Document:

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                                                                   EXHIBIT 10.29

                    FIRST AMENDMENT TO AMENDED AND RESTATED
                         GENERAL PARTNERSHIP AGREEMENT

                                       OF

                         CHILDRENS HEMOPHILIA SERVICES

         THIS FIRST AMENDMENT (THE "AMENDMENT") TO AMENDED AND RESTATED GENERAL
PARTNERSHIP AGREEMENT of CHILDRENS HEMOPHILIA SERVICES dated and adopted on
November 10, 1999 (the "PARTNERSHIP AGREEMENT") is dated JUNE 30, 2000, and
entered into between CHILDRENS HOME CARE, a California nonprofit public benefit
corporation ("CHC"), and HEMOPHILIA HEALTH SERVICES, INC., a Tennessee
corporation ("HHS"). Except as otherwise defined herein, all capitalized
terms shall have the meanings ascribed to them in the Partnership Agreement.

                               STATEMENT OF FACT:

         A.       CHC and HHS are all of the Partners to the Partnership.

         B.       Following the sale and transfer by CHC of a 30% Partnership
Interest to HHS, the Partners deem it necessary and appropriate to make certain
amendments to the Partnership Agreement.

         NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS:

         1.       Section 1.3, "Principal Place of Business," of the
Partnership Agreement is hereby amended in its entirety to read as follows:

                  "1.3 PRINCIPAL PLACE OF BUSINESS. The principal place of
         business of the Partnership shall be located at 4650 SUNSET BOULEVARD,
         MAIL STOP #16, LOS ANGELES, CALIFORNIA 90027, or at such other place or
         places as shall be determined by the Partners within the County of Los
         Angeles, California.

         2.       Section 6.1.3, "Management Committee; Appointment of
Committee Members; Voting," of the Partnership Agreement is amended in its
entirety to read as follows:

                  "6.1.3 MANAGEMENT COMMITTEE; APPOINTMENT OF COMMITTEE
         MEMBERS; VOTING. The authorized number of Committee Members of the
         Partnership shall be four (4) unless the Partners agree to increase or
         decrease the size of the Management Committee proportionately from time
         to time. CHC shall appoint one (1) Committee Member and HHS shall
         appoint three (3) Committee Members. The Committee Members shall be
         appointed by the Partners by a separate written action of the Partners.
         Each Committee Member shall serve until his or her

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 1
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         successor is appointed by the appointing Partner in accordance with
         this Agreement. Each Partner shall cause its appointed Committee Member
         to comply with and perform the terms of this Agreement. The Committee
         Members shall exercise their authority collectively and exclusively
         through the actions of the Management Committee. Each Committee Member
         shall have one (1) vote on any decision of the Management Committee.
         Approval of the Management Committee shall require a majority of the
         authorized number of the Committee Members."

         3.       Section 6.4, "Restrictions on Authority; Approval by the
Partners," shall be amended in its entirety to read as follows:

                  "6.4 RESTRICTIONS ON AUTHORITY; APPROVAL BY THE PARTNERS. The
         individual Partners, the Committee Members, acting alone or
         collectively as the Management Committee, and the Partnership Manager
         shall have no authority with respect to the Partnership or its Business
         to do any of the following without the prior unanimous Vote or written
         consent of the Partners:

                  6.4.1 Do any act in contravention of this Agreement;

                  6.4.2 Do any act that would make it impossible to carry out
the Partnership Business;

                  6.4.3 Possess Partnership Property or assign the right of the
Partnership or its Partners in specific Partnership Property for anything other
than a Partnership purpose;

                  6.4.4 Make, execute or deliver any general assignments for
the benefit of creditors or any bond, guaranty, indemnity bond or surety bond;

                  6.4.5 Assign, transfer, pledge, compromise or release any
Partnership claim;

                  6.4.6 Confess a judgment;

                  6.4.7 Except for the power of the Management Committee to
amend or correct from time to time any information contained in EXHIBIT A to
this Agreement or in the Statement of Authority, to make any material amendment
or change to the Statement of Authority or to this Agreement, including, but
not limited to, any change in the authorized number of Committee Members or any
modification or enlargement of the rights or obligations of the Partners as set
forth herein;

                  6.4.8 Pursuant to Article 8 hereof, approve the sale,
transfer, assignment, hypothecation or encumbrance of any Partnership Interest
by a Partner, the admission of any new or transferee Partner to the
Partnership, the determination

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 2
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of the amount of any Capital Contribution to be made by any new Partner, and
the approval of a Partner's sale of all of its Interest in accordance with
Section 8.5 hereof;

                  6.4.9 The sale, exchange or other disposition of all or
substantially all of the Partnership Property, occurring as part of a single
transaction or a series of related transactions as part of a plan;

                  6.4.10 The merger of the Partnership with any other
partnership or business entity;

                  6.4.11 The termination or dissolution of the Partnership;

                  6.4.12 A change in the character of the Business of the
Partnership;

                  6.4.13 Any acquisition of any rights or interests in another
entity;

                  6.4.14 Any contracts or agreements between the Partnership
and any third party in excess of One Hundred Thousand Dollars ($100,000.00) and
the approval of any material changes or amendments thereto or renewals thereof;

                  6.4.15 Any transactions, contracts or agreements with an
Affiliate;

                  6.4.16 Any amendment, modification, supplement, renewal or
termination for any reason of that certain Hemophilia Therapy Business
Management, Service and Sales Agreement dated as of November 10, 1998, by and
between Horizon Health Systems, Inc. and the Partnership (the "HEMOPHILIA
THERAPY MANAGEMENT AGREEMENT"); or

                  6.4.17 Any amendment, modification, supplement, renewal or
termination for any reason of that certain Hemophilia Factor Services Agreement
dated as of November 10, 1998, by and among the Partnership, Horizon Health
Systems, Inc. and CHC (the "HEMOPHILIA FACTOR SERVICES AGREEMENT")."

