGISTRATION.  The  Company  shall  maintain  books for the
transfer  and  registration  of the Warrant.  Upon the initial  issuance of this
Warrant,  the Company  shall issue and  register  the Warrant in the name of the
Warrantholder.

         Section  2.  TRANSFERS.   As  provided  herein,  this  Warrant  may  be
transferred only pursuant to a registration statement filed under the Securities
Act of 1933,  as amended  (the  "Securities  Act"),  or an  exemption  from such
registration.  Subject to such  restrictions,  the Company  shall  transfer this
Warrant  from time to time upon the books to be  maintained  by the  Company for
that  purpose,   upon  surrender  thereof  for  transfer  properly  endorsed  or
accompanied by appropriate instructions for transfer and such other documents as
may be  reasonably  required  by the  Company,  including,  if  required  by the
Company,  an opinion of its counsel to the effect  that such  transfer is exempt
from the registration requirements of the Securities Act, to establish that such
transfer is being made in accordance  with the terms  hereof,  and a new Warrant
shall be issued to the transferee and the surrendered  Warrant shall be canceled
by the Company.

<PAGE>

         Section 3. EXERCISE OF WARRANT.  Subject to the provisions  hereof, the
Warrantholder may exercise this Warrant in whole or in part at any time prior to
its expiration upon surrender of the Warrant, together with delivery of the duly
executed  Warrant  exercise  form attached  hereto as Appendix A (the  "Exercise
Agreement")  and payment by cash,  certified check or wire transfer of funds for
the  aggregate  Warrant  Price for that  number of  Warrant  Shares  then  being
purchased,  to the Company  during normal  business hours on any business day at
the Company's principal executive offices (or such other office or agency of the
Company as it may designate by notice to the Warrantholder).  The Warrant Shares
so  purchased  shall  be  deemed  to be  issued  to  the  Warrantholder  or  the
Warrantholder's designee, as the record owner of such shares, as of the close of
business  on the date on which  this  Warrant  shall have been  surrendered  (or
evidence  of loss,  theft or  destruction  thereof  and  security  or  indemnity
satisfactory  to the  Company),  the Warrant  Price shall have been paid and the
completed  Exercise  Agreement shall have been delivered.  Certificates  for the
Warrant  Shares  so  purchased,  representing  the  aggregate  number  of shares
specified in the  Exercise  Agreement,  shall be delivered to the  Warrantholder
within a reasonable  time,  not exceeding  three (3) business  days,  after this
Warrant shall have been so exercised.  The certificates so delivered shall be in
such  denominations  as may be  requested  by the  Warrantholder  and  shall  be
registered  in the  name of the  Warrantholder  or such  other  name as shall be
designated by the Warrantholder.  If this Warrant shall have been exercised only
in part,  then,  unless this  Warrant has  expired,  the Company  shall,  at its
expense,  at  the  time  of  delivery  of  such  certificates,  deliver  to  the
Warrantholder  a new Warrant  representing  the number of shares with respect to
which this Warrant shall not then have been exercised. As used herein, "business
day" means a day,  other than a Saturday  or Sunday,  on which banks in New York
City are open for the general  transaction  of business.  Each  exercise  hereof
shall  constitute the  re-affirmation  that the  Warrantholder  is an accredited
investor according to Rule 501 of Regulation D.

         Section 4.  COMPLIANCE WITH THE SECURITIES ACT OF 1933. The Company may
cause the legend set forth on the first page of this  Warrant to be set forth on
each Warrant or similar legend on any security  issued or issuable upon exercise
of this Warrant, unless counsel for the Company is of the opinion as to any such
security that such legend is unnecessary.

         Section 5. PAYMENT OF TAXES. The Company will pay any documentary stamp
taxes  attributable to the initial  issuance of Warrant Shares issuable upon the
exercise  of the  Warrant;  provided,  however,  that the  Company  shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a
name other than that of the  Warrantholder  in respect of which such  shares are
issued,  and in such case, the Company shall not be required to issue or deliver
any  certificate  for Warrant Shares or any Warrant until the person  requesting
the same has paid to the  Company the amount of such tax or has  established  to
the  Company's  reasonable  satisfaction  that  such  tax  has  been  paid.  The
Warrantholder shall be responsible for income taxes due under federal,  state or
other law, if any such tax is due.

         Section 6. MUTILATED OR MISSING WARRANTS. In case this Warrant shall be
mutilated,  lost, stolen, or destroyed,  the Company shall issue in exchange and
substitution of and upon  cancellation of the mutilated  Warrant,  or in lieu of
and  substitution  for the Warrant lost,  stolen or destroyed,  a new Warrant of
like tenor and for the purchase of a like number of Warrant Shares,

                                       2
<PAGE>

but only upon receipt of evidence reasonably satisfactory to the Company of such
loss, theft or destruction of the Warrant, and with respect to a lost, stolen or
destroyed  Warrant,  reasonable  indemnity  or bond  with  respect  thereto,  if
requested by the Company.

         Section 7. RESERVATION OF COMMON STOCK.  The Company hereby  represents
and  warrants  that  there  have been  reserved,  and the  Company  shall at all
applicable  times keep reserved until issued (if necessary) as  contemplated  by
this  Section 7, out of the  authorized  and  unissued  shares of Common  Stock,
sufficient  shares  to  provide  for the  exercise  of the  rights  of  purchase
represented  by this Warrant.  The Company agrees that all Warrant Shares issued
upon due  exercise  of the  Warrant  shall  be, at the time of  delivery  of the
certificates  for such Warrant Shares,  duly authorized,  validly issued,  fully
paid and non-assessable shares of Common Stock of the Company.

         Section 8. ADJUSTMENTS.  Subject and pursuant to the provisions of this
Section 8, unless waived in a particular case by the Warrantholder,  the Warrant
Price and number of Warrant  Shares  subject to this Warrant shall be subject to
adjustment from time to time as set forth hereinafter.

                  (a)      If the  Company  shall,  at any time or from  time to
time while this Warrant is outstanding, pay a dividend or make a distribution on
its Common Stock in shares of Common Stock,  subdivide its outstanding shares of
Common Stock into a greater number of shares or combine its  outstanding  shares
of Common Stock into a smaller number of shares or issue by  reclassification of
its  outstanding  shares  of  Common  Stock  any  shares  of its  capital  stock
(including  any such  reclassification  in connection  with a  consolidation  or
merger in which the Company is the continuing  corporation),  then the number of
Warrant Shares purchasable upon exercise of the Warrant and the Warrant Price in
effect  immediately  prior to the date  upon  which  such  change  shall  become
effective, shall be adjusted by the Company so that the Warrantholder thereafter
exercising  the  Warrant  shall be  entitled  to receive the number of shares of
Common Stock or other capital stock which the Warrantholder  would have received
if the Warrant had been exercised  immediately  prior to such event upon payment
of a Warrant  Price that has been  adjusted to reflect a fair  allocation of the
economics of such event to the  Warrantholder.  Such  adjustments  shall be made
successively whenever any event listed above shall occur.

                  (b)      If any capital  reorganization,  reclassification  of
the capital  stock of the Company,  consolidation  or merger of the Company with
another corporation in which the Company is not the survivor,  or sale, transfer
or other  disposition  of all or  substantially  all of the Company's  assets to
another   corporation   shall  be  effected,   then,  as  a  condition  of  such
reorganization, reclassification, consolidation, merger, sale, transfer or other
disposition,   lawful  and  adequate   provision  shall  be  made  whereby  each
Warrantholder  shall  thereafter have the right to purchase and receive upon the
basis and upon the  terms and  conditions  herein  specified  and in lieu of the
Warrant Shares  immediately  theretofore  issuable upon exercise of the Warrant,
such  shares of stock,  securities  or assets  as would  have been  issuable  or
payable with  respect to or in exchange for a number of Warrant  Shares equal to
the number of Warrant Shares immediately  theretofore  issuable upon exercise of
the Warrant, had such reorganization,  reclassification,  consolidation, merger,
sale,  transfer  or other  disposition  not  taken  place,  and in any such case
appropriate  provision shall be made with respect to the rights and interests of
each Warrantholder

                                       3
<PAGE>

to the end that the provisions hereof (including, without limitation,  provision
for adjustment of the Warrant Price) shall  thereafter be applicable,  as nearly
equivalent as may be practicable in relation to any shares of stock,  securities
or assets thereafter deliverable upon the exercise hereof. The Company shall not
effect any such  consolidation,  merger,  sale,  transfer  or other  disposition
unless prior to or  simultaneously  with the consummation  thereof the successor
corporation  (if other than the Company)  resulting from such  consolidation  or
merger,  or the  corporation  purchasing or otherwise  acquiring  such assets or
other  appropriate  corporation or entity shall assume the obligation to deliver
to the Warrantholder,  at the last address of the Warrantholder appearing on the
books of the  Company,  such  shares  of  stock,  securities  or  assets  as, in
accordance with the foregoing  provisions,  the Warrantholder may be entitled to
purchase,  and the other obligations under this Warrant.  The provisions of this
paragraph   (b)   shall   similarly   apply   to   successive   reorganizations,
reclassifications,   consolidations,   mergers,   sales,   transfers   or  other
dispositions.

                  (c)      In case the Company  shall fix a payment date for the
making of a  distribution  to all holders of Common  Stock  (including  any such
distribution  made in  connection  with a  consolidation  or merger in which the
Company is the continuing  corporation)  of evidences of  indebtedness or assets
(other than cash  dividends or cash  distributions  payable out of  consolidated
earnings or earned surplus or dividends or distributions  referred to in Section
8(a)),  or  subscription  rights or warrants,  the Warrant Price to be in effect
after such payment date shall be determined by multiplying  the Warrant Price in
effect  immediately  prior to such payment date by a fraction,  the numerator of
which shall be the total number of shares of Common Stock outstanding multiplied
by the Market  Price (as defined  below) per share of Common  Stock  immediately
prior to such payment  date,  less the fair market value (as  determined  by the
Company's  Board of  Directors  in good  faith) of said assets or  evidences  of
indebtedness so distributed, or of such subscription rights or warrants, and the
denominator  of which  shall be the total  number  of  shares  of  Common  Stock
outstanding   multiplied  by  such  Market  Price  per  share  of  Common  Stock
immediately  prior to such payment date.  "Market Price" as of a particular date
(the "Valuation Date") shall mean the following: (a) if the Common Stock is then
listed on a national  stock  exchange,  the  closing  sale price of one share of
Common  Stock on such  exchange on the last  trading day prior to the  Valuation
Date;  (b) if the Common Stock is then quoted on The Nasdaq Stock  Market,  Inc.
("Nasdaq"),  the National  Association of Securities Dealers,  Inc. OTC Bulletin
Board (the  "Bulletin  Board") or such  similar  exchange  or  association,  the
closing sale price of one share of Common Stock on Nasdaq, the Bulletin Board or
such  other  exchange  or  association  on the  last  trading  day  prior to the
Valuation  Date or, if no such closing sale price is  available,  the average of
the high bid and the low asked  price  quoted  thereon on the last  trading  day
prior to the Valuation  Date; or (c) if the Common Stock is not then listed on a
national  stock  exchange or quoted on Nasdaq,  the Bulletin Board or such other
exchange or  association,  the fair market value of one share of Common Stock as
of the  Valuation  Date,  shall be  determined  in good  faith  by the  Board of
Directors of the Company and the Warrantholder.  If the Common Stock is not then
listed on a  national  securities  exchange,  the  Bulletin  Board or such other
exchange or  association,  the Board of Directors of the Company  shall  respond
promptly,  in writing,  to an inquiry by the Warrantholder prior to the exercise
hereunder as to the fair market  value of a share of Common Stock as  determined
by the  Board of  Directors  of the  Company.  In the  event  that the  Board of
Directors of the Company and the Warrantholder are unable to agree upon the fair
market value in respect of subpart (c) hereof, the Company and the

                                       4
<PAGE>

Warrantholder  shall jointly  select an appraiser,  who is  experienced  in such
matters.  The decision of such appraiser shall be final and conclusive,  and the
cost  of  such  appraiser  shall  be  borne  equally  by  the  Company  and  the
Warrantholder.  Such  adjustment  shall  be made  successively  whenever  such a
payment date is fixed.

