# DATED: January 22, 2008

# MTS MEDICATION
TECHNOLOGIES INTERNATIONAL, LIMITED (1)

#  and 

# PETER WILLIAMS (2)

# SERVICE AGREEMENT

Brabners Chaffe Street
LLP Solicitors 1 Dale Street Liverpool L2 2ET

---

INDEX

|CLAUSES |                                                               | PAGE
|------- | ------------------------------------------------------------- | ----
|
|1.      | Definitions and Interpretation                                | 3   
|2.      | Appointment                                                   | 5   
|3.      | Duration                                                      | 5   
|4.      | Duties                                                        | 5   
|5.      | Remuneration and Expenses                                     | 7   
|6.      | Insurance Benefits                                            | 7   
|7.      | Mobile Phone                                                  | 8   
|8.      | Pension                                                       | 8   
|9.      | Holidays                                                      | 8   
|10.     | Illness                                                       | 9   
|11.     | Medical Examination                                           | 9   
|12.     | Place of Work                                                 | 10  
|13.     | Grievance and Disciplinary Matters                            | 10  
|14.     | Suspension                                                    | 11  
|15.     | Restrictions during Employment                                | 11  
|16.     | Confidential Information                                      | 11  
|17.     | Restrictions                                                  | 12  
|18.     | Termination                                                   | 14  
|19.     | Effect of Termination                                         | 15  
|20.     | Amalgamation, Reconstruction, Transfer and Change of Director | 16  
|21.     | Intellectual Property                                         | 16  
|22.     | Notices                                                       | 17  
|23.     | Data Protection                                               | 17  
|24.     | General                                                       | 19  

Schedule Special Restricted Stock Award

2

---

THIS AGREEMENT
is made on January 22, 2008

# BETWEEN:-

|(1) | MTS
MEDICATION TECHNOLOGIES INTERNATIONAL, LIMITED (registered in England and Wales
under number 04562981 whose registered office is Unit 6A-6B Dalton Court, Blackburn
Interchange, Lower Darwen, Blackburn, Lancashire BB3 0AT (the Company) and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | PETER
WILLIAMS of 3 Pall Mall, Billinge End Road, Pleasington, Blackburn,
Lancashire BB2 6QD (the Managing Director)
|--- | ----------------------------------------------------------------------------------------------------------------------

# IT IS AGREED as follows:-

|1. | DEFINITIONS
AND INTERPRETATION
|-- | ------------------------------

| | 1.1 | In
this Agreement the following definitions apply:-
| | --- | ---------------------------------------------------

| |  | MTS Medication
Technologies, Inc. means the parent company of the Company, based in St. Petersburg,
Florida, USA
| |  | ------------------------------------------------------------------------------------------------------------------

| |  | MTS
Board of Directors means the Board of Directors of MTS Medication Technologies,
Inc.  Boardmeans the board of directors of the Company, any duly
authorised director or any committee of directors for the time being
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Businessmeans
any business carried on by the Company or any Group Company at the Cessation Date in
which the Managing Director shall have been involved to any extent (other than de
minimis) at any time during the 12 months up to and including the Cessation Date
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Business
day means a day (apart from a Saturday) on which clearing banks are open for
business in the City of London
| |  | ----------------------------------------------------------------------------------------------------------------------

| |  | CEOmeans
the Chairman of the Board of Directors of MTS Medication Technologies Inc
| |  | ------------------------------------------------------------------------------------

| |  | Cessation
Datemeans the date the Managing Director ceases to be a director or an employee of
the Company
| |  | ----------------------------------------------------------------------------------------------------------

| |  | Commencement
Date means the date of this Agreement
| |  | ----------------------------------------------------

| |  | Confidential
Information means information (whether or not in documentary form or recorded on
computer disk or tape or stored on any magnetic or optical disk or memory) relating to:-
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the
business, business methods, products, affairs, management systems, research
and development projects, marketing and sales data (including past present
and future sales targets, market share statistics, pricing statistics and
lists and discount structures) advertising and promotional material,
customer, client or supplier details and finances of the Company or of any
other Group Company (for the time being confidential to it or to them or
treated by it or by them as such); and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3

---

| | (ii) | the
trade secrets (including without limitation technical data, secret formulae,
processes, inventions, designs, discoveries, technical specifications,
recipes and know-how) relating to the business of the Company or of any
other Group Company or of any of its or their suppliers, clients or
customers
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | whether or
not in the case of documents or other written materials they are or were marked as
confidential and whether or not in the case of other information, such information is
identified or treated by the Company or any Group Company as being confidential
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Employmentmeans
the Managing Directors employment under this Agreement
| | -------------------------------------------------------------------------

| | ERAmeans
the Employment Rights Act 1996
| | -----------------------------------------

| | Groupmeans
the Company and any other Group Companies
| | ------------------------------------------------------

| | Group
Company means any company which is for the time being a subsidiary or holding
company of the Company or a subsidiary of any such holding company
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | subsidiary
company shall have the meanings ascribed to it by sections 736 and 736A Companies
Act 1985
| | -------------------------------------------------------------------------------------------------------

| | holding
company shall have the meanings ascribed to it by sections 736 and 736A Companies
Act 1985
| | ----------------------------------------------------------------------------------------------------

| | Regulationsmeans
the Working Time Regulations 1998
| | ----------------------------------------------------

| | Restricted
Area means the United Kingdom and/or the Republic of Ireland together with any
other country in which the Company or any other Group Company:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | carried
on any Business or provided any goods or services in connection with any
Business at the Cessation Date; or
| | --- | -------------------------------------------------------------------------------------------------------------------

| | (ii) | carried
on any Business or provided any goods or services in connection with any
Business at any time during the period of six months immediately prior to
the Cessation Date; or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | is
to the knowledge of the Managing Director to carry out any Business at any
               time during the six months immediately following the Cessation Date;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | and
regarding which country the Managing Director;
| | --------------------------------------------------

| | (a) | was
materially concerned or worked in;
| | --- | --------------------------------------

| | (b) | had
management responsibility for; and/or
| | --- | -----------------------------------------

| | (c) | obtained
Confidential Information
| | --- | ---------------------------------

| | during
the course of the Employment at any time during the period of 12 months immediately prior
to the Cessation Date
| | ----------------------------------------------------------------------------------------------------------------------