         4.       Section 11.1.4 of Article 11, "Termination and Dissolution,"
reading as follows:

                  "11.1.4 The termination for any reason of the Hemophilia
Factor Services Agreement."

is hereby deleted in its entirety and the following language shall be inserted
in its place:

                  "11.1.4 [Intentionally left blank]."

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 3
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         5.       Article 15, "Notices," shall be amended in its entirety to
read as follows:

                                  "ARTICLE 15
                                    NOTICES

         Any notice, demand or other communication required or permitted
hereunder shall be in writing and may be either (i) personally delivered,
which shall be deemed received at the time of actual receipt thereof, or (ii)
sent by registered or certified mail, with postage and charges prepaid, which
shall be deemed delivered three (3) business days after deposit in the United
States mail; or (iii) sent by overnight courier service, such as FedEx, with
charges prepaid, which shall be deemed delivered upon such courier service's
record delivery date of the same; or (iv) delivered by facsimile transmission,
which shall be deemed received at the time and date of transmission, provided
an original mechanical signed copy of such communication is also immediately
deposited in the United States mail with first-class postage and charges
prepaid, and IN EACH CASE, addressed or delivered to a party at such party's
address as set forth below, or at such other address as that party may specify
by written notice given to the other in accordance with this Article:

         IF TO THE PARTNERSHIP, THEN TO EACH OF
         THE FOLLOWING PARTIES:

         CHILDRENS HEMOPHILIA SERVICES
         Attn: Kyle Callahan, Partnership Manager
         c/o 6820 Charlotte Pike, Suite 100
         Nashville, Tennessee 37209
         Facsimile: (615) 352-2588

         AND TO:

         Each of the Committee Members, addressed and delivered separately to
         each Committee Member at such address as they shall provide the
         Partnership from time to time,

         WITH COURTESY COPIES TO EACH OF:

         FRYE & HSIEH, LLP
         Attn: Douglas J. Frye, Esq.
         24955 Pacific Coast Highway, Suite A201
         Mailbu, California 90265-4747
         Facsimile: (310) 456-0808

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 4
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                  Thomas W. Bell, Jr., Esq.
                  1640 Century Center Parkway, Suite 101
                  Memphis, Tennessee 38134
                  Facsimile: (901) 385-3689

                  IF TO CHC, AS A PARTNER:

                  CHILDRENS HOME CARE
                  Attn: Paul King, Chairman of the Board
                  4650 Sunset Boulevard
                  Los Angeles, California 90027
                  Facsimile: (323) 668-7993

                  WITH A COURTESY COPY TO:

                  FRYE & HSIEH, LLP
                  Attn: Douglas J. Frye, Esq.
                  24955 Pacific Coast Highway, Suite A201
                  Malibu, California 90265-4747
                  Facsimile: (310) 456-0808

                  IF TO HHS, AS A PARTNER:

                  HEMOPHILIA HEALTH SERVICES, INC.
                  Attn: Kyle Callahan, President
                  6820 Charlotte Pike, Suite 100
                  Nashville, Tennessee 37209
                  Facsimile: (615) 352-2588

                  WITH A COURTESY COPY TO:

                  Thomas W. Bell, Jr., Esq.
                  1640 Century Center Parkway, Suite 101
                  Memphis, Tennessee 38134
                  Facsimile: (901) 385-3689

                  Where courtesy copies are requested to be given, such copies
         shall not constitute valid notice to the party where a copy is
         requested to be given."

         6.       EXHIBIT A to the Partnership Agreement, "Names and Addresses
of the Partners, Their Capital Contributions and Percentage Interests," is
amended in its entirety effective as of April 1, 2000, to update the names,
addresses and Percentage Interests of the Partners, and shall be replaced with
the EXHIBIT A attached hereto and made a part of this Amendment.

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 5
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         7.       Except as expressly amended and modified hereby, the
Partnership Agreement shall not be affected in any other manner and shall
remain in full force and effect as originally executed.

         8.       Each of the Partners represents and warrants that this
Amendment has been duly approved by a vote or written consent of their
respective Board of Directors and that the officers executing this Agreement
have been authorized by such Board of Directors to enter into, execute and
deliver this Amendment on behalf of the respective Partner executing the same,

         9.       For convenience, this Amendment may be executed in multiple
counterparts, each of which shall be deemed an original Amendment, and all of
which shall constitute one Amendment to be effective as of the date and in the
manner provided herein.

         IN WITNESS WHEREOF, the parties hereto have caused this FIRST
AMENDMENT TO AMENDED AND RESTATED GENERAL PARTNERSHIP AGREEMENT of CHILDRENS
HEMOPHILIA SERVICES to be duly and validly executed and delivered by a duly
authorized representative as of the day and year first above written.

