SUBORDINATION AGREEMENT
Exhibit 4.26
This SUBORDINATION AGREEMENT, dated as of April 30, 2009 (this “Agreement”), by MHR CAPITAL
PARTNERS MASTER ACCOUNT LP (as assignee of MHR CAPITAL PARTNERS (500) LP (f/k/a MHR CAPITAL
PARTNERS LP)), MHR CAPITAL PARTNERS (100) LP and OTQ LLC (collectively, the “Junior Lender”) and
MHR CAPITAL PARTNERS (500) LP in its capacity as Collateral Agent for the Junior Lender under the
Junior Agreement referred to below (in such capacity, the “Junior Collateral Agent”), in favor of
COMVEST NATIONSHEALTH HOLDINGS, LLC, a Delaware limited liability company (“ComVest”) and MSL
FAMILY LLC, a Delaware limited liability company, in their capacity as the holders of the Bridge
Loan referred to below (“MSL” and, collectively with ComVest, the “Senior Lender”).
W I T N E S S E T H :
WHEREAS, CapitalSource Finance LLC (together with its successors and assigns, “CapitalSource”)
and UNITED STATES PHARMACEUTICAL GROUP, L.L.C. d/b/a NATIONSHEALTH (“USPG”), a Delaware limited
liability company, NATIONSHEALTH HOLDINGS, L.L.C., (“NHH”) a Florida limited liability company,
NATIONSHEALTH, INC. (“NationsHealth”), a Delaware corporation, DIABETES CARE & EDUCATION, INC.
(“DCE”), a South Carolina corporation, and NATIONAL PHARMACEUTICALS AND MEDICAL PRODUCTS (USA),
LLC, a Florida limited liability company (“National”, together with USPG, NHH, NationsHealth, and
DCE, collectively, the “Borrower”) are parties to a certain Fourth Amended and Restated Revolving
Credit, Term Loan and Security Agreement dated as of April 30, 2009 (as amended, restated,
supplemented, replaced or otherwise modified from time to time, the “CapitalSource Loan Agreement”)
under which CapitalSource has made or may make loans and other financial accommodations to
Borrower;
WHEREAS, pursuant to the CapitalSource Loan Agreement, Borrower has granted in favor of
CapitalSource a first priority lien on and security interest in (collectively, the “CapitalSource
Lien”) substantially all of the assets and property of Borrower as security for their obligations
to CapitalSource under the CapitalSource Loan Agreement;
WHEREAS, the Junior Lender and Borrower are parties to a certain Investment Unit Purchase
Agreement, dated February 28, 2005 (as amended, supplemented or otherwise modified from time to
time, the “Junior Agreement”) under which the Junior Lender purchased certain convertible secured
promissory notes issued by Borrower (as amended, supplemented or otherwise modified from time to
time, collectively, the “Junior Notes”) and 1,785,714 shares of common stock issued by
NationsHealth.
WHEREAS, concurrently with the execution of this Agreement, the Junior Lender is entering into
a Limited Waiver and Consent (the “Junior Lender Waiver”) pursuant
to which the Junior Lender is consenting to the execution and delivery by the Borrower of the
Merger Agreement making certain other waivers relating thereto, among other matters;
WHEREAS, pursuant to the Junior Agreement and the Junior Note, Borrower has granted in favor
of the Junior Lender a lien on and security interest in (collectively, the “Junior Lien”)
substantially all of Borrower’s assets and property as security for its obligations to the Junior
Lender under the Junior Agreement;
WHEREAS, Junior Lender and CapitalSource are parties to that certain Amended and Restated
Senior Subordination Agreement, dated as of April 30, 2009 (as amended, supplemented or otherwise
modified from time to time, the “Junior Lender Subordination Agreement”) pursuant to which Junior
Lender has agreed to subordinate its rights with respect to the Junior Obligations (as defined
below) to the rights of CapitalSource with respect to the CapitalSource Obligations (as defined
below);
WHEREAS, NationsHealth intends to merge with NationsHealth Acquisition Corp. (“NAC”), a
Delaware corporation and a wholly owned subsidiary of the Senior Lender, subject to the terms of
that certain Agreement and Plan of Merger dated April 30, 2009 (the “Merger Agreement”), pursuant
to which NAC shall be merged with and into NationsHealth, the separate corporate existence of NAC
shall thereupon cease, and NationsHealth shall be the surviving corporation (such transaction, the
“Merger”);
WHEREAS, in connection with the execution and delivery of the Merger Agreement, the Senior
Lender has agreed to provide a bridge loan to Borrower in the principal amount of $3,000,000 (the
“Bridge Loan”) in accordance with the terms of that certain Bridge Loan Agreement dated April 30,
2009 by and between the Senior Lender and Borrower (as amended, supplemented or otherwise modified
from time to time, the “Senior Loan Agreement”), which Bridge Loan is evidenced by that certain 10%
Secured Convertible Subordinated Promissory Note in the principal amount of $3,000,000 dated April
30, 2009 (the “Senior Note”);
WHEREAS, upon the consummation of the Merger, the Bridge Loan shall be converted into
25,000,000 shares of Series A Preferred Stock of NationsHealth;
WHEREAS, Borrower has granted in favor of the Senior Lender a lien on and security interest
(collectively, the “Senior Lien”) in substantially all of Borrower’s assets and property as
security for its obligations to the Senior Lender under the Senior Loan Agreement;
WHEREAS, Senior Lender and CapitalSource are parties to that certain Senior Subordination
Agreement, dated as of April 30, 2009 (as amended, supplemented or otherwise modified from time to
time, the “Senior Lender Subordination Agreement”) pursuant to which Senior Lender has agreed to
subordinate its rights with respect to the Senior Obligations (as defined below) to the rights of
CapitalSource with respect to the CapitalSource Obligations; and
WHEREAS, it is a condition precedent to the effectiveness of the Senior Loan Agreement and the
Senior Note that, among other things, the Junior Lender shall have executed
and delivered this Agreement subordinating its rights with respect to the Junior Obligations
to the rights of Senior Lender with respect to the Senior Obligations and that Borrower shall have
acknowledged this Agreement.
