Document:

Registration Rights Agreement

 

Exhibit 10.2

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of November 4, 2005, (this “Agreement”),
by and among NATIONSHEALTH, INC., a Delaware corporation (the “Company”), and the Holders
(as defined below) of Registrable Securities (as defined below).

     WHEREAS, the Company has entered into that certain Securities Purchase Agreement, dated May 4,
2005 (the “Purchase Agreement”), between the Company, and the other signatories thereto
relating to the purchase of (i) up to 303,030 shares of the Company’s Common Stock and (ii) a
warrant to purchase 2,936,450 of the Company’s Common Stock (the “Warrant”);

     WHEREAS, in connection with the consummation of the transactions contemplated by the Purchase
Agreement, the Holders and the Company desire to enter into this Agreement to provide the Holders
with certain rights relating to the registration of their shares of Common Stock and warrants to
acquire Common Stock.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1. DEFINITIONS. The following capitalized terms used herein have the following meanings:

          “Additional Holders” means a transferee of Registrable Securities that executes a
joinder agreement to this Agreement pursuant to which such transferee shall be entitled to the
rights and subject to the obligations as a Holder hereunder with respect to such Registrable
Securities.

          “Affiliate” of any Person means any other Person who either directly or indirectly
through one or more intermediaries is in control of, is controlled by, or is under common control
with, such Person. For purposes of this definition, “control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of securities, partnership interests or by
contract, assignment or otherwise. The terms “controls,” “controlling” and
“controlled by” shall have meanings correlative of the foregoing.

          “Commission” means the Securities and Exchange Commission, or any other federal agency
then administering the Securities Act or the Exchange Act.

          “Common Stock” means the common stock, par value $0.0001 per share, of the Company.

          “Demand Notice” is defined in Section 2.1.1.

          “Demand Registration” is defined in Section 2.1.1.

          “Demand Suspension Event” is defined in Section 3.1.1.

 

 

          “Demanding Holder” is defined in Section 2.1.1.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

          “Existing Holders” shall mean the investor parties (other than the Company) listed on
the signature pages to the Existing Registration Rights Agreements.

          “Existing Registration Rights Agreements” shall mean (i) the Registration Rights
Agreement dated as of July 22, 2003, among the Company and the investor parties listed on the
signature pages thereto, (ii) the Registration Rights Agreement dated as of March 9, 2004, as
amended as of June 2, 2004, among the Company and the investor parties listed on the signature
pages thereto, and (iii) the Registration Rights Agreement dated as of February 28, 2005, among the
Company and the investor parties listed on the signature pages thereto.

          “Existing Registrable Securities” shall mean the Registrable Securities (as defined in
the Existing Registration Rights Agreements) owned by the Existing Holders.

          “Form S-3” is defined in Section 2.3.

          “Form S-3 Registration” is defined in Section 2.3.

          “Fully Allocated Group” is defined in Section 2.1.4.

          “Holder” shall mean the investor parties (other than the Company) listed on the
signature pages to this Agreement and any Additional Holders who subsequently become parties to
this Agreement.

          “Existing Holder Piggy-Back Shares” is defined in Section 2.2.2.

          “Holder Indemnified Party” is defined in Section 4.1.

          “Indemnified Party” is defined in Section 4.3.

          “Indemnifying Party” is defined in Section 4.3.

          “Maximum Number of Shares” is defined in Section 2.1.4.

          “Notices” is defined in Section 6.3.

          “Person” shall mean an individual, a partnership, a corporation, a limited liability
company, a business trust, a joint stock company, a trust, an unincorporated association, a joint
venture or any other entity of whatever nature.

          “Piggy-Back Registration” is defined in Section 2.2.1.

          “Register,” “registered” and “registration” mean a registration
effected by preparing and filing a registration statement or similar document in compliance with
the

2

 

requirements of the Securities Act, and the applicable rules and regulations promulgated
thereunder, and such registration statement becoming effective.

          “Registrable Securities” mean (i) the shares of Common Stock held by any of the
Holders (or any of their respective Affiliates and successors or assigns) purchased pursuant to the
Purchase Agreement, and (ii) the Common Stock received by any of the Holders (or any of their
respective Affiliates and successors or assigns) upon exercise of the Warrants. Registrable
Securities also include any warrants, shares of capital stock or other securities of the Company
issued as a dividend or other distribution with respect to or in exchange for or in replacement of
such securities. As to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when: (a) a Registration Statement with respect to the sale of such
securities shall have become effective under the Securities Act; (b) such securities shall have
been otherwise transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent public distribution of them shall
not require registration under the Securities Act; (c) such securities shall have ceased to be
outstanding, or (d) such securities may be sold or transferred by the beneficial owner thereof
under Rule 144(k).

          “Registration Statement” means a registration statement filed by the Company with the
Commission in compliance with the Securities Act and the rules and regulations promulgated
thereunder for a public offering and sale of Common Stock (other than a registration statement on
Form S-4 or Form S-8, or their successors, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity).

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect at the
time.

          “Shelf Demanding Holder” is defined in Section 2.4.1.

          “Shelf Participating Holder” is defined in Section 2.4.1.

          “Shelf Registration” is defined in Section 2.4.1.

          “Underwriter” means a securities dealer who purchases any Registrable Securities as
principal in an underwritten offering and not as part of such dealer’s market-making activities.

2. REGISTRATION RIGHTS.

     2.1. Demand Registration.

          2.1.1. Request for Registration. At any time and from time to time on or after the
date hereof, any Holder (or group of Holders) (each, a “Demand Holder”) may make a written
demand for registration (a “Demand Registration”) under the Securities Act of the sale of
all or part of its Registrable Securities (the party or group making such a Demand Registration,
the “Demanding Holder”). Any demand for a Demand Registration shall specify the number of
shares (or other amount) and type of Registrable Securities proposed to be sold and the intended

3

 

method(s) of distribution thereof and shall cover securities that have an estimated aggregate
price to the public of at least $1,000,000 (such written demand, the “Demand Notice”). The
Company will notify the Holders other than the Demanding Holder and the Existing Holders of the
demand, and each such other Holder and Existing Holder who wishes to include all or a portion of
its Registrable Securities in the Demand Registration (each such Holder and/or Existing Holder
including shares of its Registrable Securities or Existing Registrable Securities, respectively, in
such registration, a “Participating Holder”) shall so notify the Company within fifteen
(15) days after receipt of such notice. The Company shall not be obligated (A) to effect more than
(i) two (2) Demand Registrations by the Holders, under this Section 2.1.1 in respect of Registrable
Securities or (B) to effect any Demand Registration within three months after the effective date of
a registration statement relating to any underwritten or direct registered offering of Common Stock
(including any such offering effected pursuant to a Demand Registration hereunder).

          2.1.2. Effective Registration. A registration will not count as a Demand Registration
until the Registration Statement filed with the Commission with respect to such Demand Registration
has been declared effective and the Company has complied with all of its obligations under this
Agreement with respect thereto; provided, however, that if, after such Registration
Statement has been declared effective, the offering of Registrable Securities pursuant to a Demand
Registration is interfered with by any stop order or injunction of the Commission or any other
governmental agency or court, the Registration Statement with respect to such Demand Registration
will be deemed not to have been declared effective, unless and until, (i) such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii) the Demanding Holder thereafter
elects to continue the offering.

          2.1.3. Underwritten Offering. If the Demanding Holder so elects and so advises the
Company as part of its written demand for a Demand Registration, the offering of such Registrable
Securities pursuant to such Demand Registration shall be in the form of an underwritten offering,
and the Demanding Holder shall be entitled to select the managing Underwriter or Underwriters and
any other Underwriters for such offering. The Demanding Holder and any Participating Holders shall
enter into an underwriting agreement in customary form with the Underwriter or Underwriters that
the Demanding Holder has selected for such underwriting.

          2.1.4. Reduction of Offering. If the managing Underwriter or Underwriters for a
Demand Registration that is to be an underwritten offering advises the Company and the Demanding
Holder in writing that the dollar amount or number of shares (or other amount) and type of
Registrable Securities which the Demanding Holder desires to sell, taken together with all other
shares of Common Stock or other securities which the Company desires to sell and the shares of
Common Stock, if any, as to which registration has been requested pursuant to written contractual
piggy-back registration rights held by other stockholders of the Company who desire to sell,
exceeds the maximum dollar amount or maximum number of shares (or other amount) and type that can
be sold in such offering without adversely affecting the proposed offering price, the timing, the
distribution method, or the probability of success of such offering (such maximum dollar amount or
maximum number of shares (or other amount) and type, as applicable, the “Maximum Number of
Shares”), then the Company shall include in such registration: (i) first, the Registrable
Securities and Existing Registrable Securities as to which

4

 

registration has been requested by the Holders under this Section 2.1 and the Existing Holders
pursuant to Sections 2.2 of the Existing Registration Rights Agreements, subject to reduction in
accordance with 50% being allocated to the Holders (allocated among the Holders pro rata in
accordance with the number of shares of Registrable Securities (on an as converted basis with
respect to the Warrants) which such Holders have requested be included in such registration,
regardless of the number of shares of Registrable Securities held by the Holders) and 50% to the
Existing Holders (allocated among the Existing Holders in accordance with the Existing Registration
Rights Agreements) that can be sold without exceeding the Maximum Number of Shares;
provided, however that if either the Holders, on the one hand, or the Existing
Holders, on the other hand, are able to include in such registration all of such Holders’
Registrable Securities or Existing Holders’ Existing Registrable Securities, respectively, without
exceeding the Maximum Number of Shares (each, in such case, a “Fully Allocated Group”), the
remaining shares of Common Stock under this clause (i) shall be allocated to the Holders or the
Existing Holders, who are not the Fully Allocated Group (allocated among such holders as set forth
above); (ii) second, to the extent that the Maximum Number of Shares has not been reached under the
foregoing clause (i), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of Shares; (iii) third to the extent
that the Maximum Number of Shares has not been reached under the foregoing clauses (i) and (ii),
the shares of Common Stock for the account of other persons that the Company is obligated to
register pursuant to other written contractual arrangements with such persons and that can be sold
without exceeding the Maximum Number of Shares; and (iv) fourth, to the extent that the Maximum
Number of Shares have not been reached under the foregoing clauses (i), (ii) and (iii), the shares
of Common Stock that other stockholders desire to sell that can be sold without exceeding the
Maximum Number of Shares.

          2.1.5. Withdrawal. If (i) the Demanding Holder disapproves of the terms of any
underwriting, (ii) the Demanding Holder is not entitled to include all of its Registrable
Securities specified in the Demand Notice in any offering, (iii) a Demand Suspension Event occurs
after a request for a Demand Registration but before the Registrable Securities covered by such
Demand Request are sold, transferred, exchanged or disposed in accordance with such Demand Request
or (iv) if the Company has breached its obligations hereunder, then in any of such cases the
Demanding Holder may elect to withdraw from such offering by giving written notice to the Company
and the Underwriter of its request to withdraw prior to the effectiveness of the Registration
Statement filed with the Commission with respect to such Demand Registration. If the Demanding
Holder withdraws from the proposed offering relating to a Demand Registration in accordance with
the previous sentence, then (i) the Participating Holders shall have no further rights to include
their Registrable Securities in such Demand Registration and (ii) such registration shall not count
as a Demand Registration provided for in Section 2.1.1.

