PATENT SECURITY AgREEMENT

     THIS PATENT SECURITY AGREEMENT (this "Security  Agreement") made as of this
26th  day of  June  2002,  by  MEDICAL  TECHNOLOGY  SYSTEMS,  INC.,  a  Delaware
corporation  ("Grantor")  in favor of LASALLE  BUSINESS  CREDIT,  INC., as Agent
("Agent"):

                               W I T N E S S E T H

     WHEREAS,  Grantor  and  MTS  Packaging  Systems,  Inc.  ("Packaging"),   as
borrowers,   Agent,  Standard  Federal  Bank  National  Association,  as  lender
("Lender"),  and the  Guarantors  named therein are parties to that certain Loan
and Security Agreement of even date herewith (as amended,  restated or otherwise
modified  from  time to time,  the "Loan  Agreement")  and  other  related  loan
documents of even date herewith (collectively,  with the Loan Agreement,  and as
each may be  amended,  restated or  otherwise  modified  from time to time,  the
"Financing Agreements"), which Financing Agreements provide (i) for Agent and/or
Lender to, from time to time, extend credit to or for the account of Grantor and
Packaging,  and, as condition to such extensions of credit, (ii) for the Grantor
to grant to Agent,  for its benefit  and for the  benefit of Lender,  a security
interest in certain of Grantor's  assets,  including,  without  limitation,  its
patents and patent applications;

     NOW,  THEREFORE,  in consideration of the premises set forth herein and for
other good and  valuable  consideration,  receipt and  sufficiency  of which are
hereby acknowledged, Grantor agrees as follows:

     1. Incorporation of Financing Agreements.  The Financing Agreements and the
terms and provisions thereof are hereby incorporated herein in their entirety by
this reference  thereto.  All terms capitalized but not otherwise defined herein
shall have the same meanings herein as in the Loan Agreement.

     2. Grant and  Reaffirmation of Grant of Security  Interests.  To secure the
complete and timely payment and satisfaction of the Liabilities,  Grantor hereby
grants to Agent,  for its  benefit  and for the  benefit of  Lender,  and hereby
reaffirms its prior grant pursuant to the Financing  Agreements of, a continuing
security interest in Grantor's entire right, title and interest in and to all of
its now owned or existing  and  hereafter  acquired or arising  patents,  patent
applications and rights under patent license agreements,  whether as licensee or
licensor,   including,  without  limitation,  the  inventions  and  improvements
described and claimed therein,  all patentable  inventions and those patents and
patent  applications listed on Schedule A attached hereto and made a part hereof
and all patents and the reissues, divisions, continuations, renewals, extensions
and  continuations-in-part of any of the foregoing,  and all income,  royalties,
damages and payments now or hereafter  due and/or  payable under or with respect
to any of the foregoing, including, without limitation, damages and payments for
past, present and future  infringements of any of the foregoing and the right to
sue for past,  present and future  infringements of any of the foregoing (all of
the  foregoing  are  sometimes  hereinafter   individually  and/or  collectively
referred to as the "Patents").

     3. Warranties and Representations. Grantor warrants and represents to Agent
that:
          (a) no Patent has been adjudged invalid or unenforceable by a court of
     competent jurisdiction nor has any such Patent been cancelled,  in whole or
     in part and each such Patent is presently subsisting;

          (b)  Grantor  is the  sole  and  exclusive  owner  of the  entire  and
     unencumbered  right,  title  and  interest  in and to  each  Patent,  or is
     licensee of such Patents,  as set forth on Schedule A attached hereto, free
     and  clear  of any  liens,  charges  and  encumbrances,  including  without
     limitation,  shop rights and covenants by Grantor not to sue third persons,
     other than liens in favor of the  Subordinated  Lender which are junior and
     subordinate  to the liens  created  hereunder  in favor of the  Agent,  and
     Permitted Liens;

          (c)  Grantor  has no  notice  of any  suits or  actions  commenced  or
     threatened with reference to any Patent; and

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                                       2

          (d) Grantor  has the  unqualified  right to execute  and deliver  this
     Security Agreement and perform its terms.

     4.  Restrictions  on  Future  Agreements.  Grantor  agrees  that  until the
Liabilities  shall  have  been  paid and  satisfied  in full  and the  Financing
Agreements  shall have been  terminated,  Grantor  shall not,  without the prior
written  consent of Agent,  sell or assign its  interest  in any Patent or enter
into any other  agreement  with  respect to any Patent  which  would  affect the
validity or enforcement  of the rights  transferred to Agent under this Security
Agreement.

