Document:

exv10w2

Exhibit 10.2

MONARCH COMMUNITY BANK

DIRECTORS’ DEFERRED COMPENSATION PLAN

WHEREAS, Monarch Community Bank, previously known as Branch County Federal Savings & Loan
Association (the “Bank) previously established the Branch County Federal Savings & Loan Association
Directors’ Deferred Compensation Plan dated July 8, 1998 (the “Plan”) to provide members of the
Bank’s Board of Directors the opportunity to defer the receipt of director’s fees until retirement;
and

WHEREAS, the Bank has determined that the Plan shall be renamed the Monarch Community Bank
Directors’ Deferred Compensation Plan; and

WHEREAS, The Plan was frozen on December 31, 2004; and

WHEREAS, the Bank wishes to amend and restate the Plan without enhancing any benefit or creating
any material modification to terms and conditions of the Plan as it applies to the amounts deferred
prior by Directors prior to December 31, 2004.

A. Participants. Any member of the Board of Directors (“Director”) of the Bank may elect to become
a participant (“Participant”) under this plan (the “Plan”) by filing a written Notice of Election
To Participate (“Notice”) with the Bank, in the form prescribed by the Board of Directors.
Effective

B. Deferred Compensation. Any Participant may elect, in accordance with Section E of this
Agreement, to defer annually the receipt of all or a portion of the director’s fees otherwise
payable to him by the Bank in any calendar year. Any director’s fee deferred pursuant to this
Section shall be recorded by the Bank in a deferred compensation account (“Account”) maintained in
the name of the Participant. The Account shall be credited on each date for payment of director’s
fees, in accordance with the Bank’s normal practices. Only director’s fees that would have payable
to a Participant prior to January 1, 2005, will be subject to a deferral election under this Plan.

The Bank shall furnish each Participant with a semiannual statement of his Account. The Bank shall
also credit interest on the amounts in an Account to the Account until final distribution of the
Account pursuant to Section D of the Plan. The amount of director’s fees that a Participant elects
to defer under this Section will remain constant until changed by the Participant in accordance
with Section E of the Plan.

C. Interest on Deferred Amounts. All amounts credited to an Account shall be credited with
interest at a rate equal to the greater of five percent (5%) or the Bank’s Return on Average
Equity, until the Account has been fully distributed. “Return on Average Equity” shall mean the
Bank’s return on average equity for its most recently ended fiscal year, computed in accordance
with generally accepted accounting principles, consistently applied.

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D. Distribution.

	 	1.	 	The Participant will be entitled to receive all amounts credited to the Participant’s
Account upon the later of the attainment of the age irrevocably elected on the Notice or
termination of services as a Director with the Bank for any reason other than death. The
Participant may elect one of the following forms of payment at the time of deferral: (1) in
a lump sum, or (2) in 120 substantially equal monthly installments. The Participant may
change the form of benefit payment initially elected under this Section D.1., no later than
1 year in advance of the first scheduled payment under this Plan.
	 
	 	2.	 	The Participant’s designated beneficiary or beneficiaries will be entitled to receive
all amounts credited to the Account of the Participant upon termination of a Participant’s
service as a Director by reason of his death. The Participant’s Account shall be payable
pursuant to paragraph (4) of this Section.
	 
	 	3.	 	The balance of a Participant’s Account shall be payable to the Participant’s designated
beneficiary or beneficiaries pursuant to paragraph (4) of this Section upon the death of
the participant prior to complete distribution to him of the entire balance of his Account
(and after the date of termination of his service as a Director with the Bank.
	 
	 	4.	 	The Bank shall direct distribution of the amounts credited to a Participant’s Account,
including interest credited thereon pursuant to Section C, to a Participant or his
beneficiary or beneficiaries pursuant to the preceding paragraphs of this Section D.1.-3.
If Participant has not elected a method of payment in the manner set forth in this Section
D.1., than the Bank shall distribute the benefit in 120 substantially equal monthly
installments. Distribution shall be made or commence on the first day of the month
following:

	 	a.	 	the later of the date upon which the Participant attains the age irrevocably
elected on the Notice of Election to Participate or the Participant’s service as a
Director terminates in the event of a distribution pursuant to paragraph (1) of this
Section; or
	 
	 	b.	 	the date of the Participant’s death in the event of a distribution pursuant to
paragraphs (2) or (3) of this Section.