                  (d)      An  adjustment  to the  Warrant  Price  shall  become
effective  immediately  after the payment  date in the case of each  dividend or
distribution and immediately  after the effective date of each other event which
requires an adjustment.

                  (e)      In the event that, as a result of an adjustment  made
pursuant to this Section 8, the  Warrantholder  shall become entitled to receive
any shares of capital  stock of the Company  other than shares of Common  Stock,
the number of such other  shares so  receivable  upon  exercise of this  Warrant
shall be subject  thereafter to adjustment  from time to time in a manner and on
terms as nearly  equivalent as practicable to the provisions with respect to the
Warrant Shares contained in this Warrant.

         Section 9.  FRACTIONAL  INTEREST.  The Company shall not be required to
issue  fractions  of Warrant  Shares upon the exercise of this  Warrant.  If any
fractional  share of Common Stock would,  except for the provisions of the first
sentence of this Section 9, be deliverable upon such exercise,  the Company,  in
lieu  of  delivering  such  fractional  share,   shall  pay  to  the  exercising
Warrantholder  an amount in cash  equal to the Market  Price of such  fractional
share of Common Stock on the date of exercise.

         Section 10.  BENEFITS.  Nothing in this  Warrant  shall be construed to
give  any  person,   firm  or  corporation  (other  than  the  Company  and  the
Warrantholder)  any legal or equitable  right,  remedy or claim, it being agreed
that this Warrant shall be for the sole and exclusive benefit of the Company and
the Warrantholder.

         Section 11.  LIMITATIONS ON EXERCISE.  Notwithstanding  anything to the
contrary  contained herein, the number of Warrant Shares that may be acquired by
Warrantholder upon any exercise of this Warrant (or otherwise in respect hereof)
shall be limited to the extent necessary to insure that, following such exercise
(or  other  issuance),   the  total  number  of  shares  of  Common  Stock  then
beneficially  owned by  Warrantholder  and its  affiliates and any other persons
whose  beneficial  ownership  of  Common  Stock  would  be  aggregated  with the
Warrantholder's  for  purposes  of Section  13(d) of the  Exchange  Act does not
exceed  9.999% of the total  number of issued and  outstanding  shares of Common
Stock  (including for such purpose the shares of Common Stock issuable upon such
exercise).  For such  purposes,  beneficial  ownership  shall be  determined  in
accordance  with Section 13(d) of the Exchange Act and the rules and regulations
promulgated  thereunder.  This  restriction  may  not be  waived  and may not be
amended by agreement of the parties.

         Section  12.  TRADING  MARKET  LIMITATIONS.  Unless  permitted  by  the
applicable rules and regulations of the principal securities market on which the
Common Stock is then listed or traded,  in no event shall the Company issue upon
exercise of or otherwise  pursuant to this Warrant more than the maximum  number
of shares of Common Stock that the Company can issue pursuant to any rule

                                       5
<PAGE>

of the principal securities market on which the Common Stock is then traded (the
"Maximum  Share  Amount"),  which shall be 19.99% of the total  shares of Common
Stock then outstanding. In the event that the sum of (x) the aggregate number of
shares  of  Common  Stock  issued  upon  exercise  of this  Warrant  and (y) the
aggregate number of shares of Common Stock that remain issuable upon exercise of
the Warrant  represents at least one hundred percent (100%) of the Maximum Share
Amount (the "Triggering  Event"),  the Company will use its best efforts to seek
and  obtain  Stockholder  Approval  (or obtain  such other  relief as will allow
exercises  hereunder  in  excess  of  the  Maximum  Share  Amount)  as  soon  as
practicable  following  the  Triggering  Event.  As  used  herein,  "Stockholder
Approval"  means  approval by the  shareholders  of the Company to authorize the
issuance  of the full  number of shares of Common  Stock that would be  issuable
upon full exercise of this Warrant but for the Maximum Share Amount.

          Section 13. STOCK  DIVIDENDS AND SPLITS.  If the Company,  at any time
while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock
or otherwise  makes a distribution on any class of capital stock that is payable
in shares of Common Stock,  (ii) subdivides  outstanding  shares of Common Stock
into a larger number of shares, or (iii) combines  outstanding  shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price
shall be multiplied by a fraction of which the numerator  shall be the number of
shares of Common Stock  outstanding  immediately  before such event and of which
the  denominator  shall be the  number of shares  of  Common  Stock  outstanding
immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph  shall  become  effective  immediately  after the record  date for the
determination of stockholders entitled to receive such dividend or distribution,
and any  adjustment  pursuant  to clause (ii) or (iii) of this  paragraph  shall
become  effective  immediately  after the effective date of such  subdivision or
combination.

          Section 14. NOTICES TO WARRANTHOLDER.  Upon the happening of any event
requiring an adjustment of the Warrant  Price,  the Company shall  promptly give
written  notice  thereof to the  Warrantholder  at the address  appearing in the
records of the  Company,  stating the  adjusted  Warrant  Price and the adjusted
number of  Warrant  Shares  resulting  from  such  event  and  setting  forth in
reasonable  detail  the  method of  calculation  and the facts  upon  which such
calculation is based.  Failure to give such notice to the  Warrantholder  or any
defect  therein  shall not  affect  the  legality  or  validity  of the  subject
adjustment.

          Section 15. NOTICES. Unless otherwise provided, any notice required or
permitted  under  this  Warrant  shall be given in  writing  and shall be deemed
effectively  given as hereinafter  described (i) if given by personal  delivery,
then such  notice  shall be deemed  given upon such  delivery,  (ii) if given by
telex or  facsimile,  then such  notice  shall be deemed  given upon  receipt of
confirmation of complete  transmittal,  (iii) if given by mail, then such notice
shall be deemed  given  upon the  earlier of (A)  receipt of such  notice by the
recipient  or (B) three days after such notice is deposited in first class mail,
postage prepaid,  and (iv) if given by an internationally  recognized  overnight
air  courier,  then such notice  shall be deemed  given one  business  day after
delivery to such carrier.  All notices shall be addressed as follows:  if to the
Warrantholder,  at its address as set forth in the  Company's  books and records
and, if to the Company,  at the address as follows,  or at such other address as
the  Warrantholder  or the Company may  designate by ten days'  advance  written
notice to the other:

                                       6
<PAGE>

                           If to the Company:

                                  Patient Safety Technologies, Inc.
                                  1800 Century Park East, Suite 200
                                  Los Angeles, California 90067
                                  Attn: Lynne Silverstein, President
                                  Telephone: (310) 895-7750
                                  Facsimile: (310) 895-7751

         Section 16.  SUCCESSORS.  All the covenants and provisions hereof by or
for the benefit of the Warrantholder  shall bind and inure to the benefit of its
respective successors and assigns hereunder.

         Section 17.  GOVERNING  LAW;  CONSENT TO  JURISDICTION;  WAIVER OF JURY
TRIAL.  This Warrant shall be governed by, and construed in accordance with, the
internal laws of the State of California, without reference to the choice of law
provisions   thereof.   The  Company  and,  by  accepting   this  Warrant,   the
Warrantholder,  each  irrevocably  submits to the exclusive  jurisdiction of the
courts of the State of  California  located in Los  Angeles  County and  federal
courts  located in Los Angeles  County,  California for the purpose of any suit,
action,  proceeding  or judgment  relating to or arising out of this Warrant and
the transactions  contemplated hereby. Service of process in connection with any
such suit,  action or proceeding may be served on each party hereto  anywhere in
the world by the same methods as are  specified  for the giving of notices under
this Warrant.  The Company and, by accepting  this Warrant,  the  Warrantholder,
each  irrevocably  consents  to the  jurisdiction  of any such court in any such
suit, action or proceeding and to the laying of venue in such court. The Company
and, by accepting this Warrant,  the Warrantholder,  each irrevocably waives any
objection to the laying of venue of any such suit, action or proceeding  brought
in such courts and  irrevocably  waives any claim that any such suit,  action or
proceeding brought in any such court has been brought in an inconvenient  forum.
EACH OF THE COMPANY AND, BY ITS  ACCEPTANCE  HEREOF,  THE  WARRANTHOLDER  HEREBY
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY  LITIGATION  WITH  RESPECT TO
THIS WARRANT AND REPRESENTS  THAT COUNSEL HAS BEEN CONSULTED  SPECIFICALLY AS TO
THIS WAIVER.

         Section  18. NO RIGHTS AS  STOCKHOLDER.  Prior to the  exercise of this
Warrant,  the  Warrantholder  shall  not  have  or  exercise  any  rights  as  a
stockholder of the Company by virtue of its ownership of this Warrant.

         Section 19. AMENDMENT;  WAIVER. Any term of this Warrant may be amended
or waived upon the written consent of the Company and the holder of the Warrant.

         Section 20. SECTION HEADINGS.  The section headings in this Warrant are
for the  convenience of the Company and the  Warrantholder  and in no way alter,
modify, amend, limit or restrict the provisions hereof.

                                       7
<PAGE>

         IN WITNESS  WHEREOF,  the Company  has caused  this  Warrant to be duly
executed as of the ___ day of _________, 200__.

                                        PATIENT SAFETY TECHNOLOGIES, INC.

                                        By:__________________________
                                        Name:  Lynne Silverstein
                                        Title: President

                                       8
<PAGE>

                                   APPENDIX A
                        PATIENT SAFETY TECHNOLOGIES, INC.
                              WARRANT EXERCISE FORM

To Patient Safety Technologies, Inc.:

         The  undersigned  hereby  irrevocably  elects to exercise  the right of
purchase  represented  by the within  Warrant  ("Warrant")  for, and to purchase
thereunder  by the payment of the Warrant  Price and  surrender  of the Warrant,
_________ shares of Common Stock ("Warrant  Shares")  provided for therein,  and
requests that certificates for the Warrant Shares be issued as follows:

                  _____________________________________
                  Name
                  _____________________________________
                  _____________________________________
                  Address
                  _____________________________________
                  Federal Tax ID or Social Security No.

and  delivered  by  (certified  mail to the above  address,  or  (electronically
(provide  DWAC   Instructions:   ___________________),   or  (other   (specify):
_______________________________________________________________________),   and,
if the number of Warrant Shares shall not be all the Warrant Shares  purchasable
upon exercise of the Warrant,  that a new Warrant for the balance of the Warrant
Shares  purchasable  upon  exercise of this Warrant be registered in the name of
the undersigned  Warrantholder or the undersigned's  Assignee as below indicated
and delivered to the address stated below.

