Document:

Exhibit 10.3

 

CONFORMED COPY

 

STOCKHOLDERS AGREEMENT, dated as of March 9, 2004, and amended as
of June 2, 2004 (this “Agreement”), among MILLSTREAM
ACQUISITION CORPORATION (to be renamed NationsHealth, Inc. at the Effective
Time), a Delaware corporation (the “Company”), RGGPLS HOLDING, INC., a
Florida corporation (“RGGPLS”), and GRH HOLDINGS, L.L.C., a Florida
limited liability company (the “Specified Stockholder”).

 

Preliminary Statements

 

WHEREAS, the Company has entered into an Agreement and Plan of Merger,
dated as of the date hereof (the “Merger Agreement”), among the Company,
N Merger L.L.C., a Florida limited liability company and a wholly owned
subsidiary of the Company, and NationsHealth Holdings, L.L.C., a Florida
limited liability company; and

 

WHEREAS, RGGPLS and the Specified Stockholder desire to make certain
covenants and agreements set forth herein with respect to the voting of the
Shares (as defined below) held by the Specified Stockholder and certain other
matters.

 

NOW THEREFORE, in consideration of the premises and the covenants and
agreements contained herein, the parties hereto agree as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01   Definition of Certain Terms Used Herein.  As used herein, the following terms shall
have meanings specified below:

 

“Affiliate” shall mean, with respect to any person, any other
person that directly or indirectly through one or more intermediaries controls
or is controlled by or is under common control with such person.  For the purposes of this definition, “control”
when used with respect to any particular person, means the power to direct the
management and policies of such person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Applicable Exchange” shall mean Nasdaq, the NYSE, the AMEX or
any other stock exchange, as the case may be, if the Common Stock is then
traded on Nasdaq, the NYSE, the AMEX or such other stock exchange, and shall
mean none of Nasdaq, the NYSE, the AMEX or any other stock exchange if the
Common Stock is not then traded on Nasdaq, the NYSE, the AMEX or any other
stock exchange.

 

“beneficial owner” shall have the meaning assigned to such term
in Rule 13d-3 under the Exchange Act.

 

“Board of Directors” shall mean the Board of Directors of the
Company.

 

 

“Class B Member interests” shall have the meaning assigned to
such term in the Merger Agreement.

 

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

 

“directors” shall mean members of the Board of Directors.

 

“DGCL” shall mean the Delaware General Corporation Law, as
amended.

 

“Effective Time” shall have the meaning assigned to such term in
the Merger Agreement.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations thereunder.

 

“Excluded Shares” shall mean the shares of Common Stock issuable
at the Effective Time upon the conversion of the Preferred Member interests
held by the Specified Stockholder at the Effective Time, other than the Other
Shares.  “Excluded Shares” shall
also be deemed to include any and all shares of capital stock of the Company or
any successor or assign of the Company (whether by merger, consolidation, sale
of assets or otherwise) which may be issued in respect of, in exchange for, or
in substitution of the Excluded Shares, by reason of a stock dividend, stock
split, stock issuance, reverse stock split, combination, recapitalization, reclassification,
merger, consolidation or otherwise.

 

“Liens” shall mean any pledges, claims, liens, charges,
encumbrances or security interests of any kind or nature whatsoever.

 

“Offeror” shall have the meaning set forth in Section 4.03
below.

 

“Other Matter” shall mean any matter (including the election of
directors to the Board of Directors) brought before a Stockholders Meeting and
proposed or sponsored by a person other than RGGPLS, to be acted upon by the
stockholders of the Company.

 

“Other Shares” shall mean 2,400,000 shares of Common Stock out
of the shares of Common Stock issuable at the Effective Time upon the
conversion of the Preferred Member interests held by the Specified Stockholder
at the Effective Time.  “Other Shares”
shall also be deemed to include any and all shares of capital stock of the
Company or any successor or assign of the Company (whether by merger,
consolidation, sale of assets or otherwise) which may be issued in respect of,
in exchange for, or in substitution of the Other Shares, by reason of a stock
dividend, stock split, stock issuance, reverse stock split, combination,
recapitalization, reclassification, merger, consolidation or otherwise.

 

“Release Date” shall mean the sixth anniversary of the Effective
Time.

 

“RGGPLS Director” shall mean any RGGPLS Nominee who is elected
to the Board of Directors.

 

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“RGGPLS Matter” shall mean any matter brought before a
Stockholders Meeting and proposed or sponsored by RGGPLS to be acted upon by
the stockholders of the Company at such Stockholders Meeting.

 

“RGGPLS Nominee” shall mean any person nominated by RGGPLS for
election as a director to the Board of Directors.

 

“Rule 144” shall mean Rule 144 promulgated by the SEC under the
Securities Act, or any successor rule or regulation.

 

“SEC” shall mean the United States Securities and Exchange
Commission or any other United States federal agency at the time administering
the Securities Act or the Exchange Act, as applicable, whichever is the
relevant statute.

 

“Securities Act” shall mean the Securities Act of 1933, as
amended, and the rules and regulations thereunder.

 

“Shares” shall mean (i) the Specified Shares and
(ii) the Other Shares.

 

“Specified Shares” shall mean the shares of Common Stock
issuable at the Effective Time upon the conversion of the Class B Member
interests held by the Specified Stockholder at the Effective Time.  “Specified Shares” shall also be
deemed to include any and all shares of capital stock of the Company or any successor
or assign of the Company (whether by merger, consolidation, sale of assets or
otherwise) which may be issued in respect of, in exchange for, or in
substitution of the Specified Shares, by reason of a stock dividend, stock
split, stock issuance, reverse stock split, combination, recapitalization,
reclassification, merger, consolidation or otherwise.

