Document:

EX-4.6 Amendment to Warrant Agreement

 

EXHIBIT 4.6

AMENDMENT OF WARRANT AGREEMENT

     This Amendment of Warrant Agreement (this “Amendment”) is made as of November 9, 2006,
by and between Freedom Acquisition Holdings, Inc., a Delaware corporation, with offices at 1114
Avenue of the Americas, 41st Floor, New York, New York 10036 (the “Company”) and
Continental Stock Transfer & Trust Company, a New York corporation, with offices at 17 Battery
Place, New York, New York 10004 (the “Warrant Agent”). Capitalized terms not defined
herein shall have the meanings set forth in the Warrant Agreement, dated July 20, 2006, between the
Company and the Warrant Agent (the “Warrant Agreement”).

     WHEREAS, the Company and the Warrant Agent entered into the Warrant Agreement, whereby the
Warrant Agent agreed to act on behalf of the Company in connection with the issuance, registration,
transfer, exchange, redemption and exercise of the Warrants and the Company provided for the form
and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the
respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the
holders of the Warrants; and

     WHEREAS, the Company and the Warrant Agent desire to amend the Warrant Agreement to cure an
ambiguity regarding the cash settlement of the Warrants.

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

     1. Recitals. The recitations set forth above are true and correct and are incorporated herein
by this reference.

     2. Amendment. Section 3.4 of the Warrant Agreement is hereby deleted in its entirety
and the following is hereby inserted in lieu thereof:

          “3.4 No Cash Settlement. Notwithstanding anything to the contrary contained in
this Warrant Agreement, under no circumstances will the Company be required to net cash settle the
exercise of the Warrants. As a result, any or all of the Warrants may expire worthless.”

     3. Successors and Assigns. This Agreement shall endure to the benefit of and shall be
binding upon the parties hereto and their respective successors and assigns.

     4. Enforceability. Except as modified hereby, the Warrant Agreement shall remain in
full force and effect with the terms and provisions thereof.

     5. Counterparts. This Agreement may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original and all such counterparts
shall together constitute but one and the same instrument.

     6. Effect of Headings. The Section headings herein are for convenience only and are not
part of this Amendment and shall not affect the interpretation thereof.

[Signatures Appear on Following Page]

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     IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto as of the date
first above written.

	 	 	 
	Attest:	 	
FREEDOM ACQUISITION HOLDINGS, INC.
	 
	/S/ MARITZA ALVARADO
 
	 	
By: /S/ NICOLAS BERGGRUEN
 

Name: Nicolas Berggruen
 

Title: President
 

	 
	 
	Attest:	 	
CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 
	/S/ MICHAEL G. MULLINGS
 
	 	
By: /S/ FELIX ORIHUELA
 

Name: Felix Orihuela
 

	 	 	
Title: Vice President
 

2EX-10.1

 

EXHIBIT 10.1

Amendment No. 1

to Employment Agreement

     This Amendment No. 1 to Employment Agreement (“Amendment”) is entered into as of November 10,
2006, and to be effective the date hereof, by and between AMERICAN HOMEPATIENT, INC., a Delaware
corporation (the “Company”), and JOSEPH F. FURLONG, III (the “Executive”).

     WHEREAS, the Executive is currently employed by the Company as its Chief Executive Officer
pursuant to the terms of that certain Employment Agreement between the Company and Executive dated
as of December 1, 2000 (the “Employment Agreement”); and

     WHEREAS, Executive and Company desire that amend certain terms of the Employment Agreement as
described herein as of the effective date hereof;

     In consideration of the mutual covenants contained in this Amendment, the parties hereby agree
as follows:

     1. Period of Employment. Section III.A. of the Employment Agreement is hereby amended by
deleting the first sentence of such Section in its entirety and by replacing it with the following:

     “The period of Executive’s employment under this Agreement will commence as of December
1, 2000, and shall continue through September 30, 2007 (“Initial Term”), subject to
extension or termination as provided in this Agreement (“Period of Employment”).”