     5. New Patents.  Grantor  represents and warrants that, based on a diligent
investigation by Grantor, the Patents listed on Schedule A constitute all of the
federally  registered Patents and Patent applications now owned by Grantor.  If,
before the Liabilities shall have been satisfied in full or before the Financing
Agreements have been terminated,  Grantor shall (i) become aware of any existing
Patents of which Grantor has not previously  informed Agent,  (ii) obtain rights
to any new  patentable  inventions or Patents,  or (iii) become  entitled to the
benefit of any  Patents,  which  benefit is not in existence on the date hereof,
the  provisions  of this  Security  Agreement  above shall  automatically  apply
thereto and Grantor shall give to Agent prompt written notice  thereof.  Grantor
hereby authorizes Agent to modify this Security Agreement by amending Schedule A
to include any such Patents.

     6. Royalties; Terms. The term of this Security Agreement shall extend until
the earlier of (i) the  expiration of each of the Patents,  and (ii) the payment
and satisfaction in full of the Liabilities and the termination of the Financing
Agreements.  Grantor agrees that, during the continuance of an Event of Default,
the use by Agent of all Patents  shall be without any liability for royalties or
other related charges from Agent to Grantor.

     7.  Release of  Security  Interest.  This  Security  Agreement  is made for
Collateral  purposes  only.  Upon  payment  and  satisfaction  in  full  of  the
Liabilities and termination of the Financing  Agreements,  Agent shall take such
actions  as may be  necessary  or proper to  terminate  the  security  interests
created hereby and pursuant to the Financing Agreements

     8. Expenses.  All expenses  incurred in connection  with the performance of
any of the  agreements  set forth  herein  shall be borne by Grantor.  All fees,
costs and expenses, of whatever kind or nature,  including reasonable attorneys'
fees and legal expenses,  actually incurred by Agent and/or Lender in connection
with the filing or recording of any documents (including all taxes in connection
herewith) in public offices,  the payment or discharge of any taxes,  reasonable
counsel fees actually incurred,  maintenance fees,  encumbrances or otherwise in
protecting, maintaining or preserving the Patents or in defending or prosecuting
any actions or  proceedings  arising  out of or related to the Patents  shall be
borne by and paid by Grantor and until paid shall constitute Liabilities.

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                                       3

     9. Duties of Grantor. Grantor shall have the duty (i) to file and prosecute
diligently  any patent  applications  pending as of the date hereof or hereafter
until  the  Liabilities  shall  have  been  paid and  satisfied  in full and the
Financing  Agreements  have  been  terminated,   (ii)  to  make  application  on
unpatented but  patentable  inventions,  as  commercially  reasonable,  (iii) to
preserve and maintain all rights in the Patents, as commercially  reasonable and
(iv) to ensure  that the  Patents are and remain  enforceable,  as  commercially
reasonable. Any expenses incurred in connection with Grantor's obligations under
this Section 9 shall be borne by Grantor.

     10.  Agent's Right to Sue.  During the  continuance of an Event of Default,
Agent shall have the right,  but shall in no way be obligated,  to bring suit in
its own name to enforce the Patents and, if Agent shall  commence any such suit,
Grantor shall,  at the request of Agent,  do any and all lawful acts and execute
any and all proper  documents  required by Agent in aid of such  enforcement and
Grantor shall promptly, upon demand, reimburse and indemnify Agent for all costs
and expenses actually incurred by Agent in the exercise of its rights under this
Section 10.

     11.  Waivers.  No course of dealing  between  Grantor  and  Agent,  nor any
failure to  exercise,  nor any delay in  exercising,  on the part of Agent,  any
right,  power or privilege  hereunder or under the  Financing  Agreements  shall
operate as a waiver  thereof;  nor shall any single or partial  exercise  of any
right, power or privilege  hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

     12. Severability.  The provisions of this Security Agreement are severable,
and if any clause or provision shall be held invalid and  unenforceable in whole
or in part in any jurisdiction,  then such invalidity or unenforceability  shall
affect only such clause or provision, or part thereof, in such jurisdiction, and
shall  not  in  any  manner  affect  such  clause  or  provision  in  any  other
jurisdiction, or any other clause or provision of this Security Agreement in any
jurisdiction.

     13.  Modification.  This Security  Agreement cannot be altered,  amended or
modified in any way, except as specifically provided in Section 5 hereof or by a
writing signed by the parties hereto.

