Document:

AMENDMENT,
RATIFICATION AND CONFIRMATION OF CONTINUING UNCONDITIONAL GUARANTY  

        THIS
AMENDMENT, RATIFICATION AND CONFIRMATION OF CONTINUING UNCONDITIONAL GUARANTY
(“Agreement”) is dated this 31st day of January, 2007 by and between
MTS MEDICATION TECHNOLOGIES LIMITED (formerly known as MTS Packaging Systems
International, Ltd.) (“Guarantor”) and LASALLE BUSINESS CREDIT,
LLC, successor by merger to LaSalle Business Credit, Inc., as Agent
(“Agent”) for LASALLE BANK MIDWEST NATIONAL ASSOCIATION
(formerly known as Standard Federal Bank National Association)
(“Lender”). 

BACKGROUND  

	 	A. 	Pursuant to that
certain Loan and Security Agreement dated June 26, 2002 by and among
MTS Medication Technologies, Inc. (formerly known as Medical Technology
Systems, Inc.) and MTS Packaging Systems, Inc. (“Borrowers”),
Agent and Lender (as amended by that certain First Amendment to Loan and
Security Agreement dated July 8th, 2003, that certain Second Amendment to Loan
and Security Agreement dated June 18, 2004, that certain Third Amendment to
Loan and Security Agreement dated February 22, 2006, that certain Fourth
Amendment to Loan and Security Agreement dated November 30, 2006 (the “Fourth
Amendment”), that certain Fifth Amendment to Loan and Security
Agreement dated of even date herewith (the “Fifth Amendment”)
and as the same may be further amended, modified, supplemented or restated from
time to time, the “Loan Agreement”), Lender agreed, inter
alia, to make available to Borrowers various credit facilities.  

	 	B. 	In connection
with the Loan Agreement, Guarantor executed in favor of Agent that certain
Continuing Unconditional Guaranty dated July 8, 2003 (the “Guaranty”).

	 	C. 	 Pursuant
to the Fourth Amendment, Lender extended to Borrowers a term loan in the
original principal amount of Six Million Four Hundred Thousand Dollars
($6,400,000.00) on the terms and conditions set forth therein (the “Overadvance
Term Loan”).  

	 	D. 	In
connection with the Fourth Amendment, Borrowers executed and delivered to Agent
a promissory note in the original principal amount of Six Million Four Hundred
Thousand Dollars ($6,400,000.00) dated November 30, 2006 (the “Overadvance Term
Note”).  

	 	E. 	Guarantor
and Agent desire to confirm that the Guaranty secures and extends to the
Overadvance Term Loan, and desire to ratify and confirm all other terms and
conditions of the Guaranty.  

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

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the undersigned, intending to be legally bound hereby, agree as
follows: 

	 	1. 	Borrowers’ Liabilities.  
The definition of “Borrowers’ Liabilities” set forth in the
Guaranty includes, without limitation, the Overadvance Term Loan and all
obligations of Borrowers under the Overadvance Term Note. 

	 	2. 	Ratification
and Confirmation of Guaranty.   The Guaranty and Guarantor’s
obligations thereunder are hereby ratified, confirmed and  continued as the date
hereof.  

	 	3. 	Amendment.  The
undersigned, intending to be legally bound hereby, consent to and agree to be
bound by the Fourth Amendment and the Fifth Amendment and all terms and
conditions thereof and agrees that such Fourth Amendment and Fifth Amendment
shall in no way adversely affect or impair its obligations under the Guaranty.  

	 	4. 	Release.   Guarantor
acknowledges and agrees that it has no claims, suits or causes of action
against Agent or Lender and hereby remises, releases and forever discharges
Agent, Lender, their officers, directors, shareholders, employees, agents,
successors and assigns from any claims, suits or causes of action whatsoever,
in law or equity, which Guarantor has or may have arising from any act,
omission or otherwise, at any time up to and including the date of this
Agreement.  

	 	5.  	Binding
Effect.  This Agreement shall be binding upon the successors,
assigns and personal representatives of each of the undersigned and shall inure
to the benefit of the successors and assigns of Agent.  

	 	6.  	Severability.  
The provisions of this Agreement are deemed to be severable and the invalidity
or unenforceability of any provision shall not affect or impair the remaining
provisions which shall continue in full force and effect.  

