Document:

EX-4.12

Exhibit
4.12

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

     This Series A Preferred Stock Purchase Agreement (this “Agreement”), dated as of April
30, 2009, is made by and among ComVest NationsHealth Holdings, LLC, a Delaware limited liability
company (“Parent”), and NationsHealth, Inc., a Delaware corporation (the
“Company”). Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Merger Agreement (as defined below).

RECITALS

     WHEREAS, concurrently with the execution of this Agreement, Parent, NationsHealth Acquisition
Corp., a Delaware corporation and a wholly owned Subsidiary of Parent (“Merger Sub”), and
the Company have entered into that certain Agreement and Plan of Merger (the “Merger
Agreement”);

     WHEREAS, pursuant to the Merger Agreement, Merger Sub will merge with and into the Company
(the “Merger”) and the separate corporate existence of Merger Sub shall thereupon cease,
and the Company shall be the surviving corporation in the Merger (the “Surviving
Corporation”);

     WHEREAS, in connection with the Merger Agreement and subject to the terms of this Agreement,
the Company desires to issue and sell to Parent, and Parent desires to purchase from the Company,
shares of the Company’s Series A Convertible Preferred Stock, par value $0.01 per share (the
“Series A Preferred Stock”);

     WHEREAS, the rights, preferences and privileges of the Series A Preferred Stock are set forth
in the Company’s Third Amended and Restated Certificate of Incorporation in substantially the form
attached hereto as Exhibit A (the “Amended and Restated Certificate of
Incorporation”), which shall be filed with the Secretary of State of the State of Delaware by
the Company and in effect immediately prior to the Effective Time pursuant to the Merger Agreement;

     WHEREAS, in connection with Merger and at the Effective Time, Parent will receive 41,666,667
shares of Series A Preferred Stock from the Company in connection with the transactions
contemplated herein;

     WHEREAS, the Company will issue 25,000,000 shares of Series A Preferred Stock in connection
with the conversion of the Bridge Loan to the holders thereof pursuant to the terms and conditions
set forth in the Bridge Loan Documents;

     WHEREAS, Timothy Fairbanks will receive 1,250,000 shares of Series A Preferred Stock (the
“Fairbanks Shares”) from the Company in connection with the transactions contemplated by
that certain Series A Preferred Stock Purchase Agreement, dated April 30, 2009, by and between the
Company and Timothy Fairbanks; and

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     WHEREAS, concurrently with the execution of this Agreement and in connection with the Merger
Agreement, (a) each of the Company, Parent, Glenn Parker, Timothy Fairbanks,
Lewis Stone, Mark Lama, RGGPLS, LLC, a Delaware limited liability company, and MHR has entered
into that certain (i) Voting Agreement in substantially the form attached hereto as Exhibit
B (the “Voting Agreement”), (ii) Investor Rights Agreement in substantially the form
attached hereto as Exhibit C (the “Investor Rights Agreement”), and (iii) Right of
First Refusal and Co-Sale Agreement in substantially the form attached hereto as Exhibit D
(the “Right of First Refusal and Co-Sale Agreement”); (b) the Company and each member of
the Company’s Board of Directors to be elected as the Effective Time have entered into
Indemnification Agreements in substantially the form attached hereto as Exhibit E (the
“Indemnification Agreements”); and (c) ComVest Investment Partners III, L.P. and its
affiliates, successors and transferees (collectively, the “Guarantor”), and the Company
have entered into a Management Agreement in substantially the form attached hereto as Exhibit
F (the “Management Agreement”).

     NOW, THEREFORE, in consideration of the foregoing and the representations, warranties,
covenants and agreements contained in this Agreement, and intending to be legally bound hereby, the
parties hereby agree as follows:

ARTICLE 1

PURCHASE AND SALE OF SERIES A PREFERRED STOCK

     1.1 Amended and Restated Certificate of Incorporation. Immediately prior to the
Effective Time, the Company shall adopt and file the Amended and Restated Certificate of
Incorporation with the Secretary of State of the State of Delaware, which shall be the certificate
of incorporation of the Surviving Corporation upon the consummation of the Merger and shall set
forth, among other things, the rights, preferences and privileges of the Series A Preferred Stock.

     1.2 Purchase and Sale of Series A Preferred Stock; and Closing.

          (a) Subject to the terms and conditions of this Agreement, at the Closing (as defined below),
Parent shall purchase from the Company and the Company shall sell and issue to Parent 41,666,667
shares of the Company’s Series A Preferred Stock (the “Purchased Shares”) at a purchase
price per share equal to $0.12, the aggregate amount of which equals the Remaining Investment
Amount.

          (b) The closing of the purchase and sale of Purchased Shares pursuant to Section
1.2(a) (the “Closing”) shall take place at the Effective Time (the “Closing
Date”) at the offices of McDermott, Will & Emery, 201 South Biscayne Boulevard, Suite 2200,
Miami, Florida 33131, unless another time, date or place is agreed to in writing by the parties
hereto. At the Closing, in exchange for the Remaining Investment Amount, which shall be made by
wire transfer of immediately available funds to an account to be designated by the Company, the
Company shall deliver to Parent a certificate representing the Purchased Shares.

          (c) At the Effective Time and in connection with the Merger, Parent shall invest the Remaining
Investment Amount in the Company in exchange for the Purchased Shares, from which (i) Parent shall
deposit the Aggregate Merger Consideration on behalf of Parent and the Company with the Paying
Agent in accordance with Section 2.2 of the Merger Agreement in order to purchase all of the Shares
(other than shares to be canceled in accordance with Section
2.1(c) of the Merger Agreement, the Dissenting Shares, the Purchased Shares hereunder and the
Option Shares (as defined below) to be issued pursuant to the Preferred Stock Investment Option (if
exercised), and the Rollover Shares), and Options, and (ii) Parent shall pay to the Company a cash
amount equal to the Remaining Investment Amount minus the Aggregate Merger Consideration, which
proceeds shall be used to pay the remaining Transaction Fees pursuant to Section 5.10 of the Merger
Agreement and to fund the Company’s general business purposes, working capital, growth capital and
capital expenditures after the Effective Time.

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     1.3 Preferred Stock Investment Option; and Closing of Preferred Stock Investment
Option.

          (a) During the period commencing on the date of this Agreement and ending on the first
anniversary of the Closing Date, Parent shall have the right, but not the obligation, to purchase
up to 16,666,667 shares of Series A Preferred Stock (the “Option Shares”), at one or more
closings, at a purchase price of $0.12 per share (the “Preferred Stock Investment Option”).
Parent shall give the Company written notice of the exercise of the Preferred Stock Investment
Option.

          (b) Other than pursuant to and in accordance with the Preferred Stock Investment Documents,
the Bridge Loan Documents and the transactions contemplated under the Merger Agreement, the Company
shall not, by amendment of its certificate of incorporation or bylaws or through any consolidation,
merger, reorganization, transfer of assets, or otherwise, avoid or seek to avoid the exercise by
Parent of the Preferred Stock Investment Option.

          (c) Closings of the purchase and sale of the Option Shares hereunder may take place at any
time and from time to time until the first anniversary of the Closing (each an “Additional
Closing”). At each such Additional Closing, the Company will deliver to Parent a certificate
representing the Option Shares purchased at each Additional Closing against payment of the purchase
price determined by multiplying the number of Option Shares to be purchased by $0.12 per share by
wire transfer of immediately available funds to an account to be designated by the Company.