 

“Stockholders” shall mean both of RGGPLS and the Specified
Stockholder, and “Stockholder” shall mean either of RGGPLS or the
Specified Stockholder.

 

“Stockholders Meeting” shall mean (i) any annual or special
meeting of the stockholders of the Company or (ii) any action by written
consent of the stockholders of the Company.

 

“Tag-Along Notice” shall have the meaning set forth in
Section 4.03 below.

 

“Tagging Holder” shall have the meaning set forth in
Section 4.03 below.

 

“Triggering Event” shall mean, if the Common Stock is then
listed or quoted on an Applicable Exchange, the failure of the Company to
constitute a “Controlled Company” for purposes of the rules and regulations of
the Applicable Exchange (it being understood and agreed that if the Common
Stock is not then listed or quoted on an Applicable Exchange, then a Triggering
Event shall not be capable of occurring).

 

SECTION 1.02   Usage.  The definitions in this Article I shall
apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  All references in

 

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this Agreement to Articles, Sections and
Schedules shall be deemed to be references to Articles, Sections and Schedules
of or to this Agreement, unless the context shall otherwise require.  The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”,
regardless of whether such phrase so appears.

 

ARTICLE II

 

Representations and Warranties

 

SECTION 2.01   Representations and Warranties of the
Company.  The Company hereby
represents and warrants to each other party as follows: (i) the Company is
a corporation duly organized and validly existing under the laws of the State
of Delaware and has all requisite corporate power and authority to execute and
deliver this Agreement, to carry out the provisions hereof and to perform its
obligations hereunder; (ii) the execution, delivery and performance by the
Company of its obligations under this Agreement and the consummation by it of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Company; and (iii) this Agreement has
been duly and validly executed and delivered by the Company and constitutes a
legal, valid and binding obligation of the Company, enforceable against it in
accordance with its terms.

 

SECTION 2.02   Representations and Warranties of the
Stockholders.  Each Stockholder
hereby represents and warrants to each other party as follows:  (i) the execution, delivery and
performance by such Stockholder of its obligations under this Agreement and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of such Stockholder;
and (ii) this Agreement has been duly and validly executed and delivered
by such Stockholder and constitutes the legal, valid and binding obligation of
such Stockholder, enforceable against it in accordance with its terms.

 

SECTION 2.03   Representations and Warranties of RGGPLS.  RGGPLS hereby represents and warrants to the
Specified Stockholder that the beneficial owners of its capital stock, and the
shares so owned by such beneficial owners, as of the date of this Agreement
are:  (i) 1,000 shares of common stock
are owned by Glenn M. Parker, as Trustee under that certain unrecorded trust
agreement in existence prior to the date hereof known as the Glenn M. Parker
Irrevocable Family Trust; (ii) 1,000 shares of common stock are owned by Robert
Gregg, as Trustee under that certain unrecorded trust agreement in existence
prior to the date hereof known as the Robert Gregg Irrevocable Family Trust;
and (iii) 1,000 shares of common stock are owned by Lewis P. Stone, as Trustee
under that certain unrecorded trust agreement in existence prior to the date
hereof known as the Lewis P. Stone Irrevocable Family Trust (collectively, the
“RGGPLS Owners”).

 

ARTICLE III

 

Voting

 

SECTION 3.01   Agreement to Vote.  At each and every Stockholders Meeting held
on or after the Effective Time, the Specified Stockholder hereby agrees
(x) if any annual or special meeting of the stockholders of the Company is
held, to appear at such meeting or

 

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otherwise cause its Shares to be counted as
present thereat for purposes of establishing a quorum, and (y) to vote or
to act by written consent with respect to (or cause to be voted or acted upon
by written consent), (i) all Shares for which the Specified Stockholder is
the record holder or beneficial owner at the time of such vote or action by
written consent and (ii) all Shares as to which the Specified Stockholder
at the time of such vote or action by written consent has voting control, in
each case:

 

(A)          In favor of:

 

(i)            All of the RGGPLS
Nominees (if directors are to be elected at such Stockholders Meeting);

 

(ii)           Any RGGPLS Matter;
and/or

 

(iii)          Any Other Matter, only
if RGGPLS directs (by oral or written notice) the Specified Stockholder to vote
in favor of such Other Matter; and

 

(B)           Against:

 

(i)            The election of any
person or persons nominated in opposition to the RGGPLS Nominees (if directors
are to be elected at such Stockholders Meeting);

 

(ii)           Any matter brought
before such Stockholders Meeting to be acted upon by the stockholders of the
Company that is in opposition to an RGGPLS Matter; and/or

 

(iii)          Any Other Matter, only
if RGGPLS directs (by oral or written notice) the Specified Stockholder to vote
against such Other Matter.

 

SECTION 3.02   Grant of Irrevocable Proxy.  The Specified Stockholder hereby irrevocably
grants to and appoints RGGPLS (and any officer of RGGPLS or each of them
individually), the Specified Stockholder’s proxy and attorney-in-fact (with
full power of substitution), for and in the name, place and stead of the
Specified Stockholder, to vote, act by written consent or grant a consent,
proxy or approval in respect of such Shares with respect to such vote or action
by written consent exclusively as agreed by the Specified Stockholder in this
Agreement, in the event that the Specified Stockholder shall fail at any time
to vote or act by written consent with respect to any of the Specified
Stockholder’s Shares as agreed by the Specified Stockholder in this
Agreement.  The Specified Stockholder
hereby affirms that any such irrevocable proxy set forth in this
Section 3.02 is given to secure the performance of obligations of the
Specified Stockholder under this Agreement. 
The Specified Stockholder hereby further affirms that any such proxy
hereby granted shall be irrevocable and shall be deemed coupled with an
interest, in accordance with Section 212(e) of the DGCL.  The Specified Stockholder agrees to execute
and deliver any further powers of attorney, consents, proxies or other
agreements necessary or appropriate to give effect to this Section 3.02.

