Document:

REGISTRATION RIGHTS

Exhibit 10.3

GRANT OF IMMEDIATE REGISTRATION RIGHTS

Signalife, Inc. hereby grants to the Subscriber the following immediate registration rights as of October 31, 2006. 

1. Definitions. 

Capitalized terms used herein without definition shall have the respective meanings given such terms as set forth in the Stock Purchase Agreement between Signalife, Inc. and the investor signatory thereto executed concurrently herewith (the "Subscription Agreement").  As used herein, the following terms shall have the following meanings: 

Business Day: Any day other than a day on which banks are authorized or required to be closed in the State of New York. 

Commission: The United States Securities and Exchange Commission. 

Common Stock: The common stock, par value $.001 per share, of the Company. 

Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 

Holder or Holders: Any holder of the Registrable Securities. 

Person: Any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or other agency or political subdivision thereof. 

Prospectus: The prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement, and all other amendments and supplements to the prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such prospectus. 

Registrable Securities: (i) The shares of Common Stock (a) issuable upon conversion of the 2006-Private Financing-Warrant-One-October 31, 2006 and (b) issuable upon exercise of the Warrants, until such time as (1) a Registration Statement covering such Registrable Securities has been declared effective by the Commission and such Registrable Securities have been disposed of pursuant to such effective Registration Statement or (2) such Registrable Securities are saleable pursuant to Rule 144 (or any similar provision then in force) under the Securities Act, whichever is earlier. 

Registration Statement: Any registration statement of the Company that covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such registration statements, including post effective amendments, all exhibits, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder. 

2006-Private-Financing-Common Stock: The Common Stock issued on the date hereof to the Subscriber pursuant to the Company’s October 31, 2006 private placement. 

Warrants: The 2006-Private Financing-Warrant -#1 - October 31, 2006 issued on the date hereof pursuant to a private placement of the same date.

2. Registration Rights. 

(a) Required Registration. The Company shall use its best efforts as soon as reasonably practicable (but in no event less than 20 days following the closing of the financing represented by the purchase of stock and issuance of warrants consummated concurrently herewith) to prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on form S-3 then on Form SB-2, in which case such registration shall be on another appropriate form, except if otherwise directed by the Holders). The Company shall use its best efforts to cause such Registration Statement be declared effective under the Securities Act as soon as is practicable following its filing, and shall use its best efforts to keep such Registration Statement continuously effective under the Securities Act until the date which is seven (7) years after the termination of the offering (the "Effectiveness Period"). In the event that the Company does not file such Registration Statement by the Target Effective Date, the exercise price of the Warrants will be reduced from $2.23 to $1.83. 

(b) Demand Registration. In addition to the rights afforded the Holders in Section 2(a) above, at any time following the closing of the financing represented by the purchase of stock and issuance of warrants consummated concurrently herewith, the Holder may request that the Company effect the registration under the Securities Act of all or part of such Registrable Securities on Form SB-2 or any similar long-form registration or, if available, on Form S-2 or S-3 or any similar short-form registration (the registration requested pursuant to this Section 2(b) is referred to herein as the "Demand Registration"). The Demand Registration request shall specify the approximate number of Registrable Securities requested to be registered, and may at the election of the requisite Holders specify the intended method or methods of disposition thereof (which may include, without limitation, a "shelf" offering pursuant to Rule 415 under the Securities Act, or an underwritten offering). The Company shall immediately, but not later than 20 days after receipt of such demand, comply with the demand and file such Registration Statement as is legally appropriate.  The Holders shall be entitled to request one Demand Registration during the Effectiveness Period.  A registration will not count as a permitted Demand Registration unless and until it has become effective, or, if it has become so effective, the offering of Registrable Securities pursuant to such registration is terminated, suspended or interfered with by any stop order, injunction or other order or requirement of the SEC or other governmental agency or court. The Company will use its best efforts to keep such Registration Statement continuously effective under the Securities Act during the Effectiveness Period or until all Registrable Securities are sold. 

(d) Holdback Agreements. If any registration of Registrable Securities shall be in connection with an underwritten public offering, each Holder agrees not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Registrable Securities, and not to effect any such public sale or distribution of any other equity security of the Company or of any security convertible into or exchangeable or exercisable for any equity security of the Company (in each case, other than as part of such underwritten public offering) during the thirty (30) days prior to, and during the ninety (90) day period beginning on, the effective date of such Registration Statement (except as part of such registration). 