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NOW, THEREFORE, in consideration of the promises contained herein and to induce the Senior
Lender to enter into the Bridge Loan and the Junior Lender to enter into the Junior Lender Waiver,
the parties hereto hereby agree as follows:
SECTION 1. Definitions. Capitalized terms used but not defined herein shall have
the meanings given to them in the Senior Loan Agreement, and the rules of usage set forth therein
shall apply hereto.
SECTION 2. Subordination.
(a) All Junior Obligations, and all rights and remedies of the Junior Lender with respect
thereto, are and shall continue at all times to be subject, subordinate and junior in right of
payment to the Senior Obligations including, without limitation, all interest on the Senior
Obligations at the rate stated in the Senior Loan Agreement from the date of the filing by or
against Borrower of a petition under any bankruptcy, insolvency or similar law to the date of the
indefeasible payment in full of the Senior Obligations (“Postpetition Interest”). The term “Junior
Obligations,” as used in this Agreement, shall mean and include the principal amount of and the
premium, if any, and interest on all indebtedness and other monetary obligations of Borrower to the
Junior Lender under the Junior Agreement and the Junior Note, together with all fees, costs and
expenses relating thereto, whether direct or contingent, now or hereafter existing, due or to
become due to, or held or to be held by the Junior Lender, whether created directly or acquired by
assignment or otherwise, including, without limitation, all principal of and premium, if any, and
interest on the Junior Note (including extensions, modifications, refinancings, renewals and
refundings thereof). For the avoidance of doubt, the obligation of Borrower to issue equity or
equity related securities to the Junior Lender pursuant to the Junior Note, any payments on or in
respect of any equity or equity related securities and any exercise of rights by the Junior Lender
with respect to any equity or equity related securities as the holder thereof (as long as such
rights do not constitute an Enforcement Action) shall not constitute Junior Obligations. The term
“Senior Obligations,” as used in this Agreement, shall mean and include the principal amount of and
interest (including Postpetition Interest) on the Bridge Loan (but not any refinancing thereof) and
obligations to reimburse expenses of the Senior Lender in respect of enforcing the payment of the
Bridge Loan; provided that the principal amount of the Bridge Loan in excess of the limitation
thereon set forth in Section 2(g), and any interest or other monetary obligations with respect to
such excess, shall not constitute Senior Obligations. For the avoidance of doubt, (i) the
obligations of the Borrower with respect to the Series A Preferred Stock of NationsHealth, (ii) any
fees, costs and/or expenses owed or owing to the Senior Lender under or by reason of the Merger
Agreement, including but not limited to the Termination Fee (as defined in the Merger Agreement),
the Transaction Fees (as defined in the Merger Agreement) and (iii) any other Parent Damages (as
defined in the Merger Agreement) shall not constitute Senior Obligations. The term “CapitalSource
Obligations,” shall mean the “Senior Obligations” as such term is defined in the Junior Lender
Subordination Agreement.
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(b) Except as provided in Section 2(c), the Junior Lender shall not receive, demand or accept
any payment (of any kind or character) on the Junior Obligations, whether as principal, premium,
interest or otherwise, unless and until all the Senior Obligations including, without limitation,
all Postpetition Interest, have been indefeasibly paid in full in cash or have been converted into
shares of Series A Preferred Stock of NationsHealth.
(c) The Junior Lender may receive, accept and retain (i) regularly scheduled monthly interest
payments under the Junior Note at a rate per annum equal to 7 3/4%, (ii) payments for redemptions
or puts as contemplated by Section 5 of the Junior Note, and (iii) all expenses required to be paid
or reimbursed by Borrower as contemplated by Section 4(d)(v) of the Junior Note unless:
(A) (i) an Event of Default has occurred and is continuing under Section 7.1(a) of
the Senior Loan Agreement (a “Senior Payment Default”) and (ii) the Junior Lender has
not received a written notice from the Senior Lender informing the Junior Lender that
such Senior Payment Default has been waived or cured; or
(B) (i) an Event of Default has occurred and is continuing under the Senior Loan
Agreement (other than under Section 7.1(a) thereof) (a “Senior Non-Payment Default”)
with respect to which the Junior Lender has received from the Senior Lender a notice (a
“Senior Non-Payment Default Notice”) prohibiting the Junior Lender from receiving,
collecting or accepting any of the foregoing payments and from commencing any
Enforcement Action (as defined below) and (ii) either (x) the Junior Lender has not
received a written notice from the Senior Lender informing the Junior Lender that such
Senior Non-Payment Default has been waived or cured, or (y) less than one hundred eighty
(180) days have passed since the earlier of (1) the date of the Junior Lender’s receipt
of such Senior Non-Payment Default Notice and (2) the date of the Junior Lender’s
receipt of a “Senior Non-Payment Default Notice” under the Junior Lender Subordination
Agreement based on the same underlying event, circumstance or condition giving rise to
such Senior Non-Payment Default (such notice under the Junior Lender Subordination
Agreement, a “CapitalSource Non-Payment Default Notice”; provided that there shall be no
more than one hundred eighty (180) days during which one or more Senior Non-Payment
Default Notices or CapitalSource Non-Payment Default Notices are in effect during any
period of three hundred sixty (360) consecutive days.
Nothing in this Section 2(c) shall prohibit the accrual (but not the payment to the Junior Lender)
of interest on the Junior Obligations at the default rate in accordance with the terms of the
Junior Agreement or the Junior Note following the occurrence of an event of default under the
Junior Agreement or the Junior Note.
(d) After the CapitalSource Obligations shall have been indefeasibly paid in full in cash and
the obligation of CapitalSource to make loans and advances under the CapitalSource Loan Agreement
(the “Commitment”) has been terminated, if the Junior Lender shall receive any payment or
prepayment (including from any account debtor under any accounts receivable of Borrower) on the
Junior Obligations that it is not entitled to receive under this Agreement, the Junior Lender or
the Junior Collateral Agent, as applicable, will hold any amount
so received in trust for the Senior Lender and shall, as soon as possible, turn over such
payment to the Senior Lender in the form received (together with any necessary endorsements) to be
applied to the Senior Obligations.