4

---

| | 1.2 | References
to a clause or schedule are to a clause of or a schedule to this Agreement respectively
| | --- | --------------------------------------------------------------------------------------------------

| | 1.3 | The
headings in this Agreement are for convenience only and shall not affect its construction
or interpretation
| | --- | ---------------------------------------------------------------------------------------------------------------

| | 1.4 | References
to any statute or statutory provision shall include any subordinate legislation made
under it, any provision which it has superseded or re-enacted (whether with or without
modification) and any provision superseding it or re-enacting it (whether with or without
modification)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 1.5 | A
reference to one gender includes a reference to the other gender
| | --- | ------------------------------------------------------------------

|2. | APPOINTMENT
|-- | -----------

| | 2.1 | The
Company appoints the Managing Director and the Managing Director agrees to act asManaging
Directoror in such other capacity as the Company may from time to time reasonably
direct on the terms of this Agreement
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | DURATION
|-- | --------

| | 3.1 | The
Employment shall commence on the Commencement Date and shall subject to the other
provisions of this Agreement continue unless and until terminated by either party giving
to the other at least 6 months notice
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.2 | The
Managing Director's period of continuous employment for statutory purposes began on 1st
September 2003
| | --- | ----------------------------------------------------------------------------------------------------------

| | 3.3 | If
not previously terminated and without prejudice to the Managing Directors statutory
rights the Employment shall terminate automatically upon the Managing Director reaching
his 65th birthday. The Employer will consider any request by the employee to
work beyond his 65th birthday
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.4 | The
Managing Director warrants that he is entitled to work in the United Kingdom without any
additional approvals and will notify the Company immediately if he ceases to be so
entitled during the Employment
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | DUTIES
|-- | ------

| | 4.1 | During
the Employment the Managing Director shall:-
| | --- | ---------------------------------------------------

| | 4.1.1 | subject
to clause 15.1 unless prevented by ill health, devote the whole of his time, attention
and skill to the business and affairs of the Company both during normal business hours
and during such additional hours as are necessary for the proper performance of his
duties or as the CEO may reasonably require from time to time;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.1.2 | faithfully
and diligently perform such duties and exercise such powers as may from time to time be
lawfully assigned to him by the CEO whether relating to the Company or any Group Company;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

---

| | 4.1.3 | use
his best endeavours to promote the interests of the Company and any other Group Company
for which he works pursuant to clause 4.2;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------

| | 4.1.4 | observe
and comply with all lawful and reasonable requests, instructions, resolutions and
regulations of the Company and keep the Company promptly and fully informed of his
conduct of the business and affairs of the Company and provide such explanations as the
CEO may require;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.1.5 | not
engage in any activity which may be or may become harmful to or contrary to the interests
of the Company;
| | ----- | -------------------------------------------------------------------------------------------------------------

| | 4.1.6 | report
to the CEO in writing any matter relating to the Company or any Group company or any of
its or their offices or employees which he becomes aware of and which could be the
subject of a qualifying disclosure as defined by section 43B of the ERA; and
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.1.7 | accept
(if offered) appointment as a director of the Company or any Group company and
resign any such appointment if requested by the Board
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2 | The
Managing Director may be required to perform services not only for the Company but also
for any other Group Company and to accept such offices in any such Company as the CEO may
from time to time reasonably require without further remuneration
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.3 | The
Company shall be entitled at any time to appoint another person to act jointly with the
Managing Director in any capacity in which the Managing Director may be employed
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.4 | The
Managing Directors normal hours of work are 35 hours per week from 9.00 a.m. to
5.00 p.m. Monday to Friday each week (with a 1 hour lunch break on each working day)
together with such additional hours as may be required for the proper performance of his
duties. The Managing Director acknowledges that he shall not receive further remuneration
in respect of such additional hours
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.5 | 4.5.1 | The Company may
in its absolute discretion at any time after notice of termination shall
have been given by either party lawfully terminate this Agreement with immediate effect
by paying to the Managing Director an amount equal to his basic salary entitlement for
the then unexpired period of notice together with such further amount as is equal to the
fair value of any other benefits to which the Managing Director is contractually entitled
under the terms of this Agreement during such unexpired period of notice (subject in
either case to deduction at source of Income Tax and National Insurance contributions)
| | --- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.5.2 | The
sum referred to in clause 4.5.1 above may be paid in instalments on the last working day
of each month following termination of the employment for such portion of the notice
period stipulated in clause 3.1 as the Managing Director does not perform work for
services on his own account or for any other party of a recognisable remunerative nature
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.5.3 | For
the avoidance of doubt the right of the Company to make a payment in lieu of notice does
not give rise to the right of the Managing Director to receive such a payment
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6

