Document:

Letter Agreement dated March 8, 2005

 

Exhibit 10.46

March 8, 2005

Mr. John Paul Guinan, J.D.

     Re: Additional Compensation Arrangements

Dear John:

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

     1. Retention Bonus. In the event of a combination (including a tender offer, merger,
sale or exchange of 50% or more of the outstanding capital stock of the Company, or sale of all or
substantially all of its assets or otherwise) of the Company with another party or a
recapitalization of the Company or similar restructuring (a “Strategic Transaction”), You will be
eligible to receive a lump sum bonus payment (“Retention Bonus”) from the Company in the amount of
$100,000. This Retention Bonus will be due and payable in cash upon the closing of a definitive
transaction (“Closing”), or in the case of a transaction involving a tender offer or other purchase
or sale of stock, when control of 50% or more of the Company’s outstanding common stock is acquired
by an entity other than a current stockholder. In order to qualify for the Retention Bonus, You
must remain an active employee through the time of the Closing (other than termination of your
employment by the Company Without Cause), and cooperate fully with the Company in the completion of
the Strategic Transaction. You should expect that in almost all situations, this bonus will be
fully taxable, and consult with your tax adviser for your situation. The Retention Bonus set forth
in this paragraph is in lieu of and supersedes any prior arrangement between You and the Company
with respect to a bonus payable upon a merger, reorganization or change of control of the Company
or other Strategic Transaction, including the Merger/Buyout Bonus plan approved by the Compensation
Committee of the Company on January 23, 2002 (the “Existing Bonus Plan”). All bonuses previously
granted by the Company to You pursuant to the Existing Bonus Plan are hereby cancelled and
terminated.

     2. Special Bonus. In respect of your personal efforts on behalf of the Company during
fiscal year 2004, You will receive a one time bonus of $10,000. This bonus is in lieu of any other
bonus for 2004 performance (other than any applicable sales commission plan) will be payable in the
next regular pay cycle following the Company’s public release of earnings on March 16, 2005.

     3. Salary. Effective January 1, 2005, You will receive an increase in your base
salary of $10,000. You will receive a lump sum payment in the next regular pay cycle to cover
retroactive increased compensation for the period between the date of this letter and January 1,
2005.

 

 

     Kindly indicate Your agreement and acceptance of the terms of this bonus letter by executing
below, and returning a fully executed copy of this letter to me at the address above.

	 	 	 	 	 
	 	Very truly yours,

PROXYMED, INC.

 	 
	 	/s/ David Edward Oles
 	 
	 	David Edward Oles 	 
	 	Senior Vice President & Secretary 	 
	 

By signing below, You accept and agree as stated above:

	 	 	 	 	 
	 	 	 
	 	/s/ John P. Guinan
 	 
	 	 	 
	 	 	 
	 

cc: Kevin M. McNamara, CEO<PAGE>

                                                                    EXHIBIT 10.2

                           AMERICAN HOMEPATIENT, INC.
                                1995 NONQUALIFIED
                              STOCK OPTION PLAN FOR
                                    DIRECTORS

      1.    The Purpose of the Plan. This Plan is intended to provide an
opportunity for individuals serving as directors of the Corporation to acquire
shares of the Corporation's Common Stock, providing an equity interest in the
Corporation and additional compensation based on appreciation of the value of
such stock. The Plan provides for the grant of stock options which are not
incentive stock options as defined in Section 422 of the Code as an incentive to
service or continued service to the Corporation in order to aid the Corporation
in obtaining and retaining directors of outstanding ability.

      2.    Definitions. For purposes of this Plan, the following terms will be
defined as indicated:

            (a)   "Board" means the Board of Directors of the Corporation or
such committee as it may constitute in accordance with Rule 16b-3.

            (b)   "Cause" means habitual drug use or drunkenness, embezzlement
of Corporation funds, conduct which is injurious to the Corporation, or
conviction of a felony, all as determined in good faith by the Board

            (c)   "Code" means the Internal Revenue Code of 1986, as amended.