     2.2. Piggy-Back Registration.

          2.2.1. Piggy-Back Rights. If at any time on or after the date hereof, the Company
proposes to file a Registration Statement under the Securities Act with respect to an offering of
equity securities, or securities or other obligations exercisable or exchangeable for, or
convertible into, equity securities, by the Company for its own account or by stockholders of the
Company for their own account, other than a Registration Statement (i) filed in connection with any
employee stock option or other benefit plan, (ii) for an exchange offer or offering of

5

 

securities solely to all of the Company’s existing stockholders, (iii) for an offering of debt
that is convertible into equity securities of the Company or (iv) for a dividend reinvestment plan,
then the Company shall (x) give written notice of such proposed filing to each Holder as soon as
practicable but in no event less than forty-five (45) days before the anticipated filing date,
which notice shall describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing Underwriter or
Underwriters, if any, of the offering, and (y) offer to each Holder in such notice the opportunity
to register the sale of such number of shares (or other amount) and type of Registrable Securities
as such Holder may request in writing within fifteen (15) days following receipt of such notice (a
“Piggy-Back Registration”). The Company shall cause such Registrable Securities to be
included in such registration and shall use its best efforts to cause the managing Underwriter or
Underwriters of a proposed underwritten offering to permit the Registrable Securities requested to
be included in a Piggy-Back Registration to be included on the same terms and conditions as any
similar securities of the Company and to permit the sale or other disposition of such Registrable
Securities in accordance with the intended method(s) of distribution thereof. If any Holder
proposes to distribute its securities through a Piggy-Back Registration that involves an
Underwriter or Underwriters, such Holder shall enter into an underwriting agreement in customary
form with the Underwriter or Underwriters selected for such Piggy-Back Registration. Piggy-Back
Registrations effected under this Section 2.2.1 shall not be counted as Demand Registrations
effected pursuant to Section 2.1.

          2.2.2. Reduction of Offering. If the managing Underwriter or Underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company in writing that
the dollar amount or number of shares of Common Stock which the Company desires to sell, taken
together with shares of Common Stock, if any, as to which registration has been demanded pursuant
to written contractual arrangements with persons other than the Holders, the Registrable Securities
as to which registration has been requested under this Section 2.2, and the shares of Common Stock,
if any, as to which registration has been requested pursuant to the written contractual piggy-back
registration rights of other stockholders of the Company, exceeds the Maximum Number of Shares,
then the Company shall include in any such registration: (i) if the registration is undertaken for
the Company’s account: (A) first, the shares of Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; (B) second, to the
extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the
Existing Registrable Securities as to which registration has been requested by the Existing Holders
pursuant to Sections 2.2 of the Existing Registration Rights Agreements that can be sold without
exceeding the Maximum Number of Shares (allocated among the Existing Holders in accordance with the
Existing Registration Rights Agreements); (C) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (A) and (B), the Registrable Securities as
to which registration has been requested by the Holders pursuant to Section 2.2 hereof; and (D)
fourth, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clauses (A), (B) and (C), the shares of Common Stock, if any, as to which registration has been
requested pursuant to other written contractual piggy-back registration rights which such other
stockholders desire to sell that can be sold without exceeding the Maximum Number of Shares; and
(ii) if the registration is a “demand” registration undertaken at the demand of persons other than
the Holders pursuant to written contractual arrangements with such persons, (A) first, (1) the
shares of Common Stock for the account of the demanding persons, (2) the Existing

6

 

Registrable Securities as to which registration has been requested by the Existing Holders
pursuant to Sections 2.2 of the Existing Registration Rights Agreements (the “Existing Holder
Piggy-Back Shares”), the shares allocated by 91) and 92) subject to pro rata (on an as
converted basis with respect to any convertible notes, warrants or options held by such Existing
Holders) reduction in accordance with the aggregate number of shares of Existing Registrable
Securities beneficially owned by the Existing Holders, on the one hand, and the aggregate number of
shares of Common Stock beneficially owned by such other demanding holders of Common Stock, on the
other hand, that can be sold without exceeding the Maximum Number of Shares; (B) second, to the
extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the
shares of Common Stock or other securities that the Company desires to sell that can be sold
without exceeding the Maximum Number of Shares; (C) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (A) and (B), the Registrable Securities as
to which registration has been requested by the Holders pursuant to Section 2.2 hereof; and (D)
fourth, the shares of Common Stock, if any, as to which registration has been requested pursuant to
written contractual piggy-back registration rights which such other stockholders desire to sell
that can be sold without exceeding the Maximum Number of Shares.

          2.2.3. Withdrawal. Any Holder may elect to withdraw its request for inclusion of
Registrable Securities in any Piggy-Back Registration by giving written notice to the Company of
such request to withdraw prior to the effectiveness of the Registration Statement. The Company may
also elect to withdraw a registration statement at any time prior to the effectiveness of the
Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses
incurred by a Holder in connection with such Piggy-Back Registration as provided in Section 3.3.

     2.3. Registrations on Form S-3. Each Holder may on two (2) occasions, request (each,
a “Form S-3 Registration”) in writing that the Company register the resale of any or all of
such Registrable Securities on Form S-3 or any similar short-form registration which may be
available at such time (“Form S-3”); provided, however, that the Company
shall not be obligated to effect such Form S-3 Registration through an underwritten offering. Upon
receipt of such Form S-3 Registration, the Company will promptly give written notice of the
proposed registration to all other holders of Registrable Securities, and, as soon as practicable
thereafter, effect the registration of all or such portion of such Holder’s or Holders’ Registrable
Securities as are specified in such request, together with all or such portion of the Registrable
Securities of any other Holder or Holders joining in such request as are specified in a written
request given within fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or
(ii) if the holders of the Registrable Securities, together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to sell Registrable
Securities and such other securities (if any) at any aggregate price to the public of less than
$1,000,000. Registrations effected pursuant to this Section 2.3 shall not be counted as Demand
Registrations effected pursuant to Section 2.1.

7

 

     2.4. Shelf Registration.

          2.4.1. Request for Shelf Registration. At any time and from time to time on or after
the date hereof, each Demand Holder may, in addition to the Demand Registrations requests granted
such Holders pursuant to Section 2.1, make a written demand (the party making such a demand, the
“Shelf Demanding Holder”) that the Company file a “shelf” registration that constitutes an
offering of Registrable Shares under the Securities Act in a manner that permits sales on a
continuous or delayed basis pursuant to Rule 415 under the Securities Act (or any successor
provision) (each such “shelf” registration, a “Shelf Registration”). Any demand for a
Shelf Registration shall specify the number of shares (or other amount) and type of Registrable
Securities proposed to be sold and the intended method(s) of distribution thereof and shall cover
securities that have an aggregate price to the public of at least $1,000,000. The Company will
notify the Holders other than the Shelf Demanding Holder of the demand, and each such other Holder
who wishes to include all or a portion of its Registrable Securities in the Shelf Registration
(each such Holder including shares of its Registrable Securities in such registration, a “Shelf
Participating Holder”) shall so notify the Company within fifteen (15) days after receipt of
such notice. The Company shall not be obligated (A) to effect more than two (2) Shelf
Registrations by the Holders, under this Section 2.4.1 in respect of Registrable Securities or (B)
to effect any Shelf Registration within three months after the effective date of a registration
statement relating to any underwritten offering of Common Stock (including any such offering
effected pursuant to a Demand Registration or Shelf Registration hereunder). Registrations
effected pursuant to this Section 2.4 shall not be counted as Demand Registrations effected
pursuant to Section 2.1.

          2.4.2. Effective Registration. A registration will not count as a Shelf Registration
until the Registration Statement filed with the Commission with respect to such Shelf Registration
has been declared effective and the Company has complied with all of its obligations under this
Agreement with respect thereto; provided, however, that if, after such Registration
Statement has been declared effective, the offering of Registrable Securities pursuant to a Shelf
Registration is interfered with by any stop order or injunction of the Commission or any other
governmental agency or court, the Registration Statement with respect to such Shelf Registration
will be deemed not to have been declared effective, unless and until, (i) such stop order or
injunction is removed, rescinded or otherwise terminated, and (ii) the Shelf Demanding Holder
thereafter elects to continue the offering.

          2.4.3. Underwritten Offering. If the Shelf Demanding Holder so elects and so advises
the Company as part of its written demand for a Shelf Registration, the offering of such
Registrable Securities pursuant to such Shelf Registration or any “takedown” thereof shall be in
the form of an underwritten offering, and the Shelf Demanding Holder shall be entitled to select
the managing Underwriter or Underwriters and any other Underwriters for such offering. The Shelf
Demanding Holder and any Shelf Participating Holders shall enter into an underwriting agreement in
customary form with the Underwriter or Underwriters that the Shelf Demanding Holder has selected
for such underwriting.

          2.4.4. Reduction of Offering. If the managing Underwriter or Underwriters for any
“takedown” under a Shelf Registration that is to be an underwritten offering advises the Company
and the Shelf Demanding Holder in writing that the dollar amount or number of shares of Registrable
Securities which the Shelf Demanding Holder desires to sell, taken together with all other shares
of Common Stock or other securities which the Company desires to sell and the

8

 

shares of Common Stock, if any, as to which registration has been requested pursuant to
written contractual piggy-back registration rights held by other stockholders of the Company who
desire to sell, exceeds the Maximum Number of Shares, then the Company shall include in such
“takedown”: (i) first, the Registrable Securities and Existing Registrable Securities as to which
registration has been requested by the Holders under this Section 2.4 and the Existing Holders
pursuant to Sections 2.2 of the Existing Registration Rights Agreements, subject to reduction in
accordance with 50% being allocated to the Holders (allocated among the Holders pro rata in
accordance with the number of shares of Registrable Securities (on an as converted basis with
respect to any Convertible Notes, warrants or options held by such Holders) which such Holders have
requested be included in such registration, regardless of the number of shares of Registrable
Securities held by the Holders) and 50% to the Existing Holders (allocated among the Existing
Holders in accordance with the Existing Registration Rights Agreements); provided,
however that if either the Holders, on the one hand, or the Existing Holders, on the other
hand, are a Fully Allocated Group, the remaining shares of Common Stock under this clause (i) shall
be allocated to the Holders or the Existing Holders, who are not the Fully Allocated Group
(allocated among such holders as set forth above); (ii) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (i), the shares of Common Stock or
other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; (iii) third, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clauses (i) and (ii), the shares of Common Stock for the account of other
persons that the Company is obligated to register pursuant to other written contractual
arrangements with such persons and that can be sold without exceeding the Maximum Number of Shares;
and (iv) fourth, to the extent that the Maximum Number of Shares have not been reached under the
foregoing clauses (i), (ii), (iii) and (iv), the shares of Common Stock that other stockholders
desire to sell that can be sold without exceeding the Maximum Number of Shares.