---

| | 4.6 | During
any period of notice to terminate this Agreement, given either by the Company or by the
Managing Director, the Company shall be under no obligation to provide the Managing
Director with any work and may at any time during such period suspend the Managing
Director on full pay and benefits from his employment or exclude him from the premises of
the Company and other Group Companies
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.7 | Where
the Company requires the Managing Director to remain away from work pursuant to clause
4.6 above during any period of notice to terminate this Agreement, the Managing Director
shall comply with any conditions laid down by the Company and whilst on full pay and
benefits the Managing Director shall not be entitled to work for any other person, firm,
client, company, organisation or on the Managing Directors own behalf without the
Companys prior written permission and the Company may require the Managing Director
not to contact customers or employees of the Company or any Group Company
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.8 | The
Managing Director acknowledges that for the purposes of the Regulations, his working time
is unmeasured and that he falls within regulation 20 of the Regulations and that
therefore the provisions in the Regulations regarding maximum hours of working time,
daily rest, weekly rest or rest breaks do not apply to the Managing Director
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | REMUNERATION
AND EXPENSES
|-- | -------------------------

| | 5.1 | The
Company shall pay to the Managing Director during the Employment a salary at an annual
rate of£90,725 gross (or such other sum as may from time to time be agreed)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.2 | The
rate of salary shall be reviewed once in each year, usually in or around 1st April
by the Companys compensation committee. The review does not imply an increase.
There will be no review of salary after notice has been given by either party to
terminate the Employment
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.3 | The
salary of the Managing Director shall accrue evenly on a day to day basis and shall be
paid by 12 equal calendar monthly instalments in arrears on or around the last day of
each calendar month by credit transfer to his bank account
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.4 | The
remuneration payable to the Managing Director under this Agreement shall be inclusive of
any sums received or receivable as remuneration or directors fees from any Group
Company and accordingly the Managing Director will account to the Company for any such
remuneration, fees or interest
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.5 | 5.5.1 | The
Managing Director shall be entitled to participate at a level appropriate to his
status, in any Short Term Incentive Compensation Plan which MTS Medication Technologies
Inc may introduce for companies within its Group, at any time during the period that this
Appointment remains in force on such terms as may be determined by MTS Medication
Technologies Inc.
| | --- | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.5.2 | Notwithstanding
the provisions of clause 5.5.1 above, the Managing Director shall also be entitled to
receive a Special Restricted Stock Award subject to the terms and conditions of the
Schedule to this Agreement (the Special Restricted Stock Award)
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.6 | The
Managing Director shall receive an annual car allowance of 12,000 (or such other sum as
may from time to time be agreed). The car allowance shall be paid by 12 equal calendar
instalments on or around the last day of each calendar month.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

---

| | 5.7 | The
Company shall refund to the Managing Director all reasonable and authorised travelling,
hotel, entertaining, telephone bills and other expenses properly incurred by him in the
performance of his duties upon the production of proper invoices or other evidence of
expenditure (if required). Any credit or charge card supplied to the Managing Director by
the Company shall be used solely for expenses incurred in the course of the Managing
Directors duties and must be returned to the Company if the Managing Directors
employment is terminated for whatever reason
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8 | The
Managing Director expressly agrees that the Company may make such deductions from salary
or other payments due on the termination of or during the Employment as may be necessary
to reimburse the Company against any liability of or incurred by the Managing Director to
the Company including but not limited to loans, advances, relocation expenses and excess
holiday payments
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | INSURANCE
BENEFITS
|-- | ------------------

| | 6.1 | Subject
to clause 6.2, the Company shall provide the Managing Director with life insurance cover
at the rate of 2 times the Managing Directors basic annual salary, in accordance
with arrangements made between the Company and such reputable insurer as the Company may
decide from time to time and subject to the terms and conditions applicable to any such
insurance. The continued operation and any membership of any such scheme is at the sole
discretion of the Company and may either be amended or withdrawn by the Company at any
time
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2 | The
benefit referred to at clause 6.1 is conditional on the relevant insurer(s) accepting
cover for the Managing Director at normal rates and accepting liability for any
particular claim. In the event that the relevant insurer(s) do not accept cover or
liability in respect of the Managing Director at normal rates or any claim by the
Managing Director in respect of any of the benefits referred to at clause 6.1 the Company
shall have no obligation to provide any alternative benefit or cover in this regard. The
provision of the benefit at Clause 6.1 shall not restrict the Companys ability to
terminate the Managing Directors employment in accordance with clauses 3.1 or 18
for any reason including, without limitation, incapacity. All and any benefits provided
under clause 6.1 shall cease with effect from the Cessation Date
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | MOBILE
PHONE
|-- | ------------

| | 7.1 | The
Company shall provide the Managing Director with a mobile phone as a tool for performing
his duties. On termination of the Employment the Managing Director shall promptly return
or account for the mobile phone to the Company in satisfactory condition together with
any chargers or documents relating to it. Failure to do so shall entitle the Company to
withhold any outstanding monies due from the Company to the Managing Director up to the
value of the mobile phone
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | PENSION
|-- | -------

| | 8.1 | The
Company operates a contributory Pension Scheme in which the Managing Director is eligible
to participate subject to the rules of the scheme from time to time in force. The Company
will match an amount the Managing Director contributes to the Pension Scheme, from a
minimum of three percent (3%), up to a maximum of five percent (5%) of the Managing
Directors basic salary. The Company reserves the right to vary the scheme or to
change pension provider
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---

| | 8.2 | A
contracting out certificate is not in force in respect of the Employment
| | --- | --------------------------------------------------------------------------