Dated: ___________________, ____

Note:  The  signature  must  correspond  with the name of the  Warrantholder  as
written on the first page of the Warrant in every particular, without alteration
or enlargement or any change whatever, unless the Warrant has been assigned.

                          Warrant Signature:    ________________________________

                          Name (please print):  ________________________________

                                                ________________________________
                                                ________________________________
                                                Address

                                                ________________________________
                                                Federal Identification or
                                                Social Security No.

                                                Assignee:
                                                ________________________________EX-10.4

                             SUBSCRIPTION AGREEMENT

         This  Subscription  Agreement (this  "AGREEMENT") is entered into as of
______________,  2007 by and among Patient Safety Technologies, Inc., a Delaware
corporation  (together with its successors and permitted assigns, the "ISSUER"),
and the undersigned  investor (each,  together with its successors and permitted
assigns,  the "INVESTOR" and  collectively,  together with their  successors and
permitted assigns, the "INVESTORS").

                                    RECITALS

         Subject to the terms and  conditions  of this  Agreement,  the Investor
desires to subscribe for and purchase,  and the Issuer desires to issue and sell
to the Investor, certain shares of the Issuer's common stock, par value $.33 per
share (the "COMMON  STOCK"),  to purchase shares of Common Stock.  The Issuer is
offering Sixty-Two Thousand Five Hundred ($62,500) in shares of Common Stock, in
a private  placement  to the  Investor  at a  purchase  price of One  Dollar and
Twenty-Five  Cents  ($1.25)  per  share and on the  other  terms and  conditions
contained in this  Agreement  (the  "OFFERING"),  including  fifty percent (50%)
warrant  coverage at Two Dollars ($2.00) per share,  exercisable for a period of
five (5) years (the  "WARRANT");  PROVIDED that the Issuer reserves the right to
issue and sell a lesser or  greater  number of  shares.  Additional  information
disclosed  in  the  Company's  10-K's  and  10-Q's  is  hereby  incorporated  by
reference.

                               TERMS OF AGREEMENT

         In  consideration  of  the  mutual   representations   and  warranties,
covenants and agreements contained herein, the parties hereto agree as follows:

1.       SUBSCRIPTION AND ISSUANCE OF COMMON STOCK.

         1.1      SUBSCRIPTION  AND  ISSUANCE  OF COMMON  STOCK.  Subject to the
terms and conditions of this  Agreement,  the Issuer shall issue and sell to the
Investor,  and the Investor  subscribes  for and shall purchase from the Issuer,
that number of shares of Common Stock set forth on such  Investor's  counterpart
signature page hereof (the "Shares" or "SECURITIES") for the aggregate  purchase
price set forth on such  counterpart  signature page,  which aggregate  purchase
price  shall be equal to the product of the number of Shares  subscribed  for by
such Investor  multiplied by the per share purchase price specified in the above
Recitals to this Agreement (the "PURCHASE  Price").  The Purchase Price includes
the Warrant.

         1.2      LEGENDS.

                  Any certificate or certificates  representing the Shares shall
                  bear the following  legend, in addition to any legend that may
                  be required by any Requirements of Law:

                  THE SHARES REPRESENTED BY THIS CERTIFICATE ARE BEING
                  ISSUED  PURSUANT  TO  THE  TERMS  OF A  SUBSCRIPTION
                  AGREEMENT  WITH THE ISSUER DATED AS OF  ___________,
                  2007,  A COPY OF WHICH IS ON FILE  WITH THE  ISSUER.
                  THE SHARES  REPRESENTED BY THIS  CERTIFICATE  ISSUED

<PAGE>

                  HEREWITH UNDER SUCH SUBSCRIPTION  AGREEMENT WILL NOT
                  BE SEPARATELY TRANSFERABLE.

                  IN  ADDITION,   THE  SHARES   REPRESENTED   BY  THIS
                  CERTIFICATE  MAY  NOT  BE  SOLD,   TRANSFERRED,   OR
                  OTHERWISE  DISPOSED OF BY THE HOLDER EXCEPT PURSUANT
                  TO AN EFFECTIVE  REGISTRATION  STATEMENT FILED UNDER
                  THE  SECURITIES  ACT OF  1933,  AS  AMENDED,  AND IN
                  COMPLIANCE  WITH  APPLICABLE  SECURITIES LAWS OF ANY
                  STATE WITH RESPECT  THERETO OR IN ACCORDANCE WITH AN
                  OPINION   OF   COUNSEL   IN   FORM   AND   SUBSTANCE
                  SATISFACTORY  TO THE ISSUER THAT AN  EXEMPTION  FROM
                  SUCH  REGISTRATION  IS AVAILABLE AND ALSO MAY NOT BE
                  SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
                  COMPLIANCE   WITH  ANY   APPLICABLE   RULES  OF  THE
                  SECURITIES AND EXCHANGE COMMISSION.

         1.3      FUTURE FINANCINGS. In the event the Issuer conducts additional
financings,  the Investor shall have the right to participate in such financings
such that its percentage ownership interest in the Issuer remains unchanged.

2.       CLOSING.

         2.1      CLOSING.  The closing of the transactions  contemplated herein
(the "CLOSING") shall take place simultaneously upon execution of this Agreement
at the  offices of Issuer  located at 1800  Century  Park East,  Suite 200,  Los
Angeles,  CA 90067.  At the  Closing:  (i) the  Investor  participating  in such
Closing shall pay to the Issuer, by wire transfer of immediately available funds
to an account  designated in writing by the Issuer,  the Purchase  Price for the
Shares being purchased by such Investor  hereunder;  (ii) the Issuer shall issue
to such Investor the Shares being purchased by the Investor  hereunder and shall
deliver or cause to be delivered to such Investor a certificate or  certificates
representing  such  Shares  duly  registered  in the name of such  Investor,  as
specified on the signature pages hereto; and (iii) all other actions referred to
in this Agreement  which are required to be taken at such Closing shall be taken
and all other  agreements  and documents  referred to in this Agreement that are
required for such Closing shall be executed and delivered.

         All funds can be wired to Issuer's escrow agent as follows:

         Bank:    Keybank National Association
                  444 SW 5th Street
                  Portland, Oregon 97204
         Name:    TOL FBO Patient Safety Technologies
         ABA:     123002011
         Acct:    370151012967

                                       2
<PAGE>

3.       REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.

         As a material inducement to the Issuer to enter into this Agreement and
issue the Securities,  the Investor represents,  warrants,  and covenants to the
Issuer as follows:

         3.1      POWER AND AUTHORITY.  Such  Investor,  if other than a natural
person, is an entity duly organized, validly existing and in good standing under
the laws of the state of its  incorporation or formation.  Such Investor has the
corporate,  partnership  or other  power (or,  in the case of a natural  person,
legal capacity) and authority  under  applicable law to execute and deliver this
Agreement and  consummate  the  transactions  contemplated  hereby,  and has all
necessary  authority to execute,  deliver and perform its obligations under this
Agreement and to consummate the transactions  contemplated hereby. Such Investor
has  taken all  necessary  action  to  authorize  the  execution,  delivery  and
performance of this Agreement and the transactions contemplated hereby.

         3.2      NO  VIOLATION.  The execution and delivery by such Investor of
this Agreement,  the consummation of the transactions  contemplated  hereby, and
the compliance by such Investor with the terms and provisions hereof,  will not:
(i)  result in a default  under (or give any  other  party the  right,  with the
giving of notice or the  passage  of time (or  both),  to  declare a default  or
accelerate any obligation  under) any Contract to which such Investor is a party
or by which it or its  properties or assets are bound (except to the extent such
defaults  or  accelerations,   individually  or  in  the  aggregate,  would  not
reasonably be expected to have a Material Adverse Effect on such Investor); (ii)
violate any  Requirement of Law  applicable to such  Investor;  or (iii) if such
Investor is other than a natural person, violate any charter,  bylaws or similar
documents of such Investor.  At or prior to the Closing, such Investor will have
complied with all  Requirements  of Law applicable to it in connection  with the
Offering  and at all  times  thereafter  such  Investor  will  comply  with  all
Requirements  of Law applicable to it in connection  with any resale or transfer
by such Investor of any  Securities  acquired by such Investor  pursuant to this
Agreement.

         3.3      CONSENTS/APPROVALS.  No consents,  filings,  authorizations or
actions  of  any  Governmental   Authority  are  required  for  such  Investor's
execution,  delivery and  performance of this Agreement.  No consent,  approval,
waiver or other  actions by any Person under any Contract to which such Investor
is a party or by which  such  Investor  or any of its  properties  or assets are
bound is required or necessary for the  execution,  delivery and  performance by
such  Investor  of this  Agreement  and  the  consummation  of the  transactions
contemplated hereby.

         3.4      ENFORCEABILITY.  This  Agreement  has been duly  executed  and
delivered by such Investor and (assuming it has been duly authorized,  executed,
and delivered by the Issuer)  constitutes a legal,  valid and binding obligation
of such  Investor,  enforceable  against such  Investor in  accordance  with its
terms,  except as such  enforceability may be limited by applicable  bankruptcy,
insolvency, fraudulent conveyances,  reorganization,  moratorium or similar laws
from time to time in effect  affecting  the  enforcement  of  creditor's  rights
generally,   and   general   equitable   principles,   regardless   of   whether
enforceability is considered in a proceeding at law or in equity, and except for
the  indemnity  provisions  of  ARTICLE  5 of this  Agreement,  which may not be
enforceable based upon public policy considerations.

                                       3
<PAGE>

         3.5      INVESTMENT  INTENT.  Buyer is acquiring the Shares for its own
account,  for  investment  purposes  only and not with a view to resale or other
distribution  thereof,  nor with  the  intention  of  selling,  transferring  or
otherwise  disposing of all or any part of such Shares, or any interest therein,
for any particular  price,  or at any particular  time, or upon the happening of
any  particular  event  or  circumstances,   except  selling,  transferring,  or
disposing of such Shares made in full compliance with all applicable  provisions
of the Securities Act of 1993 (the "Securities Act") and the Securities Exchange
Act of 1934,  and the Rules and  Regulations  promulgated  by the Securities and
Exchange Commission thereunder, all as amended.

         3.6      ACCREDITED INVESTOR. Such Investor is an "accredited investor"
as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
Without limiting the foregoing  representation,  such Investor  confirms that it
has  reviewed  the  partial  definition  of an  "Accredited  Investor"  which is
attached  hereto as EXHIBIT A (which is not a complete  definition  of the term,
but which includes the most likely  categories of  qualification) to confirm the
accuracy  of such  representation,  and such  Investor  has  noted by  paragraph
number, on its signature page hereto,  the category(ies)  pursuant to which such
Investor qualifies as an "Accredited  Investor"  according to the definition set
forth in  EXHIBIT  A. Such  Investor  has not been  formed  for the  purpose  of
acquiring the Securities.  Such Investor is not an officer, director,  employee,
investment  advisor,  promoter,  general  partner,  Affiliate  or  member of the
advisory board of the Issuer.