(e) Exceptions. Notwithstanding the foregoing, the Company may delay the registration of Registrable Securities upon the occurrence of any of the following: 

2

(i) The Company shall have previously entered into an agreement or letter of intent contemplating an underwritten public offering on a firm commitment basis of Common Stock or securities convertible into or exchangeable for Common Stock and the managing underwriter of such proposed public offering advises the Company in writing that in its opinion such proposed underwritten offering would be materially and adversely affected by a concurrent registered offering of Registrable Securities (such opinion to state the reasons therefor); 

(ii) During the two (2) month period immediately preceding such request, the Company shall have entered into an agreement or letter of intent, which has not expired or otherwise terminated, contemplating a material business acquisition by the Company or its subsidiaries whether by way of merger, consolidation, acquisition of assets, acquisition of securities or otherwise; 

(iii) The Company is in possession of material nonpublic information that the Company would be required to disclose in the Registration Statement and that is not, but for the registration, otherwise required to be disclosed at the time of such registration, the disclosure of which, in its good faith judgment, would have a material adverse effect on the business, operations, prospects or competitive position of the Company; 

(iv) The Company shall receive the written opinion of the managing underwriter of the underwritten public offering pursuant to which Common Stock has been registered within the three (3) month period prior to the receipt of a registration request that the registration of additional Common Stock will materially and adversely affect the market for the Common Stock (such opinion to state the reasons therefor); or 

(v) At the time of receipt of a registration request, the Company is engaged, or its board of directors has adopted by resolution a plan to engage, in any program for the purchase of Common Stock or securities convertible into or exchangeable for Common Stock and, in the opinion of counsel, reasonably satisfactory to the requesting Holders, the distribution of the Common Stock to be registered would cause such purchase to be in violation of Regulation M promulgated under the Exchange Act. 

(f) Period of Delay. If an event described in clauses (i) through (iv) of Section 2(e) shall occur, the Company may, by written notice to the Holder, delay the filing of a Registration Statement with respect to the Registrable Securities to be covered thereby for a period of time not exceeding one hundred twenty (120) days. If an event described in clause (v) of Section 2(e) shall occur, the filing of a Registration Statement with respect to the Registrable Securities to be covered thereby shall be delayed until the first date that the Registrable Securities to be covered thereby can be sold without violation of Regulation M of the Exchange Act. 

3. Registration Procedures. 

In connection with the registration obligations of the Company pursuant to the terms and conditions of this Agreement, the Company shall: 

(a) prior to filing a Registration Statement or Prospectus or any amendments or supplements thereto, including documents incorporated by reference after the initial filing of the Registration Statement, the Company will furnish to the Holder covered by such Registration Statement (the "Selling Holder"), Holders' Counsel and the underwriters, if any, draft copies of all such documents proposed to be filed at least three (3) Business Days prior thereto, which documents will be subject to the review of such Holder’s Counsel and the underwriters, if any, and the Company will not, unless required by law, file any Registration Statement or amendment thereto or any Prospectus or any supplement thereto (including such documents incorporated by reference) to which the Selling Holder (the "Objecting Party") shall object, pursuant to notice given to the Company prior to the filing of such amendment or supplement (the 

3

"Objection Notice"). The Objection Notice shall set forth the objections and the specific areas in the draft documents where such objections arise. The Company shall have five (5) Business Days after receipt of the Objection Notice to correct such deficiencies to the satisfaction of the Objecting Party, and will notify the Selling Holder of any stop order issued or threatened by the Commission in connection therewith and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered; 

(b) as promptly as practicable prepare and file with the Commission such amendments and post-effective amendments to the Registration Statement as may be necessary to keep such Registration Statement effective for the period required pursuant to Section 2; cause the Prospectus to be supplemented by any required Prospectus supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and comply with the provisions of the Securities Act applicable to it with respect to the disposition of all Registrable Securities covered by such Registration Statement during the applicable period in accordance with the intended methods of disposition by the Selling Holders set forth in such Registration Statement or supplement to the Prospectus; 

(c) as promptly as practicable furnish to any Selling Holder and the underwriters, if any, without charge, such number or conformed copies of such Registration Statement and any post-effective amendment thereto and such number of copies of the Prospectus (including each preliminary Prospectus) and any amendments or supplements thereto, and any documents incorporated by reference therein, as such Selling Holder or underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities being sold by such Selling Holder (it being understood that the Company consents to the use of the Prospectus and any amendment or supplement thereto by each Selling Holder and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by the Prospectus or any amendment or supplement thereto); provided, that before filing a Registration Statement or Prospectus relating to the Registrable Securities or any amendments or supplements thereto, the Company will furnish to Holders' Counsel copies of all documents proposed to be filed at least three (3) Business Days prior to the filing thereof, which documents will be subject to the review of such counsel; 

(d) on or prior to the date on which the Registration Statement is declared effective, register or qualify such Registrable Securities under such other securities or "blue sky" laws of such jurisdictions as any Selling Holder, Holders' Counsel or underwriter reasonably requests and do any and all other acts and things which may be necessary or advisable to enable such Selling Holder to consummate the disposition in such jurisdictions of such Registrable Securities owned by such Selling Holder; keep each such registration or qualification (or exemption therefrom) effective during the period which the Registration Statement is required to be kept effective; and do any and all other acts or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the applicable Registration Statement; provided that the Company shall not be required to (i) qualify to do business as a foreign corporation or as a broker-dealer in any jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any jurisdiction where it is not then so subject; 

(e) cause the Registrable Securities covered by such Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the Selling Holders to consummate the disposition of such Registrable Securities; 

(f) as promptly as practicable notify the Holder, Holder’s Counsel and any underwriter and (if requested by any such Person) confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration Statement 