|9. | HOLIDAYS
|-- | --------

| | 9.1 | In
addition to the 8 statutory bank holidays the Managing Director shall be entitled to 20
business days paid holiday in each 12 month period running 1st January to 31st December
in each year (a holiday year), to be taken at times approved by the CEO. The
Managing Director shall not be entitled to carry any unutilised holiday entitlement
forward from one holiday year to another without the consent of the CEO, or to receive
any monetary compensation for any unutilised holiday entitlement
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.2 | Upon
the termination of this Agreement for whatever reason the Managing Director shall as
appropriate either be entitled to pay in lieu of unutilised holiday entitlement or shall
be required to repay to the Company any salary received for holiday taken in excess of
his actual entitlement and any sums repayable by the Managing Director may be deducted
from any outstanding salary or other payments due to the Managing Director. Where such
termination is pursuant to clause 18.1 (or grounds for such dismissal exist at the time
of termination) or where the termination follows the Managing Directors resignation
in breach of clause 3.1, such accrued but untaken holiday shall be based on the Managing
Directors minimum holiday entitlement under the Regulations only and not on his
entitlement under clause 9.1. For these purposes any paid holiday that has been taken by
the Managing Director (including any paid holiday on public holidays) shall be deemed
first to be statutory paid holiday. The Managing Directors entitlement to holiday
shall be deemed to accrue pro rata per completed month throughout each holiday year of
the Employment
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 9.3 | If
either party has served notice to terminate the Employment the Company may require the
Managing Director to take any accrued but unused holiday entitlement during the notice
period
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | ILLNESS
|--- | -------

| | 10.1 | If
the Managing Director shall at any time be incapacitated by illness or accident from
performing his duties then he shall as soon as possible on the first day of absence
inform the CEO of such illness or accident and of the expected date of his return to work
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2 | For
periods of absence exceeding 7 days a medical certificate must be forwarded to the
Company as soon as possible following the seventh day of absence and on each occasion
thereafter to cover the entire period of absence
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.3 | Whilst
the Managing Director does not have any contractual entitlement to pay during periods of
incapacity, subject to clause 18.2 the Company shall at its absolute discretion and for
such period or periods as the Company shall determine pay to the Managing Director his
salary as provided in clause 5.1 and any other contractual benefits save that the Company
will set off against any such payments any Statutory Sick Pay to which the Managing
Director is entitled and any Social Security Sickness Benefit or other benefits
recoverable by the Managing Director
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.4 | For
the purposes of calculation of Statutory Sick Pay the days on which the Managing Director
could qualify for payments are Monday, Tuesday, Wednesday, Thursday and Friday
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

| | 10.5 | If
the Managing Director is prevented by incapacity from properly performing his duties
under this agreement for a consecutive period of 5 working days the Company may (without
prejudice to the provisions of clause 4.3) appoint another person or persons to perform
those duties until such time as the Managing Director is able to resume fully the
performance of his duties
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.6 | If
any sickness absence appears to be occasioned by action, negligence or omission for which
a third party may be liable, the Managing Director shall notify the CEO immediately,
providing such particulars as the CEO may reasonably require. If required by the CEO he
shall refund to the Company any amounts received by him from any such third party
provided that such refund shall not exceed the amount of damages or settlement monies if
any recovered by the Managing Director from that third party in respect of loss of
remuneration less the costs he reasonably incurred in recovering such sums
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | MEDICAL
EXAMINATION
|--- | -------------------

| | 11.1 | The
Managing Director may be required at any time to attend a doctor or clinic nominated by
the Company to be medically examined whether or not he is suffering or has suffered any
period of sickness or incapacity. The Managing Director shall ensure the prompt delivery
of the medical report to the Company. The Company will comply with the provisions of the
Access to Medical Reports Act 1988 in making any such request. Notwithstanding the
provisions of the Act, the Managing Director will allow the Company access to any medical
report or any medical records relating to his physical or mental health by a medical
practitioner and shall authorise such medical practitioner to disclose to and discuss
with the Company the results of any such medical examination
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | PLACE
OF WORK
|--- | -------------

| | 12.1. | The
Managing Directors place of work will be at the Companys offices at
Unit 6A / 6B Dalton Court, Blackburn Interchange, Lower Darwen, Blackburn,
Lancashire, England, but he shall, if so requested by the Company travel to and
work at such places (whether within or outside the United Kingdom) in such
manner, on such occasions and for such periods as the Company may from time to
time reasonably require
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | GRIEVANCE
AND DISCIPLINARY MATTERS
|--- | ----------------------------------

| | 13.1 | If
the Managing Director has any grievance he may apply in writing to the CEO for his
grievance to be considered by the CEO and the CEO shall meet with the Managing Director
to consider the matter usually within 2 weeks of that application and respond to the
Managing Director usually within 7 days of that meeting
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.2 | There
are no special disciplinary rules, which apply to the Managing Director, and any
disciplinary matters affecting him shall be dealt with by the CEO
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.3 | If
the Managing Director is dissatisfied with any decision of the CEO regarding any
grievance or disciplinary matter he may apply in writing to any non-Executive director of
the Company for his case to be re-considered who shall meet with the Managing Director to
consider the matter usually within 2 weeks of that application and respond to the
Managing Director usually within 7 days of that meeting
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---

| | 13.4 | The
Company is aware of its obligations under the Statutory Dismissal and Disciplinary
Procedures and Statutory Grievance Procedures. Although the Company does not have a
separate dismissal procedure applicable to the Managing Director, before any decision is
taken to dismiss the Managing Director in any situation which is covered by the Statutory
Disciplinary and Dismissal Procedures, as a minimum, the Managing Director will be:
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.4.1 | told
in writing the reason why his employment is at risk;
| | ------ | ---------------------------------------------------------