3. REGISTRATION PROCEDURES.

     3.1. Filings; Information. Whenever the Company is required to effect the
registration of any Registrable Securities pursuant to Section 2, the Company shall use its best
efforts to effect the registration and sale of such Registrable Securities in accordance with the
intended method(s) of distribution thereof as expeditiously as practicable, and in connection with
any such request:

          3.1.1. Filing Registration Statement.

	 	(i)	 	Demand, S-3 and Piggyback Registrations. The Company
shall, as expeditiously as possible and in any event within sixty (60) days
after receipt of a request for a Demand Registration pursuant to Section 2.1 or
for a Form S-3 Registration pursuant to Section 2.3, prepare and file with the
Commission a Registration Statement on any form for which the Company then
qualifies or which counsel for the Company shall deem appropriate and which
form shall be available for the sale of all Registrable Securities to be
registered thereunder in accordance with the intended method(s) of distribution
thereof, and shall use its best efforts to cause such Registration Statement to
become and remain effective for the period required by this Section 3.1.1(i)
below; provided, however, that the

9

 

	 	 	 	Company shall have the right to defer any Demand Registration or Form S-3
Registration for up to thirty (30) days (a “Demand Suspension
Event”), and any Piggy-Back Registration for such period as may be
applicable to deferment of any demand registration to which such Piggy-Back
Registration relates, in each case if the Company shall furnish to the
Holders a certificate signed by the Chief Executive Officer of the Company
stating that, in the good faith judgment of the Board of Directors of the
Company, it would be materially detrimental to the Company and its
stockholders for such Registration Statement to be effected at such time;
provided, further, that the Company shall not have the right
to exercise the right set forth in the immediately preceding proviso more
than once in any 365-day period in respect of a Demand Registration or Form
S-3 Registration hereunder. The Company shall prepare and file with the
Commission such amendments, including post-effective amendments, and
supplements to such Registration Statement and the prospectus used in
connection therewith as may be necessary to keep such Registration Statement
effective and in compliance with the provisions of the Securities Act until
all Registrable Securities and other securities covered by such Registration
Statement have been disposed of in accordance with the intended method(s) of
distribution set forth in such Registration Statement (which period shall
not exceed the sum of one hundred eighty (180) days plus any period during
which any such disposition is interfered with by any stop order or
injunction of the Commission or any governmental agency or court) or such
securities have been withdrawn.

	 	(ii)	 	Shelf Registrations. The Company shall, as
expeditiously as possible and in any event within sixty (60) days after receipt
of a request for a Shelf Registration pursuant to Section 2.4, prepare and file
with the Commission a Registration Statement on any form for which the Company
then qualifies or which counsel for the Company shall deem appropriate and
which form shall be available for the sale of all Registrable Securities to be
registered thereunder in accordance with the intended method(s) of distribution
thereof, and shall use its best efforts to cause such Registration Statement to
become and remain effective for the period required by this Section 3.1.1(ii)
below; provided, however, that the Company shall have the right
to declare a thirty (30) day Demand Suspension Event, if the Company shall
furnish to the Holders a certificate signed by the Chief Executive Officer of
the Company stating that, in the good faith judgment of the Board of Directors
of the Company, it would be materially detrimental to the Company and its
stockholders for such Registration Statement to be effected at such time;
provided, further, that the Company shall not have the right to
exercise the right set forth in the immediately preceding proviso more than
once in any 365-day period in respect of a Shelf Registration hereunder. The
Company shall prepare and file with the Commission such amendments, including
post-effective amendments, and supplements to such Registration Statement and
the prospectus used in connection therewith as may be necessary to keep such
Registration

10

 

	 	 	 	Statement effective and in compliance with the provisions of the Securities
Act until all Registrable Securities and other securities covered by such
Registration Statement have been disposed of in accordance with the intended
method(s) of distribution set forth in such Registration Statement (which
period shall not exceed two (2) years following the date on which such
Registration Statement first becomes effective plus any period during which
any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court) or such securities have
been withdrawn.

          3.1.2. Copies. The Company shall, prior to filing a Registration Statement or
prospectus (or any amendment or supplement thereto), furnish without charge to the Holders holding
Registrable Securities included in such registration, and such Holders’ legal counsel, copies of
such Registration Statement as proposed to be filed, each amendment and supplement to such
Registration Statement (in each case including all exhibits thereto and documents incorporated by
reference therein), the prospectus included in such Registration Statement (including each
preliminary prospectus), and such other documents as the Holders holding Registrable Securities
included in such registration, and such Holders’ legal counsel, may request in order to facilitate
the disposition of the Registrable Securities owned by such Holders.

          3.1.3. Notification. After the filing of a Registration Statement, the Company shall
promptly, and in no event more than two (2) business days after such filing, notify the Holders
holding Registrable Securities included in such Registration Statement of such filing, and shall
further notify such Holders promptly and confirm such advice in writing in all events within two
(2) business days of the occurrence of any of the following: (i) when such Registration Statement
becomes effective; (ii) when any post-effective amendment to such Registration Statement becomes
effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the
Company shall take all actions required to prevent the entry of such stop order or to remove it if
entered); and (iv) any request by the Commission for any amendment or supplement to such
Registration Statement or any prospectus relating thereto or for additional information or of the
occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of the securities covered by such Registration
Statement, such prospectus will not contain an untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading, and promptly make available to the Holders holding Registrable Securities included in
such Registration Statement any such supplement or amendment; except that before filing with the
Commission a Registration Statement or prospectus or any amendment or supplement thereto, including
documents incorporated by reference, the Company shall furnish to the Holders holding Registrable
Securities included in such Registration Statement and to their legal counsel, copies of all such
documents proposed to be filed sufficiently in advance of filing to provide such Holders and their
legal counsel with a reasonable opportunity to review such documents and comment thereon, and the
Company shall not file any Registration Statement or prospectus or amendment or supplement thereto,
including documents incorporated by reference, to which any such Holder and its legal counsel shall
object.

11

 

          3.1.4. State Securities Laws Compliance. The Company shall use its best efforts to
(i) register or qualify the Registrable Securities covered by the Registration Statement under such
securities or “blue sky” laws of such jurisdictions in the United States as the Holders holding
Registrable Securities included in such Registration Statement (in light of their intended plan of
distribution) may request and (ii) take such action necessary to cause such Registrable Securities
covered by the Registration Statement to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and operations of the Company
and do any and all other acts and things that may be necessary or advisable to enable the Holders
holding Registrable Securities included in such Registration Statement to consummate the
disposition of such Registrable Securities in such jurisdictions; provided,
however, that the Company shall not be required to qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph (e) or
subject itself to taxation in any such jurisdiction.

          3.1.5. Agreements for Disposition. The Company shall enter into customary agreements
(including, if applicable, an underwriting agreement in customary form) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable
Securities. The representations, warranties and covenants of the Company in any underwriting
agreement which are made to or for the benefit of any Underwriters, to the extent applicable, shall
also be made to and for the benefit of the Holders holding Registrable Securities included in such
Registration Statement. No Holder holding Registrable Securities included in such Registration
Statement shall be required to make any representations or warranties in the underwriting agreement
except, if applicable, with respect to such Holder’s organization, good standing, authority, title
to Registrable Securities, lack of conflict of such sale with such Holder’s material agreements and
organizational documents, and with respect to written information relating to such Holder that such
Holder has furnished in writing expressly for inclusion in such Registration Statement.

          3.1.6. Cooperation. The principal executive officer of the Company, the principal
financial officer of the Company, the principal accounting officer of the Company and all other
officers and members of the management of the Company shall cooperate fully in any offering of
Registrable Securities hereunder, which cooperation shall include, without limitation, the
preparation of the Registration Statement with respect to such offering and all other offering
materials and related documents, and participation in meetings with Underwriters, attorneys,
accountants and potential investors.

          3.1.7. Records. The Company shall make available for inspection by the Holders
holding Registrable Securities included in such Registration Statement, any Underwriter
participating in any disposition pursuant to such Registration Statement and any attorney, any
accountant or other professional retained by such Holders or Underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, as shall be necessary to
enable them to exercise their due diligence responsibility, and cause the Company’s officers,
directors and employees to supply all information requested by any of them in connection with such
Registration Statement.

          3.1.8. Opinions and Comfort Letters. The Company shall furnish to the Holders holding
Registrable Securities included in such Registration Statement a signed counterpart,

12

 

addressed to such Holders, of (i) any opinion of counsel to the Company delivered to any
Underwriter and (ii) any comfort letter from the Company’s independent public accountants delivered
to any Underwriter. In the event no legal opinion is delivered to any Underwriter, the Company
shall furnish to the Holders holding Registrable Securities included in such Registration
Statement, at any time that the Holder elects to use a prospectus, an opinion of counsel to the
Company to the effect that the Registration Statement containing such prospectus has been declared
effective and that no stop order is in effect.

          3.1.9. Earnings Statement. The Company shall comply with all applicable rules and
regulations of the Commission and the Securities Act, and make available to its stockholders, as
soon as practicable, an earnings statement covering a period of twelve (12) months, beginning
within three (3) months after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

          3.1.10. Listing. The Company shall use its best efforts to cause all Registrable
Securities included in any registration to be listed on such exchanges or otherwise designated for
trading in the same manner as similar securities issued by the Company are then listed or
designated or, if no such similar securities are then listed or designated, in a manner
satisfactory to the holders of a majority of the Registrable Securities included in such
registration.

     3.2. Obligation to Suspend Distribution. Upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3.1.3(iv), or, if a Holder is an
“insider,” upon any suspension by the Company, pursuant to a written insider trading compliance
program adopted by the Company’s Board of Directors, of the ability of all “insiders” covered by
such program to transact in the Company’s securities because of the existence of material
non-public information, each Holder holding Registrable Securities included in such Registration
Statement shall immediately discontinue disposition of such Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities until such Holder receives the
supplemented or amended prospectus contemplated by Section 3.1.3(iv) or the restriction on the
ability of “insiders” to transact in the Company’s securities is removed, as applicable, and, if so
directed by the Company, such Holder will deliver to the Company all copies, other than permanent
file copies then in such Holder’s possession, of the most recent prospectus covering such
Registrable Securities at the time of receipt of such notice.

     3.3. Registration Expenses. The Company shall bear all costs and expenses incurred in
connection with any Demand Registration pursuant to Section 2.1, any Piggy-Back Registration
pursuant to Section 2.2, any registration on Form S-3 effected pursuant to Section 2.3 and any
Shelf Registration (or any “takedown” thereunder) pursuant to Section 2.4, and all expenses
incurred in performing or complying with its other obligations under this Agreement, whether or not
the Registration Statement becomes effective, including, without limitation: (i) all registration
and filing fees; (ii) fees and expenses of compliance with securities or “blue sky” laws (including
fees and disbursements of counsel in connection with blue sky qualifications of the Registrable
Securities); (iii) printing expenses; (iv) the Company’s internal expenses (including, without
limitation, all salaries and expenses of its officers and employees); (v) the fees and expenses
incurred in connection with the listing of the Registrable Securities as required

13

 

by Section 3.1.10; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and
disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs associated with the delivery
of any opinions or comfort letters requested pursuant to Section 3.1.8); (viii) the fees and
expenses of any special experts retained by the Company in connection with such registration; (ix)
the fees and expenses, in an underwritten offering, of any the underwriter; and (x) the fees and
expenses of one legal counsel selected by the Holders. The Company shall have no obligation to pay
any underwriting discounts or selling commissions attributable to the Registrable Securities being
sold by the holders thereof, which underwriting discounts or selling commissions shall be borne by
the Holders.

     3.4. Information. The Holders shall provide such information as may reasonably be
requested by the Company, or the managing Underwriter, if any, in connection with the preparation
of any Registration Statement, including amendments and supplements thereto, in order to effect the
registration of any Registrable Securities under the Securities Act pursuant to Section 2 and in
connection with the Company’s obligation to comply with federal and applicable state securities
laws.