4

or related Prospectus or for additional information to be included in any Registration Statement or Prospectus or otherwise, (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement or the initiation or threatening of any proceedings for that purpose, (iv) of the issuance by any state securities commission or other regulatory authority of any order suspending the qualification or exemption from qualification of any of the Registrable Securities under state securities or "blue sky" laws or the initiation of any proceedings for that purpose and (v) of the happening of any event which makes any statement made in a Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated by reference therein untrue or which requires the making of any changes in such Registration Statement, Prospectus or documents so that they will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and, as promptly as practicable thereafter, prepare and file with the Commission and furnish a supplement or amendment to such Prospectus so that, as thereafter deliverable to the purchasers of such Registrable Securities, such Prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; 

(g) make generally available to the Holders an earnings statement satisfying the provisions of Section 11(a) of the Securities Act no later than thirty (30) days after the end of the 12-month period beginning with the first day of the Company's first fiscal quarter commencing after the effective date of a Registration Statement; 

(h) use its reasonable efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement, and, if one is issued, to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement at the earliest possible moment; 

(i) as promptly as practicable after filing with the Commission of any document which is incorporated by reference into a Registration Statement, deliver a copy of such document to Holders' Counsel; 

(j) cooperate with the Selling Holder and the managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates (which shall not bear any restrictive legends and shall be in a form eligible for deposit with the Depository Trust Company) representing securities sold under such Registration Statement, and enable such securities to be in such denominations and registered in such names as the managing underwriter or underwriters, if any, or such Selling Holders may request and make available prior to the effectiveness of such Registration Statement a supply of such certificates; 

Each Selling Holder, upon receipt of any notice from the Company of the happening of any event of the kind described in subsection (f) of this Section 3, shall forthwith discontinue disposition of the Registrable Securities until such Selling Holder's receipt of the copies of the supplemented or amended Prospectus contemplated by subsection (f) of this Section 2 or until it is advised in writing (the "Advice") by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings which are incorporated by reference in the Prospectus, and, if so directed by the Company, such Selling Holder will, or will request the managing underwriter or underwriters, if any, to, deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in such Selling Holder's possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice. In the event that the Company shall give any such notice, the time periods for which a Registration Statement is required to be kept effective pursuant to Section 2 hereof shall be extended by the number of days during the period from and including the date of the giving of such notice to and including the date when each Selling Holder shall have received (i) the copies of the supplemented or amended Prospectus contemplated by Section 2(f) or (ii) the Advice.

4. Registration Expenses. 

5

(a) All expenses incident to the Company's performance of, or compliance with, the provisions hereof, including without limitation, all Commission and securities exchange or NASD registration and filing fees, fees and expenses of compliance with securities or "blue sky" laws (including fees and disbursements of counsel in connection with "blue sky" qualifications of the Registrable Securities), printing expenses, messenger and delivery expenses, internal expenses (including, without limitation, all salaries and expenses of the Company's officers and employees performing legal or accounting duties), fees and expenses incurred in connection with the listing of the securities to be registered, if any, on each securities exchange on which similar securities issued by the Company are then listed, fees and disbursements of counsel for the Company and its independent certified public accountants (including the expense of any special audit or "cold comfort" letters required by, or incident to, such performance), Securities Act liability insurance (if the Company elects to obtain such insurance), reasonable fees and expenses of any special experts retained by the Company in connection with such registration, fees and expenses of other Persons retained by the Company in connection with each registration hereunder (but not including the fees and expense of legal counsel retained by a Holder or Holders, or any underwriting fees, discounts or commissions attributable to the sale of Registrable Securities) are herein called "Registration Expenses." 

(b) The Company will pay all Registration Expenses in connection with each Registration Statement filed pursuant to Section 2 except as otherwise set forth therein. All expenses to be borne by the Holders in connection with any Registration Statement filed pursuant toSection 2 (including, without limitation, all underwriting fees, discounts or commissions attributable to such sale of Registrable Securities) shall be borne by the participating Holders pro rata in relation to the number of Units of Registrable Securities to be registered by each Holder. 

5. Indemnification; Contribution. 

(a) Indemnification by the Company. The Company agrees to indemnity and hold harmless, to the full extent permitted by law, the Holder, its officers, directors and each Person who controls such Holder (within the meaning of the Securities Act), and any agent or investment adviser thereof, against all losses, claims, damages, liabilities and expenses (including reasonable attorneys' fees and costs of investigation) arising out of or based upon any untrue or alleged untrue statement of material fact contained in any Registration Statement, any amendment or supplement thereto, any Prospectus or preliminary Prospectus or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same arise out of or are based upon any such untrue statement or omission based upon information with respect to such Holder furnished in writing to the Company by or on behalf of such Holder expressly for use therein; provided that, in the event that the Prospectus shall have been amended or supplemented and copies thereof as so amended or supplemented, shall have been furnished to a Holder prior to the confirmation of any sales of Registrable Securities, such indemnity with respect to the Prospectus shall not inure to the benefit of such Holder if the Person asserting such loss, claim, damage or liability and who purchased the Registrable Securities from such holder did not, at or prior to the confirmation of the sale of the Registrable Securities to such Person, receive a copy of the Prospectus as so amended or supplemented and the untrue statement or omission of a material fact contained in the Prospectus was corrected in the Prospectus as so amended or supplemented. 