                           CHILDRENS HEMOPHILIA SERVICES
                               A California General Partnership
                                    By Its Partners

                                    "CHC"

                                    CHILDRENS HOME CARE
                                    A California Nonprofit Public Benefit
                                    Corporation

                                    By: /s/ Paul King
                                       ----------------------------------
                                       PAUL KING, Chairman of the Board

                                    "HHS"

                                    HEMOPHILIA HEALTH SERVICES, INC.
                                    A Tennessee Corporation

                                    By: /s/ Kyle Callahan
                                       ----------------------------------
                                       KYLE CALLAHAN, President

                                     AMENDMENT TO PARTNERSHIP AGREEMENT - PAGE 6
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                                   EXHIBIT A

             AMENDED AND RESTATED GENERAL PARTNERSHIP AGREEMENT OF
                         CHILDRENS HEMOPHILIA SERVICES

                      NAMES AND ADDRESSES OF THE PARTNERS,
              THEIR CAPITAL CONTRIBUTIONS AND PERCENTAGE INTERESTS
                            (UPDATED AS OF 04/01/00)

NAMES AND ADDRESSES OF THE PARTNERS OF                  CAPITAL      PERCENTAGE
    CHILDRENS HEMOPHILIA SERVICES                    CONTRIBUTIONS    INTEREST
-----------------------------------                 --------------   -----------

HEMOPHILIA HEALTH SERVICES, INC.                                          80.0%
6820 Charlotte Pike, Suite 100
Nashville, Tennessee 37209
Facsimile: (615) 352-2588
Attn: Kyle Callahan, President

CHILDRENS HOME CARE                                                      20.0%
4650 Sunset Boulevard
Los Angeles, California 90027
Facsimile: (323) 668-7993
Attn: Paul King, Chairman of the Board

                                    TOTAL:            $                 100.0%
                                                       ------------     ------<PAGE>   1
                                                                   EXHIBIT 10.55

                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT, dated as of September 1, 1999, by and among
ACCREDO HEALTH, INCORPORATED, a Delaware corporation (the "Company"), and DAVID
D. STEVENS (the "Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company desires to employ the Executive for the period
provided in this Agreement, and the Executive is willing to accept such
employment with the Company on a full-time basis, all in accordance with the
terms and conditions set forth below;

         NOW, THEREFORE, for and in consideration of the premises hereof and the
mutual covenants contained herein, the parties hereto hereby covenant and agree
as follows:

         1.       EMPLOYMENT.

                  (a)      The Company hereby employs the Executive, and the
                           Executive hereby accepts such employment with the
                           Company, for the period set forth in Section 2
                           hereof, all upon the terms and conditions hereinafter
                           set forth.

                  (b)      The Executive affirms and represents that he is under
                           no other obligation to any former employer or other
                           party which is in any way inconsistent with, or which
                           imposes any restriction upon, the Executive's
                           acceptance of employment hereunder with the Company,
                           the employment of the Executive by the Company, or
                           the Executive's undertakings under this Agreement.

         2. TERM OF EMPLOYMENT. Unless earlier terminated as hereinafter
provided, the term of the Executive's employment under this Agreement shall
initially be for a period beginning on the date hereof and ending August 31,
2001; PROVIDED that on September 1, 2001 and on each September 1 thereafter, the
term of the Executive's employment hereunder shall automatically be extended for
an additional one-year period unless, prior to such September 1, 2001, the
Company shall have given the Executive, or the Executive shall have given the
Company, written notice that the Employment Term shall not be so extended. The
period commencing on the date hereof and ending on the earlier of (i) the
termination of Executive's employment hereunder, and (ii) the later of August
31, 2001 or the expiration of all one-year extensions described in the preceding
sentence, is referred to herein as the Employment Term.

                  If the Executive continues in the full-time employ of the
Company after the end of the Employment Term (it being expressly understood and
agreed that the Company does not now, nor hereafter shall have, any obligation
to continue the Executive in its employ whether or not on a full-time basis,
after said Employment Term ends), then, unless otherwise expressly agreed to by
the Executive and the Company in writing, the Executive's continued employment
by the Company after the Employment Term shall, notwithstanding anything to the
contrary expressed or implied herein, be terminable by the Company at will, with
or without cause and with or without notice, but shall in all other respects be
subject to the terms and conditions of this Agreement.

         3. DUTIES. The Executive shall be employed as Chairman and Chief
Executive Officer of the Company, shall, subject to the direction of the Board
of Directors of the Company (the "Board"), faithfully and competently perform
such duties as inhere in such position and shall also perform and discharge such

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other executive employment duties and responsibilities consistent with his
position as Chairman and Chief Executive Officer as the Board of Directors of
the Company may from time to time reasonably prescribe, including serving as
Chairman and Chief Executive Officer of one or more of the Company's
subsidiaries or affiliates. The Executive's primary workplace will be located in
Memphis, Tennessee. Except as set out herein or as may otherwise be approved in
advance by the Board, and except during vacation periods and reasonable periods
of absence due to sickness, personal injury or other disability, personal
affairs or non-profit public service activities, the Executive shall devote his
full time during normal business hours throughout the Employment Term to the
services required of him hereunder. The Executive shall render his business
services exclusively to the Companies (as defined in Section 6(a)) during the
Employment Term and shall use his best efforts, judgment and energy to improve
and advance the business and interest of the Companies in a manner consistent
with the duties of his position.