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(e) Unless and until the Senior Obligations have been indefeasibly paid in full in cash or
have been converted into shares of Series A Preferred Stock of NationsHealth, the Junior Lender
will not accelerate the maturity of the Junior Obligations or commence any action or proceeding
against Borrower to recover all or any part of the Junior Obligations, or join with any other
creditor in doing so, unless (i) in the case of the acceleration of the Junior Obligations, (A)
only if the Senior Lender has accelerated the Senior Obligations or (B) an event of default has
occurred and is continuing under Section 2(d) of the Junior Note (a “Junior Default”), written
notice of which the Junior Lender has delivered to the Senior Lender (the “Junior Default Notice”),
and thirty (30) days (or one hundred eighty (180) days from the earlier of (1) the date of delivery
by the Senior Lender of a Senior Non-Payment Default Notice or (2) the date of delivery by
CapitalSource of a CapitalSource Non-Payment Default Notice, in each case if delivered during such
thirty-day period) have expired since the date of the Senior Lender’s receipt of the Junior Default
Notice, and such Junior Default has not been cured or waived during such time periods, or (ii) in
the case of any action or proceeding brought against Borrower under any bankruptcy, insolvency or
similar law or any other proceeding the result of which could give rise to an Insolvency Event (as
defined below), the Senior Lender shall have joined therein, or (iii) in the case of any other
action or proceeding that does not involve an Enforcement Action (which shall be governed
exclusively by Section 2(q) hereof), a Junior Default has occurred and is continuing with respect
to which the Junior Lender has delivered a Junior Default Notice to the Senior Lender, and thirty
(30) days (or one hundred eighty (180) days from the earlier of (1) the date of delivery by the
Senior Lender of a Senior Non-Payment Default Notice or (2) the date of delivery by CapitalSource
of a CapitalSource Non-Payment Default Notice, in each case if delivered during such thirty-day
period) have expired since the date of the Senior Lender’s receipt of the Junior Default Notice,
and such Junior Default has not been cured or waived during such time periods. For purposes of the
foregoing clauses (i) and (iii), any Junior Default which arises solely because of the existence of
a breach or violation of the CapitalSource Loan Agreement or the Senior Loan Agreement shall be
deemed to be cured or waived for purposes of this Agreement (and shall not serve as the basis for a
Junior Default) if the breach or violation under the CapitalSource Loan Agreement or the Senior
Loan Agreement is waived or cured or if the CapitalSource Loan Agreement or the Senior Loan
Agreement is amended to remove such breach or violation. For purposes of Section 2(c) above, any
Senior Non-Payment Default which arises solely because of the existence of a breach or violation of
the CapitalSource Loan Agreement or the Junior Note shall be deemed to be cured or waived for
purposes of this Agreement (and shall not serve as the basis for a Senior Non-Payment Default) if
the breach or violation under the CapitalSource Loan Agreement or the Junior Note is waived or
cured or if the CapitalSource Loan Agreement or the Junior Note is amended to remove such breach or
violation. For purposes of this Agreement, the term “Insolvency Event” shall mean, with respect to
any Borrower, the occurrence of any of the following: (i) such Borrower shall be adjudicated
insolvent or bankrupt or institutes proceedings to be adjudicated insolvent or bankrupt, or shall
generally fail to pay or admit in writing its inability to pay its debts as they become due, (ii)
such Borrower shall seek dissolution or reorganization or the appointment of a receiver, trustee,
custodian, or liquidator for it or a substantial portion of its property, assets or business or to
effect a plan or other arrangement with its creditors, (iii) such Borrower shall
make a general assignment for the benefit of its creditors, or consent to or acquiesce in the
appointment of a receiver, trustee, custodian, or liquidator for a substantial portion of its
property, assets or business, (iv) such Borrower shall file a voluntary petition under any
bankruptcy, insolvency, or similar law, (v) such Borrower shall take any corporate or similar act
in furtherance of any of the foregoing, or (vi) such Borrower, or a substantial portion of its
property, assets or business, shall become the subject of an involuntary proceeding or petition for
(A) its dissolution or reorganization or (B) the appointment of a receiver, trustee, custodian or
liquidator , and (I) such proceeding shall not be dismissed or stayed within sixty (60) days, (II)
such receiver, trustee, custodian or liquidator shall be appointed or (III) such Person fails to
contest in a timely or appropriate manner any such proceeding or petition.
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(f) Upon the occurrence of any Insolvency Event of Borrower or in the event of a sale of all
or substantially all of the assets, or any other marshaling of the assets and liabilities, or any
recapitalization, refinancing or reorganization, of Borrower, the Senior Obligations shall first be
indefeasibly paid in full in cash and the Commitment terminated before the Junior Lender shall be
entitled to receive any money, distributions or other assets in any such proceeding. In any such
event, the Junior Lender shall demand, xxx for, collect or receive every such payment or
distribution of cash, property, stock or obligations, give acquittance therefor, file claims and
proofs of claim in any statutory or nonstatutory proceeding, exercise the rights of the Junior
Lender arising under or relating to the Junior Agreement or the Junior Note and vote the claim of
the Junior Lender under the Junior Agreement or the Junior Note in its sole discretion in
connection with any such event, including, without limitation, the right to participate in any
composition of creditors and to vote at creditors’ meetings for the election of trustees,
acceptances of plans of reorganization and any other matter upon which the Junior Lender would be
otherwise entitled to vote. In the event that the Junior Lender shall fail to take any such action
following the written request of the Senior Lender or fail to vote its claim in any proceedings
prior to 5 days before the expiration of the time to vote, the Senior Lender may (but shall not be
obligated) demand, xxx for, collect or receive every such payment or distribution of cash,
property, stock or obligations, give acquittance therefor, file claims and proofs of claim in any
statutory or nonstatutory proceeding, exercise the rights of the Junior Lender arising under or
relating to the Junior Agreement or the Junior Note and vote the claim of the Junior Lender under
the Junior Agreement or the Junior Note in its sole discretion in connection with any such event,
including, without limitation, the right to participate in any composition of creditors and to vote
at creditors’ meetings for the election of trustees, acceptances of plans of reorganization and any
other matter upon which the Junior Lender would be otherwise entitled to vote. In such an event,
the Junior Lender hereby irrevocably authorizes the Senior Lender and grants to the Senior Lender,
effective upon the indefeasible payment in full in cash of the CapitalSource Obligations and the
termination of the Commitment, an exclusive power of attorney (which power of attorney is coupled
with an interest and is irrevocable), but without imposing any obligation upon the Senior Lender,
to demand, xxx for, collect or receive every such payment or distribution of cash, property, stock
or obligations, to give acquittance therefor, to file claims and proofs of claim in any statutory
or nonstatutory proceeding, to exercise the rights of the Junior Lender arising under or relating
to the Junior Agreement or the Junior Note and to vote the claim of the Junior Lender under the
Junior Agreement or the Junior Note in its sole discretion in connection with any such event,
including, without limitation, the right to participate in any composition of creditors and to vote
at creditors’ meetings for the election of trustees, acceptances of plans of reorganization and any
other matter upon which the Junior Lender would
be otherwise entitled to vote. In furtherance of the foregoing, at the request of the Senior
Lender, the Junior Lender shall execute and deliver to the Senior Lender a separate power of
attorney and such further powers and instruments as the Senior Lender may request to enable the
Senior Lender to enforce its rights under this subsection.
