Document:

Dated 6 February 2007 

     (1)    
          DR. ANTON F. HAASE and MRS. SILVIA HAASE as Sellers 

     (2)    
          MTS MEDICATION TECHNOLOGIES LIMITED as Purchaser 

SALE AND PURCHASE AGREEMENT for and
ASSIGNMENT
 of all the issued share capital of CDH Consilio GmbH 

Mayer
Brown
Rowe
& Maw 

LONDON 

CONTENTS 

	Clause		Page
			
	1.	Definitions and interpretation	1
	2.	Agreement to sell and purchase and Assignment	7
	3.	Purchase Price	9
	4.	Completion	11
	5.	Warranties and representations	12
	6.	Indemnities	13
	7.	Confidentiality and announcements	14
	8.	Costs	15
	9.	Entire agreement	15
	10.	Continuing effect	15
	11.	Invalidity	16
	12.	Amendments, waivers and rights	16
	13.	Further assurance	16
	14.	Payments	17
	15.	Assignment	17
	16.	Notices	17
	17.	Third party rights	18
	18.	Governing law and jurisdiction	18

Schedules 

	1.	Key Information	 
		     Part 1: Details of the Company	 
		      Part 2: The Sellers	 
	2.	 Completion arrangements 	 
	3.	 Warranties  	 
	4.	 Limitations on claims 	 
	5.	 Determination
                    and confirmation of entitlement to Yearly Earn-Outs  	 

Annex 

Service Agreement 

THIS AGREEMENT
is dated 6 February 2007 and made between:  

	(1)  	DR.
ANTON F. HAASE and MRS. SILVIA HAASE of Ahornweg 5, 64367                Mühltal,
Germany (each a “Seller”and together the “Sellers”); and 

	(2)  	MTS
MEDICATION TECHNOLOGIES LIMITED, a company incorporated in England                and
Wales (registered number 4562981) whose registered office is at 23-25 Elbow
               Lane, Formby, Merseyside, Lancashire L37 4AB, England (the “Purchaser”). 

BACKGROUND: 

	(A)  	CDH Consilio GmbH is a limited liability
company organised under the laws of Germany with its seat in Mühltal, Germany. It is registered with the
commercial register of the local court of Darmstadt under number HRB 8243. 

	(B)  	The
total share capital of the Company is Euro 30,000 and is comprised of three
shares. The Shares are fully paid-up and are held by the Sellers, who are
the legal and beneficial owners of the Shares. Further details of the
Company are set out in Schedule 1, Part 1 (Details of the Company). 

	(C)  	The
Purchaser is a wholly-owned subsidiary of MTS Medication Technologies Inc.,
a public corporation incorporated under the laws of Delaware, USA, which
is interested in broadening its European customer base by acquiring the
Company. 

	(D)  	The
Sellers have agreed to sell, transfer and assign the Shares to the Purchaser
for the consideration and upon the terms set out in this Agreement. 

	(E)  	The
Sellers and the Purchaser have agreed to arrange their affairs and to
prepare this Agreement such that the acquisition of the Company by the
Purchaser shall, as far as possible, have economic effect from 1 January
2007. 

IT IS AGREED that: 

	1.  	DEFINITIONS
AND INTERPRETATION  

	 	1.1  	Defined
terms  

	 	
In this Agreement and the Background:

	 	
“Accounts”means
in relation to any Financial Year of the Company the balance sheet of the Company as at
the Balance Sheet Date in respect of that Financial Year and the profit and loss account
in respect of that Financial Year together in each case with all notes, reports and
statements required by law or Relevant Accounting Standards to be annexed to them;  

	 	
“Agreed
Terms” means, in relation to any document, that document in the terms agreed
between the parties and signed or initialled for identification purposes only by or on
behalf of each party prior to the execution of this Agreement;  

	 	
“Average
Gross Margin”means, in relation to a Relevant Earn-Out Period, Gross Profit
divided by Turnover for such period, as agreed or certified in accordance with Schedule 5
(Determination and confirmation of entitlement to Yearly Earn-Out);  

1 

	 	
“Bad Leaver”means Dr. Anton F. Haase ceasing to be an employee in circumstances where
(under German employment law) he has been summarily dismissed by the Company for cause
pursuant to Section 626, BGB (Kuendigung aus wichtigem Grund) or voluntarily
resigns from his employment by the Company (other than for reasons of ill health or
disability, or for reasons within the responsibility of the Purchaser or the Purchaser’s
Group which would entitle Dr. Anton F. Haase summarily to terminate his employment
pursuant to Section 626, BGB (Kuendigung aus wichtigem Grund)) but, for the
avoidance of doubt, does not include circumstances where (under German employment law)
Dr. Anton F. Haase is removed from office without cause or is dismissed by the Company
without cause or where the termination of his employment is based exclusively on mutual
agreement (Aufhebungsvereinbarung) (and, for the avoidance of doubt, arrangements
reached between the Company and Dr. Anton F. Haase following the service of a notice of
resignation by either party shall not be construed as a termination based exclusively on
mutual agreement);  

	 	
“Balance Sheet Date” means in relation to any Financial Year of the Company the last day
of that Financial Year;  

	 	
“BGB”means the German Civil Code; 

	 	
“Business Day” means a day (not being a Saturday or Sunday) when banks are generally open
in Frankfurt and London for the transaction of general banking business;  

	 	
“Company”means CDH Consilio GmbH details of which are given in Paragraph (A) of the Background and
Schedule 1, Part 1 (Details of the Company);  

	 	
“Company Accountant and Tax Consultant”means Dr. Bernd Flechsenhar, Stiftstrasse 10,
64287 Darmstadt, Germany (being the Company’s certified accountant and tax
consultant at the date hereof) or any certified accountant and tax consultant of the
Company from time to time;  

	 	
“Companies Act” means the German Limited Liability Companies Act;

	 	
“Company Intellectual Property” means all Intellectual Property which at the Completion
Date is owned by the Company and which is used in or has been developed for use in or is
required for or intended for use in the business of the Company as currently carried on;  

	 	
“Completion”means completion of the sale and purchase and the assignment of the Sharesunder this
Agreement;  

	 	
“Completion Date” means the day Completion takes place;  

	 	
“Completion Liabilities”means all sums owing or accrued due to any person by the Company and
all other obligations, liabilities and duties (actual or contingent) of the Company as at
the Completion Date but excluding any liabilities included in the Pre-Completion Tax
Liability Amount;  

 2

	 	
“Cost of Sales”means, in respect of any Relevant Earn-Out Period and for the purpose
of calculating Gross Profit, the aggregate price invoiced during such period to the
relevant entity in the Purchaser’s Group in respect of MTS Products which such
entity subsequently supplied or distributed to customers within Germany or to other
markets (as approved by the Purchaser), together with all tax, charges, interest costs
and expenditure incurred in the normal course in connection with the import,
transportation and delivery of those products;  

	 	
“December Liquid Assets” means: 

	 	 (a)  	all
stock which has been ordered and paid for by the Company (but excluding any
stock that is obsolete, slow moving, unusable or unmarketable); and  

	 	(b)  	  all cash in hand and cash at bank of the Company, 

	 	
as at 31 December 2006;

	 	
“December Receivables”means all trade or other debts owing to the Company as at 31
December 2006 (whether or not then due and payable), as shown in the Last Accounts;  

	 	
“Director”means the managing director (Geschäftsführer) of the Companynamed in
Schedule 1, Part 1 (Details of the Company);  

	 	
“Disclosed”means disclosed by the Sellers to the Purchaser in writing after 1 November 2006, with
sufficient clarity to enable the Purchaser to understand the impact on the Company of the
matter, fact or circumstance so disclosed;  

	 	
“Disqualifying Event”means Dr. Anton F. Haase becoming a Bad Leaver;  

	 	
“Earn-Out Condition(s)”has the meaning given to it in Clause 3.2 (Yearly Earn-Outs);  

	 	
“Earn-Out Consideration”means the maximum aggregate sum of Euro 270,000 (plus accrued
Interest), comprising up to five Yearly Earn-Outs and one Final Earn-Out Award and (save
where Clause 3.5 (Accelerated Payout) applies) subject always to the Earn-Out
Conditions being fulfilled;  

	 	
“Encumbrance”means any mortgage, charge, pledge, lien, restriction, assignment, hypothecation, security
interest, title retention or any other agreement or arrangement the effect of which is
the creation of security; or any other interest, equity or other right of any person
(including any right to acquire, option, right of first refusal or right of pre-emption);  

	 	
“Final Earn-Out Award”means the sum of Euro 45,000 plus accrued Interest, of which the
sum of Euro 40,500 (plus accrued Interest) shall be payable to Dr. Anton F.Haase and the
sum of Euro 4,500 (plus accrued Interest) shall be payable to Mrs. Silvia Haase, subject
always to the provisions of this Agreement;  

	 	
“Financial Year” means an accounting reference period as defined in the articles of
association of the Company;  

3 

	 	“Gross Profit” means
Turnover less Cost of Sales for the Relevant Earn-Out Period;  

	 	“Initial Consideration”
means the sum of Euro 255,800;  

	 	
“Intellectual Property” means all intellectual property, including patents, utility models,
trade and service marks, trade names, domain names, right in designs, copyrights, moral
rights, topography rights, rights in databases, trade secrets and know-how, in all cases
whether or not registered or registrable and including registrations and applications for
registration of any of these and rights to apply for the same and all rights and forms of
protection of a similar nature or having equivalent or similar effect to any of these
anywhere in the world;  

	 	
“Interest”means interest at the rate of 5% per annum payable in respect of each Yearly Earn-Out, accruing
(save in circumstances where Clause 3.4 applies) from the Completion Date to the date of
actual payment thereof, and calculated on the basis of a year of 365 days and for the
actual number of days elapsed and accruing from day to day;  

	 	
“Last Accounts” means the Accounts of the Company in respect of its Financial Year
ended on the Last Balance Sheet Date;  

	 	“Last Balance Sheet Date”
means 31 December 2006;  

	 	
“Losses”in respect of any matter, event or circumstance includes all losses, claims, demands,
actions, proceedings, damages and other payments, costs, expenses or other liabilities of
any kind;  

	 	
“MTS Products”means consumables, manual heat sealers, and accessories (namely bats,
labels and rollers) which form part of the Company’s existing product range (but
excluding for the avoidance of doubt machines), in each case supplied by MTS Medication
Technologies Inc. or any of its subsidiairies;  

	 	“Notary” means Professor Dr. Peter Sauberlich of Lober Sauberlich Wolf Rechtsanwalte,
Kaulbachstrasse 1, D-60594 Frankfurt am Main;  

	 	
“Poor Performance Dismissal”means Dr. Anton F. Haase being dismissed by the Company or
removed from the office of managing director following the Company’s failure, in any
two or more Financial Years ending after Completion, to meet the minimum turnover and/or
EBITDA targets set out in the annual financial and business plan of the Company approved
by the Purchaser for such Financial Year (save that, if all the Earn-Out Conditions in
respect of the two Relevant Earn-Out Periods immediately preceding such dismissal or
removal were satisfied, any such dismissal or removal shall not be a “Poor Performance
Dismissal” for the purposes of this Agreement);  

	 	
“Pre-Completion Tax Liability Amount”means the aggregate amount of all liabilities of the
Company (whether or not provision or reserve for such liabilities was made in the Last
Accounts) to make payment in respect of or on account of Tax, which are to be discharged
by the Company after 31 December 2006 but which arise from income, profits or gains
earned, accrued or received on or before the 31 December 2006 or any transaction, state
of affairs, act, omission or occurrence occurring on or before 31 December 2006;  

4 

	 	
“Purchase Price” means the purchase price specified in Clause 3 (Purchase Price);

	 	 “Purchaser's
Group” means MTS Medication Technologies Inc., the Purchaser, the Company and any
other subsidiary of MTS Medication Technologies Inc. from time to time;  

	 	
“Purchaser’s Lawyers” means Mayer, Brown, Rowe & Maw LLP (an English limited liability
partnership) whose registered office is at 11 Pilgrim Street, London EC4V 6RW;  

	 	
“Relevant Accounting Standard” means, in relation to any Accounts or Management Accounts,
German GAAP as required under the German Commercial Code;  

	 	
“Relevant Earn-Out Period”means, in respect of each Yearly Earn-Out, the 12-month period
ending on 31 December, with the first such period commencing on 1 January 2007 and ending
on 31 December 2007 and the last such period commencing on 1 January 2011 and ending on
31 December 2011;  

	 	
“Sellers’Lawyers” means
Knorr Rechtsanwälte AG (a German limited liability corporation), Frauenstrasse 11,
89073 Ulm, Germany;  

	 	
“Service Agreement”means the service agreement between the Company and Dr. Anton F. Haase
in the form annexed to deed 76/2007 of the Notary;  

	 	
“Shares” means all the shares (Geschäftsanteile) in the total share capital (Stammkapital)
of the Company, details of which are given in Schedule 1, Part 1 (Details of the
Company);  

	 	
“Tax”or “Taxation”means all forms of taxation and statutory, governmental, supra
governmental, state, local governmental or municipal impositions, duties, contributions,
deductions, withholdings and levies whenever imposed and all penalties, charges, costs
and interest relating to any of them;  

	 	
“Tax Authority” means any Tax or other authority, body or person competent to impose
any liability to Tax;  

	 	
“Trading Statement”means the statement of Turnover and Gross Profit for the Relevant
Earn-Out Period, which shall be drawn up in the form shown in Schedule 5, Part 2 and
otherwise prepared and agreed in accordance with Schedule 5, Part 1 (Determination
and confirmation of entitlement to Yearly Earn-Out);  

	 	
“Turnover”means,in respect of any 12-month period (including any Relevant Earn-Out Period), all invoiced
sales (less sales returns) of the MTS Products made during such period by the Purchaser’s
Group to customers within Germany, and/or by the Company to markets outside Germany
(provided that the making of sales to such markets was approved in advance by the
Purchaser, such approval not to be unreasonably withheld), together with all rental
income accruing during such period in respect of the leasing by the Purchaser’s
Group of MTS Products to customers within Germany and/or the leasing by the Company of
such products to such other approved markets, as agreed or certified in accordance with
Schedule 5 (Determination and confirmation of entitlement to Yearly Earn-Out);  

 5

	 	
“Warranties”means the warranties, representations and undertakings referred to in Clause 5 (Warranties
and representations) and set out in Schedule 3 (Warranties) given and made by
each of the Sellers in favour of the Purchaser;  

	 	
“Yearly Earn-Out”means the sum of Euro 45,000 (plus accrued Interest), of which the sum
of Euro 40,500 (plus accrued Interest) shall be payable to Dr. Anton F.Haase and the sum
of Euro 4,500 (plus accrued Interest) shall be payable to Mrs. Silvia Haase, subject to
the provisions of this Agreement;  

	 	
“Yearly Earn-Out Payment Date”means, in respect of each Yearly Earn-Out and the Final
Earn-Out Award, the date which is 21 days after the date when the accounts of the Company
for the applicable Relevant Earn-Out Period are signed by the Company Accountant and Tax
Consultant and, where such day is not a Business Day, the next Business Day, save that
where the draft Trading Statement is disputed by the Sellers, the Yearly Earn-Out Payment
Date shall be deferred until such time as the Trading Statement has been agreed or
certified in accordance with Schedule 5 (Determination and confirmation of entitlement
to Yearly Earn-Out).  

	 	1.2  	Contents
page and headings  

	 	
In this Agreement,the contents page and headings are included for convenience only
and shall not affect the interpretation or construction of this Agreement.  

	 	1.3  	Meaning
of references  

	 	
In this Agreement, unless the context requires otherwise, any reference to:  

	 	(a)  	this
Agreement includes the Background and Schedules, which form part of
this Agreementfor all purposes;  

	 	(b)  	the
Background is to the statements about the background to this
Agreementmade above, a Clause of or a Schedule is,
as the case may be, to a clause of or a schedule to this Agreement
and any reference in a Schedule to a Part or Paragraph  is
to a part or paragraph of that Schedule;  

	 	(c)  	a
company is to any company, corporation or other body corporate wherever
 and however incorporated or established;  

	 	(d)  	a
document is to that document as supplemented, otherwise amended,
replaced from time to time;  

	 	(e)  	any
English statutory provision or English legal term for any
action, remedy, method of judicial proceeding, document, legal
status, court, official or any other legal concept or thing shall in
respect of any jurisdiction other than England be deemed to include
what most nearly approximates in that jurisdiction to the English
statutory provision or English legal term;  

6 

	 	(f)  	the
masculine, feminine or neuter gender respectively includes the other
 genders and any reference to the singular includes the plural (and
vice versa);  

	 	(g)  	including means
“including without limitation” (with related                     words being
construed accordingly), in particular means “in
 particular but without limitation” and other general words shall
not  be given a restrictive interpretation by reason of their being
preceded or followed by words indicating a particular class of acts,
matters or things;  

	 	(h)  	a
party or the parties is to a party or the parties (as the case
may be) to this Agreement and shall include any permitted assignees
of aparty;  

	 	(i)  	a
person includes any individual, firm, company, corporation, government,
state or agency of state or any association, trust or partnership
(whether or not having a separate legal personality);  

	 	(j)  	a
person includes a reference to that person’s legal personal
representatives and successors;  

	 	(k)  	a
statute or statutory provision includes any consolidation,
re-enactment, modification or replacement of the same, any statute or
statutory provision of which it is a consolidation, re-enactment,
modification or replacement and any subordinate legislation in force
under any of the same from time to time except to the extent that any
consolidation, re-enactment, modification or replacement enacted
after the date of this Agreement would extend or increase the
liability of any party to another under this Agreement; and  

	 	(l)  	writing shall
include any modes of reproducing words in a legible and
non-transitory form.  

	 	1.4  	Companies
Act definitions  

	 	
Unless the context requires otherwise, any words and expressions defined in the Companies Act
and not defined in this Agreement shall have the meanings given to them in that Act.  

	 	1.5  	Joint
and several liability  

	 	
Where in this Agreement any liability, obligation, duty or undertaking is owed or given by the
Sellers the liability of each of them shall be joint and several.  

	2.  	AGREEMENT
TO SELL AND PURCHASE AND ASSIGNMENT  

	 	2.1  	Sale
and purchase   Each of the Sellers (relying on the assurances and obligations
of the Purchaser under this Agreement) shall sell and the Purchaser(relying on the
Warranties and the other obligations of the Sellers under this Agreement) shall purchase
the Shares (including the entire legal and beneficial ownership thereof) set opposite the
respective names of the Sellersin Schedule 1, Part 2 (The Sellers)
together with all rights now and after the date of this Agreement attaching to them.  

 7

	 	2.2  	Transfer
and assignment  

	 	(a)  	Subject
to and conditional on the terms of this Agreement, each of the Sellers
hereby transfers and assigns to the Purchaser, and the Purchaser
accepts the transfer and assignment to it of, the Shares set opposite
the respective names of the Sellers in Schedule 1, Part 2 (The
Sellers) together with all rights now and after the date of this
Agreement attaching to them.  

	 	(b)  	The
transfer and assignment of the Shares pursuant to this Clause 2.2 (Transfer
and assignment) shall become effective, and ownership in the
Shares shall pass from the Sellers to the Purchaser, immediately upon
the fulfilment by the Sellers and the Purchasers of their respective
obligations in Schedule 2 (Completion Arrangements).  

	 	(c)  	Dr.
Anton F. Haase, in his capacity as Director, acknowledges that, pursuant to
section 16 of the Companies Act, he is hereby notified of the
transfer and assignment of the Shares subject to and conditional on
the terms of this Agreement, and acknowledges receipt of such
notification on behalf of the Company.  

	 	2.3  	Rights
accruing to Shares  

	 	
The Purchasershall be entitled to exercise all rights attached or accruing to the
Sharesincluding, without limitation, the right to receive all dividends,
distributions or any return of capital declared, paid or made by the Companyon or
after Completion.  

	 	2.4  	Sellers’ covenant  

	 	
The Sellers covenant that: 

	 	(a)  	each
of them has full power and the right under all applicable laws (including
the laws of Germany) to transfer the legal and beneficial title to
the Sharesset opposite their respective names in Schedule 1, Part 2, Column 2
(Number of Shares beneficially owned);  

	 	(b)  	the
Sharesshall on Completion be free from all Encumbrances and from all
other rights exercisable by third parties; and  

	 	(c)  	each
of them will at Completion execute, at the Purchaser’s cost and
expense, such documents as the Purchaser considers necessary to
secure to the Purchaserthe rights attaching to the Shares.  

	 	2.5  	Completion
simultaneous  

	 	
The Purchasershall not be obliged to complete the purchase of or accept the assignment
of any of the Sharesunless the sale, transfer and assignment of all the Sharesis
completed simultaneously. The Sellers shall not be obliged to complete the sale of or
effect the assignment of the Shares unless and until the purchase and acceptance of the
assignment of all the Shares is completed simultaneously and the monies deposited by the
Purchaser with the Notary are released to the Sellers’ bank account in accordance
with Schedule 2, paragraph 3 (Completion Arrangements).  

 8

	 	2.6  	Waiver
of pre-emption rights 

	 	
Each of the Sellers hereby consents to the sale, transfer and assignment of the Shares to the
Purchaser and irrevocably waives and shall procure the waiver of all rights of
pre-emption over or other rights to restrict the transfer of the Shares conferred either
by the articles of association of the Company(including the rights conferred by
section 18, paragraph 2 and section 19 thereof) or in any other way.  

	3.  	PURCHASE
PRICE

	 	3.1  	Purchase
Price  

	 	
The total price for the Shares(the “Purchase Price”) shall be the
aggregate of:  

	 	(a)  	the
Initial Consideration; and  

	 	(b) 	(subject
to Clauses 3.2 and 3.3) the Earn-Out Consideration,  

	 	
and shall be apportioned between the Sellers in proportion to their respective shareholdings
in the Company, as set out in Schedule 1, Part 2 (The Sellers).  

	 	3.2  	Yearly
Earn-Outs  

	 	
The
Sellers’ right to receive a Yearly Earn-Out (such amount being part of the Purchase
Price and forming part of the Earn-Out Consideration pursuant to Clause 3.1(b)) shall be
subject to and conditional upon the following:  

	 	(a)  	Turnover
for the Relevant Earn-Out Period being at least 15% higher than
Turnover for the 12-month period preceding such Relevant Earn-Out
Period;  

	 	(b)  	Average
Gross Margin for the Relevant Earn-Out Period being at least 40%; and  

	 	(c)  	there
not having occurred a Disqualifying Event prior to the relevant Yearly
Earn-Out Payment Date,  

	 	
(each an “Earn-Out Condition”and together the “Earn-Out Conditions”).  

	 	3.3  	Final
Earn-Out Award  

	 	
The Sellers’ right to receive the Final Earn-Out Award after the expiry of the final
Relevant Earn-Out Period (such amount being part of the Purchase Price and forming part
of the Earn-Out Consideration pursuant to Clause 3.1(b)) shall be subject to and
conditional upon the following:  

	 	(a)  	Turnover
for the final Relevant Earn-Out Period (ending on 31 December 2011)
being no less than Euro 1,372,000;  

	 	(b)  	the
average of the Average Gross Margin for the five Relevant Earn-Out Periods
ending on 31 December 2007, 2008, 2009, 2010 and 2011 being at least
40%; and  

9 

	 	(c)  	there
not having occurred a Disqualifying Event prior to the relevant Yearly
Earn-Out Payment Date,  

	 	
and, if these conditions are satisfied, the Final Earn-Out Award shall be paid in addition to
any Yearly Earn-Out(s) to which the Sellers may have become entitled.  

	 	3.4  	If
any Earn-Out Condition not fulfilled in a Relevant Earn-Out Period  

	 	
If an Earn-Out Condition is not fulfilled in relation to any Yearly Earn-Out then, in
respect of the next Relevant Earn-Out Period (up until the period ending on 31 December
2011):  

	 	(a)  	(for
the avoidance of doubt) the Sellers shall remain entitled to receive a
Yearly Earn-Out provided that the Earn-Out Conditions in respect
thereof are fulfilled;  

	 	(b)  	the
Sellers shall, in addition to their receipt of a Yearly Earn-Out for such
period, be entitled to receive any Yearly Earn-Outs not previously
paid, if Turnover and Gross Profit for such period, when aggregated
with Turnover and Gross Profit for any previous periods in respect of
which a Yearly Earn-Out was not paid, would show that there had, on
average, been an annual increase on Turnover of at least 15% over the
whole period and that Average Gross Margin for the whole such period
was at least 40%; and  

	 	(c)  	Interest
on any Yearly Earn-Out which had not previously been paid shall be
calculated from the Completion Date until the relevant Yearly
Earn-Out Payment Date on which such Yearly Earn-Out would first have
been paid had the Earn-Out Conditions for the applicable Relevant
Earn-Out Period originally been fulfilled, and (for the avoidance of
doubt) Interest shall cease to accrue on that amount after such date.  

	 	3.5  	Accelerated
Payout  

	 	
If Dr. Anton F. Haase ceases to be a managing director of the Company at any time prior to
31 December 2011 then, provided that no Disqualifying Event or Poor Performance Dismissal
has occurred, the Earn-Out Conditions shall no longer be valid and all outstanding
Earn-Out Consideration (plus accrued Interest) shall immediately become payable, with
payment thereof falling due 10 Business Days after the date on which Dr. Anton F. Haase
shall have ceased to be a managing director.  

	 	3.6  	Payment
of Purchase Price  

	 	
The Purchase Price shall be satisfied: 

	 	(a)  	in
respect of the Initial Consideration, by the payment in cash of the amount of
Euro 255,800 to the Sellers at Completion in accordance with Schedule
2, Paragraph 3 (Purchaser’s obligations at Completion);
and  

	 	(b)  	in
respect of any Earn-Out Consideration, by the payment in cash of each Yearly
Earn-Out (and/or, as the case may be, the Final Earn-Out Award) (plus
accrued Interest) to the Sellers on the relevant Yearly Earn-Out
Payment Date by way of electronic transfer to such bank account(s) as
the Sellers shall notify to the Purchaser five Business Days in
advance of the payment date, subject to any set-off or withholding
which may be made in accordance with this Agreement.  

 10

	 	3.7  	Authorisation
of release of funds  

	 	
The authorisation by the Notary of the release of the monies deposited by the Purchaserwith
the Notary pursuant to this Agreement shall be accepted by the Sellers as a full and
complete discharge of the Purchaser’s obligations regarding the payment and transfer
of such monies under Clause 3.6(a), and the Purchasershall not be concerned with
the basis upon which those monies are distributed between the Sellers.  

	 	3.8  	Payment
or set-off pursuant to claim  

	 	
If any payment is made by a Seller to the Purchaser, or any amounts set off against the
Yearly Earn-Outs, pursuant to a claim by the Purchaser for any breach of this Agreement
or the Warranties or indemnities under this Agreement, the payment or set-off shall so
far as possible be made by way of reduction of the consideration paid for the Shares and
that consideration shall accordingly be deemed to have been reduced by the amount of that
payment or set-off.  

	4.  	COMPLETION  

	 	4.1  	Completion  

	 	
Completion shall take place at the Frankfurt office of Purchaser's Lawyers as soon as
the requirements of Schedule 2 (Completion arrangements) have been complied with.  

	 	4.2  	Completion
arrangements 

	 	
Upon execution of this Agreementthe Sellers and the Purchasershall do those
things listed in Schedule 2 (Completion arrangements).  

	 	4.3  	Purchaser
and Sellers not obliged to complete 

	 	
The Purchaserand the Sellers shall not be obliged to complete this Agreementunless
the Purchaser and each Seller comply with the requirements of Schedule 2 (Completion
arrangements).  

	 	4.4  	Purchaser’s
rights 

	 	
If the provisions of Schedule 2, Paragraphs 1 (Sellers’ obligation to deliver)
and 2 (Meeting of the shareholders of the Company) are not complied with at
or immediately after the execution of this Agreement, the Purchasermay in addition
to and without prejudice to all its other rights and remedies:  

	 	(a)  	defer
Completion to a date not more than twenty eight days after the date hereof
(so that the provisions of this clause shall apply to Completion as
so deferred);  

 11

	 	(b)  	proceed
to Completionso far as practicable (without limiting its rights
under this Agreement);  

	 	(c)  	rescind
this Agreementwithout liability on its part to the Sellers; or  

	 	(d)  	waive
all or any of the obligations of the Sellers.  

	5.  	WARRANTIES
AND REPRESENTATIONS

	 	5.1  	Warranties
accurate  

	 	
The Sellers warrant, represent and undertake to the Purchaser that each of the Warranties is
at the date of this Agreement in all respects accurate and not misleading and acknowledge
that they have given the Warranties with the intention of inducing the Purchaser to enter
into this Agreement and that the Purchaser has entered into this Agreement in reliance on
the Warranties.  

	 	5.2  	Limitations
on claims 

	 	
The Warrantiesare subject to the matters set out in Schedule 4 (Limitations on
claims).  

	 	5.3  	Rights
not affected by Completion or investigation  

	 	
The Sellers agree that the rights and remedies of the Purchaser in relation to any of the
Warrantiesshall not be affected or limited by:  

	 	(a)  	Completion;  

	 	(b)  	any
information or disclosures of which the Purchaser has or after the date of
                    this Agreement acquires knowledge whether actual, imputed or
constructive, save                     as Disclosed;  

	 	(c)  	the
Purchaser terminating or rescinding or failing to terminate or rescind this
                    Agreement; or  

	 	(d)  	any
other event or matter whatsoever except only by, and to the extent of, a
                    specific and duly authorised written waiver or release by the
Purchaser.  

	 	5.4  	Warranties
separate and independent  

	 	
The
Sellers agree that each of the Warranties is separate from and independent of any other
warranty or representation and (except as expressly set out in Schedule 4 (Limitations
on claims)) shall not be limited by any other provision of this Agreement.  

	 	5.5  	Compensation
for breach of Warranties  

	 	
Without restricting the rights of the Purchaser or the ability of the Purchaser to claim damages
on any basis available to it in the event of any breach or non-fulfilment of any of the
Warranties, the Sellers undertake with the Purchaser for itself and as trustee for the
Company that the Sellers will, on demand, pay to the Purchaser an amount equal to any
amount necessary to put the Company into the position which would have existed if the
Warranties had not been misleading or breached together with all Losses suffered or
incurred by the Company as a result of the breach.  

 12

	 	5.6  	Warranties
remain despite Completion  

	 	
The Sellers acknowledge that the Purchaser has entered into this Agreement upon the basis of
the Warranties and accordingly the Warranties together with any other provisions of this
Agreement which shall not have been fully performed at Completion shall remain in force
despite Completion having taken place.  

	 	5.7  	When
limitations on claims not applicable  

	 	
The limitations contained in Schedule 4 (Limitations on claims) shall not apply to any
claim which arises as the consequence of, or is delayed as a result of, fraud, wilful
misconduct or deliberate or wilful concealment by the Sellers.  

	 	5.8  	Liability
may be released without affecting Purchaser's rights  

	 	
Any
liability of the Sellers to the Purchaser and/or to the Company and/or any right of the
Purchaser under this Agreement may, in whole or in part, be released, compounded or
compromised or time or indulgence may be given by the Purchaser in respect of it without
in any way prejudicing or affecting its rights against the Sellers in respect of any
other liability of the Sellers or right of the Purchaser or the Company.  

	 	5.9  	Meaning
of “so far as the Sellers are aware”  

	 	
If any of the Warranties are expressed to be given “so far as the Sellers are aware” or
“to the best of the knowledge information and belief of the Sellers”, or words
to that effect each Seller shall be deemed to have knowledge of all facts, matters and
circumstances which would or ought to have been known to him had he used all reasonable
efforts to take full and diligent research, investigation, enquiry and advice of all
reasonably required sources of relevant information and advice, and the knowledge of any
one of the Sellers shall be imputed to each of the other.  

	6.  	INDEMNITIES

	 	6.1  	Completion
Liquid Assets  

	 	(a)  	The
Sellers covenant to pay to the Purchaser on demand a sum equal to the amount
by which the value of the December Liquid Assets fell short of the
aggregate of (i) Euro 30,000 and (ii) the Pre-Completion Tax
Liability Amount.  

	 	(b)  	For
the purposes of determining the value of the stock comprising part of the
December Liquid Assets, Dr. Anton F. Haase and a representative of
the Purchaser shall undertake a physical stocktake together with a
review of the Company’s order book and accounting records at the
Company’s premises on the Completion Date or as soon as
practicable thereafter.  

	 	(c)  	The
Sellers warrant, represent and undertake to the Purchaser that no
distributions or dividend payments have been made to them by the
Company between 31 December 2006 and the Completion Date and, to the
extent that any such distributions have been made, the Sellers shall
account to the Purchaser for the same.  

 13

	 	6.2  	Completion
Liabilities  

	 	
The Sellers covenant to pay to the Purchaser on demand a sum equal to the amount by which the
Completion Liabilities exceed Euro 0.  

	 	6.3  	Bad
debts  

	 	
The Sellers covenant to pay to the Purchaser on demand a sum equal to the aggregate amount of
any debts or amounts comprising the December Receivables which are not recovered by the
Company by 1 July 2007.  

	7.  	CONFIDENTIALITY
AND ANNOUNCEMENTS

	 	7.1  	Confidentiality  

	 	(a)  	Subject
to Clause 7.2, each party shall treat as strictly confidential:  

	 	(i)  	the
existence and provisions of this Agreement and of any document or agreement
entered into pursuant to this Agreement; and  

	 	(ii)  	all
information received or obtained as a result of entering into or performing
 this Agreement which relates to the other parties or the business,
financial or  other affairs of the other parties.  

	 	(b)  	Subject
to Clause 7.2, the Sellers shall also treat as strictly
 confidential all information received or obtained by them regarding
the Company.  

	 	7.2  	Exceptions  

	 	
Either party may disclose information referred to in Clause 7.1 (including by way of press or
public announcement or the issue of a circular) which would otherwise be confidential if
and to the extent that the disclosure is:  

	 	(a)  	approved
by the other parties in writing in advance, that approval not to be
 unreasonably withheld or delayed;  

	 	(b)  	required
by the law of any relevant jurisdiction or by a court of competent
 jurisdiction;  

	 	(c)  	lawfully
required by any securities or investment exchange or regulatory or
governmental body to which a party is subjecto or reasonably submits,
wherever situated, whether or not the requirement for disclosure has
the force of law;  

	 	(d)  	required
to vest in that party the full benefit of this Agreement;  

	 	(e)  	made
to the professional advisers, auditors or bankers of that party;  

 14

	 	(f)  	made
to the officers or employees of that party who need to know the information
for the purposes of the transactions effected or contemplated by this
Agreement;  

	 	(g)  	of
information that has already come into the public domain through no fault of
that party; or  

	 	(h)  	of
information of the kind referred to in Clause 7.1(a)(ii) which is already
lawfully in the possession of that party as evidenced by its or its
professional advisers’ written records and which was not
acquired directly or indirectly from the other party to whom it
relates.  

	 	7.3  	No
limit in time  

	 	
The restrictions contained in this clause shall continue to apply after the rescission or
termination of this Agreement and, following Completion, shall continue to apply without
limit in time.  

	 	7.4  	Notices
to customers etc.  

	 	
Nothing in this Agreement will prohibit the Purchaser from making or sending after Completion any
announcement to a customer, client or supplier of the Company informing it that the
Purchaser has purchased the Shares. In the interest of the ongoing business activities of
the Company, any such announcement shall be agreed with Dr. Anton F. Haase prior to
distribution, such agreement not to be unreasonably withheld or delayed.  

	8.  	COSTS  

	 	
Except to the extent this Agreement provides otherwise, each party shall be responsible for all
the costs, charges and expenses incurred by it in connection with and incidental to the
negotiation, preparation and completion of this Agreement, the other documents referred
to in this Agreementand the sale and purchase under this Agreement. The
notarisation costs of this Agreement, the Service Agreement and any ancillary documents
together with the fees for any filings with the commercial register in connection with
this transaction, the Notary’s fees for the deposit of monies in the escrow account
and any other related fees (but excluding for the avoidance of doubt the fees of the
Sellers’Lawyers in connection with this transaction) shall be borne by the
Purchaser.  

	9.  	ENTIRE
AGREEMENT  

	 	
Subject
to any terms implied by law, this Agreement represents the whole and only agreement
between the parties in relation to the sale and purchase of the Sharesand
supersedes any previous agreement (whether written or oral) between any of the parties in
relation to that subject matter.  

	10.  	CONTINUING
EFFECT  

	 	
Each provision of this Agreementshall continue in full force and effect after
Completion, except to the extent that any provision has been fully performed on or before
Completion.  

15 

	11.  	INVALIDITY

	 	11.1  	If
all or any part of any provision of this Agreement shall be or become illegal, invalid or
unenforceable in any respect under the law of any jurisdiction that shall not affect or
impair:  

	 	(a)  	the
legality, validity or enforceability in that jurisdiction of the remainder
of that provision and/or all other provisions of this Agreement; or  

	 	(b)  	the
legality, validity or enforceability under the law of any other jurisdiction
of that provision and/or all other provisions of this Agreement.  

	 	11.2  	If
any clause or provision of this Agreement is found to be illegal, invalid or
unenforceable in whole or in part for any reason, it shall (whenever allowed by the
context) be deemed to be replaced by such valid and enforceable clause or provision whose
contents are as close as permissible to those of the illegal, invalid or unenforceable
clause or provision.  

	12.  	AMENDMENTS,
WAIVERS AND RIGHTS

	 	12.1  	Amendments  

	 	
No amendment or variation of the terms of this Agreement shall be effective unless it is
made or confirmed in a written document signed by each party to the relevant document
and/or where required under the applicable law, notarised.  

	 	12.2  	Waivers  

	 	
No delay in exercising or non-exercise by a party of any right, power or remedy provided by
law or under this Agreementor any other document referred to in it shall impair,
or otherwise operate as a waiver or release of, that right, power or remedy. Any waiver
or release must be specifically granted in writing signed by the party granting it.  

	 	
Any single or partial exercise of any right, power or remedy provided by law or under this
Agreement shall not preclude any other or further exercise of it or the exercise of any
other right, power or remedy.  

	 	12.3  	Rights
and remedies exclusive 

	 	
The rights, powers and remedies of each party under this Agreementare cumulative and
not exclusive of any rights or remedies of that party under the general law. Each party
may exercise each of its rights, powers and remedies as often as it shall think
necessary.  

	13.  	FURTHER
ASSURANCE  

	 	
Without prejudice to Clause 2.4(c) (Sellers’ covenant), the Sellers shall from time
to time at the Purchaser’s cost do, perform, sign, execute and deliver all such
acts, deeds, documents and things (or procure the doing, performance, signing, execution
or delivery of them) as the Purchaser shall from time to time reasonably require, in a
form and in terms reasonably satisfactory to the Purchaser, to give full effect to this
Agreement and to secure to the Purchaser the full benefit of the rights, powers and
remedies conferred upon the Purchaser in this Agreement.  

 16

	14.  	PAYMENTS

	 	14.1  	Payments
by the Sellers to be made without set-off or withholding  

	 	
All payments to be made by the Sellers under this Agreement, shall be made in full without
any set-off or counterclaim and free from any deduction or withholding save as may be
required by law in which event the deduction or withholding will not exceed the minimum
amount which they are required by law to deduct or withhold and the Sellers will
simultaneously pay to the Purchaser such additional amounts as will result in the receipt
by the Purchaser of a net amount equal to the full amount which would otherwise have been
receivable had no deduction or withholding been required.  

	 	14.2  	Grossing
up  

	 	
If any amount payable to the Purchaser by the Sellers for or in connection with any breach
of any of the Warranties (whether under Clause 5 (Warranties and representations)
or otherwise) or otherwise pursuant to this Agreement is subject to Tax, that amount
shall be paid so as to ensure that the net amount retained by the Purchaser after taking
the Tax into account is equal to the full amount which would have been retained by the
Purchaser but for the Tax.  

	 	14.3  	Set-off  

	 	
The Purchaser shall be entitled to set off against the Yearly Earn-Outs any amounts due to
the Purchaser from the Sellers in respect of any claim for breach of Warranty, indemnity
or any other provision under this Agreement .  

	 	15.  	ASSIGNMENT  

	 	
This Agreementshall be binding on and enure for the benefit of the successors in title
of the parties. No party may assign this Agreement in whole or in part to any person
without the prior written consent of the other party save that the Purchaser may assign
the benefits and transfer its obligations under this Agreement, in whole or in part, to
another member of the Purchaser’s Group, subject to (in the case of a transfer of
obligations) MTS Medication Technologies Inc. accepting in writing joint responsibility
for any transferred obligations of the Purchaser. Any assignee of the Purchaser shall be
entitled to enforce the same against the Sellers as if it were named in the Agreement as
the Purchaser and without reference to the price paid or value given by that person for
the relevant assets.  

	16.  	NOTICES

	 	16.1  	Form
of notices  

	 	
All communications relating to this Agreement shall be in writing and delivered by hand or
sent by post or facsimilie to the party concerned at the relevant address shown at the
start of this Agreement(or such other address as may be notified from time to time
in accordance with this clause by the relevant party to the other parties).  

17 

	 	16.2  	When
notices take effect  

	 	
Each of the communications referred to in Clause 16.1 shall take effect:  

	 	(a)  	if
delivered, upon delivery;  

	 	(b)  	if
posted, at the earlier of delivery and, if sent by first class registered
post, 10.00 a.m. on the second Business Day after posting; and  

	 	(c)  	if
sent by facsimile, when a complete and legible copy of the relevant
communication, whether that sent by facsimile or a hard copy sent by
post or delivered by hand, has been received at the appropriate
address.  

	17.  	THIRD
PARTY RIGHTS  

	 	
The parties do not intend any term of this Agreement to be enforceable pursuant to the
Contracts (Rights of Third Parties) Act 1999.  

	18.  	GOVERNING
LAW AND JURISDICTION  

	 	18.1  	Governing
law  

	 	(a)  	Clause
2.2 (Transfer and assignment), 2.3 (Rights accruing to
Shares) and 2.6 (Waiver of pre-emption rights) shall be
governed by and construed in accordance with German law.  

	 	(b)  	Save
for Clause 2.2 (Transfer and assignment), 2.3 (Rights accruing to
Shares) and 2.6 (Waiver of pre-emption rights), all other
provisions of this Agreementshall be governed by and construed
in accordance with English law.  

	 	18.2  	Jurisdiction  

	 	
The parties irrevocably agree that the English courts shall have non-exclusive jurisdiction
to settle any dispute which may arise under or in connection with this Agreement or the
legal relationships established by this Agreement.  

	 	EXECUTION:  	 

	 	
The
parties have shown their acceptance of the terms of this Agreementby executing it
after the Schedules.  

 18

SCHEDULE 1 

KEY INFORMATION 

Part 1
Details of the Company 

	Name	:	CDH Consilio GmbH
	 	 	 
	Date of incorporation	:	19-Jul-01
	 	 	 
	Place of incorporation	:	Commercial register of the local court of Darmstadt
	 	 	 
	Company number	:	HRB 8243
	 	 	 
	Seat	:	Mühltal, Germany
	 	 	 
	Managing director	:	Dr. Anton F. Haase (born 10 September 1953)
 64367 Mühltal, Germany
	 	 	 
	Share capital	:	Euro 30,000
	 	 	 
	Members	:	Dr. Anton F. Haase
Mrs. Silvia Haase
	 	 	 
	Accounting reference date	:	31 December
	 	 	 
	Company Accountant and Tax Consultant	:	Dr. Bernd Flechsenhar, Stiftstrasse 10, 64287 Darmstadt
	 	 	 
	Tax residence	:	Germany
	 	 	 
	VAT registration no	:	07 230 03832 (Germany)
DE 215919382 (International)
	 	 	 
	Business activities	:	Distribution of blister packaging material

19 

Part 2 

The Sellers 

	(1)	(2)	(3)	(4)	(5)
	
	
	
	
	

	The Sellers 
(Full name and address) 	Number of Shares
 beneficially owned 	Percentage Shareholding 	Amount of Initial
 Consideration payable 	Maximum amount of Earn-Out Consideration payable 
	
	
	
	
	

	Dr. Anton F. Haase	2 shares of Euro 12,600 and 
Euro 14,400 respectively	90%	Euro 230,220	Euro 243,000
	
	
	
	
	

	Mrs. Silvia Haase	1 share of Euro 3,000	10%	Euro 25,580	Euro 27,000

20 

SCHEDULE 2 

COMPLETION ARRANGEMENTS 

	1.  	SELLERS’OBLIGATIONS
TO DELIVER  

	 	
The Sellers shall deliver to the Purchaser:  

	 	(a)  	an
extract from the commercial register for the Company certified no less than
three to five Business Days prior to the Completion Date and copies
of any shareholders’ resolutions dated between 1 December 2006
and the Completion Date which form part of the statutory books of the
Company and which are required to be kept by it in accordance with
section 238 of the German Commercial Code; and  

	 	(b)  	a
Service Agreement, to be entered into on the Completion Date by the Company
 and Dr. Anton F. Haase, duly executed by Dr. Anton F. Haase.  

	2.  	MEETING
OF THE SHAREHOLDERS OF THE COMPANY

	 	
The Sellers shall cause to be duly held a meeting of the shareholders of the Company to
approve the transfer of the Shares to the Purchaser pursuant to this Agreement, and to
supply, subject to Completion, duly signed minutes of such meeting to the Purchaser.  

	3.  	PURCHASER’S
OBLIGATIONS AT COMPLETION 

	 	
The  Purchaser  has  deposited  the  aggregate  sum of Euro 255,800 (being theaggregate of
the Initial Consideration) at the escrow account of the Notary at Bankhaus Lampe KG
BLZ:480 201 51, Account No.19 5068 460, SWIFT: LAMPDEDDXXX, IBAN DE57480201510195068460.
The Notary shall, upon being satisfied that the requirements of Paragraphs 1 (Sellers’ obligations
to deliver) and 2 (Meeting of the shareholders of the Company) have been
satisfied,authorise the release of, and immediately transfer, the whole of the
deposited sum by way of electronic transfer for same day value to the bank account of the
Sellers at Deutsche Bank PGK AG, BLZ: 500 700 24, Account No: 210 3398 00; SWIFT:
DEUTDEDBFRA, IBAN DE12500700240210339800 (in respect of which, such transfer or payment
shall constitute a valid discharge of the Purchaser’s obligation to make that
payment to the Sellers in the appropriate proportions).  

	4.  	MEETING
OF THE NEW SHAREHOLDER OF THE COMPANY AFTER COMPLETION 

	 	
The Purchaser shall cause to duly held, immediately after Completion, a shareholder’s
meeting of the Company at which there shall be passed the following resolutions:  

	 	(a) 	the
approval and adoption of amended articles of association of the Company;  

	 	(b) 	the
appointment of David Teasdale as an additional managing director of the Company; and  

	 	(c) 	the
approval of the Company’s entry into the Service Agreement, and
shall procure that the Service Agreement is executed on behalf of the Purchaser
immediately after the passing of such resolutions. 

21 

SCHEDULE 3 

WARRANTIES 

	1.  	CORPORATE
MATTERS 

	 	1.1  	Particulars
of the Company  

	 	
The particulars of the Company given in Schedule 1 (Key Information) are true,
complete, accurate and not misleading.  

	 	1.2  	Constitution
of the Company 

	 	
The Company is duly organised and validly exists under the laws of Germany and has all
requisite corporate powers and authority to conduct the business being carried on by it.  

	 	1.3  	Shares
free from Encumbrances 

	 	
The Shares are free from and unaffected by any Encumbrance.  

	 	1.4  	Entire
issued share capital 

	 	
The Shares constitute the entire share capital of the Company and are fully paid and have not
been repaid.  

	 	1.5  	Options 

	 	
There are in existence no rights or options to the issue, allotment or transfer of any loan or
share capital of the Company.  

	 	1.6  	Statutory
books 

	 	
The register of members and all other statutory books of the Company are in its possession
have been properly kept and contain a true, accurate and complete record of all matters
with which they should deal.  

	 	1.7  	No
interest in other companies/company not a subsidiary 

	 	
The Company is not and has not agreed to become a subsidiary of any other company and does
not have any subsidiary and the Company is not the legal or beneficial owner of any
shares of any other company.  

	 	1.8  	Articles
of association 

	 	
The copies of the articles of association of the Company which have been supplied to the
Purchaser or the Purchasers’ Lawyers are complete, accurate and up to date.  

	2.  	ACCOUNTING
AND RECORDS 

	 	2.1  	General 

	 	
All the accounts, ledgers and other financial records of the Company required to be kept by
law have been properly and accurately kept.  

 22

	 	2.2  	Last
Accounts 

	 	
The Last Accounts: 

	 	(a)  	comply
with the requirements of the Companies Act, all other relevant statutes and all
Relevant Accounting Standards and in all other respects have been prepared in
accordance with generally accepted accounting practices in the Germany;  

	 	(b)  	have
been prepared in a manner fully consistent with that used in preparing the
accounts for the three completed Financial Years before the Last Balance Sheet
Date, which is a manner generally accepted in the Germany for companies
carrying on a similar business to that of the Company;  

	 	(c)  	give
a true and fair view of the assets, liabilities and financial affairs generally
of the Company as at the Last Balance Sheet Date and of the trading record, the
profit or loss and the cash flow of the Company in respect of the financial
period for which they were prepared; and  

	 	(d)  	as
at the Last Balance Sheet Date make:  

	 	(i)  	full
provision for all known liabilities (including unquantified liabilities);  

	 	(ii)  	full
disclosure of and proper provision for (or note in accordance with all Relevant
Accounting Standards and generally accepted accounting practices in the
 Germany) all capital commitments and all deferred or contingent liabilities
 (including Taxation of the Company); and  

	 	(iii)  	full
provision for all doubtful debts and all bad debts have been written off.  

	 	2.3  	Stock
and work-in-progress 

	 	
Stock and work-in-progress were included in the Last Accounts at the lower of cost and net
realisable value.  

	 	2.4  	Accounts 

	 	
Without
limiting the generality of Paragraph 2.2, the Accounts for each of the last three
financial periods ended on the Last Balance Sheet Date:  

	 	(a)  	comply
with all the requirements of the Companies Act, all other relevant
statutes and all Relevant Accounting Standards and in all other
respects have been prepared in accordance with generally accepted
accounting practices in the Germany;  

	 	(b)  	are
not affected by any extraordinary, exceptional or non-recurring item, by
inconsistencies of accounting practices, by transactions entered into
otherwise than on normal commercial terms or by any factors rendering
the profit or loss of the Company exceptionally high or low;  

23 

	 	(c)  	were
prepared under the historical cost convention and no changes in the
policies of accounting have been made to those Accounts.  

	3.  	CURRENT
FINANCIAL AFFAIRS

	 	3.1  	Capital
commitments at and since the Last Balance Sheet Date 

	 	
As at the Last Balance Sheet Date, the Company had no outstanding commitments on capital
account and has not since that date incurred or contracted to incur any capital
commitments or disposed of or contracted to dispose of any capital asset or assets.  

	 	3.2  	Financial
affairs since Last Balance Sheet Date 

	 	
Since the Last Balance Sheet Date there has been no adverse change in the trading performance,
turnover or financial position or prospects of the Company.  

	 	3.3  	Guarantees 

	 	
There is not now outstanding in respect of the Company any guarantee or agreement for indemnity
or for suretyship either given by or for the benefit of the Company.  

	 	3.4  	Borrowings 

	 	
The Company has no borrowings or indebtedness having the commercial effect of borrowings.  

	 	3.5  	Bank
accounts 

	 	
Full details of each bank account of the Company are disclosed to the Purchaser together with
a statement of the credit and debit balances of these accounts as at the close of
business on the Business Day before the Completion Date together with a list of
outstanding debtors of the Company.  

	 	3.6  	Working
capital 

	 	
The Company has sufficient working capital for the purpose of continuing to carry on business
in its present form at its present level of turnover for the period of 12 months
following Completion and for the purpose of carrying out and satisfying all subsisting
obligations undertaken by it.  

	4.  	CURRENT
TRADING AFFAIRS 

	 	4.1  	Trading
affairs since the Last Balance Sheet Date 

	 	
Since the Last Balance Sheet Date: 

	 	(a)  	the
 view to maintaining the same as a going concern;  

	 	(b)  	the
Company has not disposed of any assets or assumed or incurred any
liabilities (including contingent liabilities) or made any payment
other than in the ordinary course of its business and (in the case of
disposals of assets) for full value received in money or money’s
worth;  

24

	 	(c)  	the
Company has not made any unusual augmentation or diminution in stock; and  

	 	(d)  	the
Company has not passed any resolution at a shareholders’ meeting save
for the resolution to be passed at the shareholders’ meeting at
Completion, as provided under Schedule 2, paragraph 2 (Meeting of
the Shareholders of the Company).  

	 	4.2  	No
loss of substantial customer or supplier 

	 	
Nosubstantial customer or supplier of the Company (that is to say a supplier or customer
whose supplies to or purchases from the Company of goods have represented more than Euro
20,000 in value over any given period of 12 months) has, during the period of 12 months
prior to this Agreement, ceased to trade with, or substantially reduced the volume of its
trade with, the Company. The Sellers are not aware that any cessation or substantial
reduction in trade as described above is likely after Completion.  

	 	4.3  	Debts
since the Last Balance Sheet Date 

	 	
All debts owing to the Company which are outstanding at Completion will be recoverable in
full in the ordinary course of business and in any event within 90 days of the Completion
Date.  

	 	4.4  	Compliance
with laws 

	 	   	The Company
has at all times conducted its business and affairs in all respects in accordance with
all applicable laws and regulations.  

	 	4.5  	Licences,
permits, consents and authorities 

	 	
The Company has all necessary licences (including statutory licences), permits, consents and
authorities (public and private) for the proper and effective carrying on of its business
in the manner in which such business is now carried on. So far as the Sellers are aware,
there are no factors that might in any way prejudice the continuance or renewal of any of
those licences, permits, consents or authorities.  

	 	4.6  	No
litigation 

	 	
Save
for the collection of debts not exceeding Euro 1,000 in aggregate the Company is not
engaged, either on its own account or vicariously, in any suit, action, litigation,
arbitration or tribunal proceedings or any governmental investigation. In addition, no
suit, action, litigation, arbitration or tribunal proceedings are pending or threatened
by or against the Company and there are no circumstances likely to lead to any suit,
action, litigation, arbitration or tribunal proceedings or governmental investigation.  

 25

	 	4.7  	No
unsatisfied judgment 

	 	
There is no unsatisfied judgment or court order outstanding against the Company or the Sellers.  

	5.  	CONTRACTS
AND COMMITMENTS 

	 	5.1  	Disclosure
of material contracts 

	 	
All material contracts, agreements and arrangements to which the Company is a party have been
disclosed to the Purchaser prior to the date of this Agreement.  

	 	5.2  	Characteristics
of contracts 

	 	
No contract, agreement, arrangement or obligation to which the Company is a party:  

	 	(a)  	was
entered into other than on entirely arms length terms in the ordinary and
 proper conduct of the business of the Company;  

	 	(b)  	creates
an agency, distributorship, dealership, partnership, consortium,
 profit-sharing or joint venture relationship; or  

	 	(c)  	has
been breached by the Company in any material respect or is otherwise liable
to determination, rescission, avoidance or repudiation by any other
party to it.  

	 	5.3  	No
guarantee, warranty or representation in respect of goods supplied

	 	
Except for any guarantee or warranty implied by law or contained in the Company’s standard
terms of business, the Company has given or made no guarantee, warranty or representation
in respect of any goods supplied or contracted to be supplied by it or accepted any
liability or obligation that would apply after the supply of any such goods or services.  

	 	5.4  	No
product liability issues 

	 	
The Company has not sold or supplied, and is not liable in respect of any claim relating to,
any goods or products which were or are in any material respect faulty, inadequate or
defective or which did not or do not comply with all relevant warranties or
representations expressly or impliedly made by the Company and all applicable
specifications, obligations, regulations, standards and requirements in respect of
thereof. The Company has not received notification that any goods or products supplied by
it are defective or unfit and (so far as the Sellers are aware) no circumstances exist
which could give rise to such a claim.  

	6.  	CONTRACTS
WITH CONNECTED PERSONS

	 	(a)  	There
is not outstanding any indebtedness or other liability (actual or
contingent) owing by the Company to any managing director or any
shareholder of the Company, save for the amount of approximately Euro
14,500 owing to Dr. Anton  F. Haase at the date hereof; and  

26 

	 	(b)  	There
is not outstanding and there has not at any time been outstanding any
 agreement, arrangement or understanding (whether legally enforceable
or not) to which the Company is a party and which any managing
director of the Company is interested.  

	7.  	ASSETS

	 	7.1  	Title
to the assets

	 	
All
of the assets owned by the Company are the sole, absolute property of the Company and
there is not now outstanding any Encumbrance over the whole or any part of the
undertaking, property or assets of the Company and none of the assets now owned or used
by the Company is the subject of any Encumbrance, factoring arrangement or any hire
purchase, leasing, lease, purchase or credit sale agreement.  

	 	7.2  	Stock 

	 	
The stock now held by the Company is not excessive (excluding for these purposes deliveries
made by the Purchaser’s Group) and is adequate in relation to the current trading
requirements of the Company. None of that stock is obsolete, slow moving, unusable, or
unmarketable and is all capable of being sold or used by the Company in the ordinary
course of its business in accordance with its current price list and without rebate or
allowance to a customer.  

	8.  	PERSONNEL 

	 	
The Company does not have and never has had any employees other than the Sellers and has not
entered into any consultancy agreements with any person (apart from the Company
Accountant and Tax Accountant). The Company has no obligation to contribute to any
pension or any such arrangements.  

	9.  	PROPERTIES 

	 	
The Company does not have any right, title or interest in any freehold or leasehold land or
properties.  

	10.  	TAXATION 

	 	10.1  	Payment
of tax 

	 	
The Company has duly and punctually paid all Taxation which it is or has been liable to pay
or account for prior to the date of this Agreement.  

	 	10.2  	Tax
since the Last Balance Sheet Date 

	 	
Since the Last Balance Sheet Date the Company has not been involved in any transaction which
has given or may give rise to a liability to Taxation on the Company (or would have given
or might give rise to such a liability but for the availability of any relief) other than
corporation tax on accrued trading income of the Company arising from transactions in the
ordinary course of business.  

27 

	 	10.3  	Residence
for Taxation purposes 

	 	
The Company was incorporated in Germany and for the purposes of German Taxation is and has
always been resident in the Germany and will remain so at the Completion Date.  

	 	10.4  	Administration
and compliance 

	 	(a)  	All
returns, notifications, computations, registrations and payments which should have been
made or filed by the Company for any Taxation purpose were made or filed within the
requisite periods and were when made or filed and remain up to date, correct and on a
proper basis.  

	 	(b)  	There
are no, nor are there likely to be, any disputes on any matter relating to Taxation with
any Tax Authority and, so far as the Sellers are aware, there are no investigations being
carried out in relation to or in connection with the Company.  

	 	(c)  	The
Company has in its possession and under its control:  

	 	(i)  	all
records and documentation which it is obliged to hold, preserve and retain  under any
Taxation Statute; and  

	 	(ii)  	sufficient
records relating to past events (including any elections made) to calculate accurately
the liability to Taxation of the Company or its entitlement to any relief which would
arise on the disposal or realisation at Completion of all assets owned by the Company at
the Last Balance Sheet Date or acquired by it since that date but before Completion.  

	 	10.5  	PAYE 

	 	
In relation to its employees and the payment of their salaries, the Company has duly made
all deductions and payments required to be made to the Finanzamt Darmstadt in respect of
income tax and social security contributions.  

	 	10.6  	Tax
avoidance 

	 	(a)  	The
Company has not engaged in or been a party to any scheme or arrangement in  respect of
which the main (or one of the main) purposes was or might be held to  have been the
avoidance, deferral or reduction of Taxation.  

	 	(b)  	The
Company has not been a party to any preordained series of transactions containing one or
more steps which have no commercial purpose other than avoiding deferring or saving Tax
or obtaining of a Tax advantage.  

	 	10.7  	Third
party agreements 

	 	
The Company has not and will not enter into any agreement pursuant to which it is or may
become liable to make a payment to any person in respect of Taxation including under any
indemnity, covenant or warranty.  

28 

	 	10.8  	VAT 

	 	
The Company:

	 	(a)  	is
a duly registered taxable person for the purposes of VAT, and has been at all
 times when it ought to have been so registered in order to comply
with VAT legislation, and that registration is not subject to any
conditions imposed by or agreed with the Finanzamt Darmstadt;  

	 	(b)  	maintains
and has at all times maintained complete, correct and up-to-date
 records for the purposes of the relevant legislation; and  

	 	(c)  	is
not in arrears with any payments, returns or notifications or liable to any
abnormal or non-routine payment, or any forfeiture or penalty, or to
the operation of any penal provision.  

	11.  	INTELLECTUAL
PROPERTY AND COMPUTER SYSTEMS

	 	11.1  	Ownership 

	 	
All
of the Company Intellectual Property is owned solely, legally and beneficially by the
Company, free and clear of all Encumbrances.  

	 	11.2  	Infringement
by the Company 

	 	
No
part of the business as currently or previously carried on by the Company infringed,
infringes or has been alleged to infringe any Intellectual Property of any other person.  

	 	11.3  	Infringement
by others 

	 	
No
person is infringing or threatening to infringe, or has at any time during the six years
ending immediately prior to the date of this Agreement infringed or threatened to
infringe, any of the Company Intellectual Property. The Company has not made any
allegation against any person to this effect.  

	 	11.4  	Confidential
information of the Company 

	 	
All
confidential information used by the Company is in its lawful possession and under its
sole control. The Company has not disclosed any confidential information relating to or
used in its business to any person.  

	 	11.5  	Customer
list 

	 	
No third party (including any member of the Venalink group) has had or been given access to
the Company’s customer list and no such party is in the unauthorised possession or
use of such information.  

	 	11.6  	Trading
name 

	 	
The Company does not use and has not used any trading or business name other than its
corporate name for any purpose.  

 29

	 	11.7  	No
material failures 

	 	
The Company has not suffered any material failures or breakdowns of the computer hardware or
information and communication technology which it used in the year immediately preceding
the date of this Agreement. The Company has not suffered any material failures or bugs in
or breakdowns of its software in the year immediately preceding the date of this
Agreement.  

	 	11.8  	Integrity
regularly reviewed 

	 	
The Company has taken proper precautions to preserve the availability, confidentiality and
integrity of its computer systems.  

	12.  	GENERAL 

	 	
The information contained or referred to in this Agreement or which has been given to the
Purchaser or to the representatives and professional advisers of the Purchaser by the
Sellers or the Company or their respective professional advisers in the course of the
negotiations leading to this Agreement was not misleading when given and is not now
misleading, and do not contain any inaccuracies which might have misled the Purchaser.  

30 

SCHEDULE 4 

LIMITATIONS ON CLAIMS 

	1.  	NO
CLAIM FOR MATTERS DONE AT PURCHASER’S REQUEST 

	 	
The Purchaser shall not be entitled to claim against the Sellers under the Warranties in
respect of any matters Disclosed, and matter or thing after the date of this Agreement
done or omitted to be done at the written request of or with the prior written approval
of the Purchaser.  

	2.  	TIME
LIMITS ON CLAIMS 

	 	
No claim shall be brought by the Purchaser for any breach of any of the Warranties unless it
shall have given notice in writing of the claim to at least one of the Sellers not later
than:  

	 	(a)  	in
the case of a claim relating to Tax, the expiration of a period of seven
years, commencing on the day after the last day of the Financial Year
of the Company in which Completion falls; and  

	 	(b)  	in
any other case the expiration of a period of three years commencing on the
 Completion Date.  

	3.  	TOTAL
LIABILITY

	 	
The aggregate liability of the Sellers in respect of claims brought by the Purchaser for
breaches of the Warranties (other than liability for claims under the Warranties relating
to Tax in respect of which there shall be no limitation on the amount of any liability of
the Sellers), including all legal, accountancy and other costs, fees and expenses
incurred by the Purchaser and/or the Company in seeking to enforce their respective
rights in respect of those breaches of the Warranties, shall not exceed the amount of the
Purchase Price actually received by the Sellers from time to time and shall not in any
event exceed a maximum sum of Euro 500,000.  

31

SCHEDULE 5 

DETERMINATION AND
CONFIRMATION OFENTITLEMENT 
TO YEARLY EARN-OUT 

Part 1 

	1.  	CALCULATION
OF TURNOVER AND AVERAGE GROSS MARGIN 

	 	
Subject to Paragraph 3 below, the Turnover and Average Gross Margin for the Relevant Earn-Out
Period and (in the case of Turnover) for the 12-month period preceding the Relevant
Earn-Out Period shall be as set out in the Trading Statement, a draft of which shall be
prepared by the Purchaser and delivered to the Sellers as soon as practicable after (and
in any event within 5 Business Days of) the Company’s accounts for that period
having been signed by the Company Accountant and Tax Consultant.  

	2.  	BASIS
OF PREPARATION OF TRADING STATEMENT 

	 	
The Trading Statement for the Relevant Earn-Out Period shall be prepared in accordance with
the Relevant Accounting Standards and using the accounting principles, evaluation rules
and procedures, methods and bases adopted by the Company in the Financial Year
immediately prior to the preparation of such statement.  

	3.  	ADJUSTMENTS 

	 	
For the purpose of calculating the Average Gross Margin, the Purchaser shall make in good
faith such adjustments as shall be necessary to reflect the impact of external
influences, in particular currency shifts, as well as internal margin reducing measures
specifically advised by or approved in advance by MTS Medication Technologies Inc., the
Purchaser or any managing director of the Company appointed by the Purchaser after
Completion, in particular (but not limited to) any approved increases in the prices
invoiced to the Company in respect of MTS Products (but excluding any general price rises
affecting the prices of MTS Products in all markets), and bulk sales made by the Company
to a customer at a discount to normal pricing.  

	4.  	TRADING
STATEMENT 

	 	
The Sellers shall be entitled to notify the Purchaser that they disagree with the
calculations set out in the draft Trading Statement. If no written notification is
received by the Purchaser from the Sellers within 14 days of delivery of the draft
Trading Statement the draft Trading Statement shall be deemed to have been agreed between
the parties. If the draft Trading Statement is disputed within 14 days of receipt thereof
the Purchaser and the Sellers shall use all reasonable endeavours to resolve the matters
in dispute, failing which the matter shall be referred to Grant Thornton UK LLP and the
Company Accountant and Tax Consultant, who shall jointly endeavour to determine the
matter or matters in dispute. If Grant Thornton UK LLP and the Company Accountant and Tax
Consultant shall fail to resolve the matter or matters in dispute, the matter shall be
submitted to a firm of independent accountants appointed by the President of the
Institute of Chartered Accountants of England and Wales. Such firm of independent
accountants shall then determine the matter or matters in dispute, acting as experts and
not as arbitrators and its decision shall be communicated in writing to the Purchaser and
the Sellers. The draft Trading Statement as certified or amended by such independent firm
of accountants shall be final and binding upon the Purchaser and the Sellers.  

32 

Part 2 

Pro forma Trading
Statement 

The Company 

Euros 

Turnover 

Less: 

Cost of Sales 

Gross Profit 

Divided by: 

Turnover 

Average Gross Margin
                      

Turnover for the Relevant
Earn-Out Period 

Less: 

Turnover for the 12-month period
preceding the Relevant Earn-Out
Period 

Increase in Turnover (expressed as a
percentage)

 33

Annex 

Service Agreement 

 34

EXECUTION:

SIGNED by
Peter Williams, Director, duly authorised for and on behalf of MTS Medication Technologies Limited 

SIGNED by Dr. Anton F. Haase  

SIGNEDby Mrs. Silvia
HaaseDATED 6 February 2007

SERVICE AGREEMENT
(the
“Agreement”)  

CDH Consilio GmbH
Ahornweg 5

64367 Mühltal
Germany
(the “Company”) 

– and – 

Dr. Anton F. Haase
 Ahornweg 5

64367 Mühltal 
Germany 
(the “Director”)

	1.  	General
Obligations of the Director 

	 	1.1.  	The
Director is granted individual power of representation. The shareholders’ meeting of
the Company may change the scope of the Director’s representational authority at any
time. The Director is exempt from the limitations imposed by Sec. 181 German Civil
Code (Selbstkontrahierungsverbot). The shareholders’ meeting of the Company
may change this exemption of Sec. 181 German Civil code at any time. 

	 	1.2.  	The
Director agrees to manage the business of the Company in compliance with the applicable
provisions of statutory law, the Articles of Association (Satzung) of the Company,
any Rules and Guidelines for the Management of the Company, including an Organizational
Plan (Geschäftsordnung) as well as the shareholder’s resolutions. The
Director requires prior explicit consent of the shareholders’ meeting with regard to
any unusual business dealings and actions that go beyond the scope of regular business of
the Company. The description of business transactions which require the aforementioned
consent may be extended or limited by way of a shareholders’ resolution at any time.
In accordance with his mandatory duties and the Articles of Association of the Company,
the Director will inform the shareholders’ meeting of any extraordinary business
occurrence. 

	 	1.3.  	The
Director shall work exclusively for the Company. The Director shall not be permitted to
pursue any other activity, paid or unpaid, without the prior approval of shareholder’s
meeting. This applies, in particular, to the following activities: 

	 	•	foundation
 and  purchase  of or  participation  in another  enterprise  or  preparation  of such
 actions,  be it directly or indirectly; 

	 	• 	participation
in supervisory boards or advisory boards of another enterprise; 

	 	•  	publications
or lectures, if the business interests of the Company or its affiliated companies are
affected; 

	 	•  	execution
of or participation in business dealings, be it directly or indirectly, that implicate
the risk of a conflict of the Director’s personal interests and the interests of the
Company.  

	 	
The Director must notify the shareholders’ meeting in writing immediately, if he wishes
to assume such an activity. The Director may not take up such an activity without the
prior written approval of the shareholders’ meeting. The approval of the shareholders’ meeting
regarding the performance of any side activity may be revoked at any time, if necessary
with an appropriate notice period, if the business interests of the Company are affected
in any way.  

	 	
The Director has disclosed to the Company that he and his wife, Mrs. Silvia Haase, are the
sole shareholders of, and that he is the managing director of, IntegraCare GmbH. The
Director warrants and represents that IntegraCare GmbH is a dormant company and is not,
and will not (for the duration of this Agreement and for a period of 12 months
thereafter), be involved in any business which competes with the business of the Company
or its sole shareholder, MTS Medication Technologies Ltd (“MTS”).  

2 

	 	1.4.  	At
the request of the Company and after consultation with the Director, the
Director shall join and take offices such as a member of the
supervisory board or advisory board etc. in affiliated enterprises or
professional associations of which the Company is a member due to its
business activities. Unless the Company and the Director conclude
agreements to the contrary, payment for such activities is included
in the compensation agreed upon in section 3 of this Agreement. The
Director shall resign from any of the aforementioned offices and
activities if and when the Agreement terminates or at any earlier
point of time at the request of the Company.  

	2.  	Contract
Period, Termination, Obligations in the Event of Termination 

	 	2.1.  	The
Agreement shall be entered into for an unlimited duration. After an initial
period of 18 months the Agreement may be terminated by either party
at any time with a notice period of 6 months.  

	 	
The Agreement will terminate automatically upon expiration of the calendar month in which the
Director reaches the respective statutory retirement age required for full entitlement to
regular statutory old-age pension (currently at the age of 65). This Agreement will also
terminate automatically at any earlier point of time where the Director is entitled to
apply for statutory old-age pension benefits prior to the regular retirement age,
provided that the Director confirms the termination of the Agreement upon receipt of such
benefits within three years before the aforementioned early retirement date.  

	 	2.2.  	The
right to terminate the Agreement for cause without notice remains
unaffected. Such an important cause is deemed to exist, in
particular, if  

	 	• 	the
Director is removed from office due (Abberufung) pursuant to Sec. 38 Para 2
Limited Liability Companies Act (GmbHG) for cause (aus wichtigem Grund),  

	 	•  	the
Director breaches the confidentiality or competition obligations pursuant to Sec. 9 of
this Agreement, 

	 	• 	the
Director violates internal restrictions regarding the management of the Company, provided
that such a violation causes detriment to the Company, or if the Director violates the
aforementioned restrictions repeatedly,  

	 	• 	the
Director fails to comply with instructions of the shareholders’ meeting, unless
compliance with such instructions would constitute an unlawful action.  

	 	2.3.  	Should
the Director wish to terminate the Agreement, his notice of termination
shall be addressed to the shareholders’ meeting of the Company.
Termination by the Company shall be made by notification of a
corresponding resolution of the shareholder’s meeting.  

	 	2.4.  	After
an ordinary or extraordinary termination of the Agreement, regardless of
which party has given notice of termination, the shareholders’ meeting
shall be entitled to release the Director from his obligation to
perform services for the Company at any time (Freistellung).
The Company shall continue to pay the contractual compensation until
termination of the Agreement. During the release period, Sec. 615
sent. 2 German Civil Code applies.  

	 	2.5.  	The
appointment as Director may be revoked at any time by way of a
shareholders’ resolution (Abberufung), notwithstanding
any claims pursuant to the Agreement. The revocation of the
appointment as Director shall be deemed as termination of the
Agreement as of the earliest point of time permissible.  

 3

	 	2.6.  	The
Director is obligated to return all objects being Company property at the
Company’s registered office with no undue delay upon termination
of the Agreement at the latest. This obligation includes, in
particular, all business documents, data storage devices, as well as
copies thereof. Any right of retention of the Director regarding the
Company’s property is expressly excluded.  

	 	2.7  	During
the term and for a period of 12 months after termination of the Agreement, the Director
shall not set up a business which competes with the Company or MTS in any market segment
or geographical market, to approach any customer of MTS or to begin working as an
employee, director, consultant or in any other role with any competitor company of MTS in
any market, or any parent or subsidiary of such a company, such companies to include but
are not limited to Omnicell, Cardinal, Venalink, Kohl Pharma, Assist Pharma, Weigand,
Baxter, Tosho, JVM, Manrex, or ARC. 

	3.  	Compensation,
Bonus 

	 	3.1.  	For
his services, the Director will receive an annual base compensation (the
„Base Compensation”) in the amount of € 75,000
gross, to be paid in 12 equal monthly instalments. The
instalments are payable in arrears at the end of each calendar month.
The Base Compensation also includes compensation for possible
overtime as well as work on weekends and public holidays.  

	 	
The Company may annually review the Director’s compensation at the end of the year in
consideration of his performance as well as his obligations and duties.  

	 	3.2.  	In
addition to the fixed compensation pursuant to section 3.1. above, the
Director shall be entitled to an annual maximum bonus amounting to
25% of his Base Compensation, as set forth in Annex 1. The
payment and the amount of the Bonus as well as the achievement of the
business targets are determined by the shareholder’s meeting.  

	 	3.3.  	The
assignment of any Base Compensation or Bonus claim is prohibited.  

	 	3.4  	Any
claim for work on public holidays, weekends or overtime work is compensated by the
payments as set forth in this section 3 of this Agreement.  

	4.  	Insurances 

	 	4.1.  	Within
the scope of the compulsory old age retirement insurance (Rentenversicherung)
or an equal life insurance as well as the statutory or a private
health insurance (Krankenversicherung), the Company shall pay
out to the Director 50 % of the relevant contributions, but no more
than 50% of the amount which represents the maximum
contribution to statutory old age retirement insurance and health
insurance (Beitragsbemessungsgrenze).  

	5.  	Car 

	 	5.1.  	For
the performance of his services under the Agreement, the Company has made an
adequate company car (BMW 525) available to the Director. The Company
is entitled to replace the company car made available to the Director
at any time by a different one of equal value from time to time.  

 4

	 	5.2.  	The
Director may use the company car for private purposes to an adequate and
reasonable extent. The Director shall bear all taxes with respect to
the benefits deriving from the private use of the company car. The
Director is informed that the Company is obliged to withhold taxes
for the private use of the company car irrespective of whether the
Director is under the obligation to pay a compensation for the
private use of the company car to the Company. The Director will pay
an amount of Euro 100 per month to the Company for the private use of
the company car. A private use of the company car is assumed in all cases
where German tax law requires a withholding tax obligation (e.g.,
commuting expenses, double housekeeping).  

	 	5.3.  	In
the event the Director is released from his active service obligations
pursuant to Sec. 2.5 of this Agreement (Freistellung),
the Director will be required to return the company car to the
Company at the Company’s registered office immediately without
any right of retention or entitlement to compensation.  

	6.  	Reimbursement
for Expenses 

	 	
Notwithstanding the specific provisions for professional car use set forth in Sec. 5.2 of this Agreement,
travel and other expenses which the Director reasonably incurs in the course of
performing his services on behalf of the Company shall be reimbursed on the basis of
documented expenditures against presentation of corresponding vouchers and receipts in
compliance with applicable tax regulations and the Company’s internal travel
regulations (if applicable).  

	7.  	Compensation
in Case of Illness, Accident, Death 

	 	7.1.  	In
the event that the Director is unable to work through no fault of his own due
to illness or an accident and provides a corresponding medical
certificate to the Company, the Company shall continue to pay the
Director the agreed Base Compensation pursuant to Sec. 3.1 of
the Agreement for the period of 6 weeks. After 6 weeks, the Company
shall award the Director a grant (Krankengeldzuschuss)
amounting to the difference between his net Base Compensation
pursuant to Sec. 3.1 of this Agreement and the sickness
allowance (Krankengeld) paid to the Director by the statutory
or private health insurance company.  

	 	
The Company will pay the Base Compensation for a period of up to 4 months from the beginning
of the Director’s absence due to illness or accident, unless the Agreement
terminates at an earlier point of time. All payments made to the Director by health
insurance companies as well as all retirement pensions the Director receives shall be
credited against the Base Compensation paid by the Company pursuant to this Section. The
Director hereby assigns to the Company all future claims he may have third parties in
connection with possible temporary or permanent inability to work. The assignment is
limited to the amount of the payments to be made by the Company.  

	 	7.2.  	If
the Director deceases during the term of the Agreement, the entitlement to
Base Compensation expires on the day of the Director’s death.
The Director’s spouse and his legitimate children or coequal
children who are entitled to orphan pension shall be paid surviving
dependent’s pension for the rest of the month in which the
Director died in the amount of the difference between the
compensation paid to the Director until the day he died and the
compensation the Director received the month before. In addition, for
the period of 6 months, the Company shall pay surviving dependent’s
pension in the amount of the last received monthly compensation.  

 5

	8  	Vacation 

	 	8.1.  	The
Director is entitled to an annual paid vacation of 25 working days, whereas
no more than 3 weeks vacation shall be taken consecutively. The
vacation days shall be determined in consultation with other managing
directors or executives, if any, or with the shareholders’ meeting.  

	 	8.2.  	If
the Director is not able to take his annual vacation because of interfering
 Company interests, the Director shall either be compensated for the
remaining vacation, provided that the shareholder’s meeting
agreed to the waiving of vacation, or the remaining vacation shall be
transferred to the following year.  The vacation shall forfeit, unless
it is taken by 31 March of the following calendar year at the latest.
The compensation is to be determined in accordance with the Base
Compensation.  

	9.  	Confidentiality,
Competition and Contractual Penalty 

	 	9.1.  	Both
during the term of the Agreement and following any termination thereof, the
Director agrees to treat as strictly confidential all confidential
information of the Company and its affiliated companies. For the
duration of the Agreement, the Director will not (except with prior
written consent of the shareholders’ meeting) directly or
indirectly do or attempt to undertake, carry on or be employed,
engaged or interested in any capacity in any business which is
competitive with a that of the Company or its affiliates.  

	 	9.2.  	In
the event of any breach of this confidentiality and competition obligation as
set forth in section 9.1 of this Agreement, the Director shall pay a
contractual penalty (Vertragsstrafe) in the amount of one
gross monthly compensation to the Company. In the event of a
continuing breach which is not remedied, the contractual penalty
shall be due separately for each new calendar month of such  breach.
The contractual penalty shall not prejudice the Company’s right to
 claim any further damages in respect of losses suffered or to
exercise any other right available to it.  

	10.  	Taxes 

	 	
The Director shall bear all taxes with respect to compensation and other Company benefits
deriving from the Agreement as well as the social security contributions.  

	11.  	Inventions
and Suggestions for Improvement 

	 	11.1.  	The
Director hereby assigns, insofar as legally permissible, all rights in
 connection with inventions or proposals for technical improvements
the Director makes during the term of the Agreement to the Company,
which hereby accepts the assignment. The Director shall be deemed to
be adequately compensated for such inventions by way of the
compensation paid to him pursuant to the Agreement.  

	 	11.2.  	Insofar
as legally permissible, the Director agrees to assign to the Company all
inventions and proposals for technical improvements he makes during a
period of two years after the termination of the Agreement, provided
that the inventions and proposals for technical improvements result
from his contractual occupation or are based upon workings or know
how of the Company. The compensation as stipulated in the Agreement
includes payment for the assignment of the aforementioned rights.  

6 

	12.  	Data
Processing and Data Protection 

	 	12.1.  	The
Director agrees to his personal data being stored, processed and used for
 purposes of personnel administration and payroll accounting.  

	 	12.2.  	The
Director is committed to data secrecy pursuant to Sec. 5 German Data
Protection Act (Bundesdatenschutzgesetz) and acknowledges that
any breach may constitute a criminal offence. The Director may not
collect, process, disclose or make public, or use protected personal
data for other proposes than fulfilling his contractual obligations.
The commitment to data secrecy outlasts the term of the Agreement and
shall remain in effect, even after the service relationship
terminates.  

	13.  	Preclusion
of Claims 

	 	13.1.  	All
mutual claims arising out of or in connection with the service relationship shall forfeit
unless they are asserted in writing to the other party to the
Agreement within 3 months after their accrual.  

	 	13.2.  	If
the other party to the Agreement explicitly refuses to fulfil the asserted
claim or does not respond within 3 weeks after the claim was alleged,
the asserted claim must be pursued in court within additional 6
months after the refusal or the expiration of the three-week period.  

	14.  	Miscellaneous 

	 	1.  	The
Agreement and its annex(es) contain all agreements between the Company and
the Director. It replaces any and all prior agreements or contractual
claims. In particular, this Agreement replaces and supersedes the
Director’s Service Contract (Geschaeftsfuehrervertrag)
entered into between the parties on 8 May 2001. No oral or other
supplementary agreements to this Agreement were concluded.  

	 	2.  	Changes
and amendments to the Agreement must be made in writing. No changes and
amendments may be made electronically (e.g. per facsimile or email).
Oral or written agreements purporting to revoke the written form
requirement are null and void.  

	 	3.  	The
effectiveness of the Agreement as a whole remains unaffected, if individual
provisions of the Agreement are or become invalid or if there are
omissions in the Agreement. In place of any invalid or missing
provision, a provision shall come into effect which reflects the
intended meaning and purpose of the invalid  or missing provision in
consideration of the meaning and purpose of the Agreement.  

7 

EXECUTED: 

by the
shareholder of the Company, 
 MTS Medication Technologies Limited,
acting by Peter Williams, Director

by Dr. Anton
F. Haase  

8 

Annex 1: Bonus 

The Company
may pay to the Director a performance related bonus (the “Bonus”) once per year
on or before 31 July for the previous fiscal year. 

The amount,
if any, of such bonus payments remain at the sole and absolute discretion of the Company,
which may suspend or discontinue such payments at any time whether generally or in
relation to the Director. The Company will not, however, exercise its discretion to
suspend or discontinue a Bonus payment payable in relation to a previous fiscal year if
annual targets have been set for such previous fiscal year (in accordance with paragraphs
5 and 6 below) and those targets have been met by fiscal year end.  

The level of Bonus ranges between 0
and 25 per cent of the Base Compensation.  

If the Director receives any
such bonus payments, the Company is not obliged to make any further bonus payments and
any bonus payment will not be part of the contractual remuneration or fixed salary. If
the employment is terminated for cause without notice or notice is served by the Director
to terminate his employment (for whatever reason), the Director will not be entitled to
receive any bonus and payments in respect of any period save for any bonus payments which
are due and payable before the date on which the employment is terminated or notice is
served by the Director (as the case may be). If the Company serves notice to terminate
the employment of the Director and the annual targets are subsequently met in the course
of the Director’s notice period then, for the avoidance of doubt, the Director will
remain entitled to the payment of any Bonus due to him.  

A maximum of 50% of the Bonus (i.e.
up to 12.5% of the Base Compensation) will be payable if the Company reaches or surpasses
budget EBITDA in the relevant fiscal year. The Company will determine budget EBITDA no
later than one month in advance of each fiscal year.  

Another maximum of 50% of the Bonus
(i.e. up to 12.5% of the Base Compensation) will be allocated as separate sums, totalling
50% of the Bonus, each sum payable after the end of the fiscal year, provided a specific
target associated with that sum has been reached by fiscal year end. Such annual targets
which will be agreed for each fiscal year as part of the budget process and such
agreement to be completed before the beginning of the fiscal year.  

9

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