     1.4 Certificates; Legends. All certificates representing the Purchased Shares and the
Option Shares, if any (collectively, the “Parent Shares”), shall be endorsed with the
following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
STATE SECURITIES LAWS AND CANNOT BE OFFERED, SOLD, OR TRANSFERRED IN THE
ABSENCE OF REGISTRATION OR EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS AND REGULATIONS PROMULGATED
THEREUNDER.

THE COMPANY IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR SERIES OF STOCK.
THE COMPANY WILL FURNISH
WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS A STATEMENT OF THE
PROVISIONS AND THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR
SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
PREFERENCES AND/OR RIGHTS. ANY SUCH REQUEST SHOULD BE ADDRESSED TO THE
SECRETARY OF THE COMPANY.

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ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to Parent as of the date hereof and as of the Closing
Date:

     2.1 Organization and Standing; Authority; Noncontravention.

          (a) The Company is a corporation validly existing and in good standing under the laws of the
State of Delaware and has all necessary corporate power and authority to execute and deliver this
Agreement and, subject to obtaining the Company Stockholder Approval, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution, delivery and
performance by the Company of this Agreement have been duly authorized and approved by its Board of
Directors, and except for obtaining the Company Stockholder Approval and the filing of the
Certificate of Merger with the Secretary of State of the State of Delaware, no other corporate
action on the part of the Company is necessary to authorize the execution, delivery and performance
by the Company of this Agreement. This Agreement has been duly executed and delivered by the
Company and, assuming due authorization, execution and delivery hereof by the other parties hereto,
constitutes a legal, valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, subject to the Bankruptcy and Equity Exception.

          (b) Except as specifically set forth in Section 3.3(c) of the Company Disclosure Schedule and
except for any agreements entered into in connection with the Rollover Financing, neither the
execution and delivery of this Agreement by the Company nor the transactions contemplated herein,
nor compliance by the Company with any of the terms or provisions hereof, will (i) conflict with or
violate any material provision of the Company’s organizational or governing documents or (ii)
assuming that the authorizations, consents and approvals referred to in Section 3.4 of the Merger
Agreement and the Company Stockholder Approval are obtained and the filings referred to in Section
3.4 of the Merger Agreement are made, (x) conflict with or violate in any material respect any Law,
judgment, writ or injunction of any Governmental Authority applicable to the Company or any of its
Subsidiaries or any of their respective properties or assets, or (y) violate, conflict with, result
in the loss of any benefit under, constitute a default (or an event which, with notice or lapse of
time, or both, would constitute a default) under, result in the termination of or a right of
termination or cancellation under, accelerate the performance required by, or result in the
creation of any Lien, other than the Permitted Liens, upon any of the respective properties or
assets of, the Company or any of its Subsidiaries, in each case, in any material respect, under,
any of the terms, conditions or
provisions of any Contract or Permit, to which the Company or any of its Subsidiaries is a
party, or by which they or any of their respective properties or assets may be bound or affected,
other than, in each case, any such violation, conflict, default, termination, cancellation,
acceleration or Lien that has not had and would not reasonably be expected to have, individually or
in the aggregate, a Company Material Adverse Effect.

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     2.2 Valid Issuance of Shares. The Parent Shares, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement, shall be duly
authorized, validly issued, fully paid and nonassessable, and free of any restrictions on transfer
and encumbrances, other than those imposed by Law, this Agreement, the Merger Agreement, the
Rollover Financing Documents, the Voting Agreement, the Right of First Refusal and Co-Sale
Agreement, the Investor Rights Agreement, and the transactions contemplated herein or therein, or
that result from any actions or inactions of Parent. Assuming the accuracy of the representation
of Parent in Section 3.3 and subject to any filing required by any applicable Law, the
Shares will be issued in compliance with all applicable Laws. The Surviving Corporation Common
Stock issuable upon conversion of the Parent Shares has been duly reserved for issuance, and upon
issuance in accordance with the terms of the Amended and Restated Certificate of Incorporation,
will be validly issued and outstanding, fully paid and nonassessable, free of any restrictions on
transfer and encumbrances, other than those imposed by Law, this Agreement, the Merger Agreement,
the Rollover Financing Documents, the Voting Agreement, the Right of First Refusal and Co-Sale
Agreement, the Investor Rights Agreement, and the transactions contemplated herein or therein, or
that result from any actions or inactions of Parent. Based in part upon the accuracy of the
representation of Parent in Section 3.3, the Surviving Corporation Common Stock issuable
upon conversion of the Parent Shares will be issued in compliance with all Laws.

     2.3 Capitalization. Immediately after the Effective Time, the conversion of the
Bridge Loan into shares of Series A Preferred Stock, the issuance of the Purchased Shares, the
issuance of the Fairbanks Shares, and the issuance of the Option Shares (if the Preferred Stock
Investment Option is exercised in full), (a) the authorized capital stock of the Surviving
Corporation shall consist of 300,000,000 shares of Surviving Corporation Common Stock and
150,000,000 shares of preferred stock, par value $0.01 per share (the “Surviving Corporation
Preferred Stock”), of which 84,583,333 shares are designated as Series A Preferred Stock, and
(b) 12,517,427 shares of Surviving Corporation Common Stock shall be issued and outstanding and
67,916,667 shares of Surviving Corporation Preferred Stock shall be issued and outstanding (of
which 67,916,667 shares are Series A Preferred Stock) to the Persons set forth on Schedule 2.3
attached hereto, 24,328,112 shares of Surviving Corporation Common Stock will be reserved for
issuance under the Surviving Corporation’s 2009 Stock Plan (of which 23,746,100 shares of Surviving
Corporation Common Stock will be subject to outstanding Options granted under the Surviving
Corporation Stock Plans), and 16,052,010 shares of Surviving Corporation Common Stock will be
reserved for issuance upon conversion of the Notes and Warrants; provided, that the number of
outstanding shares of Surviving Corporation Preferred Stock may decrease, based upon and pursuant
to the exercise of less than the full amount of the Preferred Stock Investment Option and the
outstanding shares of Surviving Corporation Common Stock may increase based upon and pursuant to
the implementation of any anti-dilution protections and rights set forth in the Amended and
Restated Certificate of Incorporation. The rights, preferences, privileges and restrictions of the
Surviving Corporation Common Stock and the Series A Preferred Stock are as
set forth in the Amended and Restated Certificate of Incorporation as to be filed with the
Secretary of State of the State of Delaware at the Effective Time and the other Preferred Stock
Investment Documents. All issued and outstanding shares of capital stock of the Surviving
Corporation, when issued, sold and delivered, shall be duly authorized, are validly issued and are
fully paid and nonassessable.

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     2.4 Governmental Approvals. The execution, delivery and performance of this Agreement
by the Company and the consummation by the Company of the transactions contemplated herein, do not
and will not require any consent, approval, or other authorization of, or filing with, or
notification to any Governmental Authority by the Company, other than as set forth in the Merger
Agreement.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF PARENT

     Parent represents and warrants to the Company as of the date hereof and as of the Closing
Date:

     3.1 Organization and Standing; Authority; Noncontravention.

          (a) Parent is a limited liability company validly existing and in good standing under the laws
of the State of Delaware and has all necessary limited liability company power and authority to
execute and deliver this Agreement and to perform its obligations hereunder. The execution,
delivery and performance by Parent of this Agreement, and the consummation by it of the
transactions contemplated herein, have been duly authorized and approved by its Board of Directors
(or similar governing body) and equity holders and, except for the filing of the Certificate of
Merger with the Secretary of State of the State of Delaware, no other corporate action on the part
of Parent or the equity holders thereof is necessary to authorize the execution, delivery and
performance by Parent of this Agreement and the consummation by it of the transactions contemplated
herein. This Agreement has been duly executed and delivered by Parent and, assuming due
authorization, execution and delivery hereof by the Company, constitutes a legal, valid and binding
obligation of Parent, enforceable against Parent in accordance with its terms, subject to the
Bankruptcy and Equity Exception.