	 	 	 	Subsequent installments, if any, shall be made on the monthly anniversary dates of the date
of the first installment. Each installment, if any, shall include interest credited to the
balance of the Account pursuant to Section C.

E. Election To Defer Compensation. The Notice by which a Participant elects to defer director’s
fees as provided in this Agreement shall be in writing, signed by the Participant, and delivered to
the Bank prior to August 1, 1998 and thereafter prior to the beginning of the semiannual period in
which the director’s fees to be deferred are otherwise payable to the participant. A semiannual
period is considered to be the period from January 1 to June 30 and July 1 to December 31 of each
calendar year. The Notice shall continue until a new Notice is delivered by the Participant to the
Bank. The new Notice shall only apply to director’s fees otherwise payable to the Participant
after the end of the semiannual period in which the Notice is delivered to the Bank. The Notice
shall be irrevocable with respect to any director’s fees covered

19

 

by the Notice, including the director’s fees payable in the semiannual period in which the Notice
is delivered to the Bank. The age election made by the Participant is irrevocable.

F. Participant’s Rights Unsecured. The right of the Participant or his designated beneficiary to
receive a distribution shall be an unsecured claim against the general assets of the Bank, and
neither the Participant nor his designated beneficiary shall have any rights in or against any
amount credited to his account or any other specific assets of the Bank All amounts credited to an
Account shall constitute general assets of the Bank and may be disposed of by the Bank at such time
and for such purposes as it may deem appropriate. An Account may not be encumbered or assigned by a
Participant or any beneficiary.

G. Amendment to the Plan. The Board may amend the Plan at any time, without the consent of the
Participants or their beneficiaries; provided, however, that no amendment shall divest any
Participant or beneficiary of the credits to his Account, or of any rights to which he would have
been entitled if the Plan had been terminated immediately prior to the effective date of such
amendment.

H. Termination of the Plan. The Board may terminate the Plan at any time. Upon termination of the
Plan, distributions from a Participant’s Account shall be made pursuant to Section D. No additional
director’s fees shall be deferred to the Account of a Participant following termination of the
Plan. However, interest thereon will continue to be credited pursuant to Section C.

I. Expenses. Costs of administration of the Plan will be paid by the Bank.

J. Notices. Any notice or election required or permitted to be given hereunder shall be in writing
and shall be deemed to be filed;

	 	1.	 	on the date it is personally delivered to the Treasurer of the Bank; or
	 
	 	2.	 	three business days after it is sent by registered or certified mail, addressed to such
Treasurer at 375 North Willowbrook Road, Coldwater, Michigan 49036,

Dated: March 27, 2008

20EX-10.56 OMNIBUS AMENDMENT DATED MAY 8, 2008

Exhibit 10.56

OMNIBUS AMENDMENT

This Omnibus Amendment (this “Amendment”), dated as of May 8, 2008, is entered into by Proxymed,
Inc., a Florida corporation doing business as MedAvant (the “Parent”), ProxyMed Transaction
Services, Inc., (f/k/a MedUnite, Inc.) a Delaware corporation (“PTS”) and ProxyMed Lab Services LLC
(f/k/a Key Communications Service, Inc.), a Delaware limited liability company (“PLS”, and together
with the Parent and PTS, the “Companies” and each, a “Company”) and LV Administrative Services,
Inc., as administrative and collateral agent (the “Agent”) for Laurus Master Fund, Ltd., a Cayman
Islands company (“Laurus”, and together with Agent, the “Creditors”) for the purpose of amending
the terms of each of (i) that certain Security and Purchase Agreement, dated as of December 6,
2005, by and among the Companies and Laurus (as amended, restated, modified, assigned and/or
supplemented from time to time, the “Security Agreement”) and (ii) that certain Secured Revolving
Note, dated as of December 6, 2005, issued by the Companies to Laurus (as amended, restated,
modified, assigned and/or supplemented from time to time, the “Revolving Note” and together with
the Security Agreement and the other Ancillary Agreements described in the Security Agreement, the
“Documents”). Capitalized terms used herein without definition shall have the meanings ascribed to
such terms in the Security Agreement.

     WHEREAS, each of the Companies and Creditors have agreed to make certain changes to the
Documents as set forth herein.