	 	7.  	Governing
Law.  This Agreement has been made, executed and delivered in the
Commonwealth of Pennsylvania and will be construed in accordance with and
governed by the laws of such Commonwealth.  

	 	8. 	Headings.  
The headings of this Agreement are inserted for           convenience only and shall not
be deemed to constitute a part of this Agreement.  

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

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        IN
WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned have
executed this Agreement as of the day and year first above written. 

	 	 	MTS MEDICATION TECHNOLOGIES, INC.

       (formerly known as Medical Technology Systems, Inc. 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name/Title:	___________________________________ 

       

	 	 	 LASALLE BUSINESS CREDIT,
        LLC,  successor by merger to LaSalle Business Credit,  Inc.,
        as Agent for LaSalle Bank Midwest  National  Association,  formerly  known as Standard
        Federal Bank National Association 
	 	 	 
	 	 	By:	___________________________________
	 	 	Name/Title:	___________________________________

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	STATE OF ________________________ 	: 
	 	SS:
	COUNTY OF ______________________  	: 

        On
this, the ___ day of ___________, 2007, before me, a notary public, the undersigned
member, personally appeared Michael P. Conroy, who acknowledged himself/herself to be the
Vice President of MTS MEDICATION TECHNOLOGIES LIMITED, a company formed under the
laws of England and Wales, and that he/she as such officer of such company, being
authorized to do so executed the foregoing instrument for the purposes therein contained,
by signing the name of the company by himself/herself as such officer. 

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

_________________________

Notary Public                 
             
My Commission Expires:EMPLOYMENT AGREEMENT  

        This
agreement, effective as of February 9, 2007 (the “Agreement”)
is made by and between MTS MEDICATION TECHNOLOGIES, INC., a Delaware corporation (the
“Company”), and MICHAEL P. CONROY, a resident of the State of Florida (the
“Executive”).  

BACKGROUND  

        The
Company desires to employ the Executive as the Company’s Chief Financial Officer, and
the Executive desires to accept employment with the Company on the terms and conditions
set forth below. 

TERMS  

	 	1.  	Employment.  

	 	a.  	The
Executive agrees to accept employment with the Company, or one or more of the
Company’s subsidiary corporations, to render the services specified in
          this Agreement subject to the terms and conditions of this Agreement. All
          compensation paid to the Executive by the Company or any subsidiary of the
          Company, and all benefits and perquisites received by the Executive from the
          Company or any of its subsidiaries, will be aggregated in determining whether
          the Executive has received the compensation and benefits provided for herein.  

	 	b.  	Term.   
The term of this contract will commence on June 1, 2006 and will terminate
March 31, 2008, (the “Term”) unless the Agreement is terminated
earlier as provided for in this Agreement. The Agreement will automatically
renew for successive one-year periods unless either party provides written
notice of its decision not to extend the Term or any one-year extension to the
other party sixty (60) days prior to the termination of the Agreement. However,
in the event that the Company provides written notice of its decision not to
extend the term or extension, the Executive shall be entitled to all amounts
due pursuant to Section 5(d) as if the Executive had been terminated without
cause.  

	 	2.  	Duties.  

	 	a.  	General
Duties.   The Executive will perform the duties and responsibilities assigned
by the CEO subject to the authority of the Board of Directors.  

	 	b.  	Full
Time Employment.   The Executive agrees to devote his full time and best
effort to the successful functioning of the Company and agrees that he will
faithfully and industriously perform all the duties pertaining to his office
and position as Chief Financial Officer, including, but not limited to, all
aspects of set forth in this Agreement; and such additional duties as may be
assigned to him, from time to time, by the President or Board of Directors, or
his designee, to the best of his ability, experience and talent and in a manner
satisfactory to the Company. Further, the Executive agrees to subject himself
at all times during the period of service to the direction and control of the
Company and its agents in respect to the work to be done. The Executive shall
report directly to President/Chief Executive Officer.  

	 	c.  	Certain
Permissible Activities.   If expressly approved in advance by the Company in
writing, the Executive may serve as a director of another non-competing
company. The Executive may also (i) make and manage personal business
investments of his choice, (ii) teach at educational institutions and deliver
lectures, and (iii) serve in any capacity with any civic, educational or
charitable organization, or any governmental entity or trade association
without seeking or obtaining approval by the Company so long as such activities
and service do not materially interfere or conflict with the performance of his
duties under this Agreement.  