(b) Indemnification by Holders of Registrable Securities. In connection with any Registration Statement in which the Holder is participating, the Holder will furnish to the Company in writing such information with respect to the name and address of such Holder and such other information as may be reasonably required for use in connection with any such Registration Statement or Prospectus and agrees to indemnity, to the full extent permitted by law, the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue statement of a material fact in the Registration Statement or Prospectus or any amendment thereof or supplement thereto or necessary to make the 

6

statements therein not misleading, to the extent, but only to the extent, that such untrue or alleged untrue statement relates to any information with respect to such Holder so furnished in writing by such Holder specifically for inclusion in any Prospectus or Registration Statement; provided, however, that such Holder shall not be liable in any such case to the extent that prior to the filing of any such Registration Statement or Prospectus or amendment thereof or supplement thereto, such Holder has furnished in writing to the Company information expressly for use in such Registration Statement or Prospectus or any amendment thereof or supplement thereto which corrected or made not misleading information previously furnished to the Company. In no event shall the liability of any Selling Holder hereunder be greater in amount than the dollar amount of the proceeds received by such Selling Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder agrees to give prompt written notice to the indemnifying party after the receipt by such Person of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such Person will claim indemnification or contribution pursuant to the provisions hereof and, unless in the judgment of counsel of such indemnified party a conflict of interest may exist between such indemnified party and the indemnifying party with respect to such claim, permit the indemnifying party to assume the defense of such claim. Whether or not such defense is assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld). No indemnifying party will consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel (plus such local counsel, if any, as may be reasonably required in other jurisdictions) with respect to such claim, unless in the judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels. For the purposes of this Section 5(c), the term "conflict of interest" shall mean that there are one or more legal defenses available to the indemnified party that are different from or additional to those available to the indemnifying party or such other indemnified parties, as applicable, which different or additional defenses make joint representation inappropriate. 

(d) Contribution. If the indemnification from the indemnifying party provided for in this Section 5 is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

(e) If indemnification is available under this Section 5, the indemnifying parties shall indemnity each indemnified party to the full extent provided in Sections 5(a) and (b) without regard to the relative fault of 

7

said indemnifying party or indemnified party or any other equitable consideration provided for in this Section 5. 

6. Transfer of Rights. 

The rights to cause the Company to register Registrable Securities granted pursuant to the provisions hereof may be transferred or assigned by any Holder to a transferee or assignee; provided; however, that the transferee or assignee of such rights assumes the obligations of such transferor or assignor, as the case may be, hereunder. 

7. Amendment 

Except as otherwise provided herein, the provisions hereof may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders of at least a majority of the aggregate number of the Registrable Securities then outstanding.

8.  Notices

All notices and other communications required or permitted hereunder shall be in writing,, addressed (a) if to Purchaser, as indicated on the Schedule of Purchasers, or at such other address as Purchaser shall have furnished to the Company in writing, or (b) if to the Company, at its address set forth at the end of this Agreement or at such other address as the Company shall have furnished to the Purchasers and each such other holder in writing.

9.  Severability

In case any provision of the Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

10.  Titles and Subtitles

The titles of the paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

11.  Entire Agreement

This Agreement (including all exhibits hereto) constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.

12.   Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

[Remainder of Page Intentionally Left Blank]

8

In Witness Whereof, the undersigned has executed this Grant of Immediate Registration Rights as of the date set forth above.

SIGNALIFE, INC.

__________________________

By:  Pamela M. Bunes

(CEO and President)

Owner of Registration Rights (Subscriber):

Company Name:

______________________

Company Address:

______________________

______________________

Company Telephone:

______________________ 

Company Fax:

______________________

Signature of Holder:

______________________

9STOCK REDEMPTION
AGREEMENT 

        This
Stock Redemption Agreement (the “Agreement”) is made as of the 13th day of
November, 2006, by and between MTS Medication Technologies, Inc., a Delaware corporation
(f/k/a Medical Technology Systems, Inc.) (the “Corporation”), and Eureka I,
L.P., a Delaware limited partnership (the “Selling Stockholder”). 

Background 

        The
Selling Stockholder owns two thousand shares of Series A Convertible Participating
Preferred Stock of the Corporation (the “Subject Shares”). The Selling
Stockholder desires to sell and transfer to the Corporation, and the Corporation desires
to redeem and acquire from the Selling Stockholder, in exchange for the consideration
described in this Agreement, the Subject Shares, pursuant to the terms and subject to the
conditions set forth in this Agreement. In consideration of the mutual agreements,
covenants and provisions set forth below, the parties to this Agreement agree for
themselves and their respective heirs, executors, administrators, successors and assigns,
as follows: 

Terms 

ARTICLE I 

THE TRANSACTION 

    1.01        Redemption
of the Subject Shares. On the Closing Date (defined below), pursuant to the terms and
subject to the conditions contained in this Agreement, the Selling Stockholder shall
sell, assign, transfer, convey and deliver to the Corporation, and the Corporation shall
redeem, acquire and accept from the Selling Stockholder, all of the Selling Stockholder’s
right, title and interest in and to the Subject Shares free and clear of all liens,
pledges, claims, options, charges or encumbrances of any type, for the consideration
specified in Section 1.02 of this Agreement, to be paid as provided in Section 1.02 of
this Agreement.  