| | 13.4.2 | invited
to a meeting at a reasonable time and place (at which he may be accompanied) to discuss
the matter and to which the Managing Director must take all reasonable steps to attend;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 13.4.3 | informed
of the Company's decision in writing; and
| | ------ | --------------------------------------------------

| | 13.4.4 | told
of his right of appeal if the decision taken is to dismiss.
| | ------ | ----------------------------------------------------------------

| | However,
the Managing Director has no contractual entitlement under this clause, under the
statutory procedures or otherwise
| | ----------------------------------------------------------------------------------------------------------------------------

|14. | SUSPENSION
|--- | ----------

| | 14.1 | The
Company shall not be under any obligation to vest in or assign to the Managing Director
any powers or duties or to provide any work for the Managing Director and the Company may
at any time or from time to time suspend the Managing Director from the performance of
his duties and exclude him from any premises of the Company (whether or not the Company
or the Managing Director has served notice to terminate this Agreement). During any such
period of suspension the Company shall continue to pay the Managing Director his basic
salary
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15. | RESTRICTIONS
DURING EMPLOYMENT
|--- | ------------------------------

| | 15.1 | During
the first 12 months of the Employment (or such longer period (if any) as the CEO may in
his absolute discretion specify in writing), the Managing Director shall be permitted to
devote a reasonable amount of time on the basis previously notified to the Company to his
existing business interest in Whithnell Pharmacy in which he has 100% ownershipand
thereafter the Managing Director shall devote the whole of his time, attention and skill
to the business and affairs of the Company as provided for in clause 4.1.1
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.2 | During
the Employment the Managing Director shall not:-
| | ---- | -------------------------------------------------------

| | 15.2.1 | subject
to clause 15.1 above be directly or indirectly interested, engaged or concerned in the
conduct of any other business, or
| | ------ | --------------------------------------------------------------------------------------------------------------------------------

| | 15.2.2 | engage
in any activity which the Board reasonably considers may be, or become, harmful to the
interests of the Company or of any other Group Company or which might reasonably be
considered to interfere with the performance of the Managing Directors duties under
this Agreement; or
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---

| | 15.2.3 | pledge
the credit of the Company or any Group Company other than in the day to day running of
the business or enter into any contracts or obligations involving the Company or any
Group Company in major or substantial commitments; or
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.2.4 | become
engaged in public office; or
| | ------ | -----------------------------------

| | 15.2.5 | make
any public statement (whether written or oral) to the media or otherwise relating to the
affairs of the Company or any Group Company without the prior consent of the Board
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.3 | Clause
15.2 shall not apply:-
| | ---- | -----------------------------

| | 15.3.1 | to
any act undertaken by the Managing Director as a representative of the Company or any
other Group Company or with the prior written consent of the Board, or
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 15.3.2 | to
any interest in investments which are for the time being dealt in on any recognised
investment exchange as defined in section 207 Financial Services Act 1986 where the
Managing Director (together with his spouse, children, parents and parents other
issue) neither holds nor is beneficially interested in more than a total of 3 per cent of
those investments in issue
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16. | CONFIDENTIAL
INFORMATION
|--- | ------------------------

| | 16.1 | At
all times the Managing Director shall keep confidential any Confidential Information
| | ---- | ---------------------------------------------------------------------------------------

| | 16.2 | The
Managing Director shall not use or disclose to any person any Confidential Information
and shall during the Employment use his best endeavours to prevent or avoid its use or
disclosure
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.3 | The
obligations in this clause shall continue to apply after the expiry of the Employment for
whatever reason and whether or not in breach of contract without any time limit
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.4 | This
clause shall apply, modified as appropriate, in relation to each of the Group Companies
and the Managing Director shall, upon the request of any Group Company, enter into a
separate agreement or undertaking with it to that effect
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.5 | The
Managing Director shall not be restrained from disclosing any Confidential Information
which:
| | ---- | -------------------------------------------------------------------------------------------------

| | 16.5.1 | he
is authorised in writing to disclose by the CEO;
| | ------ | ---------------------------------------------------

| | 16.5.2 | had
entered the public domain unless it enters the public domain as a result of an
unauthorised disclosure by the Managing Director or an authorised disclosure for an
unauthorised purpose by the Managing Director or anyone else employed or engaged by the
Company or any Group Company;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 16.5.3 | he
is required to disclose by law; or
| | ------ | -------------------------------------

| | 16.5.4 | he
is entitled to disclose under the Public Interest Disclosure Act 1998 provided that the
disclosure is made in an appropriate way to an appropriate person having regard to the
provisions of that Act and clause 4.1.6
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---