	 	3. 	Compensation
and Expenses.  

	 	a.  	Base
Salary.   In consideration for the services rendered by the Executive for the
period June 1, 2006 through March 31, 2007, under this Agreement, the Company
will pay the Executive an annual base salary in the total, gross amount of
$185,000 (the “Base Salary”), payable in equal installments no less
than semi-monthly.  

	 	b.  	Base Salary Adjustment.
  The Board will have the sole discretion to annually
increase the Base Salary. It is expressly understood that the Company is under
no obligation to change the Executive’s salary during the term of this
Agreement The Board will not decrease the Base Salary unless the Executive
agrees in advance to the proposed decrease.  

	 	c.  	Bonus.  
During the Term of this Agreement, the Executive will be eligible to receive
bonus compensation in accordance with Exhibit A and on such terms as
          recommended by the Compensation Committee and approved by the Board. Exhibit A
          may be amended annually in accordance with the Company’s bonus program.  

	 	d.  	Expenses.
In addition to any compensation paid to the Executive pursuant to Section 3,
the Company will reimburse, or advance funds to, the Executive for all
reasonable, ordinary, and necessary travel or entertainment expenses incurred
by him during the Term of this Agreement in accordance with the Company’s
then-current policy.  

	 	4. 	Benefits.  

	 	a.  	Vacation.
During the Term during of this Agreement, the Executive will be entitled to 20 vacation
days annually (which will accrue and vest, except as set forth below on each April 1st)
without loss of compensation or other benefits to which he is entitled under this
Agreement.  

	 	
The  Executive will take his vacation at such times as the Executive may select and the affairs of the
Company or any of its subsidiaries or affiliates may permit. 

	 	b.  	Employee
Benefit Programs. In addition to the compensation to which the Executive is
entitled pursuant to the provisions of Section 3 of this Agreement, during the
Term the Executive is eligible to participate in any stock option plan, stock
purchase plan, pension or retirement plan, insurance or other employee benefit
plan that is maintained at that time by the Company for its senior executive
employees, including programs of life, disability, basic medical and dental,
supplemental medical and dental insurance.  

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Notwithstanding any provision of this Agreement to the contrary, the Company will not be obligated to provide
the Executive with any of the benefits contained in this Section 4 (b) if the Executive,
for any reason, is or becomes uninsurable with respect to coverage relating to any such
benefit(s). 

	 	c.  	Automobile
Allowance.   During the Term of this Agreement, the Company will pay the
Executive an additional $750.00 per month as an automobile allowance.  

	 	d.  	Financial
and Tax Planning.   As additional consideration for the services
provided by the Executive under this Agreement, the Company will reimburse
the Executive for personal financial planning, tax preparation services,
and accounting and legal fees related to such financial and tax planning,
up to a maximum of $2,000 per year during the Term of the Agreement.  

	 	5. 	Termination.  

	 	a.  	Termination
for Cause.   The Company may terminate the Executive’s employment
pursuant to this Agreement at any time for Cause and the termination will
become effective immediately at the time the Company provides written notice to
the Executive. If the Company decides to terminate the Executive’s
employment under this Agreement for Cause, the Company will have no further
obligations to make any payments to the Executive under this Agreement, except
that the Executive will receive any unpaid accrued Base Salary through the date
of termination of employment. Upon termination for Cause, the Executive will
not be entitled to any Annual Bonus or Long Term Incentive Bonus payments other
than those becoming due and payable prior to the termination date. For purposes
of this Agreement, the term “Cause” will mean:  

	 	(i)  	The
Executive’s inability or incapacity to satisfactorily perform the
essential functions of his job in a manner satisfactory to the Company;  

	 	(ii)  	The
Executive’s commission of any crime involving dishonesty, or moral
 turpitude;  

	 	(iii)  	Misconduct,
including but not limited to, insubordinate behavior, by the Executive in
the performance of his job duties and responsibilities;  

	 	(iv)  	Intentional
or reckless conduct, the consequences of which are materially adverse to
the Company.  