          (b) Except for any agreements entered into in connection with the Rollover Financing, neither
the execution and delivery of this Agreement by Parent, nor compliance by Parent with any of the
terms or provisions hereof, will (i) conflict with or violate any material provision of the
organizational or governing documents of Parent or (ii) assuming that the authorizations, consents
and approvals referred to in Section 4.3 of the Merger Agreement have been received and the waiting
periods referred to therein have expired, and any condition to the effectiveness of such consent,
approval, authorization, or waiver has been satisfied and the filings referred to in Section 4.3 of
the Merger Agreement are made, (A) violate any Law, judgment, writ or injunction of any
Governmental Authority applicable to Parent or any of its properties or assets, or (B) violate,
conflict with, result in the loss of any benefit under, constitute a default (or an event which,
with notice or lapse of time, or both, would constitute a default) under, result in the termination
of or a right of termination or cancellation under, accelerate the performance required by, or
result in the creation of any Lien, other than any Permitted Liens,
upon any of the properties or assets of Parent under any of the terms, conditions or
provisions of any Contract to which Parent is a party, or by which it or any of its properties or
assets may be bound or affected, other than, in each case, any such violation, conflict, default,
termination, cancellation, acceleration or Lien that would not have, individually or in the
aggregate, a Parent Material Adverse Effect.

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     3.2 Governmental Approvals. The execution, delivery and performance of this Agreement
by Parent and the consummation by Parent of the transactions contemplated herein, do not and will
not require any consent, approval or other authorization of, or filing with or notification to, any
Governmental Authority, by Parent other than as set forth in the Merger Agreement.

     3.3 Accredited Investor. Parent is an “accredited investor”
as defined in Rule 501(a) of Regulation D promulgated under the
Securities Act.

     3.4 Restricted Securities. Parent understands that the Parent Shares have not been,
and will not be, registered under the Securities Act, by reason of a specific exemption from the
registration provisions of the Securities Act which depends upon, among other things, the bona fide
nature of the investment intent and the accuracy of Parent’s representations as expressed herein.
Parent understands that the Parent Shares are “restricted securities” under applicable Laws and
that, pursuant to these Laws, Parent must hold the Parent Shares indefinitely unless they are
registered with the SEC and qualified by state authorities, or an exemption from such registration
and qualification requirements is available. Parent acknowledges that the Company has no
obligation to register or qualify the Parent Shares, or the Common Stock into which the Parent
Shares may be converted, for resale except as set forth in the Preferred Stock Investment
Documents. Parent further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not limited to, the time
and manner of sale, the holding period for the Parent Shares, and on requirements relating to the
Company which are outside of Parent’s control, and which the Company is under no obligation and may
not be able to satisfy. Parent understands that this offering is not intended to be part of the
public offering, and that Parent will not be able to rely on the protection of Section 11 of the
Securities Act.

ARTICLE 4

CONDITIONS TO CLOSING

     4.1 Conditions to Parent’s Obligations. Parent’s obligations to purchase the
Purchased Shares at the Closing are subject to the satisfaction (or waiver, if permissible under
applicable Law) on or prior to the Closing Date of the following conditions:

          (a) The closing of the Merger in accordance with the terms and conditions of the Merger
Agreement.

          (b) The Amended and Restated Certificate of Incorporation as filed immediately prior to the
Effective Time with the Secretary of State of the State of Delaware shall continue to be in full
force and effect as of the Closing Date.

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          (c) The representations and warranties of the Company contained in this Agreement shall be
true and correct as of the date hereof and as of the Closing Date as if made on and as of the
Closing Date (or, if given as of a specific date, at and as of such date), except where the failure
to be true and correct would not have a Company Material Adverse Effect (other than the
representations and warranties contained in Section 2.1(a), which representations and
warranties shall be true and correct in all respects).

          (d) The Company shall have performed in all material respects all obligations required to be
performed by it under this Agreement and the other Preferred Stock Investment Documents at or prior
to the Closing Date.

          (e) The Company and the stockholders signatory thereto shall have executed and delivered the
Voting Agreement.

          (f) The Company and the stockholders signatory thereto shall have executed and delivered the
Investor Rights Agreement.

          (g) The Company and the stockholders signatory thereto shall have executed and delivered the
Right of First Refusal and Co-Sale Agreement.

          (h) The Company shall have executed and delivered the Indemnification Agreements to each of
the members of the Surviving Corporation’s Board of Directors elected as of the Effective Time.

          (i) The Company shall have executed and delivered the Management Agreement to the Guarantor.

     4.2 Conditions to the Company’s Obligations. The Company’s obligations to issue and
sell the Purchased Shares at Closing is subject to the satisfaction(or waiver, if permissible under
applicable Law) on or prior to the Closing Date of the following conditions:

          (a) The closing of the Merger in accordance with the terms and conditions of the Merger
Agreement.

          (b) The representations and warranties of Parent contained in this Agreement shall be true and
correct as of the date hereof and as of the Closing Date as if made on and as of the Closing Date
(or, if given as of a specific date, at and as of such date), except where the failure to be true
and correct would not have a Parent Material Adverse Effect (other than the representations and
warranties contained in Section 3.1(a), which representations and warranties shall be true
and correct in all material respects).

          (c) Parent shall have performed in all material respects all obligations required to be
performed by it under this Agreement at or prior to the Closing Date.

          (d) Parent shall have converted all of the outstanding principal under the Bridge Loan into
shares of Series A Preferred Stock pursuant to the terms of the Bridge Loan Documents.

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          (e) Parent shall have executed and delivered the Voting Agreement.

          (f) Parent shall have executed and delivered the Investor Rights Agreement.

          (g) Parent shall have executed and delivered the Right of First Refusal and Co-Sale Agreement.

ARTICLE 5

TERMINATION

     This Agreement shall be automatically and immediately terminated in the event that the Merger
Agreement, as it may be amended or modified from time to time, is terminated in accordance with its
terms. In the event of termination of this Agreement, this Agreement shall forthwith become null
and void and there shall be no liability on the part of Parent or the Company or their respective
directors, officers and Affiliates.

ARTICLE 6

MISCELLANEOUS

     6.1 Notices. All notices, requests and other communications to any party hereunder
shall be in writing and shall be deemed given if delivered personally, sent by facsimile (which is
confirmed by an acknowledgement or transmission report generated by the machine from which the
facsimile was sent indicating that the facsimile was sent in its entirety to the addressee’s
facsimile number) or sent by overnight courier (providing proof of delivery) to the parties at the
following addresses:

			
	               	 	If to Parent, to:

ComVest Investment Partners III, L.P.