     NOW, THEREFORE, in consideration of the above, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. The Security Agreement is hereby amended by deleting Section 2(a)(vii) in its entirety and
inserting the following new Section 2(a)(vii) in lieu thereof:

     “(vii) Intentionally Omitted.”

     2. The Security Agreement is hereby amended by adding the following new Section 13(z)
immediately following the end of existing Section 13(y) appearing therein:

     “(z) Additional Covenants. (i)(I) On the fifth (5th) business day
of each of June 2008 and July 2008, the Companies shall submit to Laurus, a report (each a
“Covenant Compliance Report”) setting forth (x) the Companies’ actual “consolidated cash
receipts” received during the fiscal month immediately prior to the month of submission of
such Covenant Compliance Report; and (y) the Companies actual “consolidated revenues” for
the fiscal month immediately prior to the month of submission of such Covenant Compliance
Report and (II) on the tenth (10th) business day of each of June 2008 and July
2008, the Companies shall submit to Laurus a Covenant Compliance Report setting forth the
Companies actual “consolidated EBITDA” for the fiscal month immediately prior to the month
of submission of such Covenant Compliance Report.

 

 

     (ii) In respect of each Covenant Compliance Report required to be delivered by the
Companies to Laurus pursuant to Section 13(z)(i) above, each such Covenant Compliance Report
shall be accompanied by a work sheet that describes in reasonable detail the methodology,
calculations and relied upon data used in determining the “consolidated cash receipts”,
“consolidated revenues” and “consolidated EBITDA” calculations set forth in such Covenant
Compliance Report, as applicable, which methodology, calculations and relied upon data shall
all be required to be reasonably satisfactory to Laurus as determined by Laurus in its sole
discretion.

     (iii) The Companies shall not have, on the last day of each fiscal month set forth
below, a “consolidated cash receipts” for such fiscal month less than the amount set forth
opposite such fiscal month:

	 	 	 	 	 
	Fiscal Month Ending	 	“consolidated cash receipts”
	May 31, 2008
	 	$	2,250,000	 
	June 30, 2008
	 	$	2,150,000	 

     (iv) The Companies shall not have, on the last day of each fiscal month set forth
below, a “consolidated revenues” for such fiscal month less than the amount set forth
opposite such fiscal month:

	 	 	 	 	 
	Fiscal Month Ending	 	“consolidated revenues”
	May 31, 2008
	 	$	2,350,000	 
	June 30, 2008
	 	$	2,350,000	 

     (v) The Companies shall not have, on the last day of each fiscal month set forth below,
a “consolidated EBITDA” for such fiscal month less than the amount set forth opposite such
fiscal month:

	 	 	 	 	 
	Fiscal Month Ending	 	“consolidated EBITDA”
	May 31, 2008
	 	$	115,000	 
	June 30, 2008
	 	$	25,000	 

     3. Section 19 of the Security Agreement is hereby amended by (i) deleting the period appearing
at the end of Section 19(r) and inserting the text “; or” in lieu thereof and (ii) adding the
following new Section 19(s) immediately following the end of prior Section 19(r) appearing therein:

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     “(s) any Company or any of its Subsidiaries shall breach any term or provision of
Section 13(z) of this Agreement.”

     4. The definition of “Approved Budget” appearing in Annex A to the Security Agreement and
Exhibit D to the Security Agreement are each hereby deleted in their entirety.

     5. The definitions of “Formula Amount,” “Maximum Availability Amount” and “Revolving Loan
Term” appearing in Annex A to the Security Agreement are hereby deleted in their entirety and the
following new definitions are inserted in lieu thereof:

          “Formula Amount’ means for the period commencing on May 1, 2008 through and including
July 31, 2008, $7,000,000.

          “Maximum Availability Amount’ means $7,000,000.”

     “Revolving Loan Term’ means the Closing Date through the close of business on July 31,
2008.”

     6. In consideration of the foregoing, the Companies shall jointly and severally pay to Laurus,
a non-refundable payment in an amount equal to $325,000 (the “Laurus Payment”). The Laurus Payment
will be paid on the Effective Date (as defined below).