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(g) The Senior Lender may, at any time and from time to time, without the consent of or notice
to the Junior Lender, without incurring responsibility or liability to the Junior Lender and
without impairing or releasing any right or remedy of the Senior Lender hereunder:
| (i) | change the manner, place or terms of payment of, change or extend the time of payment of, or renew, increase or alter the Senior Obligations, or waive defaults under or amend the Senior Loan Agreement, the Senior Note, or any of the other documents executed in connection with the transactions contemplated thereby in any manner or enter into or amend in any manner or waive defaults under any other agreement relating to the Senior Obligations; | ||
| (ii) | sell, exchange, release or otherwise deal with any property by whomsoever at any time pledged to secure, or howsoever securing, the Senior Obligations; | ||
| (iii) | release any Person liable in any manner for the payment or collection of any of the Senior Obligations; | ||
| (iv) | exercise or refrain from exercising any rights against Borrower or any other Person; or | ||
| (v) | apply any sums by whomsoever paid or however realized to the Senior Obligations. |
Notwithstanding anything to the contrary in the foregoing, the Senior Lender agrees not to (i)
increase the outstanding aggregate principal amount of the Senior Obligations to an aggregate
amount greater than $3,000,000, (ii) change the final scheduled maturity date of the Bridge Loan to
an earlier date than that in effect on the date hereof, (iii) increase the per annum rate of
interest applicable to the Bridge Loan or (iv) add or increase any call premium or prepayment
penalty/fee or other fee with respect to the Bridge Loan; provided, however, that the foregoing
shall not affect the Senior Lender’s ability to make loans other than the Bridge Loan to the
Borrower so long as such loans are not considered Senior Obligations. The immediately preceding
sentence shall not be construed to limit or otherwise affect the Senior Lender’s right to accrue
and receive payment of interest (including at the default rate and including Postpetition Interest)
comprising part of the Senior Obligations.
(h) The Junior Lender waives notice of acceptance of this Agreement.
(i) The Junior Lender will cause each note or other instrument that evidences any Junior
Obligations (including, without limitation, the Junior Agreement and the
Junior Note) to bear upon its face a statement or legend to the effect that such note or other
instrument is subordinated to the Senior Obligations in the manner and to the extent set forth in
this Agreement. The Junior Lender shall xxxx its books and records, including any financial
statements, to show that the Junior Obligations are so subordinated to the Senior Obligations.
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(j) The Junior Lender will not (i) increase the per annum rate of interest applicable to the
Junior Obligations or (ii) make any covenant or event of default under the Junior Agreement or the
Junior Note more restrictive than such covenants and events of default thereunder as of the date
hereof.
(k) Subject to the indefeasible payment in full of the Senior Obligations in cash or
conversion of the Senior Obligations into shares of Series A Preferred Stock of NationsHealth, the
Junior Lender shall be subrogated to the Senior Lender’s rights to receive payments or
distributions in cash or property applicable to the Senior Obligations, and no payment or
distribution made to the Senior Lender by virtue of this Agreement that otherwise would have been
made to the Junior Lender shall be deemed to be a payment by Borrower on account of the Junior
Obligations.
(l) The Junior Lender will not sell, assign, transfer or otherwise dispose of all or any part
of, or any interest in, the Junior Obligations to any Person without having first obtained (i) such
Person’s agreement in writing to be bound as the Junior Lender’s successor by the terms of this
Agreement or, in the case of an interest in the Junior Obligations, an acknowledgment by such
interest holder of the terms hereof, or (ii) the Senior Lender’s prior written consent.
(m) The Junior Lender agrees that it will not exercise any right of setoff it may have against
the Junior Obligations in respect of any obligation owed by the Junior Lender to Borrower.
(n) If Borrower shall become subject to a case under the Bankruptcy Code, and if the Senior
Lender desires to permit the use of cash collateral or to provide (or to permit another Person to
provide) financing to Borrower under either Section 363 or Section 364 of the Bankruptcy Code, the
Junior Lender agrees as follows: (i) adequate notice to the Junior Lender shall be deemed to have
been given to the Junior Lender if the Junior Lender receives notice at least five (5) Business
Days prior to the hearing held by the applicable bankruptcy court to consider entry of an order
approving such use or financing, provided that nothing in this subsection shall be deemed to
entitle the Junior Lender to any notice not required by the Bankruptcy Code and that no such notice
need be given with respect to an interim order approving such use or financing so long as the
conditions in clause (ii) hereof to avoid an objection by the Junior Lender have been met, and (ii)
no objection will be raised by the Junior Lender to any such use or financing on the grounds of a
failure to provide “adequate protection” of the Junior Lien or any other ground (except such ground
as an unsecured creditor shall have to make a permitted objection under law) if (w) the aggregate
principal amount of the DIP financing plus the aggregate principal amount of any other “Senior
Debt” as defined in the Junior Note as of the date hereof does not exceed the amount of “Senior
Debt” (as so defined) permitted under Section 6(c) of the Junior Note, (x) the Junior Lender is
granted, with the approval of the applicable bankruptcy court, a lien on and security interest in
the post-petition Collateral, which
lien shall be (A) subordinate to the Lien of the Senior Lender and any Liens to which the Lien
of the Senior Lender is subordinate and (B) have the same priority vis a vis the Senior Obligations
as existed prior to the commencement of such case, (y) the Lien granted to the Person providing
such financing ranks prior to or pari passu with the pre-petition Lien of the Senior Lender and (z)
any cash collateral order or DIP financing documentation does not expressly require the liquidation
of the Collateral prior to a default under the cash collateral order or DIP financing
documentation. For purposes of this subsection, “Lien” shall mean any liens granted to the Senior
Lender pursuant to the Senior Loan Agreement or the Senior Note together with any post-petition
liens and/or super-priority claims for Post-Petition Financing and adequate protection of the
Senior Lender’s pre-petition liens. For purposes of this subsection, notice of a proposed
financing or use of cash collateral shall be deemed given when made in the manner prescribed by
this Agreement, or as the applicable bankruptcy court may approve, or, actual notice is given to
the Junior Lender or its counsel, whichever is soonest.