 

SECTION 3.03   Certain Actions.  Each Stockholder agrees that it will, and
will cause its subsidiaries and Affiliates to, take all action as a stockholder
of the Company or as is

 

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otherwise within its control as are necessary
to give effect to the provisions of this Agreement and to perform, pay and
satisfy all of their respective obligations and liabilities hereunder as and
when due.

 

ARTICLE IV

 

Covenants

 

SECTION 4.01   Disposition of the Shares.  The Specified Stockholder hereby agrees that,
without the prior written consent of RGGPLS, it will not, at any time after the
date hereof and prior to the Release Date, (i) offer, pledge, sell,
assign, contract to sell, sell any option or contract to purchase, purchase any
option or contract to sell, grant any option, right or warrant to purchase,
lend, or otherwise transfer or dispose of, directly or indirectly, any of its
Shares or any securities convertible into or exercisable or exchangeable for
Shares or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
the Shares (whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash,
property or otherwise), in each case until such time as the Specified
Stockholder has sold or disposed of, to a third party that is not an Affiliate
of the Specified Stockholder, all of the Excluded Shares (it being understood
and agreed that for purposes of this Section 4.01 the term “Excluded
Shares” shall only apply to shares of Common Stock then owned by the Specified
Stockholder that constitute Excluded Shares) owned by the Specified
Stockholder.

 

SECTION 4.02   Status of the Company.  At all times prior to the occurrence of a
Triggering Event and so long as the Common Stock is listed or quoted on an
Applicable Exchange, the Specified Stockholder shall publicly take the position
that the Company is a “Controlled Company” within the rules and regulations of
the Applicable Exchange and cause the disclosure in all statements, reports,
schedules or other documents required to be filed by the Specified Stockholder
with the SEC pursuant to the Exchange Act to state that the Company is a “Controlled
Company” within the rules and regulations of the Applicable Exchange and the
basis for such determination.  Without
limiting the generality of the foregoing, if required by the rules and
regulations of the Applicable Exchange in order for the Company to constitute a
“Controlled Company” within the rules and regulations of such Applicable
Exchange, the Specified Stockholder agrees to file a Statement on
Schedule 13D with the SEC on a timely basis stating that RGGPLS and the
Specified Stockholder constitute a “group” within the meaning of
Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder with respect to the Shares (and not with respect to the
Excluded Shares) if such filing and statement are required or allowed under the
applicable rules of the SEC.

 

SECTION 4.03   Tag-Along Rights.  Subject to Section 4.01 above, if either
RGGPLS or the Specified Stockholder desires to sell, transfer or dispose of, in
a merger or other transaction (each, a “sale”) all (or any portion) of
securities of the Company held by it, other than through a transaction pursuant
to Rule 144 or an offering registered pursuant to the Securities Act, the
following provisions of this Section 4.03 shall apply.  The Stockholder (either RGGPLS or the Specified
Stockholder) that desires to sell securities of the Company (the “Offeror”)
shall, as a condition to such sale, (i) provide a notice to the other
Stockholder (the “Tagging Holder”) in writing (the “Tag-Along Notice”)
of the material terms of the proposed sale at least 30 days

 

6

 

prior to such sale and (ii) permit the
Tagging Holder (or cause the Tagging Holder to be permitted) to sell (either to
the prospective transferee of the Offeror or to another financially reputable
transferee reasonably acceptable to the Tagging Holder) the same portion of the
same class of its respective securities of the Company on the same terms as the
sale by the Offeror, which sale shall take place on the date the Offeror’s securities
(or such portion) are transferred to such transferee (or transferees).  The Tagging Holder shall have 10 days from
the date of receipt of a Tag-Along Notice to exercise its right to sell
pursuant to clause (ii) above by delivering written notice to the Offeror of
its intent to exercise such right.  The
right of the Tagging Holder to sell pursuant to the above provisions shall
terminate if not exercised within such 10-day period.  If the Tagging Holder elects to exercise its
right to sell pursuant to the above provisions, it shall share, on a pro rata
basis, the legal, investment banking and other expenses of the Offeror incurred
in connection with such transfer.

 

SECTION 4.04   Termination of Certain Provisions of
Letter Agreement. Upon the occurrence of the Effective Time, Sections 2, 3,
4, 5 and 6 of the letter agreement between RGGPLS and the Specified Stockholder
dated as of October 30, 2003, are hereby terminated and of no further
force or effect.

 

SECTION 4.05   [INTENTIONALLY BLANK].

 

SECTION 4.06  Provision of Information.  The Company agrees to provide to the
Specified Stockholder upon its written request the information required to be
filed with the federal income tax return of the Company pursuant to Treasury
Regulation Section 1.351-3, and the Company agrees to keep such
information to the full extent required by Treasury Regulation
Section 1.351-3(c).

 

ARTICLE V

 

Term of Agreement

 

SECTION 5.01   Term of Agreement.  This Agreement shall become effective upon
the occurrence of the Effective Time; provided, however, that if
the Merger Agreement is terminated in accordance with its terms then this
Agreement shall terminate and be of no further force or effect as if this
Agreement were never executed and delivered. 
Unless earlier terminated as provided in the preceding sentence, this
Agreement (other than Section 4.06) shall terminate: (i) with respect
to the Specified Stockholder, when (A) the Specified Stockholder no longer owns
any Shares or (B) the RGGPLS Owners cease to own a majority of the outstanding
common stock or outstanding equity interests (as applicable) in, and a majority
of the outstanding voting stock or outstanding voting equity interests (as
applicable) in, RGGPLS; or (ii) upon the occurrence of the Release Date.