         4.       SALARY AND BONUS.

                  (a)      SALARY. As compensation for the performance by the
                           Executive of the services to be performed by the
                           Executive hereunder during the Employment Term, the
                           Company shall pay the Executive a base salary at the
                           annual rate of Two Hundred Eighty-Five Thousand Seven
                           Hundred Sixty-Eight ($285,768.00) Dollars (said
                           amount being hereinafter referred to as "Salary").
                           Any Salary payable hereunder shall be paid in regular
                           intervals (but in no event less frequently than
                           monthly) in accordance with the Company's payroll
                           practices from time to time in effect. The Salary
                           payable to the Executive pursuant to this Section
                           4(a) shall be increased annually, as of September 1,
                           2000 and each September 1 thereafter for the
                           twelve-month period then commencing, by an amount
                           equal to (i) the annual percentage increase in the
                           Consumer Price Index for Urban Consumers, All Items,
                           Memphis, Tennessee Area, for the most recent
                           twelve-month period for which such figures are then
                           available as reported in the Monthly Labor Review
                           published by the Bureau of Labor Statistics of the U.
                           S. Department of Labor or (ii) such higher amount as
                           may be determined from time to time by the Board in
                           its sole discretion.

                  (b)      BONUS. The Executive will be entitled to receive
                           bonus compensation from the Company in respect of
                           each fiscal year (or portion thereof) occurring
                           during the Employment Term beginning with the year
                           which starts on July 1, 1999 provided that Executive
                           is employed by Company on the last day of said fiscal
                           year. The amount of such bonus compensation is based
                           on the extent to which the Company's planned earnings
                           per share established by the Board for the
                           corresponding period (the "Plan EPS") has been
                           achieved, as set out on Exhibit A. Exhibit A may be
                           amended each fiscal year to reflect the Plan EPS
                           established by the Board for the then current fiscal
                           year. Exhibit A will be replaced with the revised
                           Exhibit A approved by the Board when and as amended
                           without the necessity of said amendment being
                           executed by the parties hereto.

                  (c)      WITHHOLDING, ETC. The payment of any Salary and bonus
                           hereunder shall be subject to applicable withholding
                           and payroll taxes, and such other deductions as may
                           be required by law or the Company's employee benefit
                           plans.

         5.       OTHER BENEFITS.  During the Employment Term, the Executive
shall:

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                           (i)      be eligible to participate in employee
                                    fringe benefits and pension and/or profit
                                    sharing plans that may be provided by the
                                    Company for its senior executive employees
                                    in accordance with the provisions of any
                                    such plans, as the same may be in effect
                                    from time to time;

                           (ii)     be eligible to participate in any medical
                                    and health plans or other employee welfare
                                    benefit plans that may be provided by the
                                    Company for its senior executive employees
                                    in accordance with the provisions of any
                                    such plans, as the same may be in effect
                                    from time to time;

                           (iii)    be entitled to twenty-five paid vacation
                                    days in each calendar year beginning January
                                    1, 2000, as well as all paid holidays given
                                    by the Company to its senior executive
                                    officers;

                           (iv)     be entitled to personal time off, sick
                                    leave, sick pay and disability benefits in
                                    accordance with any Company policy that may
                                    be applicable to senior executive employees
                                    from time to time; and

                           (v)      be entitled to reimbursement for all
                                    reasonable and necessary out-of-pocket
                                    business expenses incurred by the Executive
                                    in the performance of his duties hereunder
                                    in accordance with the Company's policies
                                    applicable thereto.

                  In addition, from the date hereof until the expiration of the
         Employment Term, the Company shall maintain term insurance coverage on
         the life of the Executive (excluding any such coverage provided for
         pursuant to the foregoing provisions of this Section 5) in the
         aggregate amount of $500,000, payable to that Executive's named
         beneficiaries in accordance with standard policy terms and conditions.
         For purposes of determining eligibility, vesting and benefit accrual
         under each of the benefit plans and arrangements referred to in this
         Section 5, the Executive shall be credited with service for all years
         and partial years of service with NFI, Southern Health Systems, Inc.
         ("SHS"), LeBonheur Health Systems, Inc., or any of their affiliates
         prior to the date hereof.

         6. CONFIDENTIAL INFORMATION. The Executive hereby covenants, agrees and
acknowledges as follows:

                  (a)      The Executive has and will have access to and will
                           participate in the development of or be acquainted
                           with confidential or proprietary information and
                           trade secrets related to the business of the Company
                           and any other present or future subsidiaries or
                           affiliates of the Company (collectively, with the
                           Company, the "Companies"), including but not limited
                           to (i) customer and physician lists; patient
                           histories, patient identities and related records and
                           compilations of information; the identify, lists or
                           descriptions of any new customers or physicians,
                           referral sources or organizations; financial
                           statements; cost reports or other financial
                           information; contract proposals or bidding

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                           information; business plans; training and operations
                           methods and manuals; personnel records; software
                           programs; reports and correspondence; premium
                           structures; and management systems, policies or
                           procedures, including related forms and manuals; (ii)
                           information pertaining to future developments such as
                           future marketing or acquisition plans or ideas, and
                           potential new business locations and new suppliers
                           and (iii) all other tangible and intangible property,
                           which are used in the business and operations of the
                           Companies but not made public. The information and
                           trade secrets relating to the business of the
                           Companies and described hereinabove in this paragraph
                           (a) are hereinafter referred to collectively as the
                           "Confidential Information", provided that the term
                           Confidential Information shall not include any
                           information (x) that is or become generally publicly
                           available (other than as a result of violation of
                           this Agreement by the Executive) or (y) that the
                           Executive receives on a nonconfidential basis from a
                           source (other than the Companies or their
                           representatives) that is not known by him to be bound
                           by an obligation of secrecy or confidentiality to any
                           of the Companies.