|17. | RESTRICTIONS
|--- | ------------

| | 17.1 | The
Managing Director hereby agrees and confirms that during the course of the Employment he
will obtain knowledge of trade secrets and other confidential information concerning the
business, dealings and financial affairs of the Company and other Group Companies with
which the Managing Director may be associated or involved and their customers and
suppliers details of which are not in the public domain. The Managing Director hereby
acknowledges and agrees with the Companys right to protect its legitimate
business interests and those of other Group Companies, and that the covenants set out
below are reasonably necessary for the protection of the Companys legitimate
business interests
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.2 | The
Managing Director agrees and confirms that during the course of his employment he will
have dealings with fellow employees (including directors) of the Company and may have
dealings with employees (including directors) of other Group Companies and the Managing
Director recognises the Companys and other Group Companies legitimate
business interests in developing and maintaining a stable and trained workforce. The
Managing Director acknowledges and recognises that the Companys right to protect its
workforce is a legitimate business interest
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3 | The
Managing Director covenants with the Company that, except with the prior written consent
of the Company, he will not whether as principal or agent, and whether alone or jointly
with, or as director, manager, partner, shareholder, employee or consultant of, any other
person, directly or indirectly:-
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3.1 | for
so long as he is a director or employee of the Company or any other Group Company and for
a period of 12 months from the Cessation Date establish, carry on, or be engaged,
concerned or interested in any business within the Restricted Area which competes with
the Business
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3.2 | for
so long as he is a director or employee of the Company or any other Group Company and for
a period of 12 months from the Cessation Date, in connection with any business of the
Company/Group as carried on at the Cessation Date employ or solicit or contact with a
view to employment or engagement by any person, any person who is an employee of the
Company/Group and was employed at any time during the 6 months prior to the Cessation
Date whether or not such person would commit a breach of contract by leaving his
employment with the Company/that Group Company (provided that this clause shall not
relate to any person employed or engaged in a purely clerical, administrative or
secretarial capacity)
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3.3 | for
so long as he is a director or employee of the Company or any other Group Company and for
a period of 12 months from the Cessation Date in competition with the Company/Group
approach, canvass solicit or otherwise endeavour to entice away from the Company or any
other Group Company (or assist another person in competition with the Company/Group to
approach canvass solicit or otherwise endeavour to entice away from the Company or any
other Group Company) the custom of any person who at any time during the 12 months prior
to the Cessation Date shall have been a customer or supplier of the Company/Group and
with whom the Managing Director shall have personally had dealings; or
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

---

| | 17.3.4 | for
so long as he is a director or employee of the Company or any other Group Company and for
a period of 12 months from the Cessation Date use his knowledge of or influence over any
person who at any time during the 12 months prior to the Cessation Date shall have been a
customer or supplier of the Company/Group (and with whom the Managing Director shall have
personally had dealings) to or for his own benefit or the benefit of any other person
carrying on business in competition with the Business or otherwise use his knowledge of
or influence over any such customer or supplier to the detriment of the Company or any
other Group Company;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.3.5 | for
a period of 12 months from the Cessation Date solicit, interfere with, tender for or
endeavour to entice away from the Company or any Group Company any contract, project or
piece of work, or the renewal of any of them, carried on by the Company or any Group
Company which is current and in progress at the Cessation Date or which is in the process
of negotiation at that date and in respect of which the Managing Director had a material
involvement
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.4 | None
of the restrictions contained in clause 17 shall prohibit any activities by the Managing
Director which are not in direct or indirect competition with any business being carried
on by the Company or any other Group Company at the Cessation Date
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.5 | Nothing
in clause 17 shall preclude the Managing Director from having an interest in investments
which are for the time being dealt in on any recognised investment exchange as defined in
Section 207 of the Financial Services Act 1986 where the Managing Director (together with
his spouse, children, parents and parents other issue) neither holds nor is
beneficially interested in more than a total of 3 per cent of those investments in issue
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.6 | At
no time after the Cessation Date shall the Managing Director directly or indirectly
represent himself as being interested in or employed by or in any way connected with the
Company or any other Group Company, other than as a former employee of the Company
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.7 | If
the Company gives notice to the Managing Director to terminate his employment under
clause 3.1 and the Company requires the Managing Director to serve his notice period but
not to perform his duties pursuant to clauses 4.6 and 4.7 (Garden Leave) then
any time spent on Garden Leave shall be deducted from the periods specified in clause
17.3
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.8 | The
Managing Director agrees that, having regard to all the circumstances, the restrictions
contained in this clause are reasonable and necessary for the protection of the
legitimate business interests of the Company/Group and that they do not bear harshly upon
him and the parties agree that:-
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.8.1 | each
restriction shall be read and construed independently of the other restrictions in this
clause so that if one or more are found to be void or unenforceable as an unreasonable
restraint of trade or for any other reason the remaining restrictions shall not be
affected, and
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 17.8.2 | if
any restriction is found to be void but would be valid and enforceable if some part of it
were deleted or its duration, area of application or range of prohibited activities were
reduced, that restriction shall apply with such deletion or modification as may be
necessary to make it valid and enforceable
| | ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

---

| | 17.9 | In
the event that the Managing Director receives an offer of employment or request to
provide services either during the Employment or during the currency of the restrictive
periods set out in clause 17.3 the Managing Director shall provide immediately to such
person, company or other entity making such an offer or request a full and accurate copy
of this Agreement signed by both parties together with any subsequent letter or document
varying the terms of this Agreement
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | TERMINATION
|--- | -----------

| | 18.1 | Notwithstanding
any other provisions of this Agreement, in any of the following circumstances the Company
may terminate the Employment immediately by serving notice on the Managing Director to
that effect. In such event the Managing Director shall not be entitled to any further
payment from the Company except such sums as shall have accrued due at that time and
subject to the terms and conditions set out in the schedule of this Agreement (Special
Restricted Stock Award). Should the Managing Director be terminated for any of the
circumstances contained in clause 18.1 before the first three (3) share award dates as
referenced in the schedule (Special Restricted Stock Award), no further share awards will
be granted or owed to the Managing Director under the Special Restricted Stock Award
schedule. The circumstances are if the Managing Director:-
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.1 | commits
any serious breach of this Agreement or any act of gross misconduct or any serious
neglect in the discharge of his duties or otherwise fails to faithfully and diligently
perform and exercise such powers as may from time to time be lawfully assigned to him by
the CEO;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.2 | repeats
or continues (after warning) any breach of this Agreement;
| | ------ | ------------------------------------------------------------------

| | 18.1.3 | commits
any act of fraud, dishonesty or conduct tending to bring himself or the Company or any
Group Company into disrepute;
| | ------ | ----------------------------------------------------------------------------------------------------------------------------