4. INDEMNIFICATION AND CONTRIBUTION.

     4.1. Indemnification by the Company. The Company agrees to indemnify and hold
harmless each Holder, and each of its respective officers, employees, affiliates, directors,
partners, stockholders, members, attorneys and agents, and each person, if any, who controls each
Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
(each, a “Holder Indemnified Party”), from and against any expenses, losses, judgments,
claims, damages or liabilities, whether joint or several, arising out of or based upon any untrue
statement (or allegedly untrue statement) of a material fact contained in any Registration
Statement under which the sale of such Registrable Securities was registered under the Securities
Act, any preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to such Registration Statement, or arising
out of or based upon any omission (or alleged omission) to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, or any violation by the
Company of the Securities Act or any rule or regulation promulgated thereunder applicable to the
Company and relating to action or inaction required of the Company in connection with any such
registration; and the Company shall promptly reimburse the Holder Indemnified Party for any legal
and any other expenses reasonably incurred by such Holder Indemnified Party in connection with
investigating and defending any such expense, loss, judgment, claim, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such expense, loss, claim, damage or liability arises out of or is based upon any
untrue statement or allegedly untrue statement or omission or alleged omission made in such
Registration Statement, preliminary prospectus, final prospectus, or summary prospectus, or any
such amendment or supplement, in reliance upon and in conformity with information furnished to the
Company, in writing, by such Holder expressly for use therein. The Company also shall indemnify
any Underwriter of the Registrable Securities, their officers, affiliates, directors, partners,
members and agents and each person who controls such Underwriter on substantially the same basis as
that of the indemnification provided above in this Section 4.1.

14

 

     4.2. Indemnification by the Holder. Each Holder will, in the event that any
registration is being effected under the Securities Act pursuant to this Agreement of any
Registrable Securities held by such Holder, indemnify and hold harmless the Company, each of its
directors and officers and each underwriter (if any), and each other person, if any, who controls
such Holder or such underwriter within the meaning of the Securities Act, against any losses,
claims, judgments, damages or liabilities, whether joint or several, insofar as such losses,
claims, judgments, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or allegedly untrue statement of a material fact contained in any
Registration Statement under which the sale of such Registrable Securities was registered under the
Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the
Registration Statement, or any amendment or supplement to the Registration Statement, or arise out
of or are based upon any omission or the alleged omission to state a material fact required to be
stated therein or necessary to make the statement therein not misleading, if the statement or
omission was made in reliance upon and in conformity with information furnished in writing to the
Company by such Holder expressly for use therein, and shall reimburse the Company, its directors
and officers, and each such controlling person for any legal or other expenses reasonably incurred
by any of them in connection with investigation or defending any such loss, claim, damage,
liability or action.

     4.3. Conduct of Indemnification Proceedings. Promptly after receipt by any person of
any notice of any loss, claim, damage or liability or any action in respect of which indemnity may
be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a
claim in respect thereof is to be made against any other person for indemnification hereunder,
notify such other person (the “Indemnifying Party”) in writing of the loss, claim,
judgment, damage, liability or action; provided, however, that the failure by the
Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from
any liability which the Indemnifying Party may have to such Indemnified Party hereunder, except and
solely to the extent the Indemnifying Party is actually prejudiced by such failure. If the
Indemnified Party is seeking indemnification with respect to any claim or action brought against
the Indemnified Party, then the Indemnifying Party shall be entitled to participate in such claim
or action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to
assume the defense thereof with counsel satisfactory to the Indemnified Party. After notice from
the Indemnifying Party to the Indemnified Party of its election to assume the defense of such claim
or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or
other expenses subsequently incurred by the Indemnified Party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that in
any action in which both the Indemnified Party and the Indemnifying Party are named as defendants,
the Indemnified Party shall have the right to employ separate counsel (but no more than one such
separate counsel) to represent the Indemnified Party and its controlling persons who may be subject
to liability arising out of any claim in respect of which indemnity may be sought by the
Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be
paid by such Indemnifying Party if, based upon the written opinion of counsel of such Indemnified
Party, representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, consent to entry of judgment or effect any settlement of any
claim or pending or threatened proceeding in respect of which the Indemnified Party is or could
have been a party and indemnity could have been sought hereunder by such Indemnified

15

 

Party, unless such judgment or settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such claim or proceeding.

     4.4. Contribution.

          4.4.1. If the indemnification provided for in the foregoing Sections 4.1, 4.2 and 4.3 is
unavailable to any Indemnified Party in respect of any loss, claim, damage, liability or action
referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such
loss, claim, damage, liability or action in such proportion as is appropriate to reflect the
relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the
actions or omissions which resulted in such loss, claim, damage, liability or action, as well as
any other relevant equitable considerations. The relative fault of any Indemnified Party and any
Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

          4.4.2. The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 4.4 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding Section 4.4.1.

     The amount paid or payable by an Indemnified Party as a result of any loss, claim, damage,
liability or action referred to in the immediately preceding paragraph shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 4.4, no Holder shall be required to contribute any
amount in excess of the dollar amount of the net proceeds (after payment of any underwriting fees,
discounts, commissions or taxes) actually received by such Holder from the sale of Registrable
Securities which gave rise to such contribution obligation. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.

5. UNDERWRITING AND DISTRIBUTION.

     5.1. Rule 144. The Company covenants that it shall file any reports required to be
filed by it under the Securities Act and the Exchange Act and shall take such further action as any
Holder may reasonably request, all to the extent required from time to time to enable such Holder
to sell Registrable Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 under the Securities Act, as such Rules may be amended from
time to time, or any similar Rule or regulation hereafter adopted by the Commission.

     5.2. Restrictions on Sale by the Company and Others. The Company agrees: (i) not to
effect any public sale or distribution of any securities similar to those being registered in

16

 

accordance with Section 2.1, or any securities convertible into or exchangeable or exercisable
for such securities, from the date the Company receives the written demand for any Demand
Registration (except as part of such Demand Registration to the extent permitted by Section 2.1.4)
until permitted under any “lock-up” agreement with the Underwriter, but not more than ninety (90)
days from the effective date of any registration statement filed pursuant to Section 2.1; and (ii)
that any agreement entered into after the date hereof pursuant to which the Company issues or
agrees to issue any privately placed securities shall contain a provision under which holders of
such securities agree not to effect any sale or distribution of any such securities during the
periods described in (i) above, in each case including a sale pursuant to Rule 144 under the
Securities Act (except as part of any such registration, if permitted); provided,
however, that the provisions of this Section 5.2 shall not prevent the conversion or
exchange of any securities pursuant to their terms into or for other securities and shall not
prevent the issuance of securities by the Company under any employee benefit, stock option or stock
subscription plans.

     5.3. Limitation on Amount of Registrable Securities to be Sold. The Holder agrees
that it shall not sell or distribute whether by way of an effective Registration Statement or
pursuant to Rule 144 or Rule 144(k): (i) more than twenty five percent (25%) of the total number
of shares of Common Stock originally purchased pursuant to the Purchase Agreement (including shares
of Common Stock issuable upon exercise of the Warrant) in any fiscal quarterly period; and (ii)
more than five percent (5%) of the total number of shares of Common Stock originally purchased
pursuant to the Purchase Agreement (including shares of Common Stock issuable upon exercise of the
Warrant) on any given trading day. This limitation on the amount of shares of Common Stock to be
sold shall not apply (i) to the extent that such sales of Common Stock are made in the form of
underwritten offerings pursuant to one or more effective Registration Statements or (ii) to the
sale, exchange or other disposition of such shares of Common Stock in connection with a merger,
acquisition, recapitalization, consolidation or other transaction wherein the holders of the
capital stock of the Company are exchanging all or part of their capital stock for capital stock in
an acquiring entity and/or for cash.

6. MISCELLANEOUS.

     6.1. Other Registration Rights. The Company represents and warrants that no person
has any right to require the Company to register any shares of the Company’s capital stock (or
securities convertible or exercisable into shares of the Company’s capital stock) for sale or to
include shares of the Company’s capital stock (or securities convertible or exercisable into shares
of the Company’s capital stock) in any registration filed by the Company for the sale of shares of
capital stock for its own account or for the account of any other person, other than pursuant to
the Existing Registration Rights Agreements. The Company shall not modify or amend any existing
agreement providing for registration rights in a manner that would adversely affect the rights of
the Holders granted hereunder.

     6.2. Confidentiality. In order to enable the Company to comply with Regulation FD, as
well as other federal and state securities laws, including the rules and regulations of the
Securities and Exchange Commission, the Holders agree to treat as confidential all notices received
hereunder relating to the registration of securities by the Company. The Holders shall take such
action as is necessary to avoid disclosure of such confidential information to third parties, as it
takes to protect its own confidential information.

17

 

     6.3. Assignment; No Third Party Beneficiaries. This Agreement and the rights, duties
and obligations of the Company hereunder may not be assigned or delegated by the Company in whole
or in part. This Agreement and the rights, duties and obligations of the Holder hereunder may be
freely assigned or delegated, in whole or in part, without the consent of the Company, by any
Holder in conjunction with any transfer of Registrable Securities by such Holder, so long as the
transferee of such Registrable Securities executes a joinder agreement to this Agreement agreeing
to be bound by the terms hereof. This Agreement and the provisions hereof shall be binding upon
and shall inure to the benefit of each of the parties and their respective successors and the
permitted assigns of any Holder or of any assignee of such Holder, or any entity that succeeds to
substantially all of the assets and liabilities of such Holder. This Agreement is not intended to
confer any rights or benefits on any persons that are not party hereto other than as expressly set
forth in Article 4 and this Section 6.3.

     6.4. Notices. All notices, requests, claims, demands and other communications under
this Agreement shall be in writing and shall be deemed given upon receipt by the parties at the
following addresses (or at such other address for a party as shall be specified by like notice):

(i) if to the Company:

NationsHealth, Inc.

13650 N.W. 8th Street, Suite 109

Sunrise, FL 33325

Fax number.: (954) 903-5008

Attention: President

with a copy to:

McDermott Will & Emery LLP

201 South Biscayne Blvd.

Miami, Florida 33131

Fax number: (305) 347-6500

Attention: Ira J. Coleman, Esq.

(ii) if to the Holders:

The address set forth on Schedule I hereto, which Schedule

shall be updated to reflect any joinders to this Agreement.

with a copy to:

Associate Chief Counsel

CIGNA Corporation

1601 Chestnut Street

Philadelphia, PA 19192

Fax number: (215) 761-5715

Attention: David R. DeVoe, Esq.

18

 

     6.5. Severability. This Agreement shall be deemed severable, and the invalidity or
unenforceability of any term or provision hereof shall not affect the validity or enforceability of
this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part
of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may
be possible and be valid and enforceable.

     6.6. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which taken together shall constitute one and the
same instrument.

     6.7. Entire Agreement. This Agreement (including all agreements entered into pursuant
hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede all prior
and contemporaneous agreements, representations, understandings, negotiations and discussions
between the parties, whether oral or written.

     6.8. Modifications and Amendments. No amendment, modification or termination of this
Agreement shall be binding upon any party unless executed in writing by such party.

     6.9. Titles and Headings. Titles and headings of sections of this Agreement are for
convenience only and shall not affect the construction of any provision of this Agreement.