	 	(v)  	Failure
to substantially perform his duties with the Company (other than a failure
resulting from his incapacity due to physical or mental illness) after a
written demand for substantial performance improvement has been delivered
to him by the CEO or the Board, which demands specifically identifies the
manner in which the CEO or the Board believes he has not substantially
performed his duties.  

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	 	(vi)  	The
Executive’s material breach of any of the Company’s established
operating policies and procedures as determined in the Company’s
absolute discretion.  

	 	b.  	Death
or Disability.   This Agreement and the Company’s obligations under this
Agreement will terminate upon the death or total disability of the Executive.
For purposes of this Section 5(b), “total disability” means that for
a period of six consecutive months the Executive is incapable of substantially
fulfilling the duties set forth in this Agreement because of physical, mental
or emotional incapacity as determined by an independent physician mutually
acceptable to the Company and the Executive. If the Agreement terminates due to
the death or disability of the Executive, the Company will pay the Executive or
his legal representative any unpaid accrued Base Salary through the date of
termination of employment (or, if terminated as a result of a disability, until
the date upon which the disability policy maintained pursuant to Section 4 (b)
(ii) begins payment of benefits) plus any other compensation that may be earned
and unpaid. If the Agreement is terminated because of death or disability of
the Executive, any financial obligations that the Executive may owe the Company
will be deducted from any accrued, but unpaid salary or other compensation and
the remainder of the financial obligation will be forgiven.  

	 	c.  	Voluntary
Termination.   The Executive may elect to terminate this Agreement by
delivering written notice to the Company sixty (60) days prior to the date on
which termination is elected. If the Executive voluntarily terminates his
employment the Company will have no further obligations to make payments under
this Agreement, except that the Company will pay to the Executive any unpaid
accrued Base Salary through the date of voluntary termination of employment.
The Executive will not be entitled to any Annual Bonus or Long Term Incentive
Bonus payments other than those becoming due and payable prior to the voluntary
termination date.  

	 	d.  	Termination
Without Cause.   If the Executive is terminated for any reason other than by
death, disability, for Cause, or due to the Executive’s voluntary
resignation of employment, the Company will have no further obligation to make
payments under this Agreement, except that the Company will pay to the
Executive for One year at his Base Salary and any annual bonus earned, prorated
for the current year of employment through the date of termination. The
payments will be paid to the Executive in equal installments consistent with
the current payment schedule of the Executive’s Base Salary and bonus.  

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	 	6.  	Discoveries,
Inventions, Improvements and Other Intellectual Property.   The
Executive acknowledges that all worldwide rights to each discovery,
invention or improvement which the Executive or the Company may
develop, in whole or in part, during the term of this Agreement,
whether patented or unpatented, including all patents, copyrights,
trade secrets and other proprietary rights in or related thereto,
which (i) relate to methods, apparatus, designs, products,
processes or devices sold, leased, used or under construction or
development by the Company; or (ii) relate to computer programs or
other intellectual property, forms, policies, procedures, manuals, etc.; or
(iii) otherwise relate to or pertain to the business, functions
or operations of the Company or its subsidiaries; or (iv) arise
(wholly or in part) from the efforts of the Executive during the term
hereof, will be the exclusive property of the Company, regardless of
whether such discoveries, inventions, improvements and other
intellectual property was developed or worked on while the Executive
was engaged in employment or whether the Executive developed or
worked on such intellectual property on the Executive’s own
time. The Company will own all rights to any copy, translation,
modification, adaptation or derivation thereof and any product based
thereon. The Executive shall communicate promptly and disclose to the
Company, in such form as the Company requests, all information,
details and data pertaining to the aforementioned discoveries,
inventions and improvements; and, whether during the term hereof or
thereafter, the Executive shall execute and deliver to the Company
such formal transfers and assignments and such other papers and
documents as may be required of the Executive to permit the Company
or any person or entity designated by the Company to file and
prosecute the patent applications and, as to copyrightable material,
to obtain copyright thereon. Any invention by the Executive within six
(6) months following the termination of employment under this
Agreement shall be deemed to fall within the provisions of this
Section 6 unless proved by clear and convincing evidence by the
Executive to have been first conceived and made following such
termination. The Executive acknowledges that a violation of this
paragraph would lead to irreparable injury to the Company for which
monetary damages could not adequately compensate and further
acknowledges that in the event of such a breach, the Company shall be
entitled to injunctive relief along with other such remedies the
Company may have.  