 

ARTICLE VI

 

Miscellaneous Provisions

 

SECTION 6.01   Specific Performance.  The parties hereto hereby declare that
irreparable damage would occur as a result of the failure of any party hereto
to perform any of its

 

7

 

obligations under this Agreement in
accordance with the specific terms hereof. 
Therefore, all parties hereto shall have the right to specific
performance of the obligations of the other parties under this Agreement and if
any party hereto shall institute any action or proceeding to enforce the
provisions hereof, any person against whom such action or proceeding is brought
hereby waives the claim or defense therein that such party has an adequate
remedy at law.  The right to specific
performance should be in addition to any other remedy to which a party hereto
may be entitled at law or in equity.

 

SECTION 6.02   Legends.  (a) 
Each certificate representing Shares (including Substituted Shares, if
applicable) shall bear the following legend:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TERMS AND
CONDITIONS (INCLUDING RESTRICTIONS ON VOTING AND TRANSFER) SET FORTH IN A
STOCKHOLDERS AGREEMENT DATED AS OF MARCH 9, 2004, A COPY OF WHICH MAY BE
OBTAINED FROM NATIONSHEALTH, INC.  NO
TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF, OR BE EFFECTIVE WITH
RESPECT TO, NATIONSHEALTH, INC. UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE
WITH THE TERMS OF SUCH AGREEMENT.

 

(b)           In addition, stop
transfer restrictions will be given to the Company’s transfer agent(s) with
respect to the Shares.  The Company
hereby agrees that it will cause stop transfer restrictions to be released with
respect to any Shares that are transferred in compliance with the terms and
provisions of this Agreement.  The
Company further agrees that it will cause the legend described in
Section 6.02(a) to be removed (x) with respect to any Shares sold or
transferred in compliance with the terms and provisions of this Agreement or
(y) in the event this Agreement terminates.

 

SECTION 6.03   Conflicts and Inconsistent Agreements.  Each of the Stockholders and the Company
shall take all action necessary, including but not limited to the voting of
capital stock of the Company, to ensure that the certificate of incorporation
and by-laws of the Company and the certificates of incorporation and by-laws or
other governing documents of the Company’s subsidiaries are consistent with,
and do not conflict with, the terms of this Agreement.  Neither the Company nor any Stockholder shall
enter into any agreement inconsistent with the terms of this Agreement.

 

SECTION 6.04   Complete Agreement.  This Agreement constitutes the entire
agreement and understanding among the parties hereto with respect to the
matters referred to herein and supersedes all prior agreements and
understandings among the parties hereto with respect to the matters referred to
herein.

 

SECTION 6.05   Amendment.  This Agreement may not be amended, modified
or supplemented, and no waivers of or consents to departures from the provisions
hereof may be given, unless consented to in writing by the Company, RGGPLS and
the Specified Stockholder.

 

8

 

SECTION 6.06   Successors; Assigns.  Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned, directly or indirectly,
including by operation of law, by any party hereto without the prior written
consent of the other parties hereto. 
Notwithstanding anything in this Agreement to the contrary, the parties
hereto agree that each of RGGPLS and the Specified Stockholder (a “Converting
Entity”) shall be permitted to merge with or into, consolidate with,
liquidate and recontribute its assets and liabilities to, convert into,
exchange its capital stock for equity interests in, or otherwise change its
form or status to, in each case a limited liability company the equity
interests of which are beneficially owned in the same proportion and by the
same persons as the capital stock or membership interests of the Converting
Entity was beneficially owned (each of such actions, a “Conversion” and,
the Converting Entity as so Converted into a limited liability company, “Newco”),
and, that from and after such Conversion (i) Newco shall succeed to all of the
rights and obligations of its respective Converting Entity under this Agreement
without the consent of or any action of any of the parties hereto or any
written amendment hereto, (ii) Newco shall be entitled to enforce all of the
rights, and perform all of the obligations, hereunder as if Newco was a
signatory hereto and (iii) all references in this Agreement to RGGPLS or the
Specified Stockholder shall be deemed references to its respective Newco.  Notwithstanding the foregoing, the obligations
of the Specified Stockholder under this Agreement shall no longer apply with
respect to any Shares which are sold or otherwise disposed of by the Specified
Stockholder to a third party that is not an Affiliate of the Specified
Stockholder, in compliance with the terms of this Agreement.

 

SECTION 6.07   Attorney Fees.  A party in breach of this Agreement shall, on
demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and expenses, incurred
by such other party by reason of the enforcement and protection of its rights
under this Agreement.  The payment of
such expenses is in addition to any other relief to which such other party may
be entitled.

 

SECTION 6.08   Notices.  All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be delivered
by hand or sent by prepaid telex, cable or telecopy or sent, postage prepaid,
by registered, certified or express mail or reputable overnight courier service
and shall be deemed given when so delivered by hand, telexed, cabled or
telecopied, or if mailed, three days after mailing (one business day in the
case of express mail or overnight courier service), as follows (or at such
other address, telephone number and fax number as a party shall notify each
other party hereto):

 

9

 

(i)  if to the Company before the
Effective Time:

 

Millstream Acquisition Corporation

c/o Arthur R. Spector

435 Devon Park Drive

Building 400

Wayne, PA 19087

Attention:  Chairman, Chief
Executive

Officer and President

Telecopy No.: (610) 254-4367

 

with a copy to:

 

Klehr, Harrison, Harvey, Branzburg &

Ellers LLP

260 South Broad Street, Suite 400

Philadelphia, PA  19102-5003

Attention:  Barry J. Siegel

Telecopy No.: (215) 568-6603

 

(ii)  if to the Company on or
after the Effective Time:

 

NationsHealth, Inc.