     6.10. Waivers and Extensions. Any party to this Agreement may waive any right, breach
or default which such party has the right to waive, provided that such waiver will not be
effective against the waiving party unless it is in writing, is signed by such party, and
specifically refers to this Agreement. Waivers may be made in advance or after the right waived
has arisen or the breach or default waived has occurred. Any waiver may be conditional. No waiver
of any breach of any agreement or provision herein contained shall be deemed a waiver of any
preceding or succeeding breach thereof nor of any other agreement or provision herein contained.
No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver
or extension of the time for performance of any other obligations or acts.

     6.11. Remedies Cumulative. In the event that the Company fails to observe or perform
any covenant or agreement to be observed or performed under this Agreement, each Holder may proceed
to protect and enforce its rights by suit in equity or action at law, whether for specific
performance of any term contained in this Agreement or for an injunction against the breach of any
such term or in aid of the exercise of any power granted in this Agreement or to enforce any other
legal or equitable right, or to take any one or more of such actions, without being required to
post a bond. None of the rights, powers or remedies conferred under this Agreement shall be
mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to any
other right, power or remedy, whether conferred by this Agreement or now or hereafter available at
law, in equity, by statute or otherwise.

     6.12. Governing Law. This Agreement shall be governed by, interpreted under, and
construed in accordance with the internal laws of the State of New York applicable to agreements
made and to be performed within the State of New York, without giving effect to any

19

 

choice-of-law provisions thereof that would compel the application of the substantive laws of
any other jurisdiction.

     6.13. Waiver of Trial by Jury. Each party hereby irrevocably and unconditionally
waives the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether
based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement,
the transactions contemplated hereby, or the actions of the Investor in the negotiation,
administration, performance or enforcement hereof.

20

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their duly authorized representatives as of the date first written above.

	 	 	 	 	 
	 	NATIONSHEALTH, INC.

 	 
	 	By:  	/s/  Glenn M. Parker
 	 
	 	 	Name:  	Glenn M. Parker 	 
	 	 	Title:  	Chief Executive
Officer 	 
	 
	 	CONNECTICUT GENERAL LIFE INSURANCE COMPANY

 	 
	 	By:  	/s/  Jeffrey S. Winer
 	 
	 	 	Name:  	Jeffrey S. Winer 	 
	 	 	Title:  	Vice President 	 
	 

[Signature
Page to Registration Rights Agreement]

21

 

Schedule I

Name and Address of Holder

Connecticut General Life Insurance Company

900 Cottage Grove Road, S-201

Hartford, CT 06152-2202

Fax: (860) 226-5683

Attn: David Russell

22<PAGE>
                                                                    EXHIBIT 10.1

                             OXFORD INDUSTRIES, INC.

                           DEFERRED COMPENSATION PLAN

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE

<S>                        <C>                                                                                  <C>
ARTICLE I             DEFINITIONS.................................................................................1
         Section 1.1.      Account................................................................................1
         Section 1.2.      Beneficiary............................................................................1
         Section 1.3.      Board..................................................................................1
         Section 1.4.      Code...................................................................................1
         Section 1.5.      Committee..............................................................................1
         Section 1.6.      Company................................................................................1
         Section 1.7.      Compensation...........................................................................1
         Section 1.8.      Discretionary Contribution.............................................................1
         Section 1.9.      Eligible Employee......................................................................1
         Section 1.10.     Employee...............................................................................1
         Section 1.11.     ERISA..................................................................................1
         Section 1.12.     Excess Compensation....................................................................1
         Section 1.13.     401(k) Plan............................................................................2
         Section 1.14.     Matching Contribution..................................................................2
         Section 1.15.     Maximum Deferral Percentage............................................................2
         Section 1.16.     Minimum Deferral Amount................................................................2
         Section 1.17.     Oxford.................................................................................2
         Section 1.18.     Plan...................................................................................2
         Section 1.19.     Plan Year..............................................................................2
         Section 1.20.     Plan Year 2006.........................................................................2
         Section 1.21.     Pre-2005 Oxford Plan...................................................................2
         Section 1.22.     Retirement Age.........................................................................2
         Section 1.23.     Separates from Service or Separation from Service......................................2
         Section 1.24.     Tommy Bahama Plan......................................................................2
         Section 1.25.     Years of Service.......................................................................2

ARTICLE II            PARTICIPATION AND DEFERRAL ELECTIONS........................................................2
         Section 2.1.      Start-Up Deferral Elections............................................................2
                  (a)      Plan Year 2006 Elections...............................................................2
                  (b)      Other Start-Up Elections...............................................................3
         Section 2.2.      Annual Deferral Elections..............................................................3
                  (a)      Salary.................................................................................3
                  (b)      Bonuses................................................................................3
                  (c)      Commissions............................................................................3
         Section 2.3.      Minimum Deferral Amount................................................................3
         Section 2.4.      Ongoing Election.......................................................................4
         Section 2.5.      Effect of Hardship Withdrawal..........................................................4
         Section 2.6.      Form of Elections......................................................................4
</TABLE>

<PAGE>

<TABLE>
<S>                        <C>                                                                                   <C>
ARTICLE III           MATCHING CONTRIBUTIONS......................................................................4

ARTICLE IV            DISCRETIONARY CONTRIBUTIONS.................................................................4

ARTICLE V             ACCOUNT ADJUSTMENTS.........................................................................4
         Section 5.1.      General................................................................................4
         Section 5.2.      Deferrals..............................................................................4
         Section 5.3.      Matching and Discretionary Contributions...............................................4
         Section 5.4.      Phantom Investments....................................................................5
         Section 5.5.      Phantom Investment Election............................................................5
         Section 5.6.      Phantom Investment Adjustments.........................................................5

ARTICLE VI            VESTING.....................................................................................6
         Section 6.1.      Amounts Deferred.......................................................................6
         Section 6.2.      Matching Contributions.................................................................6
         Section 6.3.      Discretionary Contributions............................................................6

ARTICLE VII           DISTRIBUTIONS...............................................................................6
         Section 7.1.      Distribution Elections.................................................................6
                  (a)      General................................................................................6
                  (b)      Ongoing Election.......................................................................6
                  (c)      Default................................................................................6
         Section 7.2.      Time of Distribution...................................................................6
                  (a)      Separation from Service................................................................6
                  (b)      Death..................................................................................6
                  (c)      In-Service.............................................................................7
                  (d)      Hardship Withdrawal due to Unforeseeable Emergency.....................................7
                  (e)      Delay of Payments Under Certain Circumstances..........................................7
         Section 7.3.      Distribution Forms.....................................................................8
                  (a)      Separation from Service After Retirement Age...........................................8
                  (b)      Separation from Service Before Retirement Age or Death.................................8
                  (c)      In-Service.............................................................................8
                  (d)      Installments...........................................................................8
         Section 7.4.      Beneficiary............................................................................8

ARTICLE VIII          NO FUNDING OBLIGATION.......................................................................8

ARTICLE IX            COMPLIANCE WITH CODE SECTION 409A...........................................................9

ARTICLE X             MISCELLANEOUS...............................................................................9
         Section 10.1.     Medium of Payment......................................................................9
         Section 10.2.     Making and Revoking Elections and Designations.........................................9
         Section 10.3.     Statements.............................................................................9
         Section 10.4.     Claims Procedure.......................................................................9
         Section 10.5.     Withholding............................................................................9
         Section 10.6.     No Liability...........................................................................9
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                        <C>                                                                                   <C>
         Section 10.7.     Nonalienation of Benefits..............................................................9
         Section 10.8.     Plan Administration....................................................................9
         Section 10.9.     Construction..........................................................................10
         Section 10.10.    No Contract of Employment.............................................................10
         Section 10.11.    ERISA.................................................................................10
         Section 10.12.    Amendment and Termination.............................................................10
         Section 10.13.    Pre-2005 Oxford Plan..................................................................10
                  (a)      Pre-2005 Deferrals....................................................................10
                  (b)      Post-2004 and Pre-2006 Deferrals......................................................10
         Section 10.14.    Tommy Bahama Plan.....................................................................10
                  (a)      Pre-2005 Deferrals....................................................................10
                  (b)      Post-2004 and Pre-2006 Deferrals......................................................11
</TABLE>

                                     -iii-

<PAGE>

                             OXFORD INDUSTRIES, INC.

                           DEFERRED COMPENSATION PLAN

         The primary purpose of this Plan is to assist Oxford Industries, Inc.
("Oxford") and its subsidiaries in attracting and retaining employees of
exceptional ability by (a) allowing a select group of management or
highly-compensated employees of Oxford and certain of its subsidiaries to defer
the payment of a portion of their compensation that otherwise would become
payable to them, and (b) providing for discretionary contributions and matching
contributions if matching contributions under the Oxford Industries, Inc.
Retirement Savings Plan are limited as a result of a deferral under this Plan or
as a result of the dollar limitation applicable to the 401(k) Plan under Section
401(a)(17) of the Code. The terms of this Plan supersede those of the Oxford
Industries, Inc. Non-Qualified Deferred Compensation Plan adopted effective
January 1, 2001, and the Viewpoint International, Inc. Nonqualified Deferred
Compensation Plan adopted effective July 20, 2001, except with respect to
amounts deferred prior to January 1, 2006, as provided in Sections 10.13 and
10.14.

                                   ARTICLE I

                                  DEFINITIONS

         Section 1.1. Account -- means the bookkeeping account maintained by or
at the direction of the Committee to show as of any date the benefit of each
Eligible Employee. Separate subaccounts may be established and maintained as
part of an Eligible Employee's Account as the Committee deems necessary or
appropriate to administer this Plan.

         Section 1.2. Beneficiary -- means the person or persons designated as
such in accordance with Section 7.4.

         Section 1.3. Board -- means the Board of Directors of Oxford.

         Section 1.4. Code -- means the Internal Revenue Code of 1986, as
amended.

         Section 1.5. Committee -- means the committee appointed by the Board to
administer the Plan.

         Section 1.6. Company -- means Oxford and each subsidiary of Oxford that
is designated by the Board as a participating company under this Plan.

         Section 1.7. Compensation -- means, for any Plan Year, "compensation"
as defined in the 401(k) Plan for purposes of determining the amount of pre-tax
contributions and matching contributions under such plan, without regard to any
limitations on compensation imposed under Section 401(a)(17) of the Code, plus
any deferrals made under this Plan for such Plan Year.

         Section 1.8. Discretionary Contribution -- means the amount, if any,
credited to an Eligible Employee's Account in accordance with Article IV.

         Section 1.9. Eligible Employee -- means, for each Plan Year, any
employee of a Company whose gross annual rate of base salary is $130,000 or
more, with such salary threshold to be adjusted, at the Committee's discretion,
for Plan Years subsequent to Plan Year 2006.

         Section 1.10. Employee -- means an employee of Oxford or any subsidiary
of Oxford.

         Section 1.11. ERISA -- means the Employee Retirement Income Security
Act of 1974, as amended.

         Section 1.12. Excess Compensation -- means the excess of an Eligible
Employee's Compensation for a Plan Year over the Eligible Employee's
"compensation" as defined in the 401(k) Plan for purposes of determining the
amount of pre-tax contributions and matching contributions under such plan for
such Plan Year.

                                       1
<PAGE>

         Section 1.13. 401(k) Plan -- means the Oxford Industries, Inc.
Retirement Savings Plan, as amended and as in effect from time to time, or any
other successor defined contribution maintained by Oxford or another Company
that qualifies under Section 401(a) of the Code and satisfies the requirements
of Section 401(k) of the Code.