| | 18.1.4 | commits
any act of  bankruptcy  or takes  advantage of any statute for the time being in force
 offering  relief for insolvent                   debtors;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.5 | is
or becomes of unsound mind or is or becomes a patient for any purpose of any enactment
relating to mental health;
| | ------ | --------------------------------------------------------------------------------------------------------------------

| | 18.1.6 | is
convicted of any criminal offence (other than minor offences under the Road Traffic Acts
or the Road Safety Acts for which a fine or non-custodial penalty is imposed), which
might reasonably be thought to bring himself or the Company or any Group Company into
disrepute;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.7 | is
disqualified from holding office in the Company or any Group Company or another company
because of wrongful trading under the Insolvency Act 1986 or the Company Directors
Disqualification Act 1986;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.8 | ceases
to be eligible to work in the United Kingdom in accordance with section 8 of the Asylum
and Immigration Act 1996;
| | ------ | ------------------------------------------------------------------------------------------------------------------------

15

---

| | 18.1.9 | refuses
(without  reasonable cause) to accept  employment on the terms and in the  circumstances
 specified in clauses 20.1 or 20.2;
or
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------

| | 18.1.10 | resigns
as or otherwise ceases to be a director of the Company, otherwise than at the Company's
request
| | ------- | -------------------------------------------------------------------------------------------------------

| | 18.2 | If
at any time the Managing Director is prevented by illness, accident or other incapacity
from performing his duties properly for a period or periods totalling at least 180
business days in any period of 12 consecutive calendar months then the Company may
terminate his employment by giving him no less than one months notice to that
effect
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19. | EFFECT
OF TERMINATION
|--- | ---------------------

| | 19.1 | Upon
the termination of this Agreement, for whatever reason, the Managing Director shall:-
| | ---- | ------------------------------------------------------------------------------------------

| | 19.1.1 | resign
without claim for compensation from all positions held by him in the Company or in any
other Group Company but without prejudice to any claim he may have against the Company
for breach of contract or under the ERA;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.1.2 | execute
the appropriate form of transfer of any shares held by him as nominee for the Company or
for any other Group Company in favour of such other person as that company shall require;
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.1.3 | execute
any bank mandate, letter or other document required to sever his connection with the
Company or with any other Group Company; and
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------

| | 19.1.4 | deliver
to the Company or to its authorised representative all documents and any other property
of whatever nature and wherever situated belonging to the Company or any other Group
Company and in his possession or under his control. Such property includes, without
limitation company car, keys, books, correspondence, lists of customers, notes,
memoranda, plans, calculations, forecasts, drawings, computer programmes, passwords,
information stored on computer and other documents made or compiled by, or delivered to,
the Managing Director during the Employment, including all copies, and which relate in
any way to the business, finances or affairs of the Company or of any other Group
Company. The Managing Director acknowledges that all property and rights in the documents
and property belong to and remain with the Company or any other Group Company as the case
may be
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 19.2 | In
order to secure the performance of his obligations under clauses 19.1.1 to 19.1.3, the
Managing Director irrevocably authorises the Company to appoint some person on his behalf
to sign and deliver any document and do any thing considered requisite by the Company
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|20. | AMALGAMATION,
RECONSTRUCTION, TRANSFER AND CHANGE OF DIRECTOR
|--- | -------------------------------------------------------------

| | 20.1 | If
the Company is wound up for the purposes of reconstruction or amalgamation the Managing
Director shall not as a result or by reason of any termination of the Employment or the
redefinition of his duties within the Company or the Group arising or resulting or from
any reorganisation of the Group have any claim against the Company for damages for
termination of the Employment or otherwise so long as he shall be offered employment with
any concern or undertaking resulting from such reconstruction or amalgamation on terms
and conditions no less favourable to the Executive than the terms contained in this
Agreement
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

---

| | 20.2 | If
the Managing Director shall at any time have been offered but shall have unreasonably
refused or failed to agree to the transfer of this Agreement by way of novation to a
company which has acquired or agreed to acquire the whole or substantially the whole of
the undertaking and assets or not less than fifty per cent of the equity share capital of
the Company the Managing Director shall have no claim against the Company by reason of
the termination of the Employment by the Company on one months notice to the
Managing Director given within one month of such offer
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 20.3 | The
appointment of the Managing Director as a director of the Company or any Group Company
does not amount to a term of employment and the Company reserves the right to remove any
such directorship at any time for any reason. Where the Company exercises this right,
this shall not amount to a breach of this agreement and shall not give rise to a claim
for damages or compensation
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21. | INTELLECTUAL
PROPERTY
|--- | ---------------------

| | 21.1 | Any
invention (relevant to or capable of use in the business of the Company) made by the
Managing Director in the course of his employment by the Company or any Group Company
whether or not in the course of his duties, is, unless it is otherwise stated, the
exclusive property of the Company and hereby assigned by the Managing Director to the
Company or at the Companys discretion any Group Company, and the Managing Director
undertakes at the expense of the Company to execute any formal and additional assignment
required by the Company to vest or to confirm the vesting in it or any Group Company of
such invention
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 21.2 | The
Company has no liability to account to the Managing Director for any revenue or profit
derived or resulting from any invention belonging to the Company or any Group Company but
this does not prejudice any of the Managing Directors rights under section 40 of
the Patents Act 1977
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22. | NOTICES
|--- | -------

| | 22.1 | Any
notice under this Agreement shall be in writing signed by or on behalf of the party
giving it
| | ---- | -------------------------------------------------------------------------------------------------

| | 22.2 | Any
such notice may be served by personal delivery, or by sending it by telex or facsimile
transmission or by prepaid first class letter through the post, to:-
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.2.1 | in
the case of the Company, its registered office for the time being; and
| | ------ | -------------------------------------------------------------------------

| | 22.2.2 | in
the case of the Managing Director, his address specified in this Agreement or such other
address as he may notify to the Company in accordance with this Agreement
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 22.3 | Any
such notice shall (unless the contrary is proved) be deemed to have been served if by
delivery, when delivered, if by telex or facsimile transmission, when despatched and if
by first class post, on the day on which in the ordinary course of post it would be
delivered. In proving such service it shall be sufficient to prove, where appropriate,
that the notice was properly addressed and posted, or that the telex or facsimile
transmission was despatched
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