         3.7      ADEQUATE  INFORMATION.  Such Investor has received either from
the Issuer or through a search of the Issuer's  public filings with the SEC (the
"SEC REPORTS"),  and has reviewed,  such information as such Investor  considers
necessary or  appropriate  to evaluate the risks and merits of an investment in,
and make an informed investment  decision with respect to, the Securities.  Such
Investor  acknowledges that each of the SEC Reports,  including the risk factors
contained therein, are specifically incorporated herein by reference and form an
integral part of this Agreement.

         3.8      OPPORTUNITY TO QUESTION. Such Investor has had the opportunity
to question, and has questioned,  to the extent deemed necessary or appropriate,
representatives  of the  Issuer  so as to  receive  answers  from  the  Issuer's
representatives  regarding  the terms and  conditions  of an  investment  in the
Securities and to verify information obtained in such Investor's  examination of
the Issuer,  including,  without limitation,  the information that such Investor
may have  received and reviewed as  referenced in SECTION 3.7 in relation to its
investment in the Securities.

         3.9      NO OTHER REPRESENTATIONS.  No oral or written  representations
have been made to such Investor in connection with such  Investor's  acquisition
of the  Securities  which  were in any way  inconsistent  with  the  information
reviewed by such Investor.  Such Investor acknowledges that, in deciding whether
to enter into this Agreement and to acquire the Securities hereunder, it has not
relied on any  representations  or warranties of any type or description made by
the  Issuer  or any of its  representatives  with  regard  to the  Issuer or its
business,  property or prospects of the investment  contemplated  herein,  other
than the  representations and warranties of the Issuer set forth in this ARTICLE
3.

         3.10     KNOWLEDGE AND EXPERIENCE.  Such Investor  understands  that an
investment in the Securities  involves  substantial risk. Such Investor has such
knowledge and experience in

                                       4
<PAGE>

financial,  tax  and  business  matters,  including  substantial  experience  in
evaluating  and investing in common stock and other  securities  (including  the
common stock and other  securities of  speculative  companies),  so as to enable
such Investor to utilize the  information  referred to in SECTION 3.7 hereof and
any other  information made available by the Issuer to such Investor in order to
evaluate the merits and risks of an investment in the  Securities and to make an
informed investment decision with respect thereto.  Specifically,  such Investor
has given  appropriate  consideration  to the early stage of  development of the
Issuer's primary business as well as the Issuer's financial  condition including
its ability to continue as a going concern.

         3.11     INDEPENDENT  DECISION.  Such  Investor  is not  relying on the
Issuer  or on any  legal or other  opinion  in the  materials  reviewed  by such
Investor  with respect to the financial or tax  considerations  of such Investor
relating to its investment in the Securities. Such Investor has relied solely on
the  representations  and warranties,  covenants and agreements of the Issuer in
this  Agreement  (including  the  exhibits  and  schedules  hereto)  and  on its
examination and independent  investigation in making its decision to acquire the
Securities.

4.       REGISTRATION RIGHTS.

         The  Issuer is  required  to  include  the  Securities,  including  any
securities  acquired from the exercise of the Warrant,  acquired pursuant to the
terms  of  this  Agreement  in the  next  registration  statement,  excluding  a
registration  statement on Form S-4 or S-8, filed with the SEC. In the event the
Issuer files a registration statement pursuant to the Securities Act of 1933, as
amended, the Securities,  including any securities acquired pursuant to exercise
of the Warrant, shall be included for resale in such registration  statement, as
provided in EXHIBIT B hereto. A form of the Warrant to be issued pursuant hereto
is attached as EXHIBIT C.

5.       INDEMNIFICATION.

         5.1      INDEMNIFICATION  BY THE ISSUER.  The Issuer will indemnify and
hold  harmless  the  Holder  or  Selling  Stockholder  of  Shares  covered  by a
Registration  Statement  pursuant to the provisions of ARTICLE 6, any Person who
controls such Holder or Selling Stockholder within the meaning of the Securities
Act, and any officer,  director,  investment adviser,  employee, agent, partner,
member  or  Affiliate   of  such  Holder  or  Selling   Stockholder   (each,   a
"HOLDER/SELLING  STOCKHOLDER  INDEMNIFIED  PARTY"),  from and against,  and will
reimburse each such  Holder/Selling  Stockholder  Indemnified Party with respect
to, any and all claims, actions,  demands, losses, damages,  liabilities,  costs
and expenses to which such Holder/Selling Stockholder or any such Holder/Selling
Stockholder  Indemnified  Party may become  subject under the  Securities Act or
otherwise,   insofar  as  such  claims,  actions,   demands,   losses,  damages,
liabilities,  costs or expenses  arise out of or are based upon:  (a) any untrue
statement or alleged  untrue  statement of any material  fact  contained in such
registration  statement,  any prospectus  contained  therein or any amendment or
supplement  thereto;  (b) the  omission or alleged  omission to state  therein a
material fact required to be stated  therein or necessary to make the statements
therein (in the case of any  preliminary  prospectus or prospectus,  in light of
the  circumstances  under  which  they  were  made) not  misleading;  or (c) any
materially  inaccurate  representation  or  breach  of  any  material  warranty,
agreement or covenant of the Issuer contained  herein;  PROVIDED that the Issuer
will not be liable in any such case to the extent that any such  claim,  action,
demand, loss, damage,  liability, cost or expense arises out of or is based upon
an untrue

                                       5
<PAGE>

statement or alleged untrue  statement or omission or alleged  omission (i) made
in reliance on and conformity with information  furnished by any  Holder/Selling
Stockholder in writing  specifically for use in the preparation  thereof or (ii)
which  was  cured  in an  amendment  or  supplement  to the  prospectus  (or any
amendment or supplement thereto) delivered to the Holder/Selling  Stockholder on
a timely basis to permit proper delivery  thereof prior to the date on which any
Shares were transferred or sold.

         5.2      INDEMNIFICATION  BY THE  HOLDER OR SELLING  STOCKHOLDER.  Each
Holder  and  each  Selling  Stockholder  of  Shares  covered  by a  Registration
Statement  pursuant  to the  provisions  of  ARTICLE 4 will  indemnify  and hold
harmless the Issuer,  any Person who  controls the Issuer  within the meaning of
the Securities Act, and any officer, director,  employee, agent, partner, member
or  Affiliate  of the Issuer  (each,  an "ISSUER  INDEMNIFIED  Party")  from and
against,  and will reimburse the Issuer Indemnified Parties with respect to, any
and all  claims,  actions,  demands,  losses,  damages,  liabilities,  costs  or
expenses to which such Issuer  Indemnified  Parties may become subject under the
Securities Act or otherwise, insofar as such losses, damages, liabilities, costs
or  expenses  arise out of or are based upon:  (a) any untrue or alleged  untrue
statement of any material fact  contained in such  Registration  Statement,  any
prospectus  contained therein or any amendment or supplement thereto; or (b) the
omission or the alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein,  (in the case of any
preliminary prospectus or prospectus,  in light of the circumstances under which
they were  made) not  misleading,  in each case to the  extent,  but only to the
extent,  that such untrue  statement or alleged untrue  statement or omission or
alleged  omission  was so  made  in  reliance  on and  conformity  with  written
information furnished by such Holder or Selling Stockholder specifically for use
in the preparation thereof; PROVIDED that the liability of any Holder or Selling
Stockholder  pursuant  to this  SECTION 5.2 shall be limited to an amount not to
exceed the net proceeds received by such Holder or Selling  Stockholder from the
sale of Registrable  Securities  pursuant to the  Registration  Statement  which
gives rise to such obligation to indemnify.

         5.3      PROCEDURES.  Promptly  after  receipt  by a party  indemnified
pursuant  to the  provisions  of  SECTION  5.1 or  SECTION  5.2 of notice of the
commencement  of any  action  involving  the  subject  matter  of the  foregoing
indemnity  provisions,  such indemnified party will, if a claim thereof is to be
made against the indemnifying party pursuant to the provisions of SECTION 5.1 or
SECTION 5.2, notify the indemnifying party of the commencement thereof; PROVIDED
the  omission to so notify the  indemnifying  party will not relieve it from any
liability  which it may have to an indemnified  party  otherwise than under this
ARTICLE 5, and shall not relieve the  indemnifying  party from  liability  under
this ARTICLE 5, except to the extent that such indemnifying  party is materially
prejudiced  by such  omission.  In case  such  action  is  brought  against  any
indemnified  party and it notifies the  indemnifying  party of the  commencement
thereof,  the indemnifying party shall have the right to participate in, and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified  party,  and after notice from the  indemnifying  party to such
indemnified   party  of  its  election  to  assume  the  defense  thereof,   the
indemnifying  party will not be liable to such indemnified party pursuant to the
provisions  of  SECTION  5.1 or  SECTION  5.2 for any  legal  or  other  expense
subsequently  incurred by such indemnified  party in connection with the defense
thereof.  No indemnifying  party shall be liable to an indemnified party for any
settlement of any action or claim without the consent of the indemnifying party.
No

                                       6
<PAGE>

indemnifying  party  will  consent  to entry of any  judgment  or enter into any
settlement which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of an unconditional  release
from all liability in respect to such action, claim or litigation.

6.       MISCELLANEOUS.

         6.1      DEFINED TERMS.  As used herein the following  terms shall have
the following meanings:

                  (a)      "AFFILIATE"  has the  meaning  ascribed to it in Rule
12b-2 of the General Rules and Regulations  under the Exchange Act, as in effect
on the date hereof.

                  (b)      "AGREEMENT" has the meaning specified in the preamble
to this Agreement.

                  (c)      "AMEX" has the meaning  specified  in SECTION 6.12 of
this Agreement.

                  (d)      "BUSINESS DAY" means any day except Saturday,  Sunday
and any day which shall be a federal  legal holiday or a day on which either (i)
the SEC or (ii) banking  institutions in the State of New York are authorized or
required by law or other governmental action to close.

                  (e)      "BYLAWS" means the Bylaws of the Issuer,  as the same
may be supplemented, amended, or restated from time to time.

                  (f)      "CERTIFICATE  OF  INCORPORATION"  means the  Issuer's
Certificate  of  Incorporation,  as the same  may be  supplemented,  amended  or
restated from time to time.

                  (g)      "CLOSING" has the meaning specified in SECTION 2.1 of
this Agreement.

                  (h)      "COMMON  STOCK"  has  the  meaning  specified  in the
Recitals to this Agreement.

                  (i)      "CONFIDENTIAL  INFORMATION" has the meaning specified
in SECTION 6.13 of this Agreement.

                  (j)      "CONTRACT" means any indenture, lease, sublease, loan
agreement,  mortgage,  note,  restriction,   commitment,   obligation  or  other
contract, agreement or instrument.

                  (k)      Intentionally deleted.

                  (l)      "EXCHANGE ACT" means the  Securities  Exchange Act of
1934, as amended.

                  (m)      "GAAP" means generally accepted accounting principles
in effect in the United States of America.