One North Clematis

Suite 300

West Palm Beach, Florida 33401

Attention: Cecilio Rodriguez

Facsimile: (561) 671-3225

     with a copy (which shall not constitute notice) to:

			
	               	 	Foley & Lardner LLP

100 North Tampa Street

Suite 2700

Tampa, Florida 33602

Attention: Steven W. Vazquez

Facsimile: (813) 221-4217

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	               	 	If to the Company, to:

NationsHealth, Inc.

13630 NW 8th Street

Suite 210

Sunrise, Florida 33325

Attention: Chief Executive Officer

Facsimile: (954) 903-5005

     with a copy (which shall not constitute notice) to:

			
	               	 	McDermott Will & Emery LLP

201 South Biscayne Boulevard

22nd Floor

Miami, Florida 33131

Phone: (305) 358-3500

Fax: (305) 347-6500

Attention: Ira J. Coleman, Esq.

               Frederic L. Levenson, Esq.

               Harris Siskind, Esq.

and

McDermott Will & Emery LLP

227 West Monroe Street

Chicago, Illinois 60606

Phone: (312) 372-2000

Fax: (312) 984-7700

Attention: Helen R. Friedli, Esq.

          or such other address or facsimile number as such party may hereafter specify by like notice
to the other parties hereto. All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the place
of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received until the next succeeding
Business Day in the place of receipt. In the event that an addressee of a notice or communication
rejects or otherwise refuses to accept a notice or other communication delivered or sent in
accordance with this Section 6.1, or if the notice or other communication cannot be
delivered because of a change in address for which no notice was given, then such notice or other
communication is deemed to have been received upon such rejection, refusal or inability to deliver.

     6.2 Amendments; Waivers. Any amendment or modification of or to any provision of this
Agreement, and any consent to any departure of any party from the terms of any provision of this
Agreement, shall be effective only if it is made or given in writing and signed by each party.
Notwithstanding the foregoing sentence, any failure of any of the parties to comply with any
obligation, covenant, agreement or condition herein may be waived by any party entitled to the
benefits thereof only by a written instrument signed by such party granting such waiver, but such
waiver or failure to insist upon strict compliance with such obligation, covenant, agreement
or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or
other failure. The failure of any party to assert any of its rights under this Agreement or
otherwise shall not constitute a waiver of those rights.

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     6.3 Counterparts and Fax Signatures. This Agreement may be executed in two or more
counterparts (including by means of fax or electronically transmitted portable document format
(PDF) signature pages), each of which shall be deemed to be an original, but all of which together
shall constitute and be one and the same instrument; provided, that fax or electronically
transmitted signatures of this Agreement shall be deemed to be originals. Counterpart signatures
need not be on the same page and shall be deemed effective upon receipt. This Agreement shall be
valid upon the execution of the Company and Parent.

     6.4 Headings. All headings set forth in this Agreement are intended for convenience
only and shall not control or affect the meaning, construction or effect of this Agreement or of
any of its provisions.

     6.5 Entire Agreement. This Agreement (including the exhibits and schedules hereto and
any other documents and instruments referred to herein or contemplated hereby), constitute the
entire agreement, and supersede all other prior agreements and understandings, both written and
oral, among the parties, or any of them, with respect to the subject matter hereof and thereof
(including that certain Letter of Intent).

     6.6 No Third Party Beneficiary. Nothing expressed or implied in this Agreement is
intended, or shall be construed, to confer upon or give any person other than the parties and their
respective heirs, personal representatives, legal representatives, successors and assigns, any
rights or remedies under or by reason of this Agreement. This Agreement is binding upon and inures
to the benefit of the parties to this Agreement and their respective successors and permitted
assigns.

     6.7 Severability. If any term or other provision of this Agreement is determined by a
court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule
of law or public policy, all other terms, provisions and conditions of this Agreement shall
nevertheless remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible to the fullest extent permitted by applicable law in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the extent possible.

     6.8 Schedules, Exhibits, Sections and Articles. All exhibits or schedules attached to
this Agreement shall be deemed part of this Agreement and incorporated into this Agreement, as if
fully contained in it. All references in this Agreement to an exhibit, section, article or
schedule shall mean an exhibit, section, article or schedule to this Agreement (unless otherwise
indicated). All references in this Agreement to this Agreement shall include all of the exhibits
or schedules attached to this Agreement.

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     6.9 Governing Law; Jurisdiction. 

          (a) The laws of the State of Delaware (without giving effect to its conflicts of law
principles) govern this Agreement and all matters arising out of or relating to this Agreement and
any of the transactions contemplated hereby, including its negotiation, execution, validity,
interpretation, construction, performance and enforcement.

          (b) The parties hereto hereby irrevocably submit to the federal and state courts located in
the State of Delaware over any action or proceeding arising out of or relating to this Agreement or
any of the transactions contemplated hereby and each party hereto hereby irrevocably agrees that
all claims in respect of such action or proceeding may be heard and determined in such courts. The
parties hereto hereby irrevocably waive any objection which they may now or hereafter have to the
laying of venue of any action or proceeding brought in such court or any claim that such action or
proceeding brought in such court has been brought in an inconvenient forum. Each of the parties
hereto agrees that a judgment in such action or proceeding may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by Law. Each of the parties hereto hereby
irrevocably consents to process being served by any party to this Agreement in any action or
proceeding by delivery of a copy thereof in accordance with the provisions of Section 6.1.

     6.10 Further Assurances. The Company and Parent, at the closing of the transactions
contemplated hereby, or at any time or times thereafter, upon request of any party hereto, will
execute such additional instruments, documents or certificates as either party deems reasonably
necessary in order to effect the transactions contemplated hereby.

     6.11 Efforts. Each party hereto hereby agrees to take, or cause to be taken, all
commercially reasonable actions, and do, or cause to be done, and to assist and cooperate with the
other party hereto in doing all commercially reasonable things necessary, proper or advisable under
applicable Laws, to consummate and make effective, the transactions contemplated hereunder.

     6.12 Successors and Assigns. This Agreement shall apply to, be binding in all
respects upon and inure to the benefit of the parties and their respective successors and permitted
assigns. No party may assign any of its rights under this Agreement without the prior written
consent of each of the other parties.

     6.13 Transaction Costs. Except as set forth in the Merger Agreement, each party
hereto shall pay its own fees, costs and expenses incurred in connection herewith and the
transactions contemplated hereby, including the fees, costs and expenses of its financial advisors,
accountants and counsel.

12

 

     6.14 Interpretation; Other.

          (a) Unless the context otherwise requires, any reference in this Agreement to gender includes
all genders, and words imparting the singular number only include the plural and vice versa.
Unless the context otherwise requires, all references in this Agreement to any “Article,”
“Section,” “Schedule” or “Exhibit” are to the corresponding Article, Section, Schedule or Exhibit
of this Agreement. Unless the context otherwise requires, the words “hereby,” “herein,”
“hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not
merely to the provision in which such words appear. The word “including,” or any variation
thereof, means “including, without limitation” and does not limit any general statement that it
follows to the specific or similar items or matters immediately following it. All references in
this Agreement to specific Laws or to specific sections or provisions of Laws, apply to the
respective federal, state, local, or foreign Laws that bear the names so specified and to any
succeeding or amended Law, section, or provision corresponding thereto. Any reference in this
Agreement to the “parties” to this Agreement means the signatories to this Agreement and their
successors and permitted assigns, and does not include any third party.

          (b) The parties hereto have participated jointly in the negotiation and drafting of this
Agreement and, in the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.