    1.02        Purchase
Price. The aggregate purchase price for the Subject Shares shall be six million four
hundred eighty three thousand and forty six dollars ($6,483,046) (the “Purchase
Price). In addition, the Corporation shall pay a transfer fee in the amount of twenty
thousand dollars ($20,000) (the “Transaction Fee”) to the Selling Stockholder.
The Purchase Price and the Transaction Fee shall be payable by the Corporation by wire
transfer at the Closing.  

    1.03        Closing
Date. The closing shall be held at the offices of Holland & Knight, LLP, Suite
4100, 100 North Tampa Street, Tampa, Florida 33602 on or before December 29, 2006(the
“Closing” or the “Closing Date”). Either party (if such party is not
then in breach of this Agreement) may terminate this Agreement if the Closing has not
occurred by the close of business on December 29, 2006  

    1.04        Documents
to be Delivered by the Selling Stockholder. In addition to, and without limiting any
of the provisions of this Agreement, the Selling Stockholder agrees to deliver, or cause
to be delivered, to the Corporation, on the Closing Date, the following:  

	 	(a)  	The
original certificates representing all of the Subject Shares, duly endorsed
in blank or with separate stock powers duly endorsed in blank; and  

	 	(b)  	The
mutual release, by and between the Selling Stockholder and the Corporation
substantially in the form of Exhibit A attached to this Agreement
(the “Mutual Release”) duly executed by the Selling Stockholder.  

    1.05        Documents
to be Delivered by the Corporation. In addition to, and without limiting any other
provision of this Agreement, the Corporation agrees to deliver, or cause to be delivered,
to the Selling Stockholder, on the Closing Date, the following:  

	 	(a) 	The
Purchase Price and the Transaction Fee in accordance with Section 1.02 hereof;
and  

	 	(b) 	 The
Mutual Release duly executed by the Corporation.  

    1.06        Items
to be Delivered by the Selling Stockholder and the Corporation. The Selling
Stockholder and the Corporation agree to deliver such other instruments, certificates and
documents as the other party or its counsel may reasonably request to carry out the
transactions contemplated by this Agreement.  

ARTICLE II 

REPRESENTATIONS AND
WARRANTIES OF THE SELLING STOCKHOLDER 

        The
Selling Stockholder hereby represents and warrants to the Corporation as follows: 

    2.01        Organization
and Qualification. The Selling Stockholder is a limited partnership duly organized
and validly existing under the laws of the State of Delaware, and is duly qualified and
is in good standing in the State of Delaware and in all jurisdictions in which the
ownership of its property and the nature of its activities, or both, make such
qualification necessary.  

2

    2.02        Authority
to Execute and Perform the Agreement; No Breach by the Selling Stockholder. The
Selling Stockholder has the full legal right, power and authority, without the consent of
any other person, and has received such approvals and taken such actions as are required,
to enter into, execute and deliver this Agreement and all other agreements and
instruments to be executed and delivered by the Selling Stockholder in connection
therewith (the “Transaction Documents”). The Transaction Documents, when duly
executed and delivered by the Selling Stockholder, will be the valid and binding
obligations of the Selling Stockholder enforceable in accordance with their respective
terms. The execution and delivery of the Transaction Documents, the consummation of the
transactions contemplated hereby and thereby and the performance by the Selling
Stockholder of the Transaction Documents in accordance with their respective terms will
not (i) require the approval, consent or authorization of any federal, state, county,
local or other governmental or regulatory body; or (ii) conflict with, result in a breach
of, constitute an event of default under or require any approval, consent or
authorization under any agreement or instrument to which the Selling Stockholder is a
party or by which the Selling Stockholder may be bound.  

    2.03        Title
to Subject Shares. The Selling Stockholder owns beneficially and of record and has
the full power and authority to convey to the Corporation the Subject Shares, free and
clear of any liens, pledges, claims, options, charges or encumbrances of any type. The
transfer of the Subject Shares to the Corporation hereunder will pass good and marketable
title to the Subject Shares from the Selling Stockholder to the Corporation free and
clear of any lien, pledge, claim, option, charge, or encumbrance of any type.  

    2.04        Brokers
or Finders. The Selling Stockholder is not obligated, directly or indirectly, to any
person for investment banking, brokerage or finders’ fees, agents’ commissions,
or any similar charges, in connection with this Agreement or the transactions
contemplated hereby.  

    2.05        Access;
Information. The Selling Stockholder was granted and had full and unrestricted access
to the Corporation’s business premises, offices, properties, and business,
corporate, and financial books and records, including the Corporation’s financial
statements, and the Selling Stockholder was permitted to examine the foregoing, question
the other officers and directors of the Corporation, and make such other investigation as
the Selling Stockholder considered appropriate to determine or verify the business
condition (financial or otherwise) of the Corporation and to consummate the transactions
contemplated by this Agreement. The Selling Stockholder has made such further
investigation and examination of the affairs of the Corporation and has obtained such
information relating thereto as the Selling Stockholder deems necessary to verify the
accuracy and veracity of the information furnished to it. The Selling Stockholder has
carefully considered and has, to the extent it believes such discussion to be necessary,
discussed with its professional legal, tax and financial advisors the suitability of the
redemption provided for herein, this Agreement, and the transactions described herein,
and the Selling Stockholder has determined that consummation thereof are in Selling
Stockholder’s best interests. Selling Stockholder acknowledges that it is
responsible for and shall pay all taxes of whatever nature, whether state, federal,
income, capital gains or otherwise, that may be due on the sale of the Subject Shares to
the Corporation. The Selling Stockholder is an accredited investor within the meaning of
Regulation D promulgated by the U.S. Securities Exchange Commission.  