     14. Cumulative Remedies; Power of Attorney; Effect on Financing Agreements.
All of  Agent's  rights  and  remedies  with  respect  to the  Patents,  whether
established hereby or by the Financing Agreements, or by any other agreements or
by law shall be  cumulative  and may be exercised  singularly  or  concurrently.
Grantor hereby  authorizes  Agent during the continuance of an Event of Default,
to make,  constitute  and  appoint  any  officer  or agent of Agent as Agent may
select, in its sole discretion,  as Grantor's true and lawful  attorney-in-fact,
with power to (i) endorse Grantor's name on all applications,  documents, papers
and  instruments  necessary or desirable  for Agent in the use of the Patents or
(ii) take any other  actions with respect to the Patents as Agent deems to be in
the  best  interest  of  Agent,  or  (iii)  grant  or  issue  any  exclusive  or
non-exclusive  license  under the  Patents to anyone,  or (iv)  assign,  pledge,
convey or  otherwise  transfer  title in or  dispose  of the  Patents to anyone.
Grantor hereby  ratifies all that such attorney shall lawfully do or cause to be
done by virtue hereof.  This power of attorney  shall be  irrevocable  until the
Liabilities  shall  have  been  paid and  satisfied  in full  and the  Financing
Agreements  have been  terminated.  Grantor  acknowledges  and agrees  that this
Security  Agreement  is not  intended to limit or restrict in any way the rights
and remedies of Agent under the Financing  Agreements  but rather is intended to
facilitate  the  exercise of such  rights and  remedies.  Agent  shall have,  in
addition to all other rights and remedies given it by the terms of this Security
Agreement and the Financing  Agreements,  all rights and remedies allowed by law
and the rights and remedies of a secured party under the Uniform Commercial Code
as enacted in the Commonwealth of Pennsylvania.

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                                       4

     15. Binding Effect; Benefits. This Security Agreement shall be binding upon
Grantor  and its  respective  successors  and  assigns,  and shall  inure to the
benefit of Agent and its successors, nominees and assigns.

     16.  Governing  Law.  This  Security  Agreement  shall be  governed  by and
construed in accordance with the laws of the  Commonwealth  of Pennsylvania  and
applicable federal law.

     17. Headings.  Paragraph  headings used herein are for convenience only and
shall not modify the provisions which they precede.

     18. Further Assurances.  Grantor agrees to execute and deliver such further
agreements,  instruments  and  documents,  and to perform such further  acts, as
Agent  shall  reasonably  request  from  time to time in order to carry  out the
purpose of this Security Agreement and agreements set forth herein.

     19.  Survival of  Representations.  All  representations  and warranties of
Grantor  contained in this  Security  Agreement  shall survive the execution and
delivery of this Security Agreement.

     IN WITNESS WHEREOF, Grantor has duly executed this Security Agreement as of
the date first written above.

                                 MEDICAL TECHNOLOGY SYSTEMS, INC.

                                 By_________________________________
                                 Its________________________________


Agreed and Accepted
As of the Date First Written Above

LASALLE BUSINESS CREDIT, INC.


By____________________________
Its____________________________




<PAGE>


                                   SCHEDULE A


                                     PATENTS


Patent Description                U.S. Patent No.                   Issue Date
------------------                ---------------                   ----------


                               PATENT APPLICATIONS


Patent Application Description     U.S. Patent Application No.      Date Applied
------------------------------     ---------------------------      ------------



                                 PATENT LICENSES


Description of License           U.S. Patent No.                     Issue Date
----------------------           ---------------                     ----------



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                                       2



COMMONWEALTH OF PHILADELPHIA                :
                                            :   SS.
COUNTY OF PHILADELPHIA                      :


     On this, the ____ day of June, 2002, before me, a Notary Public, personally
appeared  ____________,  who  acknowledged  himself  to be a Vice  President  of
LaSalle  Business  Credit,  Inc.,  and  that  he as  such  officer,  being  duly
authorized to do so, executed the foregoing  instrument for the purposes therein
contained by signing the name of the corporation by himself as such officer.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal.


                                         ____________________________
                                         Notary Public
                                         My commission expires



COMMONWEALTH OF PHILADELPHIA                :
                                            :   SS.
COUNTY OF PHILADELPHIA                      :



     On this, the __ day of June, 2002,  before me, a Notary Public,  personally
appeared  ______________,  who  acknowledged  himself  to be  _______ of Medical
Technology Systems,  Inc., a Delaware corporation,  and that he as such officer,
being duly  authorized  to do so,  executed  the  foregoing  instrument  for the
purposes therein  contained by signing the name of the corporation by himself as
such officer.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal.



                                         ____________________________
                                         Notary Public
                                         My commission expires