     The parties hereto agree that the fair market value of the Laurus Payment (as reasonably
determined by the parties) received in consideration of this Amendment made by Laurus hereunder is
hereby designated as interest and, accordingly, shall be treated as a reduction of the remaining
stated principal amount (which reduced principal amount shall be treated as the issue price) of
the Revolving Note for U.S. federal income tax purposes under and pursuant to Treasury Regulation
Sections 1.1001-3(e)(2)(iii), 1.1273-2(g)(2)(ii) and 1.1274-2(b)(1). The parties further agree to
file all applicable tax returns in accordance with such characterization and shall not take a
position on any tax return or in any judicial or administrative proceeding that is inconsistent
with such characterization. Notwithstanding the foregoing, nothing contained in this paragraph
shall or shall be deemed to modify or impair in any manner whatsoever the Companyies’ obligations
from time to time owing to Laurus under the Documents.

     7. Upon the effectiveness of this Amendment, each Company hereby reaffirms all covenants,
representations and warranties made in the Documents and acknowledges that all such covenants,
representations and warranties shall be deemed to have been made and are true and correct as of the
effective date (as defined below) of this Amendment.

     8. This Amendment shall be effective on the first date on which (the “Effective Date”) each of
the following has occurred: (i) the execution and delivery of this Amendment by each Company,
Laurus and Agent, (ii) the execution and delivery of this Amendment by each Company, Laurus and
Agent of the Reaffirmation and Ratification Agreement attached hereto as Exhibit A, and
(iii) Laurus shall have received the Laurus Payment.

3

 

     9. Except as specifically set forth in this Amendment, there are no other amendments to the
Documents, and all of the other forms, terms and provisions of the Documents remain in full force
and effect.

     10. Each Company hereby represents and warrants to the Creditors that as of the date hereof,
both before and after giving effect to this Amendment, (i) no Event of Default (as defined in the
Security Agreement) exists and is continuing and (ii) all representations, warranties and covenants
made by each Company and its subsidiaries in connection with the Security Agreement and/or any
Ancillary Agreement referred to in the Security Agreement are true, correct and complete and all of
each Company and its respective subsidiaries’ covenant requirements have been met. The Parent
hereby agrees to, no later than five days after the date hereof, file an 8-K with the Securities
and Exchange Commission disclosing the transactions set forth in this Amendment (the “8-K”)
on the date hereof.

     11. This Amendment shall be binding upon the parties hereto and their respective successors
and permitted assigns and shall inure to the benefit of and be enforceable by each of the parties
hereto and its successors and permitted assigns. THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. This Amendment may be executed
in any number of counterparts, each of which shall be an original, but all of which shall
constitute one instrument.

4

 

     IN WITNESS WHEREOF, each Company, Laurus and LV has caused this Amendment to be effective and
signed in its name effective as of the date set forth above.

	 	 	 	 	 	 	 
	 	 	PROXYMED, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Fleming
 

	 	 
	 	 	Name: Peter Fleming

Title: Interim CEO	 	 
	 
	 	 	 	 	 	 
	 	 	PROXYMED TRANSACTION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Fleming
 

	 	 
	 	 	Name: Peter Fleming

Title: Interim CEO	 	 
	 
	 	 	 	 	 	 
	 	 	PROXYMED LAB SERVICES, LLC	 	 
	 	 	By: Proxymed Transaction Services, Inc., 

its sole member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Fleming
 

	 	 
	 	 	Name: Peter Fleming

Title: Interim CEO	 	 
	 
	 	 	 	 	 	 
	 	 	LAURUS MASTER FUND, LTD.	 	 
	 	 	By: Laurus Capital Management, LLC,

its investment manager	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein
 

	 	 
	 	 	Name: Scott Bluestein

Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	LV ADMINISTRATIVE SERVICES, INC.

as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Bluestein
 

	 	 
	 	 	Name: Scott Bluestein

Title: Authorized Signatory	 	 

5

 

EXHIBIT A

REAFFIRMATION AND RATIFICATION AGREEMENT

May 8, 2008

LV Administrative Services, Inc.