 3

ARTICLE III 

REPRESENTATIONS AND
WARRANTIES OF THE CORPORATION 

        The Corporation
hereby represents and warrants to the Selling Stockholder as follows: 

    3.01        Organization
and Qualification. The Corporation is a corporation duly organized and validly
existing under the laws of the State of Delaware, and is duly qualified to do business as
a foreign corporation and is in good standing in all jurisdictions in which the ownership
of its property and the nature of its activities, or both, make such qualification
necessary.  

    3.02        Authority
to Execute and Perform the Agreement; No Breach by the Corporation. The Corporation
has the corporate power and authority, and has received such approvals and taken such
actions as are required, to enter into, execute and deliver this Agreement and the
Transaction Documents to which the Corporation is a party. This Agreement and the
Transaction Documents to which the Corporation is a party, when duly executed and
delivered, will be valid and binding obligations of the Corporation enforceable in
accordance with their respective terms. Neither the execution and delivery of this
Agreement and the Transaction Documents to which the Corporation is a party, nor the
consummation by the Corporation of the transactions contemplated hereby and thereby, will
(i) require the approval, consent or authorization of any federal, state, county,
local or other governmental or regulatory body; (ii) violate any provision of the
articles of incorporation or bylaws of the Corporation; or (iii) conflict with, result in
a breach of, constitute an event of default under, or require any consent, authorization
or approval under, any agreement or instrument to which the Corporation is a party or by
which the Corporation may be bound.  

    3.03        Brokers
or Finders. The Corporation is not obligated, directly or indirectly, to any person
for investment banking, brokerage or finders’ fees, agents’ commissions, or any
similar charges, in connection with this Agreement or the transactions contemplated
hereby.  

ARTICLE IV  

COVENANTS OF THE
SELLING STOCKHOLDER 

        The
Selling Stockholder covenants and agrees as follows: 

    4.01        Post-Closing
Date Access to Information. If after the Closing Date (as hereinafter defined), in
order properly to prepare tax returns or other documents or reports required to be filed
with governmental authorities or to accurately prepare the Corporation’s financial
statements, it is necessary that the Corporation be furnished with additional information
which is in the possession of the Selling Stockholder, the Selling Stockholder shall
promptly furnish, or shall cause to be furnished, such information to the Corporation.  

4 

    4.02        Obligation
of the Selling Stockholder to Indemnify. Subject to the terms and conditions of this
Agreement, from and after the Closing Date, the Selling Stockholder agrees to indemnify,
defend and hold harmless the Corporation, and each of its officers and directors from and
against any and all losses, costs, damages (including incidental and consequential
damages), liabilities or expenses (including court costs, reasonable attorney’s
fees, interest expenses and amounts paid in compromise or settlement), suits, actions,
claims, obligations, fines, penalties or assessments (collectively, the “Losses”)
arising, directly or indirectly, or in whole or in part, out of (a) the failure of any
representation and/or warranty of the Selling Stockholder contained in this Agreement to
be true as of the date when made, or (b) the failure of the Selling Stockholder to comply
with any covenant or agreement of the Selling Stockholder contained in this Agreement.  

ARTICLE V 

COVENANTS OF THE
CORPORATION 

        The
Corporation covenants and agrees as follows: 

    5.01        Post-Closing
Date Access to Information. If after the Closing Date, in order properly to prepare
tax returns or other documents or reports required to be filed with governmental
authorities or the Selling Stockholder’s personal financial statements, it is
necessary that the Selling Stockholder be furnished additional information that is in the
possession of the Corporation, the Corporation shall promptly furnish or shall cause to
be furnished, such information to the Selling Stockholder.  

    5.02        Obligation
of the Corporation to Indemnify. Subject to the terms and conditions of this
Agreement, from and after the Closing Date, the Corporation agrees to indemnify, defend
and hold harmless the Selling Stockholder from and against any and all Losses arising,
directly or indirectly, or in whole or in part, out of (a) the failure of any
representation and/or warranty of the Corporation contained in this Agreement to be true
as of the date when made, or (b) the failure of the Corporation to comply with any
covenant or agreement of the Corporation contained in this Agreement.  

ARTICLE VI 

CONDITIONS PRECEDENT 

    6.01        Conditions
Precedent to the Corporation’s Obligation to Close. The Corporation’s
obligation to consummate the transactions contemplated by this Agreement shall be
contingent on the following conditions as of the Closing Date:  

	 	(a)  	the
Selling Stockholder shall not be in breach of any of its representations,
 warranties or covenants set forth in this Agreement;  

	 	(b)  	all
documents, deliveries and other items set forth in Section 1.04 shall have
been received by the Corporation; and  

5 

	 	(c)  	the
Corporation shall have received third party financing in an amount
sufficient to fund the Purchase Price and on terms and conditions
satisfactory to the Corporation in its sole discretion.  