                                       7
<PAGE>

                  (n)      "GOVERNMENTAL   AUTHORITY"   means   any   nation  or
government,  any state or other political subdivision thereof, and any entity or
official   exercising   executive,   legislative,    judicial,   regulatory   or
administrative functions of or pertaining to government.

                  (o)      "HOLDER/SELLING  STOCKHOLDER  INDEMNIFIED  PARTY" has
the meaning specified in SECTION 5.1 of this Agreement.

                  (p)      "INVESTOR" has the meaning  specified in the preamble
to this Agreement.

                  (q)      "ISSUER" means Patient Safety  Technologies,  Inc., a
Delaware corporation.

                  (r)      "ISSUER  INDEMNIFIED PARTY" has the meaning specified
in SECTION 5.2 of this Agreement.

                  (s)      "KNOWLEDGE"  means,  with respect to the Issuer,  the
actual knowledge of William B. Horne.

                  (t)      "MATERIAL   ADVERSE  EFFECT"  means  a  material  and
adverse change in, or effect on, the financial  condition,  properties,  assets,
liabilities, rights, obligations, operations or business, of a Person.

                  (u)      "OFFERING" has the meaning  specified in the Recitals
to this Agreement.

                  (v)      "PERMIT"  means  any  permit,  certificate,  consent,
approval,  authorization,  order, license, variance,  franchise or other similar
indicia of authority issued or granted by any Governmental Authority.

                  (w)      "PERSON"   means  a  natural   person,   partnership,
corporation,  limited liability  company,  business trust,  joint stock company,
estate, trust, unincorporated association, joint venture, Governmental Authority
or other entity, of whatever nature.

                  (x)      "PURCHASE PRICE" has the meaning specified in SECTION
1.1 of this Agreement.

                  (y)      "RULE  144"  means  Rule 144  promulgated  under  the
Securities Act, or any successor thereto.

                  (z)      "SEC" means the Securities and Exchange Commission.

                  (aa)     "SECURITIES" has the meaning specified in SECTION 1.1
of this Agreement.

                  (bb)     "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                  (cc)     "SHARES" has the meaning  specified in SECTION 1.1 of
this Agreement.

                  (dd)     "WARRANT"  has the meaning  specified in the Recitals
to this Agreement.

                                       8
<PAGE>

         6.2      OTHER DEFINITIONAL PROVISIONS.

                  (a)      All terms  defined in this  Agreement  shall have the
defined meanings when used in any certificates,  reports or other documents made
or delivered pursuant hereto or thereto, unless the context otherwise requires.

                  (b)      Terms defined in the singular shall have a comparable
meaning when used in the plural, and vice versa.

                  (c)      All accounting terms shall have a meaning  determined
in accordance with GAAP.

                  (d)      The words  "hereof,"  "herein" and  "hereunder,"  and
words  of  similar  import,  when  used in this  Agreement  shall  refer to this
Agreement as a whole  (including  any exhibits and schedules  hereto) and not to
any particular provision of this Agreement.

         6.3      NOTICES.  All notices,  requests,  demands,  claims, and other
communications hereunder shall be in writing and shall be delivered by certified
or  registered  mail  (first  class  postage  pre-paid),   guaranteed  overnight
delivery,  or  facsimile  transmission  if such  transmission  is  confirmed  by
delivery by  certified or  registered  mail (first  class  postage  pre-paid) or
guaranteed  overnight delivery,  to the following addresses and telecopy numbers
(or to  such  other  addresses  or  telecopy  numbers  which  such  party  shall
subsequently designate in writing to the other party):

                  (a)      if to the Issuer to:

                           Patient Safety Technologies, Inc.
                           c/o William B. Horne
                           1800 Century Park East
                           Suite 200
                           Los Angeles, CA 90067
                           Facsimile: (310) 895-7751

                  (b)      if to an  Investor,  to the address set forth next to
such Investor's name on such Investor's counterpart signature page hereto.

         Each such notice or other  communication shall for all purposes of this
Agreement  be treated as  effective  or having  been  given  when  delivered  if
delivered by hand,  by messenger or by courier,  or if sent by  facsimile,  upon
confirmation of receipt.

         6.4      ENTIRE AGREEMENT.  This Agreement  (including the exhibits and
schedules attached hereto) and other documents delivered at the Closing pursuant
hereto,  contain  the  entire  understanding  of the  parties  in respect of its
subject matter and supersede all prior agreements and understandings between the
parties with respect to such subject matter.

         6.5      EXPENSES;  TAXES.  The  parties  shall  pay their own fees and
expenses,  including  their own counsel fees,  incurred in connection  with this
Agreement or any  transaction  contemplated  hereby.  Any sales tax, stamp duty,
deed transfer or other tax (except  taxes based on the income of the  Investors)
arising out of the issuance of the Securities (but not with respect

                                       9
<PAGE>

to subsequent  transfers) by the Issuer to the Investors and consummation of the
transactions contemplated by this Agreement shall be paid by the Issuer.

         6.6      AMENDMENT;   WAIVER.  This  Agreement  may  not  be  modified,
amended,  supplemented,  canceled or  discharged,  except by written  instrument
executed by the parties to this Agreement.  No failure to exercise, and no delay
in exercising,  any right, power or privilege under this Agreement shall operate
as a waiver,  nor shall any single or partial  exercise  of any right,  power or
privilege  hereunder  preclude  the  exercise  of  any  other  right,  power  or
privilege.  No waiver of any  breach  of any  provision  shall be deemed to be a
waiver of any preceding or succeeding breach of the same or any other provision,
nor shall any waiver be implied from any course of dealing  between the parties.
No extension of time for  performance of any obligations or other acts hereunder
or under any other  agreement shall be deemed to be an extension of the time for
performance of any other  obligations or any other acts. The rights and remedies
of the parties  under this  Agreement  are in  addition to all other  rights and
remedies, at law or equity, that they may have against each other.

         6.7      BINDING EFFECT; ASSIGNMENT. The rights and obligations of this
Agreement  shall  bind  and  inure  to the  benefit  of the  parties  and  their
respective  successors  and legal  assigns.  The rights and  obligations  of the
Issuer pursuant to this Agreement may not be assigned to any third party without
the prior  written  consent  of the  Holders of a  majority  of the  Registrable
Securities.

         6.8      COUNTERPARTS;  FACSIMILE  SIGNATURE.  This  Agreement  may  be
executed by facsimile signature and in any number of counterparts, each of which
shall be an original but all of which together shall constitute one and the same
instrument.

         6.9      HEADINGS.  The headings  contained in this  Agreement  are for
convenience of reference only and are not to be given any legal effect and shall
not affect the meaning or interpretation of this Agreement.

         6.10     GOVERNING  LAW;   INTERPRETATION.   This  Agreement  shall  be
construed  in  accordance  with and governed for all purposes by the laws of the
State of California  applicable to contracts executed and to be wholly performed
within such state.

         6.11     SEVERABILITY.   The  parties  stipulate  that  the  terms  and
provisions  of this  Agreement  are fair and  reasonable  as of the date of this
Agreement.  However,  any provision of this  Agreement  shall be determined by a
court of  competent  jurisdiction  to be  invalid,  void or  unenforceable,  the
remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected,  impaired
or invalidated.  If,  moreover,  any of those provisions shall for any reason be
determined  by a court of competent  jurisdiction  to be  unenforceable  because
excessively  broad or vague as to  duration,  activity or  subject,  it shall be
construed by limiting, reducing or defining it, so as to be enforceable.

         6.12     FURTHER  ASSURANCES.  Each of the parties hereto shall execute
and deliver such additional  instruments and other documents and shall take such
further  actions as may be reasonably  necessary or  appropriate  to effectuate,
carry  out  and  comply  with  all  of the  terms  of  this  Agreement  and  the
transactions contemplated hereby. Each of the Investor and the Issuer

                                       10
<PAGE>

shall  make  on a  prompt  and  timely  basis  all  governmental  or  regulatory
notifications  and filings required to be made by it with or to any Governmental
Authority in connection with the consummation of the  transactions  contemplated
hereby.  The Issuer and the Investor  agree to cooperate with one another in the
preparation and filing of all forms, notifications,  reports and information, if
any, required or reasonably deemed advisable  pursuant to any Requirement of Law
or  the  American  Stock  Exchange   ("AMEX")  rules  in  connection   with  the
transactions  contemplated  by  this  Agreement  and  to  use  their  respective
commercially  reasonable  efforts to agree  jointly on a method to overcome  any
objections by any Governmental Authority to any such transactions.

         6.13     CONFIDENTIAL  INFORMATION.  The Investor  confirms that it has
entered into a confidentiality agreement with the Issuer, pursuant to which such
Investor has agreed to keep  confidential  certain  information  relating to the
Issuer that has been disclosed by the Issuer to the Investor in connection  with
such  Investor's  investment in the  Securities,  and that such  Investor  shall
continue to be bound by such  confidentiality  agreement  after the Closing.  In
addition,  the Investor agrees that no portion of the  Confidential  Information
(as  defined  below)  shall be  disclosed  to third  parties,  except  as may be
required  by law,  without  the prior  express  written  consent of the  Issuer;
PROVIDED that the Investor may share such  information with such of its officers
and  professional  advisors as may need to know such  information to assist such
Investor in its evaluation  thereof, on the condition that such parties agree to
be bound by the terms of this SECTION 6.13. "CONFIDENTIAL INFORMATION" means the
existence and terms of this Agreement, the transactions contemplated hereby, and
the  disclosures  and  other  information   contained   herein,   excluding  any
disclosures or other information that is publicly available.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have caused this  Subscription
Agreement to be duly executed and delivered as of the date set forth below.

                                          ISSUER:

                                          PATIENT SAFETY TECHNOLOGIES, INC.