	 	7.  	Restrictive
Covenants.  

	 	a.  	Competition
with the Company.   The Executive covenants and agrees that, during the Term
of this Agreement and for two (2) years after termination of the Agreement for
any reason, the Executive will not, without the prior written consent of the
Company or its successor, directly or indirectly (whether as a sole proprietor,
partner, stockholder, director, officer, employee or in any other capacity as
principal or agent), compete with the Company. Notwithstanding this
restriction, the Executive will be entitled during the term of this Agreement
and for the two years following termination of this Agreement for any reason,
to invest in stock of competing public companies so long as his ownership is
less than 5% of such company’s outstanding shares.  

	 	b.  	Restrictions
Governing Disclosure of Confidential Information.   The Executive recognizes
that during the course of employment, Executive will learn various Company
proprietary or confidential business information (including the identity and
sources of markets, marketing information and strategies; data processing and
management information system programs and practices; vendors and sources of
vendors; customers and sources of customers and customer needs; sales history;
and financial strength, among others). The Executive acknowledges that he has
had access to or will be provided with access to valuable confidential business
and professional information and trade secrets of the Company and that it has a
legitimate business interest in its relationships with prospective or existing
vendors, customers and clients, as well as vendor, customer and client goodwill
associated with the Company’s trade name, trademark, service mark, trade
dress, geographic location, and sales, marketing and trade area. The Executive
agrees to use all such information only in connection with the performance of
duties on behalf of the Company and agrees not to copy, disclose or otherwise
use such information or to later contest its confidential or proprietary nature
during his employment and for a period of two years following the termination
of the Executive’s employment for any reason. The Executive agrees and
acknowledges that the restrictive covenants contained in this Agreement are
reasonably necessary to protect the legitimate business interests of the
Company and that the restrictions stated are not overbroad or overlong and are
otherwise reasonably necessary to protect the established legitimate business
interests of the Company.  

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The Executive also agrees not to disclose or use for the benefit of himself or any other person,
partnership, firm, corporation, association, or legal entity, any of the trade secrets or
confidential information of the Company during his employment and for a period of two
years following the termination of the Executive’s employment for any reason. 

	 	
The Executive further agrees not to disclose, copy or use for the benefit of himself or any other
person, partnership, firm, corporation, association, or legal entity, any lists of the
names of the Company’s customers or their addresses, purchasing preferences and
practices, requirements, services, or terms on which they are sold to by the Company
during his employment and for a period of two years following the termination of the
Executive’s employment for any reason.. 

	 	
The Executive finally agrees, upon termination of employment, to return to the Company any and all
written documents containing information in his possession, custody or control or in the
possession, custody or control of another to which the Executive has had access, as well
as all files, memoranda, records, documents, computer records, copies of the foregoing,
and other information related to the Company in the Executive’s custody or control.
The Executive acknowledges that the Company will be irreparably damaged if the provisions
of this paragraph are not specifically enforced, that monetary damages will not provide
an adequate remedy to the Company, and that the Company is entitled to an injunction
(preliminary, temporary and final), restraining any violation of this paragraph (without
bond or other security being required), or any other appropriate decree of specific
performance.  It is agreed that such remedies are not exclusive and shall be in
addition to any other remedy which the Company may have including the termination of any
separation pay due to the Executive. 

	 	b.  	Subversion,
Disruption or Interference.   During the Term of the Agreement, and for a
period of two (2) years following the termination of the Agreement for any
reason, the Executive will not, directly or indirectly, solicit, interfere,
induce, influence, combine or conspire with, or attempt to interfere, solicit,
induce, influence, combine or conspire with, any of the Company’s
employees, sponsors, or consultants to terminate their relationship with, or
compete or ally against, the Company or any of the subsidiaries or affiliates
of the Company in the business in which the Company or any one of its
subsidiaries or affiliates is presently engaged. The Executive also agrees not
to make any disparaging remark or comment about the Company or its products or
services, or any of its subsidiaries or affiliates, or their officers,
directors, or employees.  