13650 N.W. 8th St., Suite 109

Sunrise, FL  33325

Attention:  Glenn M. Parker M.D.,

Robert Gregg and

Lewis Stone

Telecopy No.: (954) 903-5005

 

with a copy to:

 

McDermott, Will & Emery

201 S. Biscayne Blvd., Suite 2200

Miami, FL  33131

Attention: Ira J. Coleman, Esq.

Telecopy No.:  (305) 347-6500

 

10

 

(iii)  if to RGGPLS:

 

RGGPLS Holdings, Inc.

13650 N.W. 8th St., Suite 107

Sunrise, Florida  33325

Attention:  Glenn M. Parker M.D.,

Robert Gregg and

Lewis Stone

Telecopy No.: (954) 903-5005

 

with a copy to:

 

McDermott, Will & Emery

201 S. Biscayne Blvd., Suite 2200

Miami, FL  33131

Attention: Ira J. Coleman, Esq.

Telecopy No.: (305) 347-6500

 

(iv)  if to the Specified
Stockholder:

 

GRH Holdings, L.L.C.

6701 Nob Hill Road

Tamarac, Florida  33321

Attention:  Michael Gusky

Telecopy No.:  (954) 718-3211

 

with a copy to:

 

Muller & Lebensburger

7385 Galloway Road, Suite 200

Miami, FL 33173

Attention:  Charles E. Muller II

Telecopy No.:  305-670-6769

 

SECTION 6.09   Interpretation.  The headings contained in this Agreement and
in any Schedule hereto are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.  All Schedules annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement as if set
forth in full herein.  Any capitalized
terms used in any Schedule but not otherwise defined therein, shall have
the meaning as defined in this Agreement.

 

SECTION 6.10   Counterparts.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party.

 

11

 

SECTION 6.11   Severability.  If any provision of this Agreement (or any
portion thereof) or the application of any such provision (or any portion
thereof) to any person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof (or the remaining portion thereof) or the application of such provision
to any other persons or circumstance.

 

SECTION 6.12   Governing Law.  This Agreement and all actions contemplated
hereby shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware (without regard to conflict of laws principles).

 

SECTION 6.13   Submission to Jurisdiction.  Any and all suits, legal actions or
proceedings arising out of this Agreement shall be brought in the Superior
Court or the Court of Chancery of the State of Delaware or the United States
District Court for the District of Delaware or in the Supreme Court of the
State of New York, New York County or the United States District Court for the
Southern District of New York and each party hereby submits to and accepts the
exclusive jurisdiction of such courts for the purpose of such suits, legal
actions or proceedings. In any such suit, legal action or proceeding, each
party waives personal service of any summons, compliant or other process and
agrees that service thereof may be made by certified or registered mail
directed to it at its address set forth in the books and records of the
company.  To the fullest extent permitted
by law, each party hereto hereby irrevocably waives any objection which it may
now or hereafter have to the laying of venue or any such suit, legal action or
proceeding in any such court and hereby further waives any claim that any suit,
legal action or proceeding brought in any such court has been brought in an
inconvenient forum.

 

SECTION 6.14   Waiver of Jury Trial.  Each party hereby waives, to the fullest
extent permitted by applicable law, any right it may have to a trial by jury in
respect of any litigation directly or indirectly arising out of, under or in
connection with this Agreement.  Each
party (i) certifies that no representative of any other party has
represented, expressly or otherwise, that such other party would not, in the
event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges
that it and the other parties have been induced to enter into this Agreement
by, among other things, the mutual waivers and certifications in this
Section 6.14.

 

SECTION 6.15   No Waiver of Rights.  No failure or delay on the part of any party
in the exercise of any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right
preclude other or further exercise thereof or of any other right or power.  The waiver by any party or parties hereto of
a breach of any provision of this Agreement shall not operate or be construed
as a waiver of any other or subsequent breach hereunder.  All rights and remedies existing under this
Agreement are cumulative and are not exclusive of any rights or remedies
otherwise available.

 

12

 

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

 

	
   

  	
  MILLSTREAM ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Arthur Spector

  	
   

  
	
   

  	
   

  	
  Name:     Arthur
  Spector

  
	
   

  	
   

  	
  Title:       Chairman, Chief Executive Officer and
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RGGPLS HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Glenn M. Parker

  	
   

  
	
   

  	
   

  	
  Name: Glenn M. Parker

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPECIFIED STOCKHOLDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRH HOLDINGS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Viaura Holdings, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Viaura, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Gusky

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Michael Gusky

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

13Exhibit 10.4

 

CONFORMED COPY

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT, dated as of March 9, 2004, and
amended as of June 2, 2004 (this “Agreement”), by and among MILLSTREAM
ACQUISITION CORPORATION (to be renamed NationsHealth, Inc. at the Effective
Time), a Delaware corporation (the “Company”), RGGPLS HOLDING, INC., a Florida
corporation (“RGGPLS”), GRH HOLDINGS, L.L.C., a Florida limited liability
company (“GRH”), and BECTON, DICKINSON AND COMPANY, a New Jersey corporation
(“BD” and, together with RGGPLS and GRH, the “Stockholders”).