            (d)   "Common Stock" means the common stock of the Corporation, $.01
par value.

            (e)   "Corporation" means American HomePatient, Inc., a Delaware
corporation.

            (f)   "Disinterested" has the meaning prescribed by Rule 16b-3 from
time to time.

            (g)   "ERISA" means the Employees Retirement Income Security Act, as
amended from time to time, or any successor statute.

            (h)   "Fair Market Value" means the closing price of the Common
Stock, as reported by the Nasdaq Stock Market or by any national securities
exchange upon which the Common Stock is traded. In the event the Common Stock is
not listed on an exchange or traded in

<PAGE>

the over-the-counter market, then the Board will determine Fair Market Value,
which determination will be made in good faith and will be binding.

            (i)   "Option" means a non-qualified option granted pursuant to the
Plan.

            (j)   "Plan" means the Corporation's 1995 nonqualified stock option
plan for directors described herein.

            (k)   "Rule 16b-3" means Rule 16b-3 as promulgated under the
Securities Exchange Act of 1934, as amended, as the rule may be amended from
time to time, or any successor rule or other comparable regulatory requirements.

            (l)   "Subsidiary" means any person or entity which is controlled by
the Corporation.

      3.    Stock Subject to the Plan. There will be reserved for issuance upon
the exercise of Options 200,000 shares of Common Stock, which will be authorized
and unissued Common Stock. If an Option expires or terminates for any reason
without being exercised in full, the shares subject thereto which have not been
purchased will again be available for purposes of the Plan. The number of shares
as to which Options may be granted under the Plan will be proportionately
adjusted, to the nearest whole share, in the event of any stock dividend, stock
split, share combination or similar recapitalization involving the Common Stock,
any merger, consolidation or reorganization, or any spin-off, spin-out or other
significant distribution of assets of stockholders for which the Corporation
receives no consideration. In the event that there is an insufficient number of
authorized shares of Common Stock available to allow exercise of the Options on
the date of any grant hereunder, such Options will not be exercisable until
there are sufficient shares of Common Stock authorized for issuance.

      4.    Option Agreement. Each grant of an Option will be evidenced by an
Option agreement, executed by the holder of the Option and the Corporation,
which Option Agreement will (i) comply with and include expressly or by
reference the terms and conditions set forth in this Plan, and (ii) may include
other provisions not inconsistent with the provisions of this Plan, including
provisions granting the holder the right to receive property at the time of
exercise of the Option (provided that Section 83 of the Code applies to any such
property other than cash). The granting of any Option under the Plan will not be
deemed either to entitle the holder of the Option to, or to disqualify such
holder from, participation in any other grant of Options under the Plan.

      5.    Eligibility. Subject to the other terms of this Plan, Options may be
granted to directors of the Corporation, whether or not they receive other
remuneration from the Corporation or its subsidiaries as executive officers, as
consultants, or in any other capacity.

      6.    Terms and Conditions of Options. All Options will be granted as
provided below and will be subject to the following terms and conditions:

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<PAGE>

            (a)   Grant of Options. An Option to acquire 5,000 shares will be
granted to each director of the Corporation upon the date of his or her initial
election to the Board. Additionally, each individual serving on the Board on the
last day of the Corporation's fiscal year who has served on the Board for at
least six (6) months during such fiscal year will be granted an Option to
acquire 2,000 shares on the last day of such calendar year.

      If the Corporation's fiscal year is changed, individuals will be eligible
to receive an annual Option to acquire 2,000 shares for the Corporation's
interim fiscal period, so long as such interim period is at least six (6) months
long and the individual satisfies the service requirements set forth immediately
above.

            (b)   Option Price. Except in the case of Substitute Options, the
Option price per share will be equal to the Fair Market Value of the Common
Stock on the trading day next preceding the date the Option is granted.

            (c)   Option Term. No Option will be exercisable after the
expiration of ten (10) years from the date the Option is granted.