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(o) All liens, pledges, and security interests of any nature upon or in any Collateral held by
the Junior Lender, including, without limitation, the Junior Lien, shall be and are hereby made
inferior and junior to the liens, pledges and security interests of any nature upon or in any
Collateral held by or in favor of the Senior Lender, regardless of the failure to perfect or the
order or manner of perfection of any such liens, pledges and security interests. The priorities
set forth in this Agreement are applicable irrespective of any priority available to the Senior
Lender or the Junior Lender under contract or applicable law or any representation or warranty of
Borrower to the contrary in any agreement, instrument, or other document to which the Junior Lender
is a party.
(p) The Senior Lender may take any judicial or nonjudicial action, including any action to
enforce its liens on or security interests in any or all of the Collateral, including, without
limitation, to foreclose, execute, levy upon, or collect or dispose of any or all of the Collateral
(each, an “Enforcement Action”) as it shall determine in its sole and exclusive judgment.
(q) The Junior Lender agrees that, until all the Senior Obligations have been indefeasibly
paid in full in cash or have been converted into shares of Series A Preferred Stock of
NationsHealth, the Junior Lender shall not commence or continue to prosecute or otherwise proceed
with an Enforcement Action, contact any account debtor of Borrower, or otherwise take any action
that will impede, interfere with, restrict or restrain the exercise by the Senior Lender of its
right and remedies under the Senior Loan Agreement or the Senior Note or which is contrary,
prejudicial or inconsistent with the Senior Lender’s secured position in the Collateral unless (i)
a Junior Default has occurred and is continuing, the Junior Lender has delivered a Junior Default
Notice to the Senior Lender and either (A) thirty (30) days have expired since the date of the
Junior Lender’s delivery of such Junior Default Notice and the Junior Lender has not received a
Senior Non-Payment Default Notice from the Senior Lender or (B) the Junior Lender has received a
Senior Non-Payment Default Notice from the Senior Lender and one hundred eighty (180) days have
expired since the earlier of (x) the date of such receipt and (y) the date of receipt of any
CapitalSource Non-Payment Default Notice and at the end of the relevant time period described in
(A) and (B), CapitalSource or the Senior Lender have not commenced or are not continuing to
prosecute or otherwise proceed with an Enforcement Action, it being understood that (1) the Junior
Lender shall not commence any Enforcement
Action if no Junior Default has occurred and is continuing (or if there exists no basis for
such Junior Default as set forth in Section 2(e) hereof), (2) the Junior Lender shall discontinue
any Enforcement Action commenced by it at any time thereafter if CapitalSource or the Senior Lender
shall have commenced an Enforcement Action with respect to any Collateral, and (3) in no event
shall the Junior Lender have the right to instruct any bank holding proceeds of any Collateral in a
lockbox or blocked account as to the disposition of such proceeds. After the CapitalSource
Obligations shall have been indefeasibly paid in full in cash and the Commitment has been
terminated, the Senior Lender (to the exclusion of the Junior Lender and the Junior Collateral
Agent) shall have (whether or not any default or event of default under the Senior Loan Agreement,
the Senior Note, the Junior Agreement, the Junior Note, or any agreement relating thereto shall
have occurred and be continuing, and both before and after the occurrence of any Insolvency Event
of Borrower) the sole and exclusive right to administer, enforce and consent to all matters in
respect of the Collateral, including the right (A) to release, or direct or consent to the release
of, with or without consideration, the Collateral from the lien of the Senior Loan Agreement or the
Junior Note, and (B) to direct or consent to the sale, transfer, lease, or other disposition of the
Collateral, the foreclosure or forbearance from foreclosure in respect of the Collateral
(including, without limitation, seeking or not seeking relief from any stay against foreclosure in
respect of the Collateral upon the occurrence of any Insolvency Event), and the acceptance of the
Collateral in full or partial satisfaction of the Senior Obligations.
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(r) After the CapitalSource Obligations shall have been indefeasibly paid in full in cash and
the Commitment has been terminated, upon the sale of any Collateral by or on behalf of the Senior
Lender (whether in connection with any Enforcement Action by the Senior Lender or otherwise), the
Junior Lender and the Junior Collateral Agent shall be deemed to have consented (and does hereby
consent) to such sale and to have released (and does hereby release) any Junior Lien in the
Collateral being sold in such sale and shall, at the request of the Senior Lender, take all action
and, if required, execute and deliver all documents requested by the Senior Lender in connection
therewith. Each of the Junior Lender and the Junior Collateral Agent hereby appoints and
constitutes the Senior Lender as its attorney-in-fact and authorizes the Senior Lender to make any
payment on or take any act necessary or desirable to protect or preserve any of the Collateral.
This power of attorney is coupled with an interest and is irrevocable.