 

WHEREAS, the Company has entered into an Agreement and Plan of Merger
dated as of the date hereof (the “Merger Agreement”), among the Company, N
Merger L.L.C., a Florida limited liability company and a wholly owned
subsidiary of the Company, and NationsHealth Holdings, L.L.C., a Florida
limited liability company;

 

WHEREAS, in connection with the consummation of the transactions
contemplated by the Merger Agreement, at the Effective Time (as defined in the
Merger Agreement) the Company shall issue to RGGPLS, GRH and BD shares of
Common Stock subject to the terms and provisions of the Merger Agreement; and

 

WHEREAS, the Stockholders and the Company desire to enter into this
Agreement to provide the Stockholders with certain rights relating to the
registration of shares of the 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:

 

“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 Registration” is defined in
Section 2.1.1.

 

“Demand Suspension Event” is defined in
Section 3.1.1.

 

“Demanding Stockholder” 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 Agreement.

 

“Existing Registration Rights Agreement” shall
mean the Registration Rights Agreement dated as of July 22, 2003, 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 Agreement) owned by the Existing Holders.

 

“Form S-3” is defined in
Section 2.3.

 

“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.

 

“Merger” shall have the meaning assigned to
such term in the Merger Agreement.

 

“Notices” is defined in Section 6.3.

 

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

 

“Preferred Member interests” shall have
the meaning assigned to such term in the Merger Agreement.

 

“Register,” “registered”
and “registration” mean a registration
effected by preparing and filing a registration statement or similar document
in compliance with the requirements of the Securities Act, and the applicable
rules and regulations promulgated thereunder, and such registration statement
becoming effective.

 

“Registrable Securities” mean
(i) any shares of Common Stock held by any of RGGPLS, GRH or BD (or any of
their respective affiliates and successors or assigns), or (ii) any other
publicly traded securities of the Company that are held by any of RGGPLS, GRH
or BD (or any of their respective affiliates and successors or assigns).  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 shares of Common Stock. 
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 and such securities shall have been sold, transferred, disposed
of or exchanged in accordance with such Registration Statement; (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) the Commission makes a definitive
determination that the Registrable Securities are salable under Rule 144(k).

 

2

 

“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.

 

“Stockholder Indemnified Party” is defined in
Section 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 Effective Time, RGGPLS or GRH (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 making such a
Demand Registration, the “Demanding Stockholder”).  Any demand for a Demand Registration shall
specify the number of shares 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 Stockholders
other than the Demanding Stockholder of the demand, and each such other
Stockholder who wishes to include all or a portion of its Registrable
Securities in the Demand Registration (each such Stockholder including shares
of its Registrable Securities in such registration, a “Participating
Stockholder”) 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) four (4)
Demand Registrations by RGGPLS or (ii) one (1) Demand Registration by
GRH, 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
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 Stockholder thereafter elects to continue the offering.

 

3

 

2.1.3.    Underwritten Offering.  If the Demanding Stockholder 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 Stockholder shall be entitled to select the managing Underwriter or
Underwriters and any other Underwriters for such offering.  The Demanding Stockholder and any
Participating Stockholders shall enter into an underwriting agreement in
customary form with the Underwriter or Underwriters that the Demanding
Stockholder 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 Stockholder in writing that the dollar amount or
number of shares of Registrable Securities which the Demanding Stockholder
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 shareholders of the
Company who desire to sell, exceeds the maximum dollar amount or maximum number
of shares 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, as applicable, the “Maximum Number of Shares”), then the
Company shall include in such registration: (i) first, the Registrable
Securities as to which Demand Registration has been requested by the Demanding
Stockholder and the Participating Stockholders (if any) (pro rata in accordance
with the number of shares of Registrable Securities which the Demanding
Stockholder and the Participating Stockholders (if any) have requested be
included in such registration, regardless of the number of shares of
Registrable Securities held by the Demanding Stockholder and the Participating
Stockholders (if any)) that can be sold without exceeding the Maximum Number of
Shares; (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 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 shareholders desire to sell
that can be sold without exceeding the Maximum Number of Shares.

 

2.1.5.    Withdrawal.  If (i) the Demanding Stockholder
disapproves of the terms of any underwriting, (ii) the Demanding
Stockholder is not entitled to include all of its Registrable Securities in any
offering, (iii) a Demand Suspension Event occurs after a Demand Request
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 Stockholder 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 Stockholder withdraws from
the proposed offering relating to a Demand

 

4

 

Registration in accordance with the previous sentence,
then (i) the Participating Stockholders shall have to 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 Effective Time
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 shareholders 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 securities solely to the
Company’s existing shareholders, (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 Stockholder 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 Stockholder in such notice the opportunity to register
the sale of such number of shares of Registrable Securities as such Stockholder
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 Stockholder proposes to
distribute its securities through a Piggy-Back Registration that involves an
Underwriter or Underwriters, such Stockholder shall enter into an underwriting
agreement in customary form with the Underwriter or Underwriters selected for
such Piggy-Back Registration.  Piggyback
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 and the Stockholders 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
Stockholders, the Registrable Securities as

 

5

 