[signature page follows]

13

 

     IN WITNESS WHEREOF, the parties hereto have caused this Series A Preferred Stock Purchase
Agreement to be duly executed and delivered, as of the date first above written.

	 	 	 	 	 
	 	COMVEST NATIONSHEALTH HOLDINGS, LLC

 	 
	 	By:  	/s/
Jose Gordo
 	 
	 	 	Name:  	Jose Gordo 	 
	 	 	Title:  	President 	 
	 
	 	NATIONSHEALTH, INC.

 	 
	 	By:  	/s/
Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 

14EX-4.13

Exhibit
4.13

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR AN EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH
THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THIS PROMISSORY NOTE IS SUBORDINATED TO CERTAIN SENIOR INDEBTEDNESS OF BORROWER (AS HEREIN DEFINED)
IN THE MANNER SET FORTH IN THE SENIOR SUBORDINATION AGREEMENT (AS HEREIN DEFINED) AND ALL RIGHTS,
REMEDIES AND OBLIGATIONS UNDER THIS PROMISSORY NOTE AND THE OTHER BRIDGE LOAN DOCUMENTS (AS HEREIN
DEFINED) ARE SUBJECT TO THE TERMS OF THE SENIOR SUBORDINATION AGREEMENT.

10% SECURED CONVERTIBLE SUBORDINATED PROMISSORY NOTE

No. R-1

			
	 	 	 
	$3,000,000.00
	 	April 30, 2009

     NATIONSHEALTH, INC., a Delaware corporation (the “Company”), UNITED STATES
PHARMACEUTICAL GROUP, L.L.C. d/b/a NATIONSHEALTH, a Delaware limited liability company
(“USPG”), NATIONSHEALTH HOLDINGS, L.L.C., a Florida limited liability company
(“Holdings”), DIABETES CARE & EDUCATION, INC., a South Carolina corporation
(“Diabetes”), and NATIONAL PHARMACEUTICALS AND MEDICAL PRODUCTS, L.L.C., a Florida limited
liability company (“National” and together with the Company, USPG, Holdings and Diabetes,
“Borrower”), for value received, promises to pay to COMVEST NATIONSHEALTH HOLDINGS, LLC, a
Delaware limited liability company (“Holder”), the principal sum of Three Million Dollars
($3,000,000), together with interest as provided herein, which shall be due and payable upon the
terms and conditions contained in this 10% Secured Convertible Subordinated Promissory Note (this
“Note”). This Note is being issued in connection with (a) the Agreement and Plan of Merger
of even date herewith (the “Merger Agreement”) by and among the Company, Holder and
NationsHealth Acquisition Corp., a Delaware corporation and a wholly owned Subsidiary of Holder
(“Merger Sub”), which provides for the merger of Merger Sub with and into the Company (the
“Merger”), and (b) the Bridge Loan and Security Agreement between Holder and Borrower of
even date herewith (the “Bridge Loan Agreement”). Capitalized terms not otherwise defined
in this Note shall have the meaning set forth in the Merger Agreement and the Bridge Loan
Agreement, as applicable.

 

 

     1. Interest Rate.

          (a) Subject to paragraph (b) below, the outstanding principal balance of this Note shall bear
interest at a rate equal to ten percent (10%) per annum, simple interest.

          (b) In the event that the Merger Agreement is terminated other than pursuant to Section
7.1(c)(i) or Section 7.1(d)(i) of the Merger Agreement, on the last day of each ninety (90) day
period from the date of such termination, the interest rate set forth in Section 1(a) shall
be increased by two percent (2%), per annum, but in no event shall the interest rate exceed
eighteen percent (18%) per annum, simple interest.

          (c) The interest on the Bridge Loan shall be calculated on the basis of the actual number of
days elapsed and a year of 365 days.

     2. Payment Terms. Subject to Sections 4, 5 and 6, the Note shall be paid as
follows:

          (a) Commencing on the first day of the first calendar month following the Closing Date (as
defined in the Bridge Loan Agreement) and continuing until such time as the principal amount
hereunder, together with all accrued interest, premiums and penalties, if any, have been paid to
Holder, interest on the outstanding principal balance of the Bridge Loan shall be paid monthly in
arrears on the first day of each calendar month. Whenever any payment hereunder shall be stated to
be due or shall become due and payable on a day other than a Business Day, the due date thereof
shall be extended to, and such payment shall be made on, the next succeeding Business Day, and such
extension of time in such case shall be included in the computation of payment of any interest (at
the interest rate then in effect during such extension) and/or fees, as the case may be.

          (b) Subject to paragraphs (c) and (d) below, the outstanding principal balance of this Note,
together with the balance of any unpaid and accrued interest, shall be due and payable on the
earlier to occur of (i) the date that is six (6) months from the date hereof (the “Maturity
Date”) or (ii) in the event that the Merger Agreement is terminated pursuant to Section
7.1(d)(iii) thereof, the date of such termination.

2

 