                  (b)      The Executive shall not disclose, use or make known
                           for his or another's benefit any Confidential
                           Information or use such Confidential Information in
                           any way except as is in the best interests of the
                           Companies in the performance of the Executive's
                           duties under this Agreement. The Executive may
                           disclose Confidential Information when required by a
                           third party and applicable law or judicial process,
                           but only after providing (I) notice to the Company of
                           any third party's request for such information, which
                           notice shall include the Executive's intent with
                           respect to such request, and (ii) sufficient
                           opportunity for the Company to challenge or limit the
                           scope of the disclosure on behalf of the Companies,
                           the Executive or both.

                  (c)      The Executive acknowledges and agrees that a remedy
                           at law for any breach or threatened breach of the
                           provisions of this Section 6 would be inadequate and,
                           therefore, agrees that the Companies shall be
                           entitled to injunctive relief in addition to any
                           other available rights and remedies in case of any
                           such breach or threatened breach; PROVIDED, HOWEVER,
                           that nothing contained herein shall be construed as
                           prohibiting the Companies from pursuing any other
                           rights and remedies available for any such breach or
                           threatened breach.

                  (d)      The Executive agrees that upon termination of his
                           employment with the Company for any reason, the
                           Executive shall forthwith return to the Company all
                           Confidential Information in whatever form maintained
                           (including, without limitation, computer discs and
                           other electronic media).

                  (e)      The obligations of the Executive under this Section 6
                           shall, except as otherwise provided herein, survive
                           the termination of the Employment Term and the
                           expiration or termination of this Agreement.

                  (f)      Without limiting the generality of Section 10 hereof,
                           the Executive hereby expressly agrees that the
                           foregoing provisions of this Section 6 shall be
                           binding upon the Executive's heirs, successors and
                           legal representatives.

         7.       TERMINATION.

                  (a)      The Executive's employment hereunder shall be
                           terminated upon the occurrence of any of the
                           following:

                           (i)      death of the Executive;

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                           (ii)     The Executive's inability to perform his
                                    duties on account of disability or
                                    incapacity for a period of one hundred eight
                                    (180) or more days, whether or not
                                    consecutive, within any period of twelve
                                    (12) consecutive months;

                           (iii)    the Company giving written notice, at any
                                    time, to the Executive that the Executive's
                                    employment is being terminated "for cause"
                                    (as defined below);

                           (iv)     the Company giving written notice, at any
                                    time, to the Executive that the Executive's
                                    employment is being terminated other than
                                    pursuant to clause (i), (ii) or (iii) above;
                                    or

                           (v)      the Executive giving written notice, at any
                                    time, to the Company that the Executive is
                                    terminating his employment for "good reason"
                                    (as defined below).

                  The following actions, failures and events by or affecting the
Executive shall constitute "cause" for termination within the meaning of clause
(iii) above: (A) an indictment for or conviction of the Executive of, or the
entering of a plea of nolo contendere by the Executive with respect to, having
committed a felony, (B) acts of fraud or criminal conduct by the Executive that
are detrimental to the financial condition or business reputation of one or more
of the Companies, (C) acts or omissions by the Executive that the Executive knew
were likely to damage the business of one or more of the Companies, (D) willful
failure by the Executive to perform, or willful disregard by the Executive of,
his obligations hereunder or otherwise relating to his employment, or (E)
willful failure by the Executive to obey the reasonable and lawful policies or
orders of the Board that are consistent with the provisions of this Agreement.
For purposes of this Agreement, the Executive shall not be deemed to have been
terminated for cause unless and until there shall have been delivered to the
Executive a copy of a resolution, duly adopted by the Board, stating that, in
the good faith opinion of the Board, the Executive is guilty of an action or
omission that constitutes cause and specifying the particulars thereof in
reasonable detail. Before adopting any such resolution, the Board shall offer
the Executive, upon reasonable written notice (which need not exceed two days),
an opportunity for him together with his counsel, to be heard by the Board.

                  The following circumstances shall constitute "good reason" for
termination within the meaning of clause (v) above: (I) the assignment to the
Executive of duties that are materially inconsistent with the Executive's
position or with his authority, duties or responsibilities as contemplated by
Section 3 of this Agreement, or any other action by the Company or their
successors which results in a material diminution or material adverse change in
the Executive's title, position, authority, duties or responsibilities, (II) any
material breach by the Company or their successors of any provision of this
Agreement, (III) a relocation of the Executive's primary workplace without his
written consent to any location other than the one described in Section 3
hereof, or (IV) the Company fails to continue in effect any cash or stock-based
incentive or bonus plan, retirement plan, welfare benefit plan or other benefit
plan, unless the aggregate value of all such compensation, retirement and
benefit plans provided to the Executive after the changes is not less than the
aggregate value of the plans as of the date before such plans are changed.