                                          By:
                                             ----------------------------------

                                          Name: William B. Horne
                                                -------------------------------

                                          Title: Chief Executive Officer
                                                 ------------------------------

                                       12
<PAGE>

                      [INVESTOR COUNTERPART SIGNATURE PAGE]

NAME OF INVESTOR (please print)                ADDRESS FOR NOTICE (please print)

                                               ______________________________
_____________________________                  ______________________________
                                               ______________________________
                                               Attention:____________________
                                               Tax Identification #:_________
SIGNATURE

By:__________________________

Name:________________________

Title:_______________________

Date:________________________

Exact name to appear on stock certificate:     Number of Shares subscribed for:

_____________________________                  50,000__________________

Aggregate Purchase Price (see SECTION 1.1):    Categories pursuant to which
                                               Investor qualifies as an
                                               Accredited Investor as defined in
                                               EXHIBIT A to this Agreement
                                               (please indicate the applicable
                                               section numbers noted on
                                               EXHIBIT A to this Agreement):

$62,500____________                            ______________________________

                                       13
<PAGE>

                                    EXHIBIT A

                       DEFINITION OF "ACCREDITED INVESTOR"

         "ACCREDITED INVESTOR" shall mean any person who comes within any of the
following categories,  or who the Issuer reasonably believes comes within any of
the  following  categories,  at the time of the sale of the  Securities  to that
person:

                  1.       Any bank as defined in section 3(a)(2) of the Act, or
any  savings and loan  association  or other  institution  as defined in section
3(a)(5)(A) of the Act whether  acting in its  individual or fiduciary  capacity;
any  broker  or dealer  registered  pursuant  to  section  15 of the  Securities
Exchange Act of 1934;  any insurance  company as defined in section 2(13) of the
Act; any investment  company registered under the Investment Company Act of 1940
or a business  development  company as defined in section  2(a)(48) of that Act;
any Small  Business  Investment  Company  licensed  by the U.S.  Small  Business
Administration  under section 301(c) or (d) of the Small Business Investment Act
of  1958;  any  plan  established  and  maintained  by a  state,  its  political
subdivisions,  or any  agency  or  instrumentality  of a state or its  political
subdivisions, for the benefit of its employees, if such plan has total assets in
excess of  $5,000,000;  any  employee  benefit  plan  within the  meaning of the
Employee  Retirement  Income Security Act of 1974 if the investment  decision is
made by a plan  fiduciary,  as defined in  section  3(21) of such act,  which is
either a bank, savings and loan association,  insurance  company,  or registered
investment  adviser,  or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are Accredited Investors;

                  2.       Any private business  development  company as defined
in section 202(a)(22) of the Investment Advisers Act of 1940;

                  3.       Any  organization  described in section  501(c)(3) of
the Internal Revenue Code, corporation, Massachusetts or similar business trust,
or partnership,  not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000;

                  4.       Any director,  executive officer,  or general partner
of the Issuer,  or any  director,  executive  officer,  or general  partner of a
general partner of the Issuer;

                  5.       Any natural  person whose  individual  net worth,  or
joint net worth with that person's  spouse,  at the time of his purchase exceeds
$1,000,000;

                  6.       Any natural  person who had an  individual  income in
excess of  $200,000 in each of the two most  recent  years or joint  income with
that  person's  spouse in excess of  $300,000  in each of those  years and has a
reasonable expectation of reaching the same income level in the current year;

                  7.       Any trust, with total assets in excess of $5,000,000,
not formed for the specific purpose of acquiring the Securities,  whose purchase
is directed by a sophisticated person as described in 230.506(b)(2)(ii); and

                  8.       Any  entity in which  all of the  equity  owners  are
Accredited Investors.

<PAGE>

                                    EXHIBIT B

                            NOTICE AND QUESTIONNAIRE

         The undersigned  beneficial holder of Registrable Securities of Patient
Safety Technologies,  Inc. (the "ISSUER")  understands that the Issuer has filed
or intends to file with the  Securities  and  Exchange  Commission  (the "SEC"),
within ninety (90) days of an equity raise with gross  proceeds of at least Four
Million Dollars ($4,000,000),  a Registration Statement under the Securities Act
of 1933, as amended (the  "SECURITIES  ACT"), for the registration and resale of
the  Registrable  Securities  in accordance  with the terms of the  Subscription
Agreement  (the  "SUBSCRIPTION  AGREEMENT")  by and  among  the  Issuer  and the
purchasers of the Issuer's securities thereunder.  The Subscription Agreement is
available  from the Issuer  upon  request at the address  set forth  below.  All
capitalized  terms  used  but  not  otherwise  defined  herein  shall  have  the
respective meanings given to them in the Subscription Agreement.

         Each beneficial  owner of Registrable  Securities that has agreed to be
bound by certain  provisions  of the  Subscription  Agreement is entitled to the
benefits of the Subscription  Agreement under such provisions.  In order to sell
or otherwise dispose of any Registrable  Securities pursuant to the Registration
Statement,  a  beneficial  owner of  Registrable  Securities  generally  will be
required  to be named as a selling  securityholder  in the  related  prospectus,
deliver a prospectus  to purchasers of  Registrable  Securities  and be bound by
those  provisions of the  Subscription  Agreement  applicable to such beneficial
owner  (including  certain  indemnification   provisions  as  described  below).
Beneficial owners that do not complete this Notice and Questionnaire and deliver
it to the Issuer as provided below will not be named as selling  securityholders
in the prospectus  and therefore  will not be permitted to sell any  Registrable
Securities pursuant to the Registration Statement.

         Certain  legal  consequences  may arise  from  being  named as  selling
securityholders  in the  Registration  Statement  and  the  related  prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel  regarding the consequences of being
named  or not  being  named  as a  selling  securityholder  in the  Registration
Statement and the related prospectus.

NOTICE

         The  undersigned   beneficial  owner  (the  "SELLING  STOCKHOLDER")  of
Registrable   Securities   hereby  requests  that  the  Issuer  include  in  the
Registration Statement the Registrable  Securities  beneficially owned by it and
listed below in Item 3 (unless otherwise specified under Item 3) pursuant to the
Registration  Statement.  The undersigned  Selling  Stockholder,  by signing and
returning this Notice and  Questionnaire,  understands  that it will be bound by
the terms and conditions of this Notice and  Questionnaire  and the Subscription
Agreement.

<PAGE>

         The  undersigned  Selling  Stockholder  hereby  provides the  following
information to the Issuer and  represents and warrants that such  information is
accurate and complete:

QUESTIONNAIRE

      1.   (a)    Full Legal Name of Selling Stockholder: ______________________

           (b)    Full legal name of  registered  holder (if not the same as (a)
                  above)  through  which  Registrable  Securities  listed in (3)
                  below are held: _________________________

           (c)    Full legal name of  broker-dealer or other third party through
                  which  Registrable  Securities  listed  in (3) below are held:
                  __________________________________

           (d)    Full legal name of DTC  participant  (if applicable and if not
                  the  same  as (b)  or (c)  above)  through  which  Registrable
                  Securities listed in (3) below are held:

      2.   Address for Notices to Selling Stockholder:

           Telephone:___________________________________________________________

           Fax:_________________________________________________________________

           Contact Person:______________________________________________________

      3.   Beneficial ownership of Registrable Securities:______________________

           _____________________________________________________________________

           _____________________________________________________________________

           UNLESS OTHERWISE INDICATED IN THE SPACE PROVIDED BELOW, ALL SHARES OF
           COMMON STOCK LISTED IN RESPONSE TO ITEM (3) ABOVE WILL BE INCLUDED IN
           THE REGISTRATION STATEMENT. IF THE UNDERSIGNED DOES NOT WISH ALL SUCH
           SHARES OF COMMON STOCK TO BE SO INCLUDED,  PLEASE  INDICATE BELOW THE
           PRINCIPAL AMOUNT OR THE NUMBER OF SHARES TO BE INCLUDED:_____________
           __________________________________________

      4.   Beneficial Ownership of the  Issuer's securities owned by the Selling
           Stockholder:____________________________________________________

                  EXCEPT AS SET FORTH BELOW IN THIS ITEM (4), THE UNDERSIGNED IS
                  NOT THE  BENEFICIAL OR REGISTERED  OWNER OF ANY  SECURITIES OF
                  THE ISSUER OTHER THAN THE REGISTRABLE  SECURITIES LISTED ABOVE
                  IN ITEM (3).

           (a)    Type and  amount of other securities beneficially owned by the
                  Selling Stockholder:_____________________________________

           (b)    CUSIP No(s). of such other securities beneficially owned:_____

      5.   Relationship with the Issuer:________________________________________

                                       2
<PAGE>

           EXCEPT AS SET FORTH  BELOW,  NEITHER THE  UNDERSIGNED  NOR ANY OF ITS
           AFFILIATES,  DIRECTORS OR PRINCIPAL  EQUITY  HOLDERS (5% OR MORE) HAS
           HELD  ANY   POSITION  OR  OFFICE  OR  HAS  HAD  ANY  OTHER   MATERIAL
           RELATIONSHIP  WITH THE ISSUER  (OR ITS  PREDECESSORS  OR  AFFILIATES)
           DURING THE PAST THREE YEARS.

State any exceptions to the foregoing here:_________________________________

         The undersigned  Selling  Stockholder  acknowledges that it understands
its  obligation to comply with the provisions of the Exchange Act, and the rules
thereunder relating to stock manipulation,  particularly Regulation M thereunder
(or any successor rules or regulations) and the provisions of the Securities Act
relating to prospectus delivery,  in connection with any offering of Registrable
Securities  pursuant to the  Registration  Statement.  The  undersigned  Selling
Stockholder  agrees  that  neither it nor any person  acting on its behalf  will
engage in any transaction in violation of such provisions.

         The Selling  Stockholder hereby  acknowledges its obligations under the
Subscription  Agreement to indemnify and hold harmless certain persons set forth
therein.  Pursuant to the  Subscription  Agreement,  the Issuer has agreed under
certain  circumstances  to indemnify the Selling  Stockholders  against  certain
liabilities.

         In accordance with the  undersigned  Selling  Stockholder's  obligation
under the  Subscription  Agreement to provide such information as maybe required
by law for inclusion in the  Registration  Statement,  the  undersigned  Selling
Stockholder  agrees to promptly notify the Issuer of any inaccuracies or changes
in the information  provided herein that may occur subsequent to the date hereof
at any time while the  Registration  Statement  remains  effective.  All notices
hereunder and pursuant to the Subscription Agreement shall be made in writing at
the address set forth below.

         In the event any Selling  Stockholder  transfers  all or any portion of
the Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Issuer,  the Selling  Stockholder will notify the
transferees  at the time of  transfer of its rights and  obligations  under this
Notice and Questionnaire and the Subscription Agreement.

         By signing below, the undersigned Selling  Stockholder  consents to the
disclosure  of the  information  contained  herein in its  answers  to items (1)
through (5) above and the  inclusion  of such  information  in the  Registration
Statement  and any  related  prospectus.  The  undersigned  Selling  Stockholder
understands  that such  information  will be relied  upon by the Issuer  without
independent  investigation  or inquiry in  connection  with the  preparation  or
amendment of the Registration Statement and any related prospectus.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       3
<PAGE>

         IN WITNESS WHEREOF, the undersigned Selling  Stockholder,  by authority
duly  given,  has  caused  this  Notice and  Questionnaire  to be  executed  and
delivered either in person or by its authorized agent.

                                           Selling Stockholder:

                                           By:__________________________________
                                              Name:
                                              Title:

   Dated:__________________

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

                        PATIENT SAFETY TECHNOLOGIES, INC.
                        c/o WILLIAM B. HORNE
                        1800 CENTURY PARK EAST
                        SUITE 200
                        LOS ANGELES, CA 90067

                                       4
<PAGE>

                                    EXHIBIT C

                                     WARRANT

THIS WARRANT IS BEING ISSUED  TOGETHER WITH SHARES OF COMMON STOCK OF THE ISSUER
PURSUANT TO A  SUBSCRIPTION  AGREEMENT  WITH THE ISSUER  DATED AS OF JANUARY 12,
2007,  A COPY OF WHICH IS ON FILE WITH THE ISSUER.  NEITHER THIS WARRANT NOR THE
SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE  HEREOF HAVE BEEN  REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION  FROM  REGISTRATION  UNDER THE  SECURITIES  ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND,  ACCORDINGLY,  MAY NOT BE OFFERED,
SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED OF EXCEPT  PURSUANT TO AN  EFFECTIVE
REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN  AVAILABLE
EXEMPTION  FROM,  OR  IN  A  TRANSACTION   NOT  SUBJECT  TO,  THE   REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY AN OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE FORM AND SUBSTANCE OF WHICH SHALL BE ACCEPTABLE TO THE COMPANY.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                       PATIENT SAFETY TECHNOLOGIES, INC.