         Section 1.14. Matching Contribution -- means the amount credited to an
Eligible Employee's Account in accordance with Article III.

         Section 1.15. Maximum Deferral Percentage -- means, for each Plan Year,
the maximum percentage of an Eligible Employee's base salary, bonus and, if
authorized by the Committee for a Plan Year, commissions that can be deferred
under the Plan, which shall be 50% of base salary, 100% of bonus, and 50% of
commissions, unless otherwise determined by the Committee prior to the beginning
of such Plan Year; provided, however, that no deferral election may reduce an
Eligible Employee's compensation below an amount necessary to satisfy applicable
employment and income tax withholding requirements.

         Section 1.16. Minimum Deferral Amount -- means, for each Plan Year, an
amount equal to 1% of the Eligible Employee's base salary, unless otherwise
determined by the Committee prior to the beginning of such Plan Year.

         Section 1.17. Oxford -- means Oxford Industries, Inc. and any successor
to Oxford Industries, Inc.

         Section 1.18. Plan -- means this Oxford Industries, Inc. Deferred
Compensation Plan.

         Section 1.19. Plan Year -- means the calendar year.

         Section 1.20. Plan Year 2006 -- has the meaning specified in Section
2.1(a).

         Section 1.21. Pre-2005 Oxford Plan -- means the Oxford Industries, Inc.
Non-Qualified Deferred Compensation Plan adopted effective January 1, 2001, as
thereafter amended, as such amended plan was in effect on October 3, 2004.

         Section 1.22. Retirement Age -- means (a) age 65 or (b) age 55 and 5
Years of Service.

         Section 1.23. Separates from Service or Separation from Service --
means the termination of employment with Oxford and all subsidiaries in such a
manner as to constitute a "separation from service" within the meaning of
Section 409A of the Code and the regulations thereunder.

         Section 1.24. Tommy Bahama Plan -- means the Viewpoint International,
Inc. Nonqualified Deferred Compensation Plan adopted effective July 20, 2001 as
thereafter amended, as such amended plan was in effect on October 3, 2004.

         Section 1.25. Years of Service -- means "years of service" as defined
in the 401(k) Plan.

                                   ARTICLE II

                      PARTICIPATION AND DEFERRAL ELECTIONS

         Section 2.1. Start-Up Deferral Elections.

                  (a) Plan Year 2006 Elections. Each person who qualifies as an
Eligible Employee during the enrollment period established by the Committee
ending on or prior to December 31, 2005 shall be eligible to participate in this
Plan for the Plan Year beginning January 1, 2006 ("Plan Year 2006") and to make
the following elections:

                  (1) Base Salary. Each such Eligible Employee may elect to
         defer up to the Maximum Deferral Percentage of his or her base salary
         earned for services performed in 2006. Any such election that is not

                                       2
<PAGE>

         revoked prior to the end of the enrollment period shall be irrevocable
         through the end of Plan Year 2006.

                  (2) Performance-Based Bonuses. Each such Eligible Employee who
         has been an Employee continuously from the date upon which performance
         criteria were established through the start of the enrollment period,
         shall be eligible to elect to defer up to the Maximum Deferral
         Percentage of his or her bonus earned for services performed during
         Oxford's fiscal year beginning in 2005 and ending in 2006; provided
         such election is made at least 6 months before the end of such
         performance period. Such bonus is intended to constitute
         "performance-based compensation" within the meaning of Section 409A of
         the Code.

                  (b) Other Start-Up Elections. Each person who first qualifies
as an Eligible Employee after the enrollment period for Plan Year 2006, and who
is treated as first becoming eligible to participate in an "account balance"
plan maintained by a Company within the meaning of Section 409A of the Code and
the regulations thereunder, shall be eligible to elect to participate in this
Plan during the 30-day period starting on the date he or she first qualifies as
an Eligible Employee. Such Eligible Employee may elect prior to the end of such
30-day period to defer up to the Maximum Deferral Percentage of his or her base
salary and bonus, and if authorized by the Committee, commissions, for services
performed after the date the Eligible Employee first begins to participate in
the Plan (and not earlier than January 1, 2006). Any such election shall be
irrevocable at the end of such 30-day period and through the end of the Plan
Year for which it is made. The amount of any bonus deferred with respect to an
election made after the beginning of a performance period will be pro rated in
accordance with Section 409A of the Code and the regulations thereunder.

         Section 2.2. Annual Deferral Elections.

                  (a) Salary. An Eligible Employee shall have the right during
the enrollment period established by the Committee to defer up to the Maximum
Deferral Percentage of his or her base salary for services performed in the
following Plan Year. Any such election that is not revoked by the end of the
enrollment period shall be irrevocable immediately following the enrollment
period and shall remain irrevocable through the end of the Plan Year for which
it is made.

                  (b) Bonuses.

                  (1) Performance-Based Compensation Bonus. An Eligible Employee
         may elect during the annual enrollment period or any other election
         period that is at least 6 months before the end of a performance period
         to defer a "performance-based compensation" bonus earned for services
         performed during such performance period; provided that (i) such bonus
         constitutes "performance-based compensation" within the meaning of
         Section 409A of the Code, (ii) the performance period is at least 12
         months, (iii) the election period is at least 6 months before the end
         of the performance period, (iv) the Eligible Employee has been an
         Employee continuously from the date upon which the performance criteria
         were established through the date of such election, and (v) at the time
         of the election, the compensation is not substantially certain to be
         paid or is not readily ascertainable.

                  (2) Bonus Not Treated As Performance-Based Compensation. If a
         bonus is not intended to satisfy the requirements for
         "performance-based compensation" within the meaning of Section 409A of
         the Code, then an Eligible Employee may elect during an annual
         enrollment period established by the Committee to defer up to the
         Maximum Deferral Percentage of such bonus that otherwise would be
         payable to such Eligible Employee for services performed during the
         following Plan Year.

                  (c) Commissions. If the Committee in its discretion determines
to allow deferrals to be made with respect to commissions for any Plan Year, an
Eligible Employee may elect during the annual enrollment period established by
the Committee preceding such Plan Year to defer up to the Maximum Deferral
Percentage of his or her commissions that are treated under Section 409A of the
Code as attributable to services performed by him or her during such Plan Year.

                                       3
<PAGE>

         Section 2.3. Minimum Deferral Amount. An Eligible Employee's deferral
elections for a Plan Year must provide for a deferral of base salary at least
equal to the Minimum Deferral Amount for the Eligible Employee for that Plan
Year (pro-rated for a start-up election pursuant to Section 2.1(b) or upon
Separation from Service during a Plan Year).

         Section 2.4. Ongoing Election. A deferral election made in accordance
with Sections 2.1 or 2.2 shall remain in effect for a subsequent Plan Year
unless revised or revoked during the enrollment period for such Plan Year,
unless the Committee requires a new election.

         Section 2.5. Effect of Hardship Withdrawal. An Eligible Employee who
has taken a hardship withdrawal pursuant to Section 7.2(d) or has taken a
hardship withdrawal pursuant to the 401(k) Plan shall have his or her deferral
election under this Plan automatically cancelled effective immediately upon such
withdrawal and for the remainder of the Plan Year in the case of a withdrawal
under this Plan or for the remainder of the Plan Year and any subsequent Plan
Year in which deferrals under the 401(k) Plan are suspended. Such Eligible
Employee may recommence participation in the Plan only during an annual
enrollment period and his or her election shall not become effective until the
beginning of the following Plan Year.

         Section 2.6. Form of Elections. Any deferral election shall be made in
the form and manner provided by the Committee for this purpose and in accordance
with such other rules and procedures as may be established from time to time by
the Committee.

                                  ARTICLE III

                             MATCHING CONTRIBUTIONS

         Unless otherwise determined by the Committee, Oxford shall credit each
Eligible Employee's Account with a Matching Contribution equal to (a) 100% of
his or her deferrals for such Plan Year that do not exceed 3% of his or her
Excess Compensation for such Plan Year and (b) 50% of his or her deferrals for
such Plan Year that exceed 3% but do not exceed 5% of his or her Excess
Compensation for such Plan Year.

                                   ARTICLE IV

                           DISCRETIONARY CONTRIBUTIONS

         The Committee may credit each Eligible Employee's Account with a
Discretionary Contribution, if any, at such times and in such amounts as
recommended by the Committee and approved by the Nominating, Compensation and
Governance Committee of the Board, or the Board, in its sole discretion.

                                   ARTICLE V

                               ACCOUNT ADJUSTMENTS

         Section 5.1. General. An Eligible Employee's benefit under this Plan
shall be based entirely on the dollar value credited to his or her Account at
any time, which will depend upon the amount deferred under Article II, the
Matching Contributions credited under Article III, the Discretionary
Contributions, if any, credited under Article IV, and the phantom investment
adjustments made in accordance with this Article V.

         Section 5.2. Deferrals. Amounts deferred by an Eligible Employee shall
be credited to his or to her Account as soon as practicable after the date that
such compensation otherwise would have been payable to the Eligible Employee if
no election had been made under Article II.

         Section 5.3. Matching and Discretionary Contributions. The Matching
Contribution and Discretionary Contribution, if any, shall be credited to an
Eligible Employee's Account as of the end of the calendar year, or at such time
as otherwise may be determined by the Committee in its absolute discretion.

                                       4
<PAGE>

         Section 5.4. Phantom Investments. The Committee from time to time shall
select one or more investment funds that will serve as hypothetical investment
options for the deferrals, Matching Contributions and Discretionary
Contributions credited to an Account ("phantom investment funds"). The Committee
may establish limits on the portion of an Account that may be invested
hypothetically in any phantom investment fund or in any combination of phantom
investment funds.

         Section 5.5. Phantom Investment Election. Each Eligible Employee shall
elect pursuant to procedures established by the Committee to treat the amounts
credited to his or her Account as if they were invested in one or more phantom
investment funds (a "phantom investment election"). An Eligible Employee may
change his or her phantom investment elections in accordance with the
Committee's procedures. Any phantom investment election shall be effective only
if made in accordance with the Committee's procedures.

         Section 5.6. Phantom Investment Adjustments. The Committee shall cause
the Eligible Employee's Account to be adjusted from time to time for any
earnings and losses as if it were invested in accordance with the Eligible
Employee's phantom investment elections. Such adjustments shall be made until
his or her Account is distributed in full under Article VII.

                                       5
<PAGE>

                                   ARTICLE VI

                                    VESTING

         Section 6.1. Amounts Deferred. An Eligible Employee shall be 100%
vested at all times in the Eligible Employee's deferrals and the earnings
thereon.

         Section 6.2. Matching Contributions. An Eligible Employee's Matching
Contributions, and earnings thereon, shall be 100% vested at all times, unless
otherwise determined by the Committee prior to crediting to the Eligible
Employee's Account.

         Section 6.3. Discretionary Contributions. An Eligible Employee's
Discretionary Contributions, and earnings thereon, shall become vested as
determined by the Committee and as approved by the Nominating, Compensation and
Governance Committee of the Board, or the Board.

                                  ARTICLE VII

                                 DISTRIBUTIONS

         Section 7.1. Distribution Elections.