          (c) In the event that the Merger Agreement is terminated pursuant to Section 7.1(a), Section
7.1(b)(i), Section 7.1(b)(ii), Section 7.1(b)(iv), Section 7.1(c)(i) (and such breach triggering
such termination shall not have been willful), Section 7.1(c)(iii) (and such breach triggering such
termination shall not have been willful), Section 7.1(c)(iv), Section 7.1(d)(i) (and such breach
triggering such termination shall not have been willful) or Section 7.1(d)(ii) thereof (and such
breach triggering such termination shall not have been willful), the outstanding obligations under
this Note shall be paid on or before the Maturity Date in accordance with the terms hereof. During
the thirty (30) day period after the Maturity Date and in the event all of the outstanding
obligations owed by Borrower to Holder under this Note and any of the other Bridge Loan Documents
have not been paid in full (the “Thirty Day Post-Maturity Period”), Borrower and/or any of
MHR Capital Partners Master Account, LP, MHR Capital Partners (100) LP, OTQ, LLC, and Mark H.
Rachesky M.D., or their respective affiliates, successors and transferees (collectively,
“MHR”) (pursuant to an agreement between Borrower and MHR) shall have the right to pay or
purchase all, but not less than all, of such obligations in accordance with the terms
and conditions of this Note and the other Bridge Loan Documents. In the event that all of the
outstanding obligations owed by Borrower to Holder under this Note and the other Bridge Loan
Documents have not been paid or purchased in full before the expiration of the Thirty Day
Post-Maturity Period, then, for the one hundred eighty (180) day period thereafter (the
“Holder’s Post-Maturity Election Period”), Holder shall have the option, in its sole and
absolute discretion, to either (i) consummate the Senior Indebtedness Purchase (as defined in the
Merger Agreement) or (ii) convert the outstanding obligations under this Note (the “Voluntary
Conversion Amount”) into shares of the Company’s Series A-1 Convertible Preferred Stock, par
value $.01 per share, with the rights, preferences and privileges set forth in the Certificate of
Designation attached as Exhibit C of the Bridge Loan Agreement (the “Series A-1 Preferred
Stock”) at a conversion price equal to $0.05 per share (the “Voluntary Conversion
Price”), which conversion price shall be subject to the full anti-dilution rights of the Series
A-1 Preferred Stock set forth in Section 4(h) of the Certificate of Designation attached as Exhibit
C to the Bridge Loan Agreement, such that the conversion ratio of such Series A-1 Preferred Stock
will adjust so that the shares of common stock, par value $0.0001 per share, of the Company (the
“Common Stock”) issued upon conversion of such Series A-1 Preferred Stock will be equal to
60.2% of the Fully Diluted Common Stock on the Date of Conversion (the “Voluntary Bridge Loan
Conversion”); provided, however, that in the event the Merger Agreement is
terminated pursuant to Section 7.1(c)(iv), or Section 7.1(d)(i) (and such breach triggering such
termination shall not have been willful), or Section 7.1(d)(ii) thereof (and such breach triggering
such termination shall not have been willful), Holder’s option and ability to exercise the
Voluntary Bridge Loan Conversion shall be immediately terminated pursuant to the Preferred Stock
Investment Documents. The term “Fully Diluted Common Stock on the Date of Conversion”
shall mean the number of issued and outstanding shares of Common Stock on the date of the Voluntary
Bridge Loan Conversion, plus the number of shares of Common Stock issuable upon conversion of all
shares of preferred stock of the Company that are outstanding on the date of the Voluntary Bridge
Loan Conversion, plus the number of shares of Common Stock that can be purchased upon exercise of
stock options that are outstanding on the date of the Voluntary Bridge Loan Conversion, plus the
number of shares of Common Stock that can be purchased upon exercise of all warrants that are
outstanding on the date of the Voluntary Bridge Loan Conversion (including the MHR Warrants, as
defined in the Merger Agreement), but excluding all shares of Common Stock that may be issued upon
conversion of any debt or promissory notes of the Company that is or are outstanding on the date of
the Voluntary Bridge Loan Conversion. For clarification purposes only, Holder shall have the right
to elect only one of the Senior Indebtedness Purchase or the Voluntary Bridge Loan Conversion, but
in no event both the Senior Indebtedness Purchase and the Voluntary Bridge Loan Conversion. In the
event that Holder does not consummate the Senior Indebtedness Purchase or exercise the Voluntary
Bridge Loan Conversion during the Holder’s Post-Maturity Election Period, all of Holder’s rights
with respect to the Senior Indebtedness Purchase and the Voluntary Bridge Loan Conversion shall
immediately terminate and Holder shall have the right to exercise any and all of its rights and
remedies under this Note and the other Bridge Loan Documents (subject to terms and conditions set
forth in the Merger Agreement and/or any agreement, document or instrument between the Senior
Lender, Holder, and/or MHR, as the case may be). In the event Holder (i) breaches Section
5.16(a) or Section 5.16(b) of the Merger Agreement, or (ii) consummates a Bridge Loan
Indebtedness Transfer (as defined below) (other than to MHR) following the Thirty Day Post-Maturity
Period, the right to exercise the Voluntary Bridge Loan Conversion shall be immediately terminated
pursuant to the Preferred Stock
Investment Documents. Holder shall have the right to enforce, if applicable, any agreements,
documents or instruments between the Company and the Senior Lender that were acquired in connection
with the Senior Lender Indebtedness Purchase at any time (subject to terms and conditions set forth
in the Merger Agreement and/or any agreements, documents or instrument between the Senior Lender,
Holder, and/or MHR, as the case may be).

3

 

          (d) In the event that the Merger Agreement is terminated pursuant to (i) Section 7.1(c)(i) or
Section 7.1(c)(iii) thereof, and the Company’s breach triggering such termination shall have been
willful or (ii) Section 7.1(b)(iii), or Section 7.1(c)(ii) thereof, the outstanding obligations
under this Note shall be paid on or before the Maturity Date in accordance with the terms hereof.
During the thirty (30) day period after such termination and in the event all of the outstanding
obligations owed by Borrower to Holder under this Note and any of the other Bridge Loan Documents
have not been paid in full (the “Thirty Day Post-Termination Period”), Borrower and/or MHR
(pursuant to an agreement between Borrower and MHR) shall have the right to pay or purchase all,
but not less than all, of such obligations in accordance with the terms and conditions of this Note
and the other Bridge Loan Documents. In the event that all of the outstanding obligations owed by
Borrower to Holder under this Note and the other Bridge Loan Documents have not been paid or
purchased in full prior to expiration of the Thirty Day Post-Termination Period, then, for the one
hundred eighty (180) day period thereafter (the “Holder’s Post-Termination Election
Period”), Holder shall have the option, in its sole and absolute discretion, to either (i)
consummate the Senior Indebtedness Purchase or (ii) exercise the Voluntary Bridge Loan Conversion.
For clarification purposes only, Holder shall have the right to elect only one of the Senior
Indebtedness Purchase or the Voluntary Bridge Loan Conversion, but in no event both the Senior
Indebtedness Purchase and the Voluntary Bridge Loan Conversion. In the event that Holder does not
consummate the Senior Indebtedness Purchase or exercise the Voluntary Bridge Loan Conversion during
the Holder’s Post-Termination Election Period, all of Holder’s rights with respect to the Senior
Indebtedness Purchase and the Voluntary Bridge Loan Conversion shall immediately terminate and
Holder shall have the right to exercise any and all of its rights and remedies under this Note and
the other Bridge Loan Documents (subject to terms and conditions set forth in the Merger Agreement
and/or any agreement, document or instrument between the Senior Lender, Holder, and/or MHR, as the
case may be). In the event Holder (i) breaches Section 5.16(a) or Section 5.16(b) of the Merger
Agreement, or (ii) consummates a Bridge Loan Indebtedness Transfer (other than to MHR) following
the Thirty Day Post-Termination Period, the right to exercise the Voluntary Bridge Loan Conversion
shall be immediately terminated pursuant to the Preferred Stock Investment Documents. Holder shall
have the right to enforce, if applicable, any agreements, documents or instruments between the
Company and the Senior Lender that were acquired in connection with the Senior Lender Indebtedness
Purchase at any time (subject to terms and conditions set forth in the Merger Agreement and/or any
agreement, document or instrument between the Senior Lender, Holder, and/or MHR, as the case may
be).

          (e) In the event that the Merger Agreement is terminated other than pursuant to Section
7.1(d)(iii) thereof and there is a dispute or any action, suit or proceeding between the Company,
on the one hand, and Holder, Merger Sub and/or Guarantor, on the other hand (a “Company Parent
Dispute”), Holder’s option and ability to convert any outstanding obligations under this Note
into shares of the Series A Preferred Stock shall be suspended until, and the payment of any
outstanding obligations under this Note shall be extended by, thirty (30) days
after such Company Parent Dispute has been settled or resolved pursuant to a settlement
agreement or determined by a final non-appealable order from a court of competent jurisdiction;
provided, however, that no such extension shall extend
beyond the Maturity Date.

4

 

          (f) Any voluntary conversion of this Note pursuant to this Section 2 shall be
completed in accordance with the terms of Section 6(b).

          (g) All payments to be made under this Section 2 shall be made (i) in lawful money of
the United States of America and (ii) by wire transfer of immediately available funds to an account
designated by Holder or by mail to the principal office of Holder located at One North Clematis,
Suite 300, West Palm Beach, Florida 33401, or at such other place in the United States as Holder
shall designate to Borrower in writing.