         This certifies that, for value received, ______________ (the "HOLDER"),
is entitled,  upon the terms and subject to the  limitations on exercise and the
conditions  hereinafter  set forth, at any time on or after the date hereof (the
"INITIAL  EXERCISE DATE") and on or prior to the fifth (5th)  anniversary of the
Initial Exercise Date (the "TERMINATION DATE") but not thereafter,  to subscribe
for and purchase from Patient Safety Technologies,  Inc., a Delaware corporation
(the  "ISSUER"),  up to _________  shares(1)  (the  "WARRANT  SHARES") of Common
Stock,  par value  $.33 per share,  of the  Issuer  (the  "COMMON  STOCK").  The
purchase price of each Warrant Share (the  "EXERCISE  PRICE") under this Warrant
shall be equal to $2.00.  The Exercise  Price and the number of shares for which
the Warrant is  exercisable  shall be subject to adjustment as provided  herein.
This  Warrant  is being  issued  pursuant  to the terms and  conditions  of that
certain Subscription Agreement, dated as of even date herewith, by and among the
Issuer and the investors listed therein (the "SUBSCRIPTION AGREEMENT").

         1.       CERTAIN DEFINITIONS.  Capitalized terms used but not otherwise
defined  herein  shall  have  the  meanings  set  forth  for  such  terms in the
Subscription  Agreement.  In  addition,  the  following  terms  shall  have  the
following respective meanings for purposes of this Warrant:

------------------------
(1) Equals 50% of the number of Shares  purchased by the Holder  pursuant to the
    Subscription Agreement.

                                       1
<PAGE>

         (a)      "CLOSING  PRICE" means on any  particular  date:  (i) the last
reported  closing  bid  price  per  share of  Common  Stock on such  date on the
Exchange (as  reported by Bloomberg  L.P. at 4:15 p.m. New York time as the last
reported  closing bid price for regular  session  trading on such day);  (ii) if
there is no such closing bid price per share on such date, the closing bid price
on the  Exchange  on the  date  nearest  preceding  such  date (as  reported  by
Bloomberg  L.P. at 4:15 p.m.  New York time as the closing bid price for regular
session  trading on such day;  (iii) if the Common  Stock is not then  listed or
quoted on an Exchange  and if prices for the Common  Stock are then  reported in
the "pink  sheets"  published by Pink Sheets LLC (or a similar  organization  or
agency  succeeding  to its functions of reporting  prices),  the most recent bid
price per share of the Common Stock so reported; or (iv) if the shares of Common
Stock are not then publicly  traded,  the fair market value of a share of Common
Stock as determined in good faith by the Issuer's Board of Directors.

         (b)      "EXCHANGE"  means the following  markets or exchanges on which
the  Common  Stock is listed or quoted  for  trading  on a given  date:  (i) the
American  Stock  Exchange;  (ii) the New York Stock  Exchange;  (iii) the Nasdaq
National Market; or (iv) the Nasdaq SmallCap Market.

         (c)      "EXERCISE   PERIOD"  means  the  period  between  the  Initial
Exercise Date and the Termination Date.

         (d)      "TRADING  DAY" means:  (i) a day on which the Common  Stock is
traded on an Exchange;  (ii) if the Common Stock is not listed on an Exchange, a
day on which  the  Common  Stock is traded on the  over-the-counter  market,  as
reported by the OTC Bulletin  Board;  or (iii) if the Common Stock is not quoted
on the OTC  Bulletin  Board,  a day on which the  Common  Stock is quoted in the
over-the-counter  market  as  reported  by  Pink  Sheets  LLC  (or  any  similar
organization or agency succeeding its functions of reporting  prices);  PROVIDED
that in the event that the Common  Stock is not listed or quoted as set forth in
CLAUSE (i), (ii) or (iii) hereof, then Trading Day shall mean any Business Day.

         (e)      "WARRANT AGENT" means Transfer Online, Inc. in its capacity as
warrant  agent for the Issuer or, if it is no longer  serving in that  capacity,
such other Person, if any, that is then serving as Warrant Agent for the Issuer.

         2.       TITLE TO WARRANT.  At any time prior to the  Termination  Date
and  subject to  compliance  with  applicable  laws and the terms  hereof,  this
Warrant and all rights hereunder are  transferable,  in whole or in part, at the
office or agency of the  Issuer  (or any  Warrant  Agent for the  Issuer) by the
holder hereof in person or by duly authorized  attorney,  upon surrender of this
Warrant  together with the  Assignment  Form annexed hereto  properly  endorsed;
PROVIDED  that any  transferee  of this Warrant  shall,  upon the request of the
Issuer,  deliver to the Issuer:  (i) a written  opinion of legal counsel in form
and  substance  acceptable to the Issuer to the effect that such transfer may be
made without  registration  under the Securities Act or under  applicable  state
securities laws; (ii) an investment  representation letter in form and substance
acceptable to the Issuer;  and (iii) if the registration  rights with respect to
the Warrant Shares set forth in the Subscription Agreement are to be assigned to
such  transferee,  a notice of assignment and  agreement,  duly executed by such
transferee, to be bound by certain provisions of the

                                       2
<PAGE>

Subscription  Agreement,  as set forth in the Subscription  Agreement or in this
Warrant.

         3.       AUTHORIZATION OF SHARES.  The Issuer covenants that all shares
of Common  Stock that may be issued  upon the  exercise of the  purchase  rights
represented  by this  Warrant  will,  upon such  exercise,  be duly  authorized,
validly issued,  fully paid and nonassessable and free from all taxes, liens and
charges  in  respect of the issue  thereof  (other  than taxes in respect of any
transfer occurring contemporaneously with such issue).

         4.       EXERCISE OF WARRANT.

         (a)      This  Warrant may be  exercised,  in whole or in part,  at any
time or times during the Exercise Period, subject to SECTION 4(c).

         (b)      In order to effect the  exercise of this  Warrant,  the Holder
shall:  (i)  surrender  this  Warrant  and the Notice of Exercise  form  annexed
hereto,  duly  executed,  at the office of the  Issuer (or such other  office or
agency of the Issuer as it may designate by notice in writing to the  registered
holder  hereof  at the  address  of such  holder  appearing  on the books of the
Issuer);  (ii) remit  payment of the  aggregate  Exercise  Price for the Warrant
Shares  being  acquired by wire  transfer or  cashier's  check drawn on a United
States bank to the Issuer in accordance with the instructions of the Issuer; and
(iii) pay all taxes  required  to be paid by the  Holder,  if any,  pursuant  to
SECTION 6 hereof.  This Warrant shall be deemed to have been exercised,  and the
Holder shall be deemed to have become the holder of record of the Warrant Shares
for which this  Warrant has  exercised,  on the first date upon which the Holder
has complied with each of the conditions set forth in this SECTION 4(b).

         (c)      The Issuer  shall have the right to "call"  the  Warrant  (the
"WARRANT  CALL") and cause the Holder to exercise  this  Warrant with respect to
50% of the  Warrant  Shares  subject  hereto  in the  event  that,  at any  time
following the Initial Exercise Date: (i) any one of the following events occurs:
(A) a Registration  Statement  covering all the Warrant Shares issuable upon the
exercise of this Warrant has been filed and declared  effective,  or (B) all the
Warrant  Shares  then owned by the  Holder,  acting  independently  of all other
Holders,  are  eligible  for  sale  under  Rule  144,  or (C) the  second  (2nd)
anniversary  of the Initial  Exercise Date; AND (ii) after the occurrence of any
one of the events  listed in CLAUSE (i), the Closing  Price  exceeds 200% of the
Exercise Price for at least five (5)  consecutive  Trading Days (the  conditions
described in CLAUSES (i) and (ii) being  collectively  referred to herein as the
"WARRANT CALL  CONDITIONS").  If the Issuer chooses to exercise the Warrant Call
at any time following the fulfillment of the Warrant Call  Conditions,  then the
Issuer shall deliver to the Holder written  notice (the "CALL  NOTICE")  stating
that Warrant Call  Conditions  have been  satisfied and specifying the number of
Warrant  Shares with  respect to which the  Warrant  must be  exercised.  Within
twenty (20)  Business Days of the delivery of the Call Notice to the Holder (the
"CALL  PERIOD"),  the Holder shall exercise this Warrant with respect to the 50%
of the Warrant Shares subject hereto in accordance  with the procedure set forth
in SECTION  4(b).  If the Holder  fails to timely pay the amount  required  upon
exercise of the Warrant Call, then the Issuer's sole remedy shall be to cancel a
corresponding portion (50%) of this Warrant,  which cancellation may be effected
by the Issuer in its sole  discretion and without  further written notice to the
Holder.  Notwithstanding the foregoing provisions of this SECTION 4(c), it shall
be a condition  to (i) the  Issuer's  exercise of the Warrant  Call and (ii) the
Holder's  obligation  to  exercise  this  Warrant  during the Call Period that a

                                       3
<PAGE>

Registration  Statement  covering  the Warrant  Shares be effective at all times
during the Call Period.

         (d)      Upon any proper  exercise of this Warrant in  accordance  with
SECTION 4(b), the Holder shall be entitled to promptly receive a certificate for
the number of Warrant Shares acquired in connection with such exercise.

         (e)      If this Warrant shall have been  exercised in part, the Issuer
shall, at the time of delivery of the  certificate or certificates  representing
Warrant Shares,  deliver to Holder a new Warrant evidencing the rights of Holder
to acquire the  remaining  Warrant  Shares  subject to this  Warrant,  which new
Warrant shall in all other respects be identical with this Warrant.

         5.       NO FRACTIONAL SHARES OR SCRIP. No fractional Warrant Shares or
scrip  representing  fractional Warrant Shares shall be issued upon the exercise
of this  Warrant.  As to any  fraction  of a Warrant  Share which  Holder  would
otherwise be entitled to acquire upon such exercise, the Issuer shall pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price.

         6.       CHARGES,  TAXES AND  EXPENSES.  Issuance of  certificates  for
Warrant  Shares  issued upon the exercise of this Warrant  shall be made without
charge to the Holder for any issue or transfer tax or other  incidental  expense
in respect of the issuance of such certificate,  all of which taxes and expenses
shall be paid by the Issuer,  and such certificates  shall be issued in the name
of the  Holder  or in such  name or  names  as may be  directed  by the  Holder;
PROVIDED that in the event certificates for Warrant Shares are to be issued in a
name other  than the name of the  Holder of this  Warrant,  this  Warrant,  when
surrendered  for exercise,  shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder;  and the Issuer may require,  as a condition
thereto,  the payment of a sum  sufficient  to reimburse it for any transfer tax
incidental thereto.

         7.       CLOSING OF BOOKS.  The Issuer  will not close its  stockholder
books or records in any  manner  which  prevents  the  timely  exercise  of this
Warrant pursuant to the terms hereof.

         8.       NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE. This Warrant does not
entitle the Holder to any voting rights or other rights as a stockholder  of the
Issuer prior to the exercise hereof in accordance with SECTION 4 hereof.