            (d)   Payment and Withholding. Payment for all shares purchased
pursuant to exercise of an Option will be made in cash, by delivery of
unrestricted shares of Common Stock at Fair Market Value on the date of
exercise, or a combination thereof. The payment will be made at the time the
Option or any part thereof is exercised, and no shares will be issued until full
payment therefor has been made. Payment in currency or by check, bank draft,
cashier's check or postal money order will be considered payment in cash. In
addition to the Option price, the Corporation will have the right, if
applicable, to require the holder of an Option to remit to the Corporation an
amount sufficient to satisfy any federal, state or local withholding tax
liability prior to the delivery of any certificate or certificates for shares
issuable upon exercise of the Option.

            (e)   Conditions to Exercise of an Option. No Option may be
exercised to any extent until the holder will have served as a director of the
Corporation continuously for at least three (3) months from the date of grant.
Except as provided in subparagraph (g) below, an Option may not be exercised by
the holder unless he is then, and continuously after the grant of the Option has
been, a director of the Corporation. No Option may be exercised by a holder with
respect to fractional shares.

            (f)   Nontransferability of Options. An Option will not be
transferable or assignable except by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by
the Code, Title I of ERISA or the rules thereunder, and an Option will be
exercisable, during the holder's lifetime, only by him. Notwithstanding the
limitations of this subparagraph (g), the Board may, in its sole discretion,
allow transfer of an Option to an immediate member of the Option holder's family
or to a family partnership or trust.

            (g)   Termination of Service as Director or Death. In the event that
a holder ceases to serve as a director of the Corporation for any reason other
than his death, disability or termination

                                       3

<PAGE>

for Cause, such holder will have the right to exercise the Option under the Plan
at any time within three (3) months after his termination of service to the
extent his right to exercise the Option has accrued pursuant to the grant and
had not previously been exercised at the date of termination. In the event of
termination of service of the holder by reason of disability, the holder may not
exercise an Option later than twelve (12) months after the date of such
termination. If the holder of an Option dies while he is serving as a director
of the Corporation, his Option may be exercised (to the extent that the holder
will have been entitled to do so at the date of his death) by a legatee or
legatees of the holder under his last will, or by his personal representatives
or distributee, at any time during the twelve (12) month period following his
death. In the event of termination of service of the holder for Cause, any and
all Options of the holder shall automatically expire upon such termination.
Notwithstanding anything in this subparagraph (g), no Option may be exercised
more than ten (10) years after the date on which such Option was granted. For
purposes of this subparagraph (g), service as a director of a holder will not be
deemed terminated so long as the holder is a director of the Corporation or
another entity which has assumed this Option in a transaction to which Section
424(a) of the Code is applicable.

            (h)   Changes in Capitalization; Merger; Liquidation. The number of
shares of Common Stock covered by each outstanding Option will be
proportionately adjusted, to the nearest whole share (i) for any increase or
decrease in the number of issued shares of Common Stock resulting from a
subdivision or combination of shares or the payment of a stock dividend (but
only on the Common Stock) or any other increase or decrease in the number of
such shares effected without receipt of consideration by the Corporation, or
(ii) for any spin-off or spin-out of assets to the Corporation's stockholders or
any other significant distribution of assets by the Corporation to its
stockholders without receipt of consideration by the Corporation. Any such
adjustment to an outstanding Option will be made without changing the total
price applicable to the unexercised portion of the Option, but with a
corresponding adjustment in the price for each share covered by the Option. If
the Corporation is the surviving corporation in any merger or consolidation,
each outstanding Option will pertain to and apply to the securities to which a
holder of the number of shares of Common Stock subject to the Option would have
been entitled to receive in such merger or consolidation. A dissolution or
liquidation of the Corporation or a merger or consolidation in which the
Corporation is not the surviving corporation will cause each outstanding Option
to terminate, except for Options as to which another entity assumes or
substitutes another option in a transaction to which Section 424(a) of the Code
is applicable; provided, however, that, as to any Options which so terminate,
each holder will have the right immediately prior to such dissolution,
liquidation, merger or consolidation, to exercise his Option in whole or in
part, including with respect to shares as to which such Option would not
otherwise be exercisable by reason of an insufficient lapse of time, without
regard to any provisions deferring exercise contained herein. Except as
expressly provided in this subparagraph (h), the holder of an Option will have
no rights by reason of any subdivision or combination of shares of stock of any
class, or the payment of any stock dividend or any other increase or decrease in
the number of shares of stock of any class, or by reason of any spin-off,
spin-out or comparable distribution of assets to the Corporation's stockholders,
or by reason of any dissolution, liquidation, merger or consolidation or
distribution to the Corporation's stockholders of assets or securities of
another entity; and any issue by the Corporation of shares of stock of any
class, or securities convertible into shares of stock of any class,