    6.02        Conditions
Precedent to the Sellers’ Obligation to Close. The Selling Stockholder’s
obligation to consummate the transactions contemplated by this Agreement shall be
contingent on the following conditions as of the Closing Date:  

	 	(a)  	The
Corporation shall not be in breach of any of its representations, warranties
or covenants set forth in this Agreement; and  

	 	(b)  	all
documents, deliveries and other items set forth in Section 1.05 shall have
 been received by the Selling Stockholder.  

ARTICLE VII 

MISCELLANEOUS 

    7.01        Further
Instruments. From time to time at the reasonable request of either the Selling
Stockholder or the Corporation (the “Requesting Party”), whether on or after
the Closing Date, and without further consideration, the other party agrees to cooperate
with the Requesting Party and to execute and deliver such further instruments of
conveyance, authorization or transfer as the Requesting Party may reasonably request in
order to assist the Requesting Party in the completion or recordation of the transactions
contemplated by this Agreement.  

    7.02        Survival.
The representations and warranties made by the parties contained herein or on any
schedule, exhibit, document, statement, certificate or other instrument referred to
herein or delivered in connection with the transactions contemplated hereby shall survive
the execution and delivery of this Agreement and the Closing.  

    7.03        Expenses.
Each party to this Agreement shall bear its respective expenses incurred in connection
with the preparation, execution and performance of this Agreement and the transactions
contemplated hereby including, without limitation, all fees and expenses of agents,
representatives, counsel and accountants.  

    7.04        Governing
Law and Venue. This Agreement shall be governed by and construed in accordance with
the internal law, and not the law of conflicts, of the State of Florida.  

    7.05        The
Entire Agreement; Modifications; Waiver. This Agreement, including all exhibits and
schedules and the Transaction Documents, constitute the entire agreement among the
parties pertaining to its subject matter and supersedes all prior agreements,
understandings, negotiations, and discussions, whether oral or written, of the parties
and there are no warranties, representations, or other agreements, express or implied,
made to any party in connection within the subject matter of this Agreement, except as
specifically set forth in this Agreement or in the documents delivered pursuant to this
Agreement. All schedules and exhibits referred to in this Agreement are intended to be
and hereby are specifically made a part of this Agreement. To the fullest extent
permitted by law, unless otherwise expressly provided by this Agreement, no supplement,
modification, waiver or termination of this Agreement shall be binding unless executed,
in writing, by the party to be bound thereby. No waiver of any provision of this
Agreement shall be deemed or shall constitute a waiver of any other provision of this
Agreement, nor shall such waiver constitute a continuing waiver unless otherwise
expressly provided.  

6 

    7.06        Notices.
All notices, consents, requests, reports, demands or other communications hereunder shall
be in writing or may be delivered personally, by registered or certified mail, or by
facsimile transmission as follows:  

	 	   	If to the Corporation:

2003 Gandy
Boulevard North
Suite 800 
St. Petersburg, Florida 33702
Attn:   Mr. Michael P. Conroy, Vice
President and Chief Financial Officer 

	 	   	If to the Selling
Stockholder:

Eureka I, L.P., 
770 Township Line, Suite 150

Yardley, Pennsylvania 19067
Attn:    Mr. Jonathan Zimblist 

or to
such other address or such other person or persons as the addressee party shall have last
designated by notice to the other party. Notices shall be given by hand delivery or by
overnight delivery service.  

    7.07        Counterparts.
This Agreement may be executed in as many counterparts as may be deemed necessary and
convenient, and by the different parties hereto on separate counterparts, each of which
when so executed shall be deemed an original, but all such counterparts shall constitute
but one and the same instrument.  

    7.08        Headings.
The Article and Section headings in this Agreement are for convenience and reference only
and shall not be deemed to alter or affect the meaning or interpretation of any provision
of this Agreement.  

 7

    7.09        Indemnity
Claims. After the Closing, the Corporation and the Selling Stockholder shall promptly
give notice to each other after any of them obtains knowledge of any claim, obligation,
liability or action for which indemnification may be sought hereunder or prior to written
notice of the commencement of a legal proceeding for which indemnification may be sought
hereunder, whichever occurs first; provided that the failure to give such notice (other
than notice of the commencement of the legal proceeding) shall not adversely affect any
right of indemnification under this Agreement. The indemnifying party shall be entitled
to control or defend any such legal proceedings, retain counsel reasonably satisfactory
to the indemnified party, at the sole expense of the indemnifying party, and the
indemnified party shall cooperate with the indemnifying party in the defense of such
claim and shall have the right, but not the obligation, to participate in the defense at
its own expense. If the indemnifying party elects not to direct such defense, the
indemnified party shall have the right, at its own discretion, to direct such defense at
the indemnifying party’s sole expense. The indemnifying party shall have the right
to compromise or settle, with the indemnified party’s prior written approval, such
approval not to be unreasonably withheld, any claim or litigation regarding which it is
required to indemnify. As of the date hereof, none of the parties hereto are aware of any
claims for which indemnification may be sought.  