335 Madison Avenue, 10th Floor

New York, New York 10017

Ladies and Gentlemen:

On September 28, 2007, LV Administrative Services, Inc., a Delaware corporation (the “Agent”) was
appointed administrative and collateral agent for Laurus Master Fund, Ltd., a Cayman Islands
company (“Laurus” and, together with Laurus’ permitted assigns and Agent, the “Creditor Parties”
and each, a “Creditor Party”). Reference is made to the (a) Security and Purchase Agreement, dated
as of December 6, 2005 by and between Proxymed, Inc., a Florida corporation doing business as
MedAvant (“Parent”), ProxyMed Transaction Services, Inc. (f/k/a MedUnite, Inc.) a Delaware
corporation (“PTS”), ProxyMed Lab Services LLC (f/k/a Key Communications Service, Inc.) a Delaware
limited liability company (“PLS” and together with Parent and PTS, the “Companies” and each, a
“Company”) and Laurus (as amended, modified or supplemented from time to time, the “Security
Agreement”), (b) a Stock Pledge Agreement, dated as of December 6, 2005 made by Parent in favor of
Laurus (as amended, modified or supplemented from time to time, the “Stock Pledge”), (c) a Member
Pledge Agreement, dated as of December 6, 2005 made by PTS in favor of Laurus (as amended, modified
or supplemented from time to time, the “Member Pledge”) and (d) an IP Security Agreement, dated as
of December 6, 2005 made by the Companies in favor of Laurus (as amended, modified or supplemented
from time to time, the “IP Security Agreement”) (the Security Agreement, the Stock Pledge, the
Member Pledge and the IP Security Agreement, collectively, the “Existing Security Agreements”).
Terms used herein and not otherwise defined herein shall have those definitions ascribed such terms
in the Security Agreement.

          To induce Agent and Laurus to agree to the amendments set forth in that certain Omnibus
Amendment, dated May 8, 2008 by and among Agent, Laurus, and each Company (as amended, modified or
supplemented from time to time, the “Amendment”), each Company hereby:

     1. represents and warrants to each Creditor Party that it has reviewed and approved the terms
and provisions of the Amendment and the documents, instruments and agreements entered into in
connection therewith;

     2. acknowledges, ratifies and confirms that all indebtedness incurred by, and all other
obligations and liabilities of, each Company under the Security Agreement and the Ancillary
Agreements referred to therein, both before and after giving effect to the Amendment, are (i)
“Obligations” under, and defined in the Security Agreement, (ii) “Indebtedness” under, and as
defined in, the Stock Pledge Agreement, (iii) “Secured Obligations” under, and as defined in, the
Member Pledge Agreement and (iii) “Obligations” under, and as defined in the IP Security
Agreement;

 

 

     3. acknowledges, ratifies and confirms that the Amendment is a (i) “Document” under, and as
defined in, each of the Security Agreement and the Stock Pledge Agreement and (ii) “Purchase
Document” under, and as defined in the Member Pledge Agreement;

     4. acknowledges, ratifies and confirms that all of the terms, conditions, representations and
covenants contained in the Existing Security Agreements are in full force and effect and shall
remain in full force and effect both before and after giving effect to the execution and
effectiveness of the Amendment;

     5. represents and warrants that no offsets, counterclaims or defenses exist as of the date
hereof with respect to any of the undersigned’s obligations under any Existing Security Agreement;
and

     6. acknowledges, ratifies and confirms the grant by each Company to any Creditor Party of a
security interest in the assets of (including the equity interests owned by) each Company,
respectively, as more specifically set forth in the Existing Security Agreements.

7

 

This letter agreement shall be governed by and construed in accordance with the laws of the

State of New York.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PROXYMED, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Peter Fleming
 

	 	 
	 	 	 	 	Name: Peter Fleming

Title: Interim CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PROXYMED TRANSACTION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Peter Fleming	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Peter Fleming

Title: Interim CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PROXYMED LAB SERVICES, LLC

By: Proxymed Transaction Services, Inc., 

its
sole member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Peter Fleming	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Peter Fleming

Title: Interim CEO	 	 

8

 

	 	 	 	 	 
	ACKNOWLEDGED:	 	 
	 
	 	 	 	 
	LAURUS MASTER FUND, LTD.	 	 
	 
	 	 	 	 
	By: Laurus Capital Mangement, LLC, as investment manager	 	 
	 
	 	 	 	 
	By:

	 	/s/ Scott Bluestein
 

	 	 
	Name: Scott Bluestein

Title: Authorized Signatory	 	 
	 
	 	 	 	 
	LV ADMINISTRATIVE SERVICES, INC

as Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Scott Bluestein	 	 
	 

	 	 	 	 
	Name: Scott Bluestein

Title: Authorized Signatory	 	 

9

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