(s) Each of the Junior Lender and the Junior Collateral Agent agrees not to seek to avoid,
contest or bring (or join in) any action or proceeding to contest the validity of any rights of the
Senior Lender with respect to the Collateral, or the validity or reasonableness of any actions
taken or omitted to be taken by the Senior Lender hereunder or in connection herewith, under the
Senior Loan Agreement or the Senior Note, or in respect of any of the Collateral including, without
limitation, (i) the timing, method, or manner of collecting, disposing of or liquidating any of the
Collateral, (ii) the terms, including the price and percentage of consideration received in cash,
of any such disposition or liquidation, or (iii) the failure to dispose of or liquidate any of the
Collateral, except that the Junior Lender or Junior Collateral Agent may object on the basis of
objections available to an unsecured creditor. Without limitation of the foregoing, the Junior
Lender hereby waives, to the fullest extent permitted by law, (A) any right under Section 9-615(a)
of the Code with respect to the application of disposition proceeds to the Senior Obligations, (B)
any right to notice and objection under Section 9-620 of the Code, promptness, diligence, notice of
acceptance, and any other notice
with respect to any of the obligations under the Junior Agreement or the Junior Note, and (C)
any requirement that the Senior Lender exhaust any right or take any action against Borrower, any
other Person, the Collateral, or any other collateral, in each case except that the Junior Lender
or Junior Collateral Agent may object on the basis of objections available to an unsecured
creditor. In addition, the Junior Lender agrees that the Senior Lender shall have no obligation to
marshal any Collateral or to seek recourse against or satisfaction of any of the Senior Obligations
from one source before seeking recourse against or satisfaction from another source. The Junior
Lender further agrees that the net cash proceeds resulting from the Senior Lender’s exercise of any
right to liquidate all or substantially all of the Collateral (after deducting all of the Senior
Lender’s expenses related thereto), may be applied by the Senior Lender to such of the Senior
Obligations and in such order as the Senior Lender may elect in its sole and absolute discretion,
whether due or to become due. The Junior Lender further agrees that all of the Senior Lender’s
remedies under the Senior Loan Agreement and the Senior Note shall be cumulative, may be exercised
simultaneously against any Collateral and any Borrower or in such order and with respect to such
Collateral or such Borrower as the Senior Lender may deem desirable, and are not intended to be
exhaustive.
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(t) Notwithstanding the lack of perfection of any of the liens or security interests of the
Senior Lender with respect to any or all of the Collateral or any priority in time of perfection of
any of the liens or security interests of the Junior Lender over the liens or security interests of
the Senior Lender with respect to any or all of the Collateral, the liens and security interests of
the Senior Lender with respect to the Collateral shall be superior and prior in right of payment
and enforcement to the liens and security interests of the Junior Lender and/or the Junior
Collateral Agent with respect to the Collateral.
(u) Notwithstanding any provision of this Agreement to the contrary, this Agreement shall not
limit the right of the Junior Lender to exercise any right of conversion set forth in the Junior
Note (as in effect on the date hereof).
(v) Notwithstanding any provision of this Agreement to the contrary, this Agreement shall not
limit the right of the Junior Lender to receive any Reorganized Securities. For purposes hereof,
“Reorganized Securities” shall mean securities of Borrower or any other Person (including those of
Borrower as reorganized) issued to the Junior Lender in respect of all or a part of the Junior
Obligations and provided for by a plan of reorganization in a proceeding under the Bankruptcy Code
or in connection with an Insolvency Event of Borrower, provided, that (i) such securities are (a)
equity securities or (b) debt securities subordinated to the Senior Obligations (and any debt
securities received by the holders of the Senior Obligations in such proceeding) at least to the
same extent as the Junior Obligations are subordinated to the Senior Obligations pursuant to this
Agreement and (ii) such securities are authorized by a court of competent jurisdiction in a final
order or decree which, in the case of debt securities, gives effect to this proviso and the
subordination of such debt securities to the Senior Obligations (and any debt securities received
by the holders of the Senior Obligations in such proceeding) on the terms set forth in this
Agreement.
(w) The Junior Lender agrees to provide written notice to the Senior Lender within three (3)
Business Days following the appointment of a successor to the Junior
Collateral Agent pursuant to the Junior Agreement, such notice to set forth the name, address
and other contact information of such successor.
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SECTION 3. Further Assurances. The Junior Lender and/or the Junior Collateral Agent
shall, at any time and from time to time, at Borrower’s expense, promptly execute and deliver all
further instruments and documents and take all further action that the Senior Lender may request to
protect any right or interest granted or purported to be granted hereby or to enable the Senior
Lender to exercise and enforce its rights and remedies hereunder.
SECTION 4. Obligations Unimpaired. Nothing in this Agreement shall impair as
between Borrower, on the one hand, and the Senior Lender or the Junior Lender, on the other hand,
the obligations of Borrower to the Senior Lender or the Junior Lender, as the case may be.
SECTION 5. Termination; Reinstatement.
(a) This Agreement shall terminate and cease to be of any further force or effect at the time
when all the Senior Obligations including, without limitation, all Postpetition Interest, have been
indefeasibly paid in full in cash or have been converted into shares of Series A Preferred Stock of
NationsHealth.
(b) If, at any time, all or part of any payment with respect to the Senior Obligations
theretofore made by Borrower or any other Person is rescinded or must otherwise be returned by the
Senior Lender for any reason whatsoever (including, without limitation, as a result of Borrower or
any other Person becoming the subject of an Insolvency Event), this Agreement shall continue to be
effective or be reinstated, as the case may be, all as though such payment had not been made.
SECTION 6. Benefit of Agreement. Except as expressly provided in Section 4, nothing
in this Agreement, express or implied, shall give or be construed to give to any Person including,
without limitation, Borrower (but excluding the Senior Lender) any legal or equitable right, remedy
or claim under this Agreement or under any covenant or provision contained herein, all such
covenants and provisions being for the sole and exclusive benefit of the Senior Lender.
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SECTION 7. Notices.
