FIRST AMENDMENT TOLOAN AND SECURITY AGREEMENT 

        **THISFIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT**(**“Amendment”**) is madeeffective this 8th day of July, 2003 by and among **LASALLE BUSINESS CREDIT, LLC**,successor by merger to LaSalle Business Credit, Inc., as Agent(**“Agent”**)****for **STANDARD FEDERAL BANK NATIONAL ASSOCIATION**(**“Lender”**), **MEDICAL TECHNOLOGY SYSTEMS, INC.**(**“MTS”**) and **MTS PACKAGING SYSTEMS, INC.** (**“Packaging”,**and with **MTS**, each a **“Borrower”** and collectively, the**“Borrowers”**. 

BACKGROUND 

       A.              Agent, Lender and Borrowers previously entered into that certain Loan and          Security Agreement dated June 26, 2002 (as the same may be amended from time to          time, the **“Loan Agreement”**). 

       B.              On or about October 15, 2002, MTS formed MTS Packaging Systems International          Ltd., a company formed under the laws of England and Wales (the **“UK          Company”**). 

       C.              MTS has transferred, or is in the process of transferring, to the UK Company          accounts and inventory as described on **Schedule 1** hereto          having a value in excess of One Hundred Thousand Dollars ($100,000.00) (the          **“Transferred Assets”**). 

       D.              Borrowers have requested that (1) the Agent and Lender consent to the formation          of the UK Company, (2) notwithstanding the terms set forth in **Sections          12(o) and 13(d))** of the Loan Agreement, the UK Company be          permitted to be a Guarantor under the Loan Agreement rather than a Borrower          despite it having assets in excess of One Hundred Thousand Dollars ($100,000.00)          in value; (3) notwithstanding any contrary provision of the Loan Agreement or          any document relating thereto, the UK Company not be required to grant a          security interest in any of its assets (including, without limitation, any          intellectual property), and (4) notwithstanding any contrary provision of the          Loan Agreement, or any document related thereto, the UK Company be permitted to          maintain its assets in any location outside the United States as the UK Company          may desire. 

       E.                        Agent, Lender and Borrowers also desire to amend the Loan Agreement in          accordance with the terms and conditions set forth herein. 

       F.              Capitalized terms used herein and not otherwise defined shall have the meanings          provided for such terms in the Loan Agreement. 

        **NOWTHEREFORE**, the parties hereto, intending to be legally bound hereby, agree as follows: 

       1.              **Lender’s Consents and Agreements Regarding the UK          Company**. 

                       (a)               Agent and Lender hereby consent and agree to the following with respect to the          UK Company (notwithstanding any contrary provision of the Loan Agreement or any          document related thereto): (i) MTS may form the UK Company as a wholly-owned,          direct or indirect Subsidiary of MTS, (ii) the UK Company shall be a Guarantor          under the Loan Agreement rather than a Borrower, despite the value of the UK          Company’s assets exceeding One Hundred Thousand Dollars ($100,000.00),          (iii) the UK Company shall not be required to grant a security interest in any          of its assets, including, without limitation, any intellectual property, and          (iv) the UK Company shall be permitted to maintain its assets in any location          outside the United States as the UK Company may desire. Agent’s and          Lender’s consent herein is contingent upon the execution and delivery to          Agent of the following documents: 

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