                  (a) General. At the same time as an Eligible Employee makes a
deferral election under Article II, he or she shall elect, pursuant to Section
7.2, the time as of which contributions credited to his or her Account for such
Plan Year will be distributed and, pursuant to Section 7.3, the form in which
such distribution will be made.

                  (b) Ongoing Election. In the absence of any contrary rule
established by the Committee, a Separation from Service distribution election
shall remain in effect for contributions credited to an Account for a subsequent
Plan Year, unless revised or revoked during the annual enrollment period for
such subsequent Plan Year. An in-service distribution election will expire at
the end of the Plan Year for which it was made.

                  (c) Default. If an Eligible Employee fails to make an election
as to the time or form of distribution of his or her Account (or subaccount, as
applicable), his or her distribution will be made in a lump sum on the first day
of the calendar month that is at least 6 months after the date of his or her
Separation from Service.

         Section 7.2. Time of Distribution. Distribution of an Eligible
Employee's Account (or subaccount, as applicable) may be made as a result of the
Eligible Employee's Separation from Service, death, the occurrence of a hardship
due to an unforeseeable emergency, or at a specified time while the Eligible
Employee is still an Employee.

                  (a) Separation from Service. If distribution is made as a
result of the Eligible Employee's Separation from Service, it will commence on
the first regularly scheduled pay date that coincides with or immediately
follows the first day of the calendar month that is (1) 6 months or 12 months
(as selected by the Eligible Employee) from the date the Eligible Employee
Separates from Service, if the Separation from Service is after Retirement Age,
or (2) 6 months from the date the Eligible Employee Separates from Service, if
the Separation from Service is before Retirement Age. If distribution is to be
made in annual installments, any subsequent annual installments shall be made on
the first regularly scheduled pay date that coincides with or next follows the
first day of February of the applicable year.

                  (b) Death. If distribution is made as a result of the Eligible
Employee's death, distribution will commence on the first regularly scheduled
pay date that coincides with or immediately follows the first day of the
calendar quarter immediately following the quarter in which his or her death
occurred. If an Eligible Employee dies after distributions already have
commenced pursuant to his or her Separation from Service or paragraph (c) below,
the balance, if any, of his or her Account will be distributed on the first
regularly scheduled pay date that coincides with or immediately follows the
first day of the calendar quarter immediately following the quarter in which his
or her death occurred.

                                       6
<PAGE>

                  (c) In-Service. An Eligible Employee may elect that his or her
subaccount for a Plan Year be distributed or commence to be distributed on a
regularly scheduled pay date coinciding with or next following the first day of
February of any Plan Year that is at least two Plan Years after the deferrals
were credited to such subaccount; provided he or she is an Employee on the date
of the distribution. An Eligible Employee may revise such in-service
distribution election to change the time of distribution; provided, however,
that (1) the revision will not take effect until 12 months after the date it is
made, (2) the revision must be made at least 12 months before the in-service
distribution otherwise would commence, and (3) the in-service distribution will
be deferred for at least 5 years from the date the in-service distribution would
have commenced in the absence of the revision.

                  (d) Hardship Withdrawal due to Unforeseeable Emergency. An
Eligible Employee shall have the right to request that the Committee distribute
all, or a part of, his or her Account to him or to her in a lump sum if he or
she experiences severe financial hardship resulting from an illness or accident
of the Eligible Employee, the spouse of the Eligible Employee or a dependent (as
defined in Section 152(a) of the Code) of the Eligible Employee, loss of the
Eligible Employee's property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Eligible Employee (an "unforeseeable emergency"). The Committee shall have
the sole discretion to determine whether to grant an Eligible Employee's
withdrawal request under this Section 7.1(d) and the amount to distribute to the
Eligible Employee; provided, however, that no distribution shall be made to an
Eligible Employee under this Section 7.1(d) to the extent that such hardship is
or may be relieved (1) through reimbursement or compensation by insurance or
otherwise, (2) by liquidation of the Eligible Employee's assets, to the extent
the liquidation of the Eligible Employee's assets would not itself cause severe
financial hardship, or (3) by cessation of deferral elections under this Plan.
The amount of any distributions from an Eligible Employee's Account pursuant to
this Section 7.1(d) shall be limited to the amount necessary to meet the
unforeseeable emergency, plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution. An Eligible Employee who takes a
hardship withdrawal under this Section 7.1(d) will be ineligible to make
deferrals under the Plan for the remainder of the Plan Year. Distribution shall
be made on the first regularly scheduled pay date that coincides with or
immediately follows the first day of the calendar month following the
determination by the Committee that a hardship withdrawal will be permitted.

                  (e) Delay of Payments Under Certain Circumstances.
Notwithstanding the provisions of paragraph (a) through (d) above, to the extent
permitted by Section 409A of the Code and the regulations thereunder, Oxford, in
its discretion, may delay payment to a date after the payment date designated in
such paragraphs under any of the following circumstances:

                  (1) Payments Made As Soon As Practicable After the Specified
         Date. Payments will be made as soon as practicable after the date
         specified in paragraphs (a) through (d) and in any event within the
         same calendar year or, if later, by the fifteenth day of the third
         calendar month following the date specified in paragraphs (a) through
         (d).

                  (2) Payments that Would Violate a Loan Covenant or Similar
         Contractual Requirement. Payment will be delayed where the Committee
         reasonably anticipates that the making of the payment will violate a
         term of a loan agreement or other similar contract to which Oxford or
         another Company is a party and such violation will cause material harm
         to Oxford or such other Company; provided that the delayed payment is
         made at the earliest date at which the Committee reasonably anticipates
         that the making of the payment will not cause such violation, or such
         violation will not cause material harm to Oxford or the Company, and
         provided that the facts and circumstances indicate that Oxford or the
         Company entered into such loan agreement or other similar contract for
         legitimate business reasons and not to avoid the restrictions on
         deferral elections and subsequent deferral elections under Section 409A
         of the Code.

                  (3) Payments that Would Violate Federal Securities Laws or
         Other Applicable Law. Payment will be delayed where the Committee
         reasonably anticipates that the making of the payment will violate
         federal securities laws or other applicable law; provided that the
         delayed payment is made at the earliest date at which the Committee
         reasonably anticipates that the making of the payment will not cause
         such violation.

                                       7
<PAGE>

         Section 7.3. Distribution Forms.

                  (a) Separation from Service After Retirement Age. An Eligible
Employee may elect that if he or she Separates from Service after Retirement
Age, his or her subaccount for a Plan Year shall be distributed in a lump sum or
annual installments over 2 to 15 years. Notwithstanding anything in this
paragraph (a) to the contrary, if the Eligible Employee's Account balance
following Separation from Service is less than $25,000, then the Account will be
distributed in a lump sum.

                  (b) Separation from Service Before Retirement Age or Death. If
the Eligible Employee Separates from Service before Retirement Age or dies, his
or her entire Account will be distributed in a lump sum, regardless of whether
in-service distributions have commenced pursuant to Section 7.2(c).

                  (c) In-Service. An Eligible Employee may elect that an
in-service distribution of his or her subaccount for a Plan Year elected in
accordance with Section 7.2(c) be paid in a lump sum or in annual installments
over 2 to 5 years. An Eligible Employee may revise such in-service distribution
election to change the form of distribution; provided, however, that (1) the
revision will not take effect until 12 months after the date it is made, (2) the
revision must be made at least 12 months before the in-service distribution
otherwise would commence, and (3) the in-service distribution will be deferred
for at least 5 years from the date the in-service distribution would have
commenced in the absence of the revision. If the Eligible Employee Separates
from Service before Retirement Age or dies, his or her Account will be
distributed in accordance with Section 7.3(b) and not this Section 7.3(c), even
if distributions had commenced under this Section 7.3(c). However, if the
Eligible Employee Separates from Service after Retirement Age, then any
distributions that had commenced under this Section 7.3(c) shall continue as
scheduled (unless the Eligible Employee's Account balance following Separation
from Service is less than $25,000), but if distributions had not commenced under
this Section 7.3(c), all distributions shall be made in accordance with the form
elected in Section 7.3(a). Notwithstanding anything in this paragraph to the
contrary, if the Eligible Employee's subaccount balance for which an in-service
distribution election has been made is less than $5,000 at the time of
in-service distribution commencement, such subaccount balance will be
distributed in a lump sum.

                  (d) Installments. The amount of any installment distributable
under this Section 7.3 shall be computed by multiplying the portion of the
Eligible Employee's Account (or subaccount, as applicable) to be distributed in
installments by a fraction, the numerator of which shall be one and the
denominator of which shall be the number of installments remaining after such
installment has been paid plus one.

         Section 7.4. Beneficiary. An Eligible Employee shall designate (on a
form provided for this purpose) a person, or more than one person, as his or her
Beneficiary to receive the balance credited to his or her Account in the event
of his or her death. An Eligible Employee may change his or her Beneficiary
designation at any time. If no Beneficiary designation is in effect on the date
an Eligible Employee dies or if no designated Beneficiary survives the Eligible
Employee, the Eligible Employee's estate automatically shall be treated as his
or her Beneficiary under this Plan.

                                  ARTICLE VIII

                              NO FUNDING OBLIGATION

         The obligation of the Company to make any distributions under this Plan
shall be unfunded and unsecured; all distributions to, or on behalf of, an
Eligible Employee under this Plan shall be made from the general assets of the
Company, and any claim by an Eligible Employee or Beneficiary against the
Company for any distribution under this Plan shall be treated the same as a
claim of any general and unsecured creditor of Oxford or of any other Company by
whom the Eligible Employee was employed. Notwithstanding the foregoing, Oxford
may, in its discretion, establish one or more irrevocable grantor trusts for the
purpose of funding all or part of its obligations under this Plan; provided,
however, that the terms of any such trusts require that the assets thereof
remain subject to the claims of Oxford's and the other Company's judgment
creditors and are non-assignable and non-alienable by any Eligible Employee or
Beneficiary prior to distribution thereof.

                                       8
<PAGE>

                                   ARTICLE IX

                        COMPLIANCE WITH CODE SECTION 409A

         Oxford intends that this Plan meet the requirements of Section
409A(a)(2), (3) and (4) of the Code (and any successor provisions of the Code)
and the regulations and other guidance issued thereunder (the "Requirements")
and be operated in accordance with such Requirements so that compensation
deferred under this Plan (and applicable investment earnings) shall not be
included in income under Section 409A of the Code. Any ambiguities in this Plan
shall be construed to effect the intent as described in this Article IX. If any
provision of this Plan is found to be in violation of the Requirements, then
such provision shall be deemed to be modified or restricted to the extent and in
the manner necessary to render such provision in conformity with the
Requirements, or shall be deemed excised from this Plan, and this Plan shall be
construed and enforced to the maximum extent permitted by the Requirements as if
such provision had been originally incorporated in this Plan as so modified or
restricted, or as if such provision had not originally been incorporated in this
Plan, as the case may be.

                                   ARTICLE X

                                 MISCELLANEOUS

         Section 10.1. Medium of Payment. All distributions under this Plan
shall be made in cash.

         Section 10.2. Making and Revoking Elections and Designations. Any
election or designation or revised election or designation under this Plan shall
be effective only when the properly completed election or designation form is
received by the Committee or its delegate before the Eligible Employee's death,
subject to the rules set forth in this Plan.

         Section 10.3. Statements. Oxford or its agent shall provide periodic
statements to the Eligible Employee to show his or her Account balance.