          (h) Notwithstanding anything to the contrary in this Note, the Bridge Loan Agreement, or the
other Bridge Loan Documents, except for payment of the obligations owed by Borrower to Holder under
this Note upon termination of the Merger Agreement pursuant to Section 7.1(d)(iii) thereof, (i)
prior to the Maturity Date, no portion of the obligations owed by Borrower to Holder under this
Note may be paid at any time, except for interest payments in accordance with Section 2(a)
above, without the written consent of Holder, which consent may be withheld in Holder’s sole and
absolute discretion, (ii) on or after the Maturity Date and prior to the end of the Thirty Day
Post-Maturity Period or the Thirty Day Post-Termination Period, as applicable, no portion of the
obligations owed by Borrower to Holder under this Note may be paid at any time, except for interest
payments in accordance with Section 2(a) above, unless such payment is equal to the full
amount of all the outstanding obligations owed by Borrower to Holder under this Note and any of the
other Bridge Loan Documents (including, without limitation, the entire principal balance plus all
accrued and unpaid interest due under this Note), and (iii) at any time after the end of the Thirty
Day Post-Maturity Period or the Thirty Day Post-Termination Period, as applicable, no portion of
the obligations owed by Borrower to Holder under this Note may be paid at any time, except for
interest payments in accordance with Section 2(a) above, (A) without the written consent of
Holder, which consent may be withheld in Holder’s sole and absolute discretion and (B) unless such
payment is equal to the full amount of all the outstanding obligations owed by Borrower to Holder
under this Note and any of the other Bridge Loan Documents (including, without limitation, the
entire principal balance plus all accrued and unpaid interest due under this Note).

     3. Security. The amounts due under this Note are secured by the Bridge Loan
Agreement.

5

 

     4. Forgiveness of Principal. In the event that the Merger Agreement is terminated
pursuant to Section 7.1(d)(i) or Section 7.1(d)(ii) thereof, and Holder’s or Merger Sub’s breach
triggering such termination shall have been willful, any and all outstanding obligations under this
Note, the Bridge Loan Agreement and the other Bridge Loan Documents owed by Borrower shall
immediately be forgiven, and any lien or security interest granted by Borrower to Holder shall be
deemed released (without any further action of Holder), and Borrower shall have no further
obligations under this Note, the Bridge Loan Agreement and the other Bridge Loan Documents;
provided however that in the event of a Company Parent Dispute, no such
forgiveness of the Obligations under the Note and the other Bridge Loan Documents, and no lien
or security interest granted by Borrower to Holder shall be released, until such Company Parent
Dispute has been settled or resolved pursuant to a settlement agreement among the parties thereto
or determined by a final non-appealable order from a court of competent jurisdiction. Promptly
after the date of such termination (or receipt of such final non-appealable order or the final
settlement or resolution of a Company Parent Dispute, if any), Holder shall return the original of
the Note to Borrower marked with a cancellation legend, and, at the cost of Holder, Holder shall
provide all documents and termination statements necessary or desirable to evidence the release of
all liens and security interests granted to Holder under the Bridge Loan Documents.

     5. Subordination; Rank. This Note shall be subordinate in right of payment to all of
the Indebtedness owed to the Senior Lender upon the terms and conditions set forth in the Senior
Subordination Agreement. All payments due under this Note shall be senior to the Indebtedness of
Borrower owed to MHR upon the terms and conditions set forth in the Bridge Loan Subordination
Agreement.

     6. Conversion of Note.

          (a) Mandatory Conversion; Mechanics of Mandatory Conversion. If the Merger is
consummated, at the Effective Time (as defined in the Merger Agreement), the then-outstanding
principal amount under this Note (the “Mandatory Conversion Amount”) shall automatically be
converted into the Company’s Series A Convertible Preferred Stock, par value $.01 per share, with
the rights, preferences and privileges set forth in the Company’s Third Amended and Restated
Certificate of Incorporation, as filed and in effect immediately prior to the Effective Time (the
“Series A Preferred Stock”), at a price equal to $0.12 per share (the “Mandatory
Conversion Price”). Holder shall promptly return the original of this Note to Borrower for
cancellation in exchange for a stock certificate representing the number of shares of Series A
Preferred Stock determined by dividing the Mandatory Conversion Amount by the Mandatory Conversion
Price. Such conversion shall be deemed to have been made at the Effective Time, and Holder shall
be treated for all purposes as the record holder of such shares as of such date. Borrower shall
pay to Holder, in immediately available funds, all unpaid and accrued interest under this Note as
of the Effective Time, and at such time any lien or security interest granted by Borrower shall be
deemed released (without any further action of Holder), and, at the cost of Holder, Holder shall
provide all documents and termination statements necessary or desirable to evidence the release of
all liens and security interests granted to Holder under the Bridge Loan Documents.

          (b) Mechanics of Voluntary Conversion. If Holder desires to exercise its right to
voluntarily convert the outstanding obligations under this Note in accordance with the terms of
Section 2, Holder shall promptly return the original of this Note to Borrower for
cancellation in exchange for a stock certificate representing the number of shares of Series A
Preferred Stock determined by dividing the Voluntary Conversion Amount by the Voluntary Conversion
Price. In connection with any voluntary conversion, Holder shall: (i) deliver to Borrower written
notice of its desire to convert the Voluntary Conversion Amount into Series A Preferred Stock (a
“Conversion Notice”), specifying the Voluntary Conversion Amount, the Voluntary Conversion
Price, and the amount of Series A Preferred Stock resulting from such voluntary conversion, (ii)
surrender this Note to Borrower at its principal executive office, and (iii) release any lien
or security interest granted by the Company or any of its Affiliates, and, at the cost of Holder,
Holder shall provide all documents and terminations statements necessary or desirable to evidence
the release of all liens and security interests granted to Holder under the Bridge Loan Documents.
On or before the fifth (5th) Business Day following the date of receipt of a Conversion Notice,
together with any necessary documents and terminations of statements pursuant to clause (iii)
above, Borrower shall issue and deliver, or cause its transfer agent to issue and deliver, to the
address as specified in the Conversion Notice, a certificate, registered in the name of Holder or
its designee, for the number of shares of Series A Preferred Stock to which Holder shall be
entitled to receive under this Section 6(b). Such conversion shall be deemed to have been
made on the date the applicable Conversion Notice and the original of this Note are received by
Borrower, and Holder shall be treated for all purposes as the record holder of such shares as of
such date.

6

 

          (c) Reservation of Shares Upon Conversion. Borrower shall reserve and shall at all
times have reserved out of its authorized but unissued shares a sufficient number of shares to
permit the conversion of the amounts under this Note. All shares that may be issued upon
conversion of this Note, shall be validly issued, fully paid and nonassessable.

          (d) Issuance of Fractional Shares. Borrower shall not issue any fraction of a share of
capital stock upon any conversion. If the issuance would result in the issuance of a fraction of a
share of capital stock, Borrower shall round such fraction of a share of capital stock up to the
nearest whole share.

     7. Charges, Taxes and Expenses. Issuance of this Note shall be made without charge to
Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such
Note, all of which taxes and expenses shall be paid by Borrower, and this Note shall be issued in
the name of Holder.

     8. Default. Upon the occurrence and continuance of an Event of Default (as defined in
the Bridge Loan Agreement), all unpaid principal, accrued interest and other amounts owing under
this Note shall, at the option of, and only upon written notice provided to Borrower by Holder, be
immediately due, payable and collectible by Holder pursuant to applicable law without presentment,
demand, protest, notice of any kind or notice of dishonor, all of which are hereby expressly
waived. If an Event of Default occurs and is continuing, Holder may pursue any available remedy by
proceeding at law or in equity to collect the payment of amounts due on this Note or to enforce the
performance of any provision of this Note. A delay or omission by Holder in exercising any right
or remedy accruing upon an Event of Default that is continuing shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. A waiver on any one occasion
shall not be construed as a bar to or waiver of any such right or remedy on any future occasion.
No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent
permitted by law.

     9. Registered Note. This Note is a registered Note and, as provided in the Bridge
Loan Agreement, upon surrender of this Note for registration of transfer, accompanied by a written
instrument of transfer duly executed, by the registered holder hereof or such holder’s
attorney duly authorized in writing, a new Note for a like principal amount will be issued to,
and registered in the name of, the transferee. Prior to due presentment for registration of
transfer, the Borrower may treat the person in whose name this Note is registered as the owner
hereof for the purpose of receiving payment and for all other purposes, and the Borrower will not
be affected by any notice to the contrary. In accordance with the Bridge Loan Agreement, upon
receipt by Borrower of evidence reasonably satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of the Note and of indemnity or security reasonably satisfactory
to it, upon surrender and cancellation thereof, the Borrower at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest
shall have been paid on such lost, stolen, destroyed or mutilated Note.

7

 

     10. Miscellaneous.

          (a) Governing Law. This Note shall constitute a contract under the laws of the State
of Delaware and for all purposes shall be construed in accordance with and governed by the laws of
said state, excluding its conflicts of law principles.

          (b) Assignment. Neither Holder nor any of its Affiliates shall sell, transfer, assign
or allow any participation in any of the outstanding obligations owed by the Company to Holder
pursuant to this Note to any Person (the “Bridge Loan Indebtedness Transfer”) before the
expiration of the Thirty Day Post-Maturity Period or the Thirty Day Post-Termination Period, as the
case may be, (other than to Borrower and/or MHR (pursuant to an agreement between Borrower and MHR)
or any of Holder’s Affiliates). Following the Thirty Day Post-Maturity Period or the Thirty Day
Post-Termination Period, as the case may be, Holder may consummate a Bridge Loan Indebtedness
Transfer without restriction subject to the terms and conditions of this Note. In addition,
concurrently with the Company’s acceptance of a Superior Proposal (as defined in the Merger
Agreement), at the request of the Company, Holder shall assign all of its rights, interests and
obligations under this Note to the party providing the Superior Proposal or its designee (as
directed by the Company) in consideration for the payment of all amounts required to be paid to
Holder under the Merger Agreement in connection with the Company’s acceptance of a Superior
Proposal. Notwithstanding anything to the contrary in this Note, the Bridge Loan Agreement or the
other Bridge Loan Documents, (i) Holder may sell and/or assign a portion of its rights and
interests in and to, as well as any obligations associated with, this Note, the Bridge Loan
Agreement, and the other Bridge Loan Documents to Mark Lama; provided that the aggregate principal
amount of the rights and interests sold or assigned shall not exceed $200,000 and (ii) Holder may
repurchase from Mark Lama all or any portion of his rights and interests in and to, as well as any
obligations associated with, this Note, the Bridge Loan Agreement, or the other Bridge Loan
Documents, in accordance with the terms of that certain Agreement for Purchase of Rights Under
Bridge Note, dated as of the date hereof, by and between Holder and Mark Lama.

          (c) Notices. All notices, requests and other communications to any party hereunder
shall be in writing and shall be deemed given if delivered personally, sent by facsimiled (which is
confirmed by an acknowledgement or transmission report generated by the machine from which the
facsimile was sent indicating that the facsimile was sent in its entirety to the addressee’s
facsimile number) or sent by overnight courier (providing proof of delivery) to the parties at the
following addresses:

8

 

			
		 	If to Holder, to:

ComVest Investment Partners III, L.P.

One North Clematis

Suite 300

West Palm Beach, Florida 33401

Attention: Cecilio Rodriguez

Facsimile: (561) 671-3225

with a copy (which shall not constitute notice) to:

Foley & Lardner LLP

100 North Tampa Street

Suite 2700

Tampa, FL 33602

Attention: Steven W. Vazquez

Facsimile: (813) 221-4217

If to Borrower, to:

NationsHealth, Inc.

13630 NW 8th Street

Suite 210

Sunrise, Florida 33325

Attention: Chief Executive Officer

Facsimile: (954) 903-5005

with a copy (which shall not constitute notice) to:

McDermott Will & Emery LLP

201 South Biscayne Boulevard

22nd Floor

Miami, Florida 33131

Phone: 305.358.3500

Fax: 305.347.6500

Attention: Ira J. Coleman, Esq.

               Frederic L. Levenson, Esq.

               Harris Siskind, Esq.

and

McDermott Will & Emery LLP

227 West Monroe Street

Chicago, Illinois 60606

Phone: 312.372.2000

Fax: 312.984.7700

Attention: Michael L. Boykins, Esq.

9

 

               or such other address or facsimile number as such party may hereafter specify by like notice
to the other parties hereto. All such notices, requests and other communications shall be deemed
received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the place
of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice,
request or communication shall be deemed not to have been received until the next succeeding
Business Day in the place of receipt. In the event that an addressee of a notice or communication
rejects or otherwise refuses to accept a notice or other communication delivered or sent in
accordance with this Section, or if the notice or other communication cannot be delivered because
of a change in address for which no notice was given, then such notice or other communication is
deemed to have been received upon such rejection, refusal or inability to deliver.

          (d) Enforcement. Borrower shall pay all reasonable fees and expenses, including
reasonable attorney’s fees, incurred by Holder in the enforcement in any of Borrower’s obligations
hereunder not performed when due.

          (e) Interest Savings Clause. If any interest payment (or other payment which is
deemed by law to be interest) due hereunder is determined to be in excess of the then legal maximum
rate, then that portion of each interest payment representing an amount in excess of the then legal
maximum rate shall instead be deemed a payment of principal and applied against the principal
amount of this Note.

          (f) Amendment or Waiver. This Note may be amended or a provision thereof waived only
in a writing signed by Borrower and Holder.

[remainder of page intentionally left blank]

10

 

     IN WITNESS WHEREOF, Borrower. has caused this 10% Secured Convertible Subordinated Promissory
Note to be executed by its officer thereunto duly authorized.

	 	 	 	 	 
	 	BORROWER:

NATIONSHEALTH, INC.

 	 
	 	By:  	/s/
Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 
	 
	 	UNITED STATES PHARMACEUTICAL
GROUP, L.L.C. d/b/a NATIONSHEALTH

 	 
	 	By:  	/s/ Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 
	 
	 	NATIONSHEALTH HOLDINGS, L.L.C.

 	 
	 	By:  	/s/ Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 
	 
	 	DIABETES CARE & EDUCATION, INC.

 	 
	 	By:  	/s/ Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 
	 
	 	NATIONAL PHARMACEUTICALS AND MEDICAL PRODUCTS, L.L.C.

 	 
	 	By:  	/s/ Glenn Parker
 	 
	 	 	Name:  	Glenn Parker 	 
	 	 	Title:  	CEO 	 
	 

 

 

[Borrower Signature Page to Convertible Note]

11

 

COUNTERPART SIGNATURE PAGE

TO 10% SECURED CONVERTIBLE SUBORDINATED PROMISSORY NOTE

	 	 	 	 	 
	 	ACKNOWLEDGED AND AGREED TO:

HOLDER:

COMVEST NATIONSHEALTH HOLDINGS, LLC

 	 
	 	By:  	/s/
Jose Gordo
 	 
	 	 	Name:  	Jose Gordo 	 
	 	 	Title:  	President 	 
	 

12

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