                  (b)      In the event that (A) the Executive's employment is
                           terminated pursuant to clause (iv) or (v) of Section
                           7(a) above, whether during the Employment Term or
                           during any continuation of employment pursuant to
                           Section 2 above, or (B) Executive shall resign his
                           employment within twelve (12) months following a
                           Change in Control, the Company shall pay to the
                           Executive, as severance pay or liquidated damages or
                           both, bi-monthly payments at the rate PER ANNUM of

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                           his Salary at the time of such termination or
                           resignation for a period from the date of such
                           termination to the first anniversary of such
                           termination or resignation. The Executive shall
                           continue to participate in the medical, dental, life,
                           accident and disability benefit plans and
                           arrangements of the Company as provided in Section 5
                           and on the same basis and at the same cost to
                           Executive as on the date of termination until the
                           earlier of (x) the first anniversary of such
                           termination or resignation, or (y) the date the
                           Executive becomes covered by a plan that provides
                           coverage or benefits at least equal to the Company's
                           plan. In addition, to the extent that Executive is
                           not then 100% vested in any employer matching
                           contribution and earnings thereon allocated to his
                           account in the Company's 401(k) Plan, and said
                           non-vested amount is forfeited, the Company will pay
                           Executive a lump sum amount on the date of such
                           forfeiture equal to the non-vested forfeited amount.

                  (c)      For purposes of this Agreement, "Change in Control"
                           means and includes each of the following:

                                    (1) The acquisition by any individual,
                           entity or group (within the meaning of Section
                           13(d)(3) or 14(d)(2) of the 1934 Act) (a "Person") of
                           beneficial ownership (within the meaning of Rule
                           13d-3 promulgated under the 1934 Act) of 50% or more
                           of the combined voting power of the then outstanding
                           voting securities of the Company entitled to vote
                           generally in the election of directors (the
                           "Outstanding Corporation Voting Securities");
                           provided, however, that for purposes of this
                           subsection (1), the following acquisitions shall not
                           constitute a Change of Control: (i) any acquisition
                           directly from the Company, (ii) any acquisition by
                           the Company, (iii) any acquisition by any employee
                           benefit plan (or related trust) sponsored or
                           maintained by the Company or any corporation
                           controlled by the Company, or (iv) any acquisition by
                           any corporation pursuant to a transaction which
                           complies with clauses (i), (ii) and (iii) of
                           subsection (3) of this definition; or

                                    (2) Individuals who, as of the date of this
                           Agreement, constitute the Board (the "Incumbent
                           Board") cease for any reason to constitute at least a
                           majority of the Board; provided, however, that any
                           individual becoming a director subsequent to the
                           Effective Date whose election, or nomination for
                           election by the Company's stockholders, was approved
                           by a vote of at least a majority of the directors
                           then comprising the Incumbent Board shall be
                           considered as though such individual were a member of
                           the Incumbent Board, but excluding, for this purpose,
                           any such individual whose initial assumption of
                           office occurs as a result of an actual or threatened
                           election contest with respect to the election or
                           removal of directors or other actual or threatened
                           solicitation of proxies or consents by or on behalf
                           of a Person other than the Board; or

                                    (3) Consummation of a reorganization, merger
                           or consolidation or sale or other disposition of all
                           or substantially all of the assets of the Company (a
                           "Business Combination"), in each case, unless,
                           following such Business Combination, (i) all or
                           substantially all of the individuals and entities who
                           were the beneficial owners of the Outstanding
                           Corporation Voting Securities immediately prior to

                                       6
<PAGE>   7

                           such Business Combination beneficially own, directly
                           or indirectly, more than 50% of the combined voting
                           power of the then outstanding voting securities
                           entitled to vote generally in the election of
                           directors of the Company resulting from such Business
                           Combination (including, without limitation, a
                           corporation which as a result of such transaction
                           owns the Company or all or substantially all of the
                           Company's assets either directly or through one or
                           more subsidiaries) in substantially the same
                           proportions as their ownership, immediately prior to
                           such Business Combination of the Outstanding
                           Corporation Voting Securities, and (ii) no Person
                           (excluding any corporation resulting from such
                           Business Combination or any employee benefit plan (or
                           related trust) of the Company or such corporation
                           resulting from such Business Combination)
                           beneficially owns, directly or indirectly, 50% or
                           more of the combined voting power of the then
                           outstanding voting securities of such corporation
                           except to the extent that such ownership existed
                           prior to the Business Combination, and (iii) at least
                           a majority of the members of the board of directors
                           of the corporation resulting from such Business
                           Combination were members of the Incumbent Board at
                           the time of the execution of the initial agreement,
                           or of the action of the Board, providing for such
                           Business Combination; or

                                    (4) Approval by the stockholders of the
                           Company of a complete liquidation or dissolution of
                           the Company.

                  (d)      Notwithstanding anything to the contrary expressed or
                           implied herein, except as required by applicable law
                           and except as set forth in Section 7(b) above, the
                           Company (and its affiliates) shall not be obligated
                           to make any payments to the Executive or on his
                           behalf of whatever kind or nature by reason of the
                           Executive's cessation of employment (including,
                           without limitation, by reason of termination of the
                           Executive's employment by the Company for "cause"),
                           other than (i) such amounts, if any, of his Salary as
                           shall have accrued and remained unpaid as of the date
                           of said cessation, (ii) such other amounts, if any,
                           which may be then otherwise payable to the Executive
                           pursuant to clause (v) of Section 5 above, and (iii)
                           any amounts owed or obligations to the Executive
                           pursuant to the terms of any option or other
                           stock-based award granted to him by the Company.

                  (e)      No interest shall accrue on or be paid with respect
                           to any portion of any payments timely made hereunder.