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	 	8.  	Change
of Control.  

	 	a.  	For
the purposes of this Agreement, a “Change of Control” will be
deemed to have taken place if (a) any person, other than the JADE
Partnership or the Siegel Family Revocable Trust, including a “group” as
defined in Section 13(d)(3) of the Securities Exchange Act of 1934,
as amended, becomes the owner or beneficial owner of the Company’s
securities, following full execution of this Agreement, having more
than 50% of the combined voting power of the then outstanding
securities of the Company that may be cast for the election of
directors of the Company; provided, however, that a Change of Control
will not be deemed to have occurred if the person who becomes the owner
of more than 50% of the combined voting power of the Company is Todd
E. Siegel or an entity (or entities) controlled by Todd E. Siegel and
(b) as a result of the Change of Control, the Directors in office
immediately prior to the Change of Control, including nominees for
any vacancies that may exist, constitute 50% or less of the Board of
Directors of the Company in office after the Change of Control.  

	 	b.  	The
Company and the Executive agree that, if the Executive is in the employ of
the Company on the date on which a Change of Control occurs (the
“Change of Control Date”), the Company will continue to
employ the Executive and the Executive will remain in the employ of
the Company for the period commencing on the Change of Control Date
and ending on the expiration of the Term, to exercise such authority
and perform such executive duties as are commensurate with the
authority being exercised and duties being performed by the Executive
immediately prior to the Change of Control Date. If, after a Change
of Control, the Executive is requested, and, in his sole and absolute
discretion, consents to change his principal business location more
than 50 miles beyond the location of the Company’s headquarters
in Pinellas County, Florida, the Company will reimburse the Executive
for his relocation expenses, including without limitation, moving
expenses, temporary living and travel expenses for a time while
arranging to move his residence to the changed location, closing costs, if
any, associated with the sale of his existing residence and the
purchase of a replacement residence at the changed location, plus an
additional amount representing a gross-up of any state or federal
taxes payable by the Executive as a result of any such
reimbursements. If the Executive will not consent to change his
business location, the Executive may continue to provide the services
required of him under this Agreement in Pinellas County, Florida and
the Company will continue to maintain an office for the Executive at
that location similar to the Company’s office prior to the
Change of Control Date.  

	 	c.  	During
the remaining Term after the Change of Control Date, the Company will (i)
continue to honor the terms of this Agreement, including as to Base
Salary and other compensation set forth in Section 3, and (ii)
continue employee benefits as set forth in Section 4 at levels in
effect on the Change of Control Date (but subject to such reductions
as may be required to maintain such plans in compliance with
applicable federal law regulating employee benefits).  

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	 	d.  	If
within 12 months after the Change of Control Date, (i) the Executive’s
employment is terminated by the Company other than for Cause (as
defined in Section 5(a)), or (ii) there is a material reduction in
the Executive’s compensation or employment related benefits, or
a material change in the Executive’s status, working conditions
or management responsibilities, or a material change in the business
objectives or policies, the Executive will receive, subject to the
provisions of subparagraph (e) below, separation pay in an amount
equal to two (2) years of Executive’s current Base Salary, and
Bonus.  

	 	e.  	In
the event that the payments and benefits provided for in this Agreement or
otherwise payable to the Executive (i) constitute “parachute
payments” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) and (ii) but
for this Section 7.e., would be subject to the excise tax imposed by
Section 4999 of the Code, then the Executive’s payments and
benefits shall be reduced to such extent necessary to result in no
portion of such benefits being subject to excise tax under Section
4999 of the Code. Within thirty (30) days after the amount of any
required reduction in payments and benefits is finally determined,
the Company, in consultation with the Executive, shall determine
which amounts to reduce. Any determination required under this
Section 7.e. shall be made in writing by the Company’s
independent public accounting firm as in effect immediately prior to
the change of control (the “Accounting Firm”), whose determination
shall be conclusive and binding upon the Executive and the Company
for all purposes. For purposes of making the calculations required by
this Section 7.e., the Accountants may, after taking into account the
information provided by the Executive, make reasonable assumptions
and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. The Company and the Executive
shall furnish to the Accounting Firm such information and documents
as the Accounting Firm may reasonably request in order to make a
determination under this Section 7.e.  