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 shareholders 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 Registrable Securities and
Existing Registrable Securities as to which registration has been requested by
the Stockholders under this Section 2.2 and the Existing Holders pursuant
to Section 2.2 of the Existing Registration Rights Agreement (pro rata (x)
with respect to Registrable Securities owned as of the Effective Time and
Existing Registrable Securities owned as of the date hereof, in accordance with
80% being allocated to the Stockholders and 20% to the Existing Holders and (y)
with respect to Registrable Securities acquired after the Effective Time or
Existing Registrable Securities acquired after the date hereof, in accordance
with the number of shares of Common Stock which such Stockholders and Existing
Holders have actually requested to be included in such registration, regardless
of the number of shares of Common Stock with respect to which such Stockholders
and Existing Holders have the right to request such inclusion); and
(C) third, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A) and (B), 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 shareholders 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 Stockholders pursuant to written contractual
arrangements with such persons, (A) first, the shares of Common Stock for
the account of the demanding persons 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
Registrable Securities and Existing Registrable Securities as to which
registration has been requested by the Stockholders under this Section 2.2
and the Existing Holders pursuant to Section 2.2 of the Existing
Registration Rights Agreement (pro rata in accordance with the number of shares
of Registrable Securities and Existing Registrable Securities held by such
Stockholders and Existing Holders, respectively, regardless of the number of
shares of Registrable Securities and Existing Registrable Securities with
respect to which such Stockholders and Existing Holders, respectively, have the
right to request such inclusion); and (C) third, to the extent that the
Maximum Number of Shares has not been reached under the foregoing clauses (A)
and (B), 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; 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 written contractual piggy-back registration rights which such other
shareholders desire to sell that can be sold without exceeding the Maximum
Number of Shares.

 

2.2.3.    Withdrawal.  Any stockholder 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 Stockholder in
connection with such Piggy-Back Registration as provided in Section 3.3.

 

2.3.  Registrations on Form S-3.  Each Stockholder may at any time and from
time to time, without limitation as to the aggregate number of such requests,
request 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 request through an
underwritten

 

6

 

offering.  Upon
receipt of such written request, 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 $500,000.  Registrations effected pursuant to this
Section 2.3 shall not be counted as Demand Registrations effected pursuant
to Section 2.1.

 

2.4.          Lock-Up.  Notwithstanding anything herein to the
contrary, until the expiration of the 180-day period following the Effective
Time, the Stockholders shall not be permitted to sell, transfer or dispose any
of the shares of Common Stock received by them pursuant to the Merger Agreement
(collectively, the “Merger Securities”). 
In each of the next three succeeding 180-day periods, each Stockholder
may, at any time during such period, sell up to 25% of the Merger Securities
originally received by it pursuant to the Merger Agreement, including by way of
exercising any rights it may have pursuant to this Agreement.  The restrictions on transfer contained in
this Section 2.4 shall terminate on the earlier to occur of (i) the
second anniversary of the Effective Time or (ii) the consummation of a
merger, consolidation, share exchange, business combination, liquidation,
dissolution, recapitalization, reorganization, or other similar transaction
involving the Company where the Common Stock is converted into other
securities, cash or other property.

 

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.  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, 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 Section 3.1.1; provided,
however, that the Company shall have the right to defer any Demand
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 Stockholders a certificate signed by
the

 

7

 

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 shareholders 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 hereunder.

 

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 Stockholders holding Registrable Securities
included in such registration, and such Stockholders’ 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 Stockholders holding Registrable
Securities included in such registration, and such Stockholders’ legal counsel,
may request in order to facilitate the disposition of the Registrable
Securities owned by such Stockholders.

 

3.1.3.    Amendments and Supplements.  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.

 

3.1.4.    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 Stockholders holding Registrable Securities
included in such Registration Statement of such filing, and shall further
notify the such Stockholders 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 Stockholders holding
Registrable

 

8

 

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
Stockholders 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 Stockholders 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 Stockholder and its legal counsel shall object.

 

3.1.5.   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 Stockholders 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 Stockholders 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.

 

3.1.6.   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 Stockholders holding Registrable Securities included
in such Registration Statement.  No
Stockholder 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
Stockholder’s organization, good standing, authority, title to Registrable
Securities, lack of conflict of such sale with such Stockholder’s material
agreements and organizational documents, and with respect to written
information relating to such Stockholder that such Stockholder has furnished in
writing expressly for inclusion in such Registration Statement.

 

3.1.7.   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.

 

3.1.8.  Records.  The Company shall make available for
inspection by the Stockholders holding Registrable Securities included in such
Registration Statement, any Underwriter participating in any disposition
pursuant to such Registration Statement and any

 

9

 

attorney, any accountant or other professional
retained by such Stockholders 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.

 

3.1.9.  Opinions and Comfort
Letters.  The Company shall
furnish to the Stockholders holding Registrable Securities included in such
Registration Statement a signed counterpart, addressed to such Stockholders, 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 Stockholders holding Registrable Securities included in such
Registration Statement, at any time that the Stockholder 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.

 

3.1.10.   Earnings Statement.  The Company shall comply with all applicable
rules and regulations of the Commission and the Securities Act, and make
available to its shareholders, 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.

 

3.1.11.  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 3.1.4(iv), or, in the case of a resale registration on Form S-3
pursuant to Section 2.3 hereof, 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 Stockholder 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
Stockholder receives the supplemented or amended prospectus contemplated by
Section 3.1.4(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 Stockholder will deliver to the Company all
copies, other than permanent file copies then in such Stockholder’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

 

10

 

Registration pursuant to Section 2.2, and any
registration on Form S-3 effected pursuant to Section 2.3, 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 by Section 3.1.11; (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 3.1.9); (viii) the
fees and expenses of any special experts retained by the Company in connection
with such registration and (ix) the fees and expenses of one legal counsel
selected by the holders of a majority-in-interest of the Registrable Securities
included in such registration.  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 Stockholders.  Additionally,
in an underwritten offering, all selling shareholders and the Company shall
bear the expenses of the underwriter pro rata in proportion to the respective
amount of shares each is selling in such offering.

 

3.4.  Information.  The Stockholders 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 Stockholder, and each of its respective
officers, employees, affiliates, directors, partners, stockholders, members,
attorneys and agents, and each person, if any, who controls each Stockholder
(within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) (each, a “Stockholder 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 Stockholder Indemnified Party for any
legal and any other expenses reasonably incurred by such

 

11

 

Stockholder 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 Stockholder
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.