         Section 10.4. Claims Procedure. Any claim for a benefit under this Plan
shall be filed and resolved in accordance with the claims procedure provided
under the 401(k) Plan, which procedure hereby incorporated in this Plan by
reference, except that (a) the Committee of this Plan shall be the entity with
whom a claim for review should be filed under this Plan and (b) the Committee
has absolute discretion to resolve any claims under this Plan.

         Section 10.5. Withholding. The Company may take whatever action that
the Company deems appropriate to satisfy applicable federal, state and local
income tax withholding requirements that the Company determines applicable under
this Plan.

         Section 10.6. No Liability. No Eligible Employee and no Beneficiary of
an Eligible Employee shall have the right to look to, or have any claim
whatsoever against, any officer, director, employee or agent of the Company in
his or her individual capacity for the distribution of any Account.

         Section 10.7. Nonalienation of Benefits. No benefit or payment under
this Plan shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, levy or charge, and any attempt so to
anticipate, alienate, sell, transfer, assign, pledge, encumber, levy upon or
charge the same shall be void. Notwithstanding this statement, if an Eligible
Employee is indebted to the Company at any time when payments are required to be
made under the provisions of this Plan, the Company shall have the right to
reduce the amount of payments remaining to be made to the Eligible Employee or
his or her Beneficiary under the Plan to the extent of such indebtedness. An
election by the Company not to reduce such payment shall not constitute a waiver
of its claim for such indebtedness.

         Section 10.8. Plan Administration. The Committee shall be the
administrator of this Plan, and the Committee has the exclusive responsibility
and complete discretionary authority to control the operation, management and

                                       9
<PAGE>

administration of this Plan, with all powers necessary to enable it properly to
carry out those responsibilities, including (but not limited to) the power to
construe this Plan, to determine eligibility for benefits, to settle disputed
claims and to resolve all administrative, interpretive, operational, equitable
and other questions that arise under this Plan. The decisions of the Committee
on all matters within the scope of its authority shall be final and binding. To
the extent a discretionary power or responsibility under this Plan is expressly
assigned to a person by the Committee, that person will have complete
discretionary authority to carry out that power or responsibility and that
person's decisions on all matters within the scope of that person's authority
will be final and binding.

         Section 10.9. Construction. This Plan shall be construed in accordance
with the laws of the State of Georgia. Headings and subheadings have been added
only for convenience of reference and shall have no substantive effect
whatsoever. All references to the singular shall include the plural and all
references to the plural shall include the singular.

         Section 10.10. No Contract of Employment. Nothing contained in this
Plan shall be construed as a contract of employment between the Company and an
Eligible Employee, as a right of any Eligible Employee to be continued in the
employment of the Company, or as a limitation of the right of the Company to
discharge an Eligible Employee with or without cause.

         Section 10.11. ERISA. Oxford intends that this Plan come within the
various exceptions and exemptions to ERISA for a plan maintained for a "select
group of management or highly compensated employees" as described in Sections
201(2), 301(a)(3), and 401(a)(1) of ERISA. Any ambiguities in this Plan shall be
construed to affect the intent as described in this Section 10.11.

         Section 10.12. Amendment and Termination. The Nominating, Compensation
and Governance Committee of the Board shall have the right to amend this Plan
from time to time and to terminate this Plan at any time; provided, however,
that (a) the balance credited to each Account immediately after any such
amendment or termination shall be no less than the balance credited to such
Account immediately before such amendment or termination (as adjusted for
phantom investment fund performance), (b) the Nominating, Compensation and
Governance Committee may not accelerate the distribution of Account balances
under this Plan upon termination, except to the extent permissible under Section
409A of the Code and the regulations thereunder, and (c) except to conform to
the requirements of Section 409A of the Code, no amendment or termination shall
adversely affect an Eligible Employee's right to the distribution of his or her
Account or his or her Beneficiary's right to the distribution of such Account.

         Section 10.13. Pre-2005 Oxford Plan.

                  (a) Pre-2005 Deferrals. The Pre-2005 Oxford Plan and any
liabilities thereunder hereby are a part of this Plan effective as of January 1,
2006. Any amounts deferred before January 1, 2005 under the Pre-2005 Oxford Plan
(as determined in accordance with Section 409A of the Code and the regulations
thereunder) shall be governed by the terms of the Pre-2005 Oxford Plan, which is
attached to this Plan as Exhibit A. Nothing herein is intended to give any
additional benefits to or enhance the benefits of a participant in the Pre-2005
Oxford Plan and it is intended that amounts deferred under that plan (and any
earnings on such amounts) are not subject to Section 409A of the Code. There
shall be no further deferrals under the terms of the Pre-2005 Oxford Plan after
December 31, 2004.

                  (b) Post-2004 and Pre-2006 Deferrals. The Pre-2005 Oxford Plan
is amended to comply with Section 409A of the Code in the form of the addendum
attached to this Plan as Exhibit B with respect to amounts deferred in taxable
years beginning after December 31, 2004 and before January 1, 2006.

         Section 10.14. Tommy Bahama Plan.

                  (a) Pre-2005 Deferrals. The Tommy Bahama Plan and any
liabilities thereunder hereby are a part of this Plan effective as of January 1,
2006. Any amounts deferred before January 1, 2005 under the Tommy Bahama Plan
(as determined in accordance with Section 409A of the Code and the regulations
thereunder) shall be governed by the terms of the Tommy Bahama Plan, which is
attached to this Plan as Exhibit C. Nothing herein is intended to give

                                       10
<PAGE>

any additional benefits to or enhance the benefits of a participant in the Tommy
Bahama Plan and it is intended that amounts deferred under that plan (and any
earnings on such amounts) are not subject to Section 409A of the Code. There
shall be no further deferrals under the terms of the Tommy Bahama Plan after
December 31, 2004.

                  (b) Post-2004 and Pre-2006 Deferrals. The Tommy Bahama Plan is
amended to comply with Section 409A of the Code in the form of the addendum
attached to this Plan as Exhibit D with respect to amounts deferred in taxable
years beginning after December 31, 2004 and before January 1, 2006. Each
Deferred Compensation Account maintained under the Tommy Bahama Plan for a
person who is an active Employee on January 1, 2006 shall be fully vested as of
January 1, 2006.

         IN WITNESS WHEREOF, Oxford Industries, Inc. has caused this Plan
document to be executed this 11th day of November, 2005.

OXFORD INDUSTRIES, INC.

By: /s/ Sheridan B. Johnson

                                       11
<PAGE>

                                    EXHIBIT A

                         [ATTACH PRE-2005 OXFORD PLAN.]

                                       12
<PAGE>

                                    EXHIBIT B

                              PRE-2005 OXFORD PLAN

                  SPECIAL RULES APPLICABLE TO 2005 COMPENSATION

         Notwithstanding any other provision of the Pre-2005 Oxford Plan to the
contrary, the provisions of this Exhibit B shall supersede all inconsistent
provisions of the Pre-2005 Oxford Plan with respect to amounts deferred in
taxable years beginning after December 31, 2004 (and earnings on such amounts);
provided that all other provisions of the Pre-2005 Oxford Plan shall apply with
respect to such deferrals to the extent not inconsistent with the provisions of
this Exhibit B or Section 409A of the Code, as determined by the Plan
Administrator in its sole and absolute discretion. This Exhibit B is intended to
(a) satisfy the requirements of Section 409A(a)(2), (3) and (4) of the Code for
deferrals made after December 31, 2004 and (b) not constitute a material
modification of the Pre-2005 Oxford Plan with respect to amounts deferred before
January 1, 2005.

         1.       Account(s). A separate bookkeeping account shall be
established to account for deferrals made in taxable years beginning after
December 31, 2004 and any earnings on such deferrals. The portion of any Account
that was not fully vested on December 31, 2004 shall be treated as a deferral
made in taxable years beginning after December 31, 2004.

         2.       Financial Hardship. The definition of "Financial Hardship"
under Section 2.14 of the Pre-2005 Oxford Plan shall not include "financial
hardship of the Participant resulting from a Disability of the Participant."

         3.       Hardship Distributions. Any actions taken by the Committee
pursuant to Section 5.4 of the Pre-2005 Oxford Plan shall be made in compliance
with Section 409A(a)(2)(A)(vi) and related regulations and other guidance issued
with respect to distributions upon the occurrence of an unforeseeable emergency.

         4.       Distribution of Retirement Account. If a Participant
terminates employment prior to Retirement, the Retirement Account shall be paid
in the form of a lump sum payment under Section 5.1 of the Pre-2005 Oxford Plan,
with no Committee discretion to pay in another form.

         5.       Withdrawal with Penalty. The provisions of Section 5.5 of the
Pre-2005 Oxford Plan shall not apply.

         6.       Complete Termination. Section 9.2 of the Pre-2005 Oxford Plan
is amended to provide that in the event of complete termination, the Pre-2005
Oxford Plan shall cease to operate and the Company may provide for the
distribution of each Account to the appropriate Participant in the form of a
lump sum on termination of the Plan to the extent permissible under Section 409A
of the Code and the regulations and other guidance issued thereunder.

                                       13
<PAGE>

                                    EXHIBIT C

                           [ATTACH TOMMY BAHAMA PLAN.]

                                       14
<PAGE>

                                    EXHIBIT D

                                TOMMY BAHAMA PLAN

                  SPECIAL RULES APPLICABLE TO 2005 COMPENSATION

         Notwithstanding any other provision of the Tommy Bahama Plan to the
contrary, the provisions of this Exhibit D shall supersede all inconsistent
provisions of the Tommy Bahama Plan with respect to amounts deferred in taxable
years beginning after December 31, 2004 (and earnings on such amounts); provided
that all other provisions of the Tommy Bahama Plan shall apply with respect to
such deferrals to the extent not inconsistent with the provisions of this
Exhibit D or Section 409A of the Code, as determined by the Plan Administrator
in its sole and absolute discretion. This Exhibit D is intended to (a) satisfy
the requirements of Section 409A(a)(2), (3) and (4) of the Code for deferrals
made after December 31, 2004 and (b) not constitute a material modification of
the Tommy Bahama Plan with respect to amounts deferred before January 1, 2005.

         1.       Account(s). A separate bookkeeping account shall be
established to account for deferrals made in taxable years beginning after
December 31, 2004 and any earnings on such deferrals. The portion of any
Deferred Compensation Account that was not fully vested on December 31, 2004
shall be treated as a deferral made in taxable years beginning after December
31, 2004.

         2.       Cancellation of Deferral Election Upon Unforeseeable Financial
Emergency. Section 3.2(c) of the Tommy Bahama Plan is amended to provided that
the Plan Administrator shall terminate the Participant's Deferral Election
during the Plan Year in the event of an Unforeseeable Financial Emergency.

         3.       Time and Method of Payment. Section 5.1 of the Tommy Bahama
Plan is amended to provide that an election to receive a single, lump sum
payment in lieu of installment payments must be made by filing a written
election with the Plan Administrator no later than December 31, 2004.

         4.       Amendment and Termination. Under Section 8 of the Tommy Bahama
Plan, upon termination of the Tommy Bahama Plan, the Company may provide that,
notwithstanding the Participant's Distribution Date, all Deferred Compensation
Account balances will be distributed on a date selected by the Company only to
the extent permissible under Section 409A of the Code and the regulations and
other guidance issued thereunder.

                                  END OF FILING

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]