	 	9.  	Assignability.
  The rights and obligations of the Company under this Agreement will
inure to the benefit of and be binding upon the successors and
assigns of the Company, provided that such successor or assign will
acquire all or substantially all of the assets and business of the
Company. The Executive’s rights and obligations under this
Agreement may not be assigned or alienated and any attempt to do so
by the Executive will be void and constitute a material breach
hereunder.  

	 	10.  	Non-Coercion.  The
Executive represents and agrees that the Executive has not been
pressured, misled, or induced to enter into this Agreement based upon
any representation by the Company or its agents not contained herein.
The Executive represents that he has entered into this Agreement
voluntarily, and after having the opportunity to consult with
representatives of his own choosing and that his/her agreement is
freely given.  

	 	11.  	Indemnification.
  The Company and the Executive acknowledge that the Executive’s
service as an officer of the Company exposes the Executive to risks
of personal liability arising from, and pertaining to, the Executive’s
participation in the management of the Company. If the Executive’s
acts have been performed within the course and scope of his duties,
the Company will defend, indemnify and hold harmless the Executive from
any actual cost, loss, damages, attorneys fees, or liability suffered
or incurred by the Executive arising out of, or connected to, the
Executive’s service as an officer of the Company or any of its
current, former, or future subsidiaries to the fullest extent allowed
by law, notwithstanding the above. The Company will have no
responsibility to defend, indemnify or hold harmless the Executive
from any criminal or intentionally unlawful act. The Company also
will not have any obligation to the Executive under this section for
any loss suffered if the Executive voluntarily pays, settles,
compromises, confesses judgment for, or admits liability with respect
to such loss without the approval of the Company. Within ten days
after the Executive receives notice of any claim or action which may
give rise to the application of this section, the Executive will
notify the Company in writing of the claim or action. The Executive’s
failure to timely notify the Company of the claim or action will
relieve the Company from any obligation to the Executive under this
section.  

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The Company will also cover the Executive under a policy of officers’ and directors’liability
insurance. The provisions of this section will survive the termination of this Agreement
for any reason.  

	 	12.  	Severability.
  The provisions of this Agreement constitute independent and separable
covenants which shall survive termination of employment or expiration
of this Agreement.  Any paragraph, phrase or other provision of
this Agreement that is determined by a court of competent
jurisdiction to be unconscionable or in conflict with any applicable
statute or rule, shall be deemed, if possible, to be modified or
altered so that it is not unconscionable or in conflict with or, if
that is not possible, then it shall be deemed omitted from this
Agreement.  The invalidity of any portion of this Agreement shall
not affect the validity of the remaining portions.  

	 	13.  	Prior
Employment Agreements.   The Executive represents that he has not
executed any agreement with any previous employer which may impose
restrictions on his employment with the Company.  

	 	14.  	Notice.
  Notices given pursuant to the provisions of this Agreement will be
sent by certified mail, postage prepaid, or by overnight courier, or
telecopier to the following addresses:  

	 	
If to the Company: 

	 	   	MTS Medication
Technologies, Inc. 
2003 Gandy Boulevard, North, Suite 800 
St. Petersburg, FL 33702 

	 	
If to the Executive:

	 	  	 Michael   P.
Conroy
 20 Stanton Circle
  Oldsmar, Florida 34677 

	 	
Either party may, from time to time, designate any other address to which any such notice to it
or him will be sent. Any such notice will be deemed to have been delivered upon the
earlier of actual receipt or four days after deposit in the mail, if by certified mail.  

	 	15.  	Miscellaneous. 

	 	a.  	Governing
Law.   This Agreement will be governed by and construed in accordance with
the laws of the state of Florida.  

9 

	 	b.  	Venue.
  Any action filed to enforce this Agreement will be filed in Pinellas County,
Florida or the United States District Court for the Middle District of Florida,
Tampa Division.  

	 	c.  	Waiver/Amendment.
  The waiver by any party to this Agreement of a breach of any provision hereof
by any other party will not be construed as a waiver of any subsequent breach
by any party. No provision of this Agreement may be terminated, amended,
supplemented, waived or modified other than by an instrument in writing signed
by the party against whom the enforcement of the termination, amendment,
supplement, waiver or modification is sought.  