---

|23. | DATA
PROTECTION
|--- | ---------------

| | 23.1 | The
Managing Directors personal data will be held by the Company in its manual and
automated filing systems. The Managing Director consents to the processing and disclosure
of such data both inside and, where necessary, outside the European Economic Area in
order for the appointment to be performed and this Agreement to be fulfilled, for
decisions to be made regarding the Managing Directors employment or continued
employment, for obtaining or carrying out work from or for customers or potential
customers, or for the purpose of any potential sale of over 50% of the shares of the
Company or any Holding Company of the Company or other change of control or any potential
transfer of the Managing Directors employment under the Transfer of Undertaking
(Protection of Employment) Regulations 2006. Disclosure may include, in the case of sale,
change of control or transfer, disclosure to the potential purchaser or investor and
their advisors and, in the case of obtaining or carrying out work, disclosure to
customers or potential customers
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.2 | The
Managing Director consents to the Company processing sensitive data including medical
information for the purpose of the performance of the Managing Directors employment
and fulfilment of this agreement and determining the Managing Directors fitness to
carry out duties on behalf of the Group. The Managing Director further consents to the
Company processing data regarding sex, status, race, ethnic origin, religion, sexual
orientation or disability for the purpose of monitoring to ensure equality of opportunity
within the Company. The Managing Director consents to the Company holding and processing
his personal data for administrative and management purposes and sensitive personal
data (as defined in the Data Protection Act 1998)
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.3 | The
Company may make any such data available to advisers, those who provide products and/or
services to the Company (such as payroll administrators), regulatory authorities,
potential or future employers, governmental or quasi-governmental organisations and
potential purchasers of the Company or the business in which the Managing Director works
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 23.4
    The Managing Director shall use all reasonable endeavours to keep the Company
informed of any changes to his personal data
| | -----------------------------------------------------------------------------------------------------------------------------------

| | 23.5 | The
Managing Director acknowledges that in the course of the Employment he shall have access
to personal and sensitive data relating to other employees and he agrees to comply with
the Companys Data Protection Policy at all times
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24. | GENERAL
|--- | -------

| | 24.1 | This
Agreement is in substitution for all previous contracts of service (whether written or
oral) between the Managing Director and the Company or any other Group Company, which
shall be deemed to have been terminated by mutual consent as from the Commencement Date
and the Managing Director shall have no further right against the Company or any other
Group Company in respect of any such contract
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 24.2 | The
Managing Director acknowledges that the provisions of clauses 15, 16, 17 and 21 shall
constitute separate undertakings given for the benefit of each Group Company and may be
enforced by any of them
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

---

| | 24.3 | The
expiration or termination of this Agreement for whatever reason and whether or not in
breach of contract shall not prejudice any claim which either party may have against the
other in respect of any pre-existing breach of or contravention of or non-compliance with
any provision of this Agreement nor shall it prejudice the coming into force or the
continuance in force of any provision of this Agreement which is expressly or by
implication intended to or has the effect of coming into or continuing in force on or
after such expiration or termination
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 24.4 | There
are no collective agreements, which directly affect the terms and conditions of the
Managing Director's employment
| | ---- | ------------------------------------------------------------------------------------------------------------------------

| | 24.5 | This
Agreement  constitutes the written  statement of the terms of employment of the Managing
 Director provided in compliance          with part I of the ERA
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 25.6 | This
Agreement shall be governed by and construed in accordance with the laws of England and
Wales for the time being in force and the parties agree to submit to the exclusive
jurisdiction of the English Courts
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 25.7 | The
Contracts (Rights of Third Parties) Act 1999 shall not apply to this agreement and no
person shall have any rights under it.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------

IN
WITNESS whereof the parties have executed this Agreement as a deed the day and year first
Before written

19

---

# The Schedule

# Special Restricted
Stock Award

The Company will procure that MTS
Medication Technologies Inc. grant to the Managing Director, a MTS Medication
Technologies, Inc. Restricted Stock Award of Fourteen Thousand (14,000) shares each year,
with the first award on April 1, 2009 and thereafter for four (4) additional years on
April 1st of each year, for a total of Seventy Thousand (70,000) shares. The
Managing Director must be an active full-time employee of the Company on the first three
(3) grant dates in order to receive the share award. Should the Managing Director receive
the first three (3) share awards, as a result of being an active full-time employee, the
active full-time employment requirement will not apply in respect of the final two (2)
share awards and such awards will be granted regardless of the Managing Directors
then employment status with the Company. If at any time during the first three (3) years,
the Managing Director is not eligible to receive any share award as a result of not then
being an active full-time employee, no further share awards will be granted or owed to the
Managing Director.

All Restricted Stock awards will vest
immediately upon grant.

20

---

EXCUTED AS A DEED
by the Companyacting by:-

| | Director
| | --------

| | Director/Secretary
| | ------------------

EXECUTED AS A DEED
by the Managing Director in the presence of:-

Signature of Witness: 
Name:Address:Occupation: