Exhibit 10.2

PROXYMED LOGO [g91800g9180011.gif]

July 14, 2004

VIA REGULAR MAIL

Mr. Gregory J. Eisenhauer
525 Ebley Place
Alpharetta, GA 30022

     Re: Compensation Arrangements

Dear Gregg:

     I am pleased to advise you that in recognition and consideration of your
service to the ProxyMed, Inc. (the “Company”) the Board of Directors of the
Company has approved several amendments to your current compensation plan. This
letter will confirm our agreement to amend your current arrangements as
discussed herein.

     1. Bonus Pool Participation. You have been granted participation in an
existing bonus pool payable in the event of a change of ownership of ProxyMed,
Inc. This bonus will be payable in cash or stock, at the discretion of the Board
of Directors, upon a merger or buyout of the Company. For purposes of your
entitlement to this bonus, an eligible change in ownership means no less than
50.1% of the common shares of ProxyMed, Inc. must change hands to a single
party.

     Your bonus amount will be based upon your annual salary as of 2003, plus an
estimation of your annual maximum management bonus (based on your most recent
annual bonus) up to a target bonus potential of $250,000, and will be paid
according to the attached schedule over a range of effective buyout/merger
prices. You must be an active employee, and not subject to any severance
agreement, in order to receive this bonus. You should be aware that in almost
all situations, this bonus will be fully taxable. Certain elections are
available to limit the amount of tax in those cases where the bonus is to be
paid in stock.

 

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     2. Stock Options. You will be granted 18,000 options to purchase shares of
the Company’s common stock at its fair market value defined as the price at
which common stock is reported to have traded on the NASDAQ System at the close
of business on the date of the grant. The stock option agreement will have a ten
(10) year term. The options will vest over a four (4) year period as follows:
4,500 on the first anniversary of the agreement; 4,500 on the second anniversary
of the agreement, 4,500 on the third anniversary of the Agreement, and 4,500 on
the day before the fourth anniversary of the Agreement. These stock options will
be subject to certain limitations, obligations and conditions set forth in the
agreement.

Attached is a new Stock Option Agreement. Kindly acknowledge your agreement and
acceptance of these arrangements by executing below, and on the indicated pages
of the attached agreement, and return one fully executed original of each of
these documents to me. The arrangements discussed in this letter and the
attachments will not be effective until we have received your signatures.

Very truly yours,

PROXYMED, INC.

/s/ David Oles

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David Edward Oles
Vice President & Secretary

Accepted and Agreed as stated above:

/s/ Gregory J. Eisenhauer

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Gregory J. Eisenhauer

Attachments

cc:  Michael K. Hoover
Nancy J. Ham