	 	d.  	Attorney’s
Fees.   In the event any action is commenced to enforce any provision of this
Agreement, the prevailing party will be entitled to reasonable attorney’s
fees, costs, and expenses.  

	 	e.  	Disputes.
  Nothing in this paragraph shall preclude a Party from initiating an action for
temporary injunctive relief to temporarily enjoin any conduct threatening
imminent and irreparable injury. In all other circumstances in which a dispute
arises hereafter between the Parties, the Parties shall first employ the
following alternative dispute resolution procedures before initiating any
lawsuit. Specifically, any Party who believes the other is in breach of this
Agreementor any other complaint, grievance, charge, or alleged unfair,
improper, discriminatory, or illegal action by the Company, including, but not
limited to allegations of discrimination, harassment, including sexual
harassment, retaliation of any kind, including workers compensation
retaliation, defamation, violation of public policy or any law, or any other
claim shall notify the other in writing of such a dispute. If the other Party
disputes such contention, he or it shall so state to the other in a written
notice. All Parties shall make a good faith effort to try to resolve the
dispute without going to court over it. If they fail to resolve such dispute
within ten (10) days following notice of the dispute, the Parties shall submit
the dispute to voluntary mediation pursuant to Chapter 44 of the Florida
Statutes. If the Parties cannot agree on the selection of a certified Florida
mediator, each side of the dispute shall retain counsel and such counsel shall
select a Florida certified mediator to serve as mediator of the dispute. The
Parties shall then participate in and attend the mediation and remain in
mediation until such time as the mediator declares an impasse, before
instituting any lawsuit over the dispute. The Parties hereby expressly waive
any and all right to a trial by jury with respect to any action, proceeding or
other litigation resulting from or involving the enforcement of this Agreement
or any other matter relating to the Executive’s employment including
claims of, but not limited to, discrimination, harassment, including sexual
harassment, retaliation of any kind, including workers compensation
retaliation, defamation, violation of public policy or any law.  

	 	f.  	Entire
Agreement.   This Agreement has been subject to substantial negotiations
between the parties and thus represents the joint product of those negotiations
between the parties and supersedes all previous understandings or agreements,
whether written or oral. Any uncertainty or ambiguity shall not be construed
for or against any other party based on attribution of any drafting to any
Party. Furthermore, this Agreement represents the entire agreement between the
parties and shall not be subject to modification or amendment by an oral
representation, or any other written statement by either party, except for a
dated written amendment to this Agreement signed by the Executive and the
Chairman of the Board of Directors.  

 10

	 	g.  	Counterparts.
  This Agreement may be executed in counterparts, all of which will constitute
one and the same instrument.  

        IN
WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the day
and year first above written. 

						
	 	WITNESSES:	 	 	EXECUTIVE	 
	 	 	 	 	 	 
	 	
	
	 	
	 
	 	 	 	 	Michael P. Conroy	 
	 	Print Name:	
	 	 	 
	 	 	 	 	 	 
	 	
	
	 	 	 
	 	 	 	 	 	 
	 	Print Name:	
	 	 	 

	 	 	 	 	COMPANY	 
	 	 	 	 	 	 	 
	 	 	 	 	MTS Medication Technologies, Inc.	 
	 	
	
	 	a Delaware corporation	 
	 	 	 	 	 	 	 
	 	Print Name:	
	 	By:	
	 
	 	 	 	 	 	 	 
	 	
	
	 	Print Name:	
	 
	 	 	 	 	 	 	 
	 	Print Name:	
	 	As:	
	 

11 

EXHIBIT A 

Annual Bonus 

Michael Conroy  
CFO  50% Target 

FISCAL YEAR 2007 -
BONUS COMPENSATION SCHEUDLE 

50% Weighted on EBIDTA 

	 	EBITDA $ 	% OF EBITDA 	Weighted Factor
	 	
	
	

	 	$9,263,335	120%	1.20
	 	$8,877,363	115%	1.15
	 	$8,491,391	110%	1.10
	  	$8,105,418	105%	1.05
	Budget EBITDA	$7,719,446	100%	1.00
	 	$7,333,474	 95%	0.85
	 	$6,947,501	 90%	0.60
	 	$6,561,529	 85%	0.35
	 	$6,252,751	 81%	0.15

50% Weighted for OSGM
Goals and Objectives

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