         9.       LOSS, THEFT,  DESTRUCTION OR MUTILATION OF WARRANT. The Issuer
covenants that upon receipt by the Issuer of evidence reasonably satisfactory to
it of the loss, theft,  destruction or mutilation of this Warrant certificate or
any stock certificate relating to the Warrant Shares, and in case of loss, theft
or destruction,  of indemnity or security  reasonably  satisfactory to it (which
shall not include the posting of any bond),  and upon surrender and cancellation
of such Warrant or stock  certificate,  if  mutilated,  the Issuer will make and
deliver a new  Warrant or stock  certificate  of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

                                       4
<PAGE>

         10.      SATURDAYS,  SUNDAYS,  HOLIDAYS,  ETC. If the last or appointed
day for the  taking of any action or the  expiration  of any right  required  or
granted  herein  shall not be a Business  Day,  then such action may be taken or
such right may be exercised on the next succeeding Business Day.

         11.      ADJUSTMENTS  OF EXERCISE  PRICE AND NUMBER OF WARRANT  SHARES.
The number and kind of securities  purchasable upon the exercise of this Warrant
and the Exercise  Price shall be subject to adjustment  from time to time in the
event that the Issuer  shall:  (i) pay a dividend  in shares of Common  Stock or
make a  distribution  in shares of Common  Stock to holders  of its  outstanding
Common  Stock;  (ii)  subdivide  its  outstanding  shares of Common Stock into a
greater number of shares of Common Stock;  (iii) combine its outstanding  shares
of Common Stock into a smaller  number of shares of Common Stock;  or (iv) issue
any  shares of its  capital  stock in a  reclassification  of the  Common  Stock
(including,  without  limitation,  any  spin-off  of any  subsidiary).  Upon the
occurrence  of any such event,  the number of Warrant  Shares  purchasable  upon
exercise of this Warrant immediately prior thereto shall be adjusted so that the
Holder  shall be entitled  to receive  the kind and number of Warrant  Shares or
other  securities  of the Issuer which such Holder would have owned or have been
entitled to receive had such  Warrant  been  exercised in advance of such event.
Upon each such  adjustment  of the kind and  number of  Warrant  Shares or other
securities  of the Issuer  which are  purchasable  hereunder,  the Holder  shall
thereafter  be  entitled  to  purchase  the  number of  Warrant  Shares or other
securities resulting from such adjustment at an Exercise Price per Warrant Share
or  other  security  obtained  by  multiplying  the  Exercise  Price  in  effect
immediately prior to such adjustment by the number of Warrant Shares purchasable
pursuant hereto  immediately prior to such adjustment and dividing the result by
the number of Warrant  Shares or other  securities of the Issuer  resulting from
such  adjustment.  An  adjustment  made pursuant to this SECTION 11 shall become
effective  immediately after the effective date of such event retroactive to the
record date, if any, for such event.

         12.      RECLASSIFICATION,  REORGANIZATION,  CONSOLIDATION,  MERGER AND
SALE  OF   ASSETS.   In  the  event  of:  (i)  any   reclassification,   capital
reorganization,  or  change in the  Common  Stock  (other  than as a result of a
subdivision,  combination,  stock dividend or other transaction  provided for in
SECTION 11 above); (ii) any share exchange, merger or similar transaction of the
Issuer  with or into  another  person or entity  (other  than a share  exchange,
merger or similar  transaction in which the Issuer is the acquiring or surviving
corporation  and which does not result in any change in the Common  Stock  other
than the  issuance of  additional  shares of Common  Stock);  or (iii) the sale,
exchange,  lease,  transfer or other disposition of all or substantially all the
properties  and  assets  of the  Issuer  as an  entirety  (in any such  case,  a
"REORGANIZATION  EVENT"),  then,  as a condition of such  Reorganization  Event,
lawful provisions shall be made, and duly executed documents evidencing the same
from the Issuer or its successor  shall be delivered to the Holder,  so that the
Holder shall have the right at any time prior to the  expiration of this Warrant
to purchase, at a total price equal to the aggregate Exercise Price then payable
upon the  exercise of this  Warrant,  the kind and amount of shares of stock and
other securities and property  receivable in connection with such Reorganization
Event  by a  holder  of the  same  number  of  shares  of  Common  Stock as were
purchasable by the Holder immediately prior to such Reorganization Event. In any
such case  appropriate  provisions  shall be made with respect to the rights and
interests  of the  Holder so that the  provisions  hereof  shall  thereafter  be
applicable with respect to any shares of stock or other  securities and property
deliverable upon exercise hereof, at the same

                                       5
<PAGE>

aggregate purchase price as is then payable hereunder.

         13.      VOLUNTARY ADJUSTMENT BY THE ISSUER.  Subject to any applicable
Requirements  of Law,  the Issuer may at any time  during  the  Exercise  Period
reduce the then-current  Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Issuer.

         14.      NOTICE OF ADJUSTMENT. Whenever the number of Warrant Shares or
number or kind of securities or other property  purchasable upon the exercise of
this Warrant or the Exercise  Price is adjusted as herein  provided,  the Issuer
shall promptly mail by registered or certified mail,  return receipt  requested,
to the Holder notice of such adjustment or adjustments  setting forth the number
of Warrant  Shares  (and other  securities  or  property)  purchasable  upon the
exercise of this Warrant and the  Exercise  Pri ce of such  Warrant  Shares (and
other  securities  or property)  after such  adjustment,  setting  forth a brief
statement  of  the  facts  requiring  such  adjustment  and  setting  forth  the
computation by which such  adjustment was made.  Such notice,  in the absence of
manifest  error,  shall  be  conclusive  evidence  of the  correctness  of  such
adjustment.

         15.      NOTICES  OF RECORD  DATE.  In the  event of any  taking by the
Issuer of a record of the holders of Common Stock for the purpose of determining
the holders  thereof who are entitled to receive any dividend (other than a cash
dividend which is the same as cash dividends paid in previous quarters) or other
distribution in respect of shares of Common Stock,  the Issuer shall mail to the
Holder,  at least ten (10) days prior to such record date,  a notice  specifying
the date on which  any  such  record  is to be  taken  for the  purpose  of such
dividend or distribution.

         16.      NO IMPAIRMENT.  The Issuer shall not by any action, including,
without  limitation,  amending its Certificate of  Incorporation  or through any
Reorganization  Event or any other voluntary action,  avoid or seek to avoid the
observance or performance  of any of the terms of this Warrant,  but will at all
times in good  faith  assist in the  carrying  out of all such  terms and in the
taking of all such  actions as may be necessary  or  appropriate  to protect the
rights of Holder against impairment.

         17.      MISCELLANEOUS.

         (a) Any term of this Warrant may be amended and the  observance  of any
term of this Warrant may be waived (either generally or in a particular instance
and either retroactively or prospectively), only with the written consent of the
Issuer and the Holder.

         (b) Any notice,  request or other document  required or permitted to be
given or  delivered  to the Holder or the Issuer  shall be delivered or shall be
sent by certified mail,  postage prepaid,  to the Holder at its address as shown
on the books of the  Issuer or to the  Issuer  at the  address  set forth in the
Subscription  Agreement  or such  other  address as either may from time to time
provide to the other.

         (c) This Warrant shall be binding upon any  corporation  succeeding the
Issuer by merger,  consolidation or acquisition of all or substantially  all the
Issuer's assets. All the obligations of

                                       6
<PAGE>

the Issuer and the Holder  relating  to the  Warrant  Shares  issuable  upon the
exercise of this Warrant  shall  survive the exercise  and  termination  of this
Warrant.  All the  covenants  and  agreements of the Issuer and the Holder shall
inure to the benefit of the successors and assigns of the Holder and the Issuer,
respectively.

         (d) The description  headings of the several sections and paragraphs of
this Warrant are inserted for  convenience  only and do not constitute a part of
this Warrant.  This Warrant shall be construed and enforced in accordance  with,
and the rights of the  parties  shall be  governed  by, the laws of the State of
California.

         (e)  Wherever  possible,  each  provision  of  this  Warrant  shall  be
interpreted  in such manner as to be effective and valid under  applicable  law,
but if any  provision of this Warrant  shall be  prohibited  by or invalid under
applicable  law,  such  provision  shall be  ineffective  to the  extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

         IN WITNESS  WHEREOF,  each of the Issuer and the Holder has caused this
Warrant to be executed as of the date set forth below.

Dated:   As of January 12, 2007
                                     ISSUER:

                                     PATIENT SAFETY TECHNOLOGIES, INC.

                                     By:  ______________________________________
                                          William B. Horne
                                          Chief Executive Officer

                                     HOLDER:

                                     _______________________________________

                                     By:________________________________________

                                     Name:______________________________________

                                     Title:_____________________________________

COUNTERSIGNED BY:

TRANSFER ONLINE, INC., AS WARRANT AGENT

By:__________________________________________

                                       8
<PAGE>

                               NOTICE OF EXERCISE

             (To be executed and submitted, along with the Warrant)

To:      Transfer Online, Inc.
         317 SW Alder Street, Second Floor
         Portland, Oregon  97204
         Facsimile: (503) 227-6874
         Attention:  Bryan Cochran

                  (1)      The  undersigned  hereby  elects to  purchase  (check
                           applicable box):

                           |_|      all of the shares of Common Stock of Patient
                  Safety Technologies,  Inc. (the "COMMON STOCK") covered by the
                  attached Warrant; or

                           |_|      ______________   shares  of   Common   Stock
                                    covered by the attached Warrant.

                  The undersigned tenders herewith payment of the exercise price
         for such shares in full,  together with all applicable  transfer taxes,
         if any, as provided in the attached Warrant, which is $__________. Such
         payment takes the form of (check applicable box):

                           |_|      $__________  in lawful  money of the  United
                                    States by

                                    |_|      wire transfer to the Issuer

                                    |_|      cashier's check to the Issuer

                  (2)      Please   issue   a   certificate   or    certificates
representing  such shares of Common Stock in the name of the  undersigned  or in
such other name as is specified below:

                           _____________________________
                           (Name)

                           _____________________________
                           (Address)

                           _____________________________

         The  undersigned  represents  and warrants that all offers and sales by
the  undersigned of the securities  issuable upon exercise of the within Warrant
shall be made pursuant to  registration of the Common Stock under the Securities
Act of 1933, as amended (the "SECURITIES ACT"), or pursuant to an exemption from
registration under the Securities Act.

Dated:______________________                    ___________________________
                                                Signature

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing Warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the Warrant.)

   FOR VALUE RECEIVED,  the foregoing Warrant and all rights evidenced  thereby,
including  the  registration  rights set forth  therein  or in the  Subscription
Agreement that accompanied the form of warrant (the ("Subscription  Agreement"),
are  hereby  assigned  to  __________________________________  whose  address is
_________________________________________________________________.

Dated:  ______________, _______

                 Holder's Signature:    _____________________________

                 Holder's Address:      _____________________________

                                        _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

Agreement of Assignee:

I hereby agree to be bound by the terms of the Subscription  Agreement including
sections 4, 5 and 6 thereof.

Dated:  ______________, _______

                 Assignee's Signature:  _____________________________

                 Assignee's Address:    _____________________________

                                        _____________________________

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