 

4.2.  Indemnification by the
Stockholder.  Each Stockholder
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
Stockholder, 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 Stockholder 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
Stockholder 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.  Each Stockholder’s indemnification
obligations hereunder shall be limited to the amount of any net proceeds
actually received by such Stockholder.

 

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

 

12

 

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 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 Stockholder 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
Stockholder 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.

 

13

 

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 Stockholder may reasonably
request, all to the extent required from time to time to enable such
Stockholder 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 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.

 

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 Agreement.

 

6.2.  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 Stockholder hereunder may be freely assigned or delegated,
in whole or in part, without the consent of the Company, by any Stockholder in
conjunction with any transfer of Registrable Securities by such Stockholder.  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 Stockholder or of
any assignee of such Stockholder, or any entity that succeeds to substantially
all of the assets and liabilities of such Stockholder.  Notwithstanding anything in this Agreement to
the contrary, the parties hereto agree that each of GRH and RGGPLS (a
“Converting Entity”) shall be permitted to merge with or into, consolidate
with,

 

14

 

liquidate and recontribute its assets and liabilities
to, convert into, exchange its capital stock for equity interests in, or
otherwise change its form or status to, in each case a limited liability
company the equity interests of which are beneficially owned in the same
proportion and by the same persons as the capital stock or member interests of
the Converting Entity was beneficially owned (each of such actions, a “Conversion”
and, the Converting Entity as so Converted into a limited liability company, “Newco”),
and, that from and after such Conversion (i) Newco shall succeed to all of the
rights and obligations of its respective Converting Entity under this Agreement
without the consent of or any action of any of the parties hereto or any
written amendment hereto, (ii) Newco shall be entitled to enforce all of the
rights, and perform all of the obligations, hereunder as if Newco was a
signatory hereto and (iii) all references in this Agreement to GRH or RGGPLS
shall be deemed references to its respective Newco.  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 6.2.

 

6.3.  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 before the
Effective Time:

 

Millstream Acquisition Corporation

435 Devon Park Drive

Building 400

Wayne, PA 19087

Attention: President

Telecopy No.: (610) 254-9617

 

with a copy to:

 

Klehr, Harrison, Harvey, Branzburg &
Ellers LLP

260 South Broad Street

Philadelphia, PA 19102

Attention: Barry J.  Siegel, Esq.

Telecopy No.: (215) 568-6603

 

(ii) if to the Company on or after the
Effective Time:

 

NationsHealth, Inc.

13650 N.W. 8th St., Suite 109

Sunrise, Florida  33325

Attention:  Glenn M. Parker M.D.,

Robert Gregg and

Lewis Stone

Telecopy No.: (954) 903-5005

 

15

 

with a copy to:

 

McDermott, Will & Emery

201 S. Biscayne Blvd., Suite 2200

Miami, FL  33131

Attention: Ira J. Coleman, Esq.

Telecopy No.:       (305)
347-6500

 

(iii)  if to RGGPLS:

 

RGGPLS Holdings, Inc.

13650 N.W. 8th St., Suite 107

Sunrise, Florida  33325

Attention:  Glenn M. Parker M.D.,

Robert Gregg and

Lewis Stone

Telecopy No.: (954) 903-5005

 

with a copy to:

 

McDermott, Will & Emery

201 S. Biscayne Blvd., Suite 2200

Miami, FL  33131

Attention: Ira J. Coleman, Esq.

Telecopy No.: (305) 347-6500

 

(iv)  if to GRH:

 

GRH Holdings, L.L.C.

6701 Nob Hill Road

Tamarac, Florida  33321

Attention:  Michael Gusky

Telecopy No.: (954) 718-3211

 

with a copy to:

 

Muller & Lebensburger

7385 Galloway Road, Suite 200

Miami, FL 33173

Attention:  Charles E. Muller II

Telecopy No.:  (305) 670-6769

 

(v)  if to BD:

 

Becton, Dickinson and Company

1 Becton Drive

 

16

 

Franklin Lakes, NJ  07417

Attention:  President, BD
Diabetes Care

Telecopy No.:       (201)
847-5147

 

6.4.  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.

 

6.5.  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.

 

6.6.  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.

 

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

 

6.8.  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.

 

6.9.  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.

 

6.10.  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 Stockholder 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

 

17

 

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.

 

6.11.  Governing Law.  This Agreement shall be governed by,
interpreted under, and construed in accordance with the internal laws of the
State of Delaware applicable to agreements made and to be performed within the
State of Delaware, without giving effect to any choice-of-law provisions
thereof that would compel the application of the substantive laws of any other
jurisdiction.

 

6.12.  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.

 

6.13.  Effective Time.  Notwithstanding anything in this Agreement to
the contrary, this Agreement shall become effective upon the Effective Time; provided,
however, if the Merger Agreement is terminated in accordance with
Article VIII thereof, then this Agreement shall terminate and be of no
further force and effect.

 

18

 

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.

 

 

	
   

  	
  MILLSTREAM ACQUISITION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Arthur Spector

  	
   

  
	
   

  	
   

  	
  Name:     Arthur
  Spector

  
	
   

  	
   

  	
  Title:       Chairman,
  Chief Executive Officer

  and President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STOCKHOLDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  RGGPLS HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Glenn M. Parker

  	
   

  
	
   

  	
   

  	
  Name: Glenn M. Parker

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRH HOLDING, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Viaura Holdings, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Viaura, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Gusky

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Michael Gusky

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BECTON, DICKINSON AND COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Marshall

  	
   

  
	
   

  	
   

  	
  Name: William Marshall

  
	
   

  	
   

  	
  Title: President Diabetes Care

  
											

 

19

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