     2. Compensation. The last paragraph of Section IV.B. of the Employment Agreement is hereby
deleted in its entirety and replaced with the following:

     “B. The Annual Incentive Award target shall be equal to one hundred percent
(100%) of Executive’s then current annual Base Salary (with the Board of Directors
or the Compensation Committee having the option of granting an Annual Incentive
Award in excess of the target), contingent upon performance of stipulated goals of
the Company established jointly by the Board of Directors and Executive.”

     3. Business. Section V of the Employment Agreement is hereby deleted in its entirety and
replaced with the following:

     “The Company acknowledges and agrees that Executive shall perform his duties
and obligations in various geographic locations including his primary residence in
San Francisco, California and the Company’s headquarters in the Nashville, Tennessee
area, and the Company will reimburse the Executive for all reasonable travel
(including travel to and from San Francisco, California), accommodations (including
accommodations in Nashville, Tennessee but not in

 

 

San Francisco, California) and other expenses incurred by the Executive in
connection with the performance of his duties and obligations under this Agreement
wherever they may arise. In addition, the Company will reimburse Executive for
personal medical insurance.”

     4. Death. A new sentence is hereby added at the end of Section VII of the Employment
Agreement that reads as follows:

     “In the event of the death of the Executive during the Period of Employment,
all unvested stock options held by Executive shall be deemed fully vested on the
date of his death.”

     5. Effect of Termination of Employment. Section VIII.A. of the Employment Agreement is hereby
deleted in its entirety and replaced with the following:

     “If the Executive’s employment terminates due to either a Without Cause
Termination or a Constructive Discharge (as defined later in this Agreement), the
Company will pay the Executive in a lump sum upon such Without Cause Termination or
Constructive Discharge an amount equal to the sum of (i) three hundred percent
(300%) of his Base Salary as in effect at the time of such termination, plus (ii)
three hundred percent (300%) of the greater of the Annual Incentive Award Executive
received for performance during the Company’s immediately preceding fiscal year, or
the current Annual Incentive Award target in effect at the time of such termination.
Earned but unpaid Base Salary will also be paid in a lump sum upon such Termination
or Constructive Discharge. The benefits and perquisites described in this Agreement
as in effect at the date of resignation or termination of employment (other than
travel and accommodation expenses), including, without limitation, health insurance
and life insurance will also be continued for thirty six (36) months from the
effective date of the Without Cause Termination or Constructive Discharge; provided
that access to office space and administrative support shall be maintained only in
San Francisco, California and only for a transitional period of twelve (12) months;
and provided further that the obligation to pay health insurance premiums shall
terminate upon Executive obtaining other employment to the extent such insurance is
provided by Executive’s new employer. If the Executive’s employment terminates due
to either a Without Cause Termination or a Constructive Discharge or pursuant to
Section XI, all stock options (“Options”) granted to the Executive under any Company
stock option program or plan (each and collectively, the “Plan”) shall be deemed
vested, and the Company shall cause the Options to remain exercisable until the
later of (i) the fifteenth (15th) day of the third (3rd) month following the date on
which the Options would have expired following such termination by the terms of the
Options and the Plan or (ii) December 31 of the calendar year in which the Option
would have expired following such termination by the terms of the Options and the
Plan.”

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     6. Change in Control.

     (a) Section XI.A. of the Employment Agreement is hereby amended by deleting such
section in its entirety and replacing it with the following:

     “A. Effect of Change in Control

     In the event there is a Change in Control (as defined below) and within the
twelve (12) month period following such event, or within the ninety (90) day period
preceding such event, Executive is terminated, or elects to resign upon written
notice to the Company, the Company shall pay to the Executive in a lump sum upon
such termination or resignation an amount equal to three hundred percent (300%) of
the sum of (i) his Base Salary, plus (ii) an amount equal to the greater of the
Annual Incentive Award Executive received for performance during the Company’s
immediately preceding fiscal year or the current Annual Incentive Award target in
effect at the time of such termination or resignation. The benefits and perquisites
described in this Agreement as in effect at the date of resignation or termination
of employment (other than travel and accommodation expenses), including, without
limitation, health insurance and life insurance will also be continued for thirty
six (36) months from the effective date of the date of resignation or termination of
employment; provided that access to office space and administrative support shall be
maintained only in San Francisco, California and only for a transitional period of
twelve (12) months; and provided further that the obligation to pay health insurance
premiums shall terminate upon Executive obtaining other employment to the extent
such insurance is provided by Executive’s new employer. Company matching payments
for corporate retirement plans will become fully vested.

     The amounts described in the above paragraph shall be in lieu of any amounts
that Executive would otherwise be entitled to receive under Section VIII of this
Agreement (other than earned but unpaid Base Salary and Bonus, which will be paid in
a lump sum at the time of Executive’s termination or resignation in connection with
a Change of Control).”

     (b) Section XI.C. of the Employment Agreement is hereby amended by deleting each occurrence
in such section of the capitalized term “Management,” and by replacing the words “Big Five”
with “Big Four.”

     7. Renumbering of Sections XII, XIII, XIV, XV, XVI, XVII and XVIII of the Employment
Agreement. Sections XII, XIII, XIV, XV, XVI, XVII and XVIII of the Employment Agreement are hereby
renumbered as Sections XIII, XIV, XV, XVI, XVII, XVIII and XIX, respectively.

     8. Section 409A Savings Clause. A new Section XII of the Employment Agreement is hereby added
to the Employment Agreement and titled “Section 409A Savings Clause.” The following text is hereby
added to new Section XII:

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     “Any payment due Executive under Section VIII or Section XI of this Agreement
as a result of the Executive’s separation from service with the Company shall be
delayed for six (6) months from the dates of such separation from service if
necessary to comply with the requirements of Code Section 409A(a)(2)(B)(i). The
determination that such delay is not necessary to comply with Code Section
409A(a)(2)(B)(i) shall be made by the Executive but only after the Executive has
received the written, well reasoned opinion of independent tax counsel of his
choosing that if the Executive were to take a reporting position that Code Section
409A(a)(2)(B)(i) is inapplicable to any such payment, such position would have some
“realistic possibility of being sustained on its merits” as such phrase is described
in Treasury Regulation Section 1.6694-2. Immediately upon separation from service,
the Company shall contribute an amount equal to any payment that may be required to
be delayed pursuant to this Section XII into a trust to be governed by terms set
forth on Exhibit A hereto. The trustee of such trust shall deliver amounts
contributed to such trust upon the earlier of (i) the date such opinion is delivered
to the trustee or (ii) the date that is six (6) months after the date of separation
from service with the Company.”

     9. Effect of Amendment. Except as expressly amended hereby the terms of the Employment
Agreement shall remain in full force and effect.

     10. Governing Law. This Amendment has been executed and delivered in the State of Tennessee
and its validity, interpretation, performance and enforcement shall be governed by the laws of that
state.

     Any dispute among the parties hereto shall be settled by arbitration in Nashville, Tennessee,
in accordance with the rules then obtaining of the American Arbitration Association and judgment
upon the award rendered may be entered in any court having jurisdiction thereof.

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	AMERICAN HOMEPATIENT, INC.

 	 
	 	By:  	/s/ Stephen L. Clanton
 	 
	 	 	Stephen L. Clanton, Chief Financial Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	/s/ Joseph F. Furlong, III
 	 
	 	Joseph F. Furlong, III 	 
	 	 	 
	 

     Authorized and approved by the Compensation Committee of the Board of Directors of American
HomePatient, Inc.

	 	 	 	 	 
	 	 	 
	By:  	/s/ Henry T. Blackstock
 	 	 
	 	Henry T. Blackstock, Compensation Committee Chairman 	 	 
	 	 	 	 
	 

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