         8.       NON-ASSIGNABILITY.

                  (a)      Neither this Agreement nor any right or interest
                           hereunder shall be assignable by the Executive or his
                           beneficiaries or legal representatives without the
                           Company's prior written consent; PROVIDED, HOWEVER,
                           that nothing in this Section 8(a) shall preclude the
                           Executive from designating a beneficiary to receive
                           any benefit payable hereunder upon his death or
                           incapacity. Neither this Agreement nor any right or
                           interest hereunder shall be assignable by the
                           Company; PROVIDED, HOWEVER, that notwithstanding the
                           foregoing, this Agreement and the Company's rights
                           and interests hereunder may be assigned by the
                           Company pursuant to a merger or consolidation in
                           which the Company is not the continuing entity, or
                           the sale or liquidation of all or substantially all
                           of the assets of the Company, provided that (i) the
                           assignee or transferee is the successor to all or
                           substantially all of the assets of the Company and
                           (ii) such assignee or transferee assumes the

                                       7
<PAGE>   8

                           liabilities, obligations and duties of the Company,
                           as contained in this Agreement, either contractually
                           or as a matter of law.

                  (b)      Except as required by law, no right to receive
                           payments under this Agreement shall be subject to
                           anticipation, commutation, alienation, sale,
                           assignment, encumbrance, charge, pledge, or
                           hypothecation or to exclusion, attachment, levy or
                           similar process or to assignment by operation of law,
                           and any attempt, voluntary or involuntary, to effect
                           any such action shall be null, void and of no effect.

         9.       RESTRICTIVE COVENANTS

                  (a)      COMPETITION. During the Employment Term, during any
                           continuation of employment pursuant to Section 2
                           above and during the twelve (12) month period
                           following termination of the Executive's employment
                           with the Company for any reason, provided that
                           payments, if any, required pursuant to Section 7(b)
                           hereof are made in full and in a timely fashion, the
                           Executive will not directly or indirectly (as a
                           director, officer, executive employee, manager,
                           consultant, independent contractor, advisory or
                           otherwise) engage in competition with, or own any
                           interest in, perform any services for, participate in
                           or be connected with any business or organization
                           which engages in competition with any of the
                           Companies within the meaning of Section 9(d),
                           PROVIDED, HOWEVER, that the provisions of this
                           Section (a) shall not be deemed to prohibit the
                           Executive's ownership of not more than two percent
                           (2%) of the total shares of all classes of stock
                           outstanding of any publicly held company, or
                           ownership, whether through direct or indirect
                           stockholding or otherwise, of one percent (1%) or
                           more of any other business.

                  (b)      NON-SOLICITATION. During the Employment Term, during
                           any continuation of employment pursuant to Section 2
                           above and during the twelve (12) month period
                           following termination of the Executive's employment
                           with the Company for any reason, provided that
                           payments, if any, required pursuant to Section 7(b)
                           hereof are made in full and in a timely fashion, the
                           Executive will not knowingly directly or indirectly
                           induce or attempt to induce any employee of any of
                           the Companies to leave the employ of any of the
                           Companies or of their subsidiaries or affiliates, or
                           in any way interfere with the relationship between
                           any of the Companies and any employee thereof.

                  (c)      NON-INTERFERENCE. During the twelve (12) month period
                           following termination of the Executive's employment
                           with the Company for any reason, provided that
                           payments, if any, required pursuant to Section 7(b)
                           hereof are made in full and in a timely fashion, the
                           Executive will not directly or indirectly hire,
                           engage, send any work to, place orders with, or in
                           any manner be associated with any business entity
                           which, during the period of twelve months preceding
                           or following such termination of employment, was
                           among the five largest suppliers of the Company by
                           dollar volume.

                  (d)      CERTAIN DEFINITIONS. For purposes of this Section 9,
                           a person or entity (including without limitation, the
                           Executive) shall be deemed to be a competitor of one
                           or more of the Companies, or a person or entity
                           (including, without limitation, the Executive) shall
                           be deemed to be engaging in competition with one or

                                       8
<PAGE>   9

                           more of the Companies, if, at the time of
                           determination, such person or entity (A) engages in
                           any business engaged in or proposed to be engaged in
                           by any of the Companies, or (B) in any way conducts,
                           operates, carries out or engages in the business of
                           managing any entity engaged in any business described
                           in clause (A), in each case, in any state of the
                           United States of America, excluding, however, during
                           any period following the termination of the
                           Executive's employment with the Company, (x) any
                           business or any state in which none of the Companies
                           was engaged or had proposed to be engaged at the time
                           of termination of the Executive's employment with the
                           Company, and (y) after termination of the Executive's
                           employment, any business which was not, prior to such
                           termination, directly or indirectly supervised by the
                           Executive.

                  (e)      CERTAIN REPRESENTATIONS OF THE EXECUTIVE. In
                           connection with the foregoing provisions of this
                           Section 9, the Executive represents that his
                           experience, capabilities and circumstances are such
                           that such provisions will not prevent him from
                           earning a livelihood. The Executive further agrees
                           that the limitations set forth in this Section 9
                           (including, without limitation, time and territorial
                           limitations) are reasonable and properly required for
                           the adequate protection of the current and future
                           businesses of the Companies. It is understood and
                           agreed that the covenants made by the Executive in
                           this Section 9 shall survive the expiration or
                           termination of this Agreement.