(a) All notices, requests and other communications to any party hereunder shall be in writing
and shall be deemed given if delivered personally, sent by facsimile (which is confirmed by an
acknowledgement or transmission report generated by the machine from which the facsimile was sent
indicating that the facsimile was sent in its entirety to the addressee’s facsimile number) or sent
by overnight courier (providing proof of delivery) to the parties at the following addresses:
| If to the Senior Lender, to: ComVest Investment Partners III, L.P. Xxx Xxxxx Xxxxxxxx Xxxxx 000 Xxxx Xxxx Xxxxx, Xxxxxxx 00000 Attention: Xxxxxxx Xxxxxxxxx Facsimile: (000) 000-0000 |
with a copy (which shall not constitute notice) to:
| Xxxxx & Lardner LLP 000 Xxxxx Xxxxx Xxxxxx Xxxxx 0000 Xxxxx, XX 00000 Attention: Xxxxxx X. Xxxxxxx Facsimile: (000) 000-0000 If to the Junior Collateral Agent or the Junior Lender, to: MHR Fund Management LLC 00 Xxxx 00xx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, XX 00000 Attention: Xxx Xxxxxxxxx and Xxxxx Fine Facsimile: (000) 000-0000 |
with a copy (which shall not constitute notice) to:
| O’Melveny & Xxxxx LLP 0 Xxxxx Xxxxxx Xxxxx Xxxxxx Xxxxx Xxx Xxxx, XX 00000 Attention: Xxxxxxxx X. Xxxxx, Esq. Facsimile: (000) 000-0000 If to the Borrower, to: NationsHealth, Inc. 00000 XX 0xx Xxxxxx Xxxxx 000 Xxxxxxx, Xxxxxxx 00000 Attention: Chief Executive Officer Facsimile: (000) 000-0000 |
13
| with a copy (which shall not constitute notice) to: |
| XxXxxxxxx Will & Xxxxx LLP 000 Xxxxx Xxxxxxxx Xxxxxxxxx 00xx Xxxxx Xxxxx, Xxxxxxx 00000 Phone: 000.000.0000 Fax: 000.000.0000 Attention: Xxx X. Xxxxxxx, Esq. Xxxxxxxx X. Xxxxxxxx, Esq. Xxxxxx Xxxxxxx, Esq. and XxXxxxxxx Will & Xxxxx LLP 000 Xxxx Xxxxxx Xxxxxx Xxxxxxx, Xxxxxxxx 00000 Phone: 000.000.0000 Fax: 000.000.0000 Attention: Xxxxx X. Xxxxxxx, Esq. and Xxxxx & Lardner LLP 000 Xxxxx Xxxxx Xxxxxx Xxxxx 0000 Xxxxx, XX 00000 Attention: Xxxxxx X. Xxxxxxx Facsimile: (000) 000-0000 |
or such other address or facsimile number as such party may hereafter specify by like notice
to the other parties hereto. All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the place
of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received until the next succeeding
Business Day in the place of receipt. In the event that an addressee of a notice or communication
rejects or otherwise refuses to accept a notice or other communication delivered or sent in
accordance with this Section 7, or if the notice or other communication cannot be delivered because
of a change in address for which no notice was given, then such notice or other communication is
deemed to have been received upon such rejection, refusal or inability to deliver.
(b) The Senior Lender shall provide the Junior Lender and the Junior Lender shall provide the
Senior Lender with a copy of each notice of default (to the extent permitted hereunder) sent to
Borrower concurrently with the sending thereof and promptly notify the Junior Lender or the Senior
Lender, respectively, in the event that the default which is the subject of such default notice is
cured or waived, provided that the failure to give any such notice shall not limit or otherwise
affect any party’s rights under this Agreement. The Senior Lender and the Junior Lender, as
applicable, shall use its best efforts to provide Borrower with a copy of any Senior Payment
Default Notice, Senior Non-Payment Default Notice and Junior
Default Notice, as applicable, concurrently with the sending thereof and promptly notify
Borrower of any cure or waiver thereof, provided that the failure to give any such notice shall
not limit or otherwise affect any party’s rights under this Agreement.
14
(c) The Junior Lender shall provide the Senior Lender with a copy of each notice sent by the
Junior Lender to CapitalSource pursuant to the Junior Lender Subordination Agreement concurrently
with the sending thereof. The Junior Lender shall provide the Senior Lender with a copy of each
notice received by the Junior Lender from CapitalSource pursuant to the Junior Lender Subordination
Agreement within two (2) Business Days of Junior Lender’s receipt thereof.
SECTION 8. Amendments and Waivers. No amendment or waiver of any provision of this
Agreement, or consent to any departure by the Junior Lender, the Junior Collateral Agent or
Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed
by the Senior Lender (and if such amendment, waiver or consent affects the Collateral Agent, by the
Junior Collateral Agent), Borrower and the Junior Lender.
SECTION 9. Delays; Partial Exercise of Remedies. No delay or omission of the Senior
Lender to exercise any right or remedy hereunder shall impair any such right or operate as a waiver
thereof. No single or partial exercise by the Senior Lender of any right or remedy shall preclude
any other or further exercise thereof, or preclude any other right or remedy.
SECTION 10. Counterparts; Telecopied Signatures. This Agreement and any waiver or
amendment related hereto may be executed in counterparts and by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. This Agreement may be executed and delivered
by telecopier or other facsimile transmission all with the same force and effect as if the same
were a fully executed and delivered original manual counterpart.
SECTION 11. Severability. If any provision in or obligation under this Agreement
shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.
SECTION 12. Entire Agreement; Successors and Assigns. This Agreement constitutes the
entire agreement among the parties with respect to the subject matter hereof, supersedes any prior
written and verbal agreements among them with respect to the subject matter hereof, and shall bind
and benefit the parties (including, without limitation, the Senior Lender and the Junior Collateral
Agent) and their respective successors and permitted assigns. Borrower and Junior Lender each
acknowledge and agree that Senior Lender, at any time and from time to time may sell, assign or
grant participating interests in or transfer all or any part of its rights and obligations under
this Agreement, the Senior Obligations, the Collateral, the Senior Agreement and/or the Senior Note
to one or more other Persons, including, without limitation, financial institutions (each such
transferee, assignee or purchaser, a “Transferee”). In such case, the Transferee shall have all of
the rights and benefits with respect to the portion of such Senior Obligations, the Collateral,
this Agreement and/or the Loan Documents, as the case may be, held
by it as fully as if such Transferee were the original holder thereof (including, without
limitation, rights of set off and recoupment), and shall become vested with all of the powers and
rights given to Senior Lender and all of the obligation of Senior Lender hereunder with respect
thereto, and shall be deemed to be the “Senior Lender” for all purposes hereunder, the predecessor
Senior Lender shall thereafter be forever released and fully discharged from any liability or
responsibility hereunder with respect to the rights and interests so assigned, and either the
Senior Lender or any Transferee may be designated as the sole agent to manage the transactions and
obligations contemplated herein.