    7.10        Gender
and Number. Any personal pronouns used in this Agreement shall include the other
genders whether used in the masculine, feminine or neuter gender, and the singular shall
include the plural, and vice versa, whenever and as often as may be appropriate.  

    7.11        Severability.
Should any provision of this Agreement be declared invalid, void or unenforceable for any
reason, the remaining provisions hereof shall remain in full force and effect.  

    7.12        Termination
of the Securities Purchase Agreement. The Securities Purchase Agreement between the
Corporation and the Selling Stockholder, dated June 26, 2002 (the “Purchase Agreement”)
and all rights and duties deriving from the Purchase Agreement shall terminate and be of
no further force and effect at the time of the Closing.  

[INTENTIONALLY LEFT
BLANK] 

 8

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the date first above written. 

	 	 	MTS MEDICATION TECHNOLOGIES, INC.

        a Deleware corporation
(f/k/a/ Medical Technology Systems, Inc. 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name:	Michael P. Conroy
	 	 	Title: 	Vice President 

	 	 	EUREKA I. L.P. 
	 	 	 
	 	 	By:	Eureka Management, LP, its sole general partner
	 	 	By:	Eureka Growth Capital Management, L.P.,
        authorized representative
	 	 	By:	Eureka Growth Capital Management, LLC,
        general partner of the authorized representative
	 	 	 	 
	 	 	By:	___________________________________
	 	 	Name:	Jonathan Zimbalist
	 	 	Title: 	Executive Vice President

9

MUTUAL GENERAL RELEASE 

        This
Mutual General Release (the “Release”) is made and executed by and between MTS
Medication Technologies, Inc., a Delaware corporation (f/k/a Medical Technology Systems,
Inc.) (the “Corporation”), and Eureka I, L.P., a Delaware limited partnership
(the “Selling Stockholder”) and is effective as of December 29, 2006.  

        WHEREAS,
Selling Stockholder desires to sell all of its Series A Convertible Participating
Preferred Stock of the Corporation (the “Subject Shares”) to the Corporation
pursuant to that certain Stock Redemption Agreement dated as of the date hereof (the
“Redemption Agreement”); and 

        WHEREAS,
in connection with the Redemption Agreement, the Corporation and the Selling Stockholder
agreed to exchange general releases which excepts only the obligations under the
Redemption Agreement; and 

        WHEREAS,
the parties desire to mutually release each other from all obligations and liabilities as
set forth herein, including all obligations and liabilities under the Agreement dated
November ___, 2006 (the “Agreement”), in conjunction with the sale by Selling
Stockholder of the Subject Shares and the redemption by the Corporation of the Subject
Shares. 

        NOW
THEREFORE, in consideration of the mutual covenants, premises and agreements of the
parties hereto and of the mutual benefits to be gained by the performance thereof and for
other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the parties, for themselves and their respective heirs, personal
representatives, successors and assigns, covenant and agree as follows: 

        Selling
Stockholder does hereby release and forever discharge the Corporation and its officers,
directors, stockholders, agents, trustees, employees, legal representatives, successors
and assigns of and from any and all claims, demands, liabilities, costs, expenses, actions
and causes of action of whatsoever kind or nature, whether in law or equity, which Selling
Stockholder ever had, now has or claims to have, whether known to him or not, against any
of them, including, without limitation, any claims arising under the Agreement, except for
the obligations set forth specifically in the Redemption Agreement. 

        The
Corporation, does hereby release and forever discharge Selling Stockholder and its direct
and indirect partners, officers, employees, agent, controlling persons, legal
representatives, successors and assigns of and from any and all claims, demands,
liabilities, costs, expenses, actions and causes of action of whatsoever kind or nature,
whether in law or equity, which the Corporation ever had, now have or claim to have,
whether known to them or not, against Selling Stockholder, including, without limitation,
any claims arising under the Agreement, except for the obligations set forth specifically
in the Redemption Agreement. 

        Each
of the parties warrants and represents that no part of any of the above asserted or
assertable claims have been assigned or transferred, and that they have full, exclusive
and unencumbered right, title and interest in and to them. Each of the parties further
warrants and represents that they have carefully read and fully understand this Release
and have signed it voluntarily after being fully advised by legal counsel. 

        This
Release may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.
Transmission by facsimile of an executed counterpart signature page hereof by a party
hereto shall constitute due execution and delivery of this Release by such party. 

10

	 	 	EUREKA I. L.P. 
	 	 	 
	 	 	By:	Eureka Management, LP, its sole general partner
	 	 	By:	Eureka Growth Capital Management, L.P.,
        authorized representative
	 	 	By:	Eureka Growth Capital Management, LLC,
        general partner of the authorized representative
	 	 	 	 
	 	 	By:	___________________________________
	 	 	Name:	Jonathan Zimbalist
	 	 	Title: 	Executive Vice President

	 	 	MTS MEDICATION TECHNOLOGIES, INC.

        a Deleware corporation
(f/k/a/ Medical Technology Systems, Inc. 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name:	Michael P. Conroy
	 	 	Title: 	Vice President 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]