                  (f)      INJUNCTIVE RELIEF. The Executive acknowledges and
                           agrees that a remedy at law for any breach or
                           threatened breach of the provisions of Section 9
                           hereof would be inadequate and, therefore, agrees
                           that the Company and any of its subsidiaries or
                           affiliates shall be entitled to injunctive relief in
                           addition to any other available rights and remedies
                           in cases of any such breach or threatened breach;
                           PROVIDED, HOWEVER, that -------- ------- nothing
                           contained herein shall be construed as prohibiting
                           the Company or any of its affiliates from pursuing
                           any other rights and remedies available for any such
                           breach or threatened breach.

         10. INDEMNITY. To the maximum extent permitted by applicable law and
the charter and by-laws of the Company, the Company shall indemnify the
Executive and hold him harmless; for any acts or decisions made by him in good
faith while performing services for the Company or any of its subsidiaries or
affiliates. Company will use reasonable best efforts to maintain, and after
termination to continue, coverage for Executive under director's and officer's
liability coverage to the same extent as other current or former officers and
directors of the Company and its subsidiaries or affiliates. The Company will,
to the extent provided by its charter and by-laws and applicable law, advance or
pay all expenses, including attorney's fees actually and necessarily incurred by
the Executive in connection with the defense of any action, suit or proceeding
arising out of Executive's service for the Company and in connection with any
appeal thereon, including the cost of court settlements.

         11. NO MITIGATION. In the event of Executive's resignation or
termination of the Executive's employment under Section 7, the Executive shall
be under no obligation to seek other employment and there shall be no offset
against any amounts due the Executive under this Agreement on account of any
remuneration attributable to any subsequent employment that the Executive may
obtain.

         12. BINDING EFFECT. Without limiting or diminishing the effect of
Section 8 hereof, this Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors, legal
representatives and assigns.

                                       9
<PAGE>   10

         13. NOTICES. All notices which are required or may be given pursuant to
the terms of this Agreement shall be in writing and shall be sufficient in all
respects if given in writing and (i) delivered personally, (ii) mailed by
certified or registered mail, return receipt requested and postage prepaid,
(iii) sent via a nationally recognized overnight courier or (iv) sent via
facsimile confirmed in writing to the recipient, if to the Company at the
Company's principal place of business, and if to the Executive, at his home
address most recently filed with the Company, or to such other address or
addresses as either party shall have designated in writing to the other party
hereto.

         14. ENFORCEMENT. Any dispute arising under this Agreement shall, at the
election of either party, be resolved by final and binding arbitration to be
held in Memphis, Tennessee in accordance with the rules and procedures of the
American Arbitration Association. Judgment upon the award entered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

         15. LAW GOVERNING. This Agreement shall be governed by and construed in
accordance with the laws of the State of Tennessee.

         16. SEVERABILITY. The Executive agrees that in the event that any court
of competent jurisdiction shall finally hold that any provision of Section 6 or
9 hereof is void or constitutes an unreasonable restriction against the
Executive, the provisions of such Section 6 or 9 shall not be rendered void but
shall apply with respect to such extent as such court may judicially determine
constitutes a reasonable restriction under the circumstances. If any part of
this Agreement other than Section 6 or 9 is held by a court or competent
jurisdiction to be invalid, illegal or incapable of being enforced in whole or
in part by reason of any rule of law or public policy, such part shall be deemed
to be severed from the remainder of this Agreement for the purpose only of the
particular legal proceedings in question and all other covenants and provisions
of this Agreement shall in every other respect continue in full force and effect
and no covenant or provision shall be deemed dependent upon any other covenant
or provision.

         17. WAIVER. Failure to insist upon strict compliance with any of the
terms, covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any right or
power hereunder at any one or more times be deemed a waiver or relinquishment of
such right or power at any other time or times.

         18. ENTIRE AGREEMENT; MODIFICATIONS. This Agreement constitutes the
entire and final expression of the agreement of the parties with respect to the
subject matter hereof and supersedes all prior agreements, oral and written,
between the parties hereto with respect to the subject matter hereof. This
Agreement may be modified or amended only by an instrument in writing signed by
both parties hereto.

         19. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the Company and the Executive have duly executed
and delivered this Agreement as of the date and year first above written.

                                       ACCREDO HEALTH, INCORPORATED

                                       By: /s/ John R. Grow
                                          ------------------------------------
                                          John R. Grow

                                       Title: President
                                              --------------------------------

                                       /s/ David D. Stevens
                                       ---------------------------------------
                                        DAVID D. STEVENS

                                       11
<PAGE>   12
                                   EXHIBIT A
                         FISCAL YEAR 2000 BONUS TARGETS

Budget $0.54 per diluted share

                                                              MAXIMUM INCENTIVE
DILUTED EPS(1)                                                 BONUS POTENTIAL
--------------                                                ------------------
                                                             50%             75%
                                                            ----           -----

$0.51                                                         5%            7.5%
$0.52                                                        10%           15.0%
$0.53                                                        20%           30.0%
$0.54 TARGET                                                 30%           45.0%
$0.55                                                        35%           52.5%
$0.57                                                        40%           60.0%
$0.59                                                        45%           67.5%
$0.61                                                        50%           75.0%

The 50% column applies to Joel Kimbrough, Thomas W. Bell, Jr., Kyle Callahan and
John R. Grow.

The 75% column applies to David D. Stevens.

----------------------
(1)  All EPS calculations have been adjusted for 3 for 2 stock split on
February 21, 2000.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]