15
SECTION 13. Conflict. In the event of any express conflict between any term,
covenant or condition of this Agreement and any term, covenant or condition of any of the Senior
Loan Agreement, the Senior Note, the Junior Agreement or the Junior Note, the provisions of this
Agreement shall control.
SECTION 14. Statement of Indebtedness. Upon demand by the Senior Lender, the Junior
Lender will furnish to the Senior Lender a statement of indebtedness owing from Borrower to the
Junior Lender. The Senior Lender may rely without further investigation upon any such statement.
SECTION 15. SPECIFIC PERFORMANCE. THE SENIOR LENDER IS HEREBY AUTHORIZED TO DEMAND
SPECIFIC PERFORMANCE OF THIS AGREEMENT AT ANY TIME WHEN THE JUNIOR LENDER OR THE JUNIOR COLLATERAL
AGENT SHALL HAVE FAILED TO COMPLY WITH ANY OF THE PROVISIONS OF THIS AGREEMENT APPLICABLE TO IT.
EACH OF THE JUNIOR LENDER AND THE JUNIOR COLLATERAL AGENT HEREBY IRREVOCABLY WAIVES ANY DEFENSE
BASED ON THE ADEQUACY OF A REMEDY AT LAW THAT MIGHT BE ASSERTED AS A BAR TO SUCH REMEDY OF SPECIFIC
PERFORMANCE.
SECTION 16. GOVERNING LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS
AGREEMENT AND ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, WHETHER SOUNDING IN
CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS AND DECISIONS (AS
OPPOSED TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.
SECTION 17. SUBMISSION TO JURISDICTION. ALL DISPUTES BETWEEN OR AMONG ANY OF THE
PARTIES HERETO, WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE RESOLVED ONLY
BY STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK AND THE COURTS TO WHICH AN APPEAL
THEREFROM MAY BE TAKEN; PROVIDED , HOWEVER, THAT THE SENIOR LENDER SHALL HAVE THE RIGHT,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, TO PROCEED AGAINST THE JUNIOR LENDER OR THE
JUNIOR COLLATERAL AGENT TO ENFORCE THE PROVISIONS HEREOF IN ANY OTHER COURT OF COMPETENT
JURISDICTION OR VENUE. EACH OF THE JUNIOR LENDER, THE JUNIOR COLLATERAL AGENT AND BORROWER WAIVES
ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF ANY SUCH COURT IN WHICH THE SENIOR LENDER HAS
COMMENCED A PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON FORUM NON
CONVENIENS.
16
SECTION 18. JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED
UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO (I) THIS AGREEMENT OR (II) ANY CONDUCT, ACT OR
OMISSION OF THE JUNIOR LENDER, THE JUNIOR COLLATERAL AGENT, BORROWER, THE SENIOR LENDER OR ANY OF
THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR OTHER AFFILIATE, IN EACH CASE
WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE.
SECTION 19. SERVICE OF PROCESS. THE JUNIOR LENDER HEREBY IRREVOCABLY DESIGNATES THE
JUNIOR COLLATERAL AGENT AS THE DESIGNEE AND AGENT OF THE JUNIOR LENDER TO RECEIVE, FOR AND ON
BEHALF OF THE JUNIOR LENDER, SERVICE OF PROCESS IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS AGREEMENT. IT IS UNDERSTOOD THAT A COPY OF SUCH PROCESS SERVED ON SUCH AGENT AT ITS ADDRESS
WILL BE PROMPTLY FORWARDED BY MAIL TO THE JUNIOR LENDER, BUT THE FAILURE OF THE JUNIOR LENDER TO
RECEIVE SUCH COPY SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE SENIOR LENDER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
[SIGNATURE PAGES FOLLOW]
17
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed by its proper and
duly authorized officer as of the date first set forth above.
| JUNIOR LENDER: MHR CAPITAL PARTNERS MASTER ACCOUNT LP |
||||
| By: | /s/ Xxx Xxxxxxxxx | |||
| Name: | Xxx Xxxxxxxxx | |||
| Title: | Authorized Signatory | |||
| MHR CAPITAL PARTNERS (100) LP |
||||
| By: | /s/ Xxx Xxxxxxxxx | |||
| Name: | Xxx Xxxxxxxxx | |||
| Title: | Authorized Signatory | |||
| OTQ LLC |
||||
| By: | /s/ Xxx Xxxxxxxxx | |||
| Name: | Xxx Xxxxxxxxx | |||
| Title: | Authorized Signatory | |||
| JUNIOR COLLATERAL AGENT: MHR CAPITAL PARTNERS (500) LP |
||||
| By: | /s/ Xxx Xxxxxxxxx | |||
| Name: | Xxx Xxxxxxxxx | |||
| Title: | Authorized Signatory | |||
| SENIOR LENDER: COMVEST NATIONSHEALTH HOLDINGS, LLC |
||||
| By: | /s/ Xxxx Gordo | |||
| Name: | Xxxx Gordo | |||
| Title: | President | |||
| MSL FAMILY LLC |
||||
| By: | /s/ Xxxx Xxxx | |||
| Name: | Xxxx Xxxx | |||
| Title: | President | |||
18
ACKNOWLEDGMENT
Each of the undersigned hereby acknowledges the provisions of the foregoing Subordination
Agreement and agrees to abide by the terms thereof.
| BORROWER: UNITED STATES PHARMACEUTICAL GROUP, L.L.C. d/b/a NATIONSHEALTH |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CEO | |||
| NATIONSHEALTH HOLDINGS, L.L.C. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CEO | |||
| NATIONSHEALTH, INC. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CEO | |||
| DIABETES CARE & EDUCATION, INC. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CEO | |||
| NATIONAL PHARMACEUTICALS AND
MEDICAL PRODUCTS (USA), LLC |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CEO | |||
19