                                       4

<PAGE>

will not affect, and no adjustment by reason thereof will be made with respect
to, the number or price of shares of Common Stock subject to the Option. The
existence of the Plan and the Options granted pursuant to the Plan will not
affect in any way the right or power of the Corporation to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or
business structure, any merger or consolidation of the Corporation, any issue of
debt or equity securities having preferences or priorities as to the Common
Stock or the rights thereof, the dissolution or liquidation of the Corporation,
any sale or transfer of all or any part of the Corporation's business or assets,
or any other corporate act or proceeding.

            (i)   Each Option will be subject to the requirement that if at any
time the Board determines that the listing, registration or qualification of the
shares subject to the Options upon any securities exchange or under any state or
federal securities or other law or regulation, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition to or in
connection with the granting of the Option or the issue or purchase of Common
Stock thereunder, the Option may not be exercised, in whole or in part, unless
such listing, registration, qualification, consent or approval will have been
effected or obtained free of any conditions not acceptable to the Board. The
holder of the Option will supply the Corporation with such certificates,
representations, opinions of counsel and information as the Corporation may
request, including, without limitation, an investment letter certifying that all
shares being purchased under an Option are being acquired for investment and not
for the purpose of resale or distribution, and will otherwise cooperate with the
Corporation in obtaining such listing, registration, qualification, consent or
approval.

            (j)   Notwithstanding any other plan provision, no Option granted
pursuant to the Plan will terminate when a director is on military, maternity,
sick leave or other bona fide leave of absence so long as his service as a
director is continuing pursuant to statute or contract.

      7.    Termination and Amendment of the Plan. The Plan shall terminate at
midnight on April ____, 2005, ten (10) years after the date of its initial
adoption by the Board. No Option will be granted under the Plan after that date,
but Options granted before termination of the Plan will remain exercisable
thereafter until they expire or lapse according to their terms. The Plan may be
terminated, modified or amended by the Corporation's stockholders or Board, so
long as such modification or amendment does not result in the Plan no longer
being in compliance with Rule 16b-3. Those provisions set forth in paragraph 6
of the Plan, as well as any Plan amendments providing for formula or like grants
of Options, shall not be amended more than once every six (6) months, other than
to comport with changes in the Code, ERISA, or the rules thereunder. The
Corporation will use its best efforts to maintain this Plan and to assure that
Options are granted and exercised under this Plan in accordance with Rule 16b-3,
including, without limitation, the seeking of any appropriate modifications or
amendments to this Plan and all requisite approvals and consents of the same.

      8.    Holding Period. The grant of an Option under the Plan will be exempt
from Section 16(b) of the Securities Exchange Act of 1934, as amended, so long
as at least six (6) months elapse

                                       5

<PAGE>

from the date of grant of the Option until the date of its disposition (other
than upon exercise or conversion) or the disposition of the underlying Common
Stock.

      9.    No Rights as Stockholder. A holder of an Option will have no rights
as a stockholder with respect to any Common Stock covered by his Option until
the date of issuance of a stock certificate to him by the Corporation following
exercise, in whole or in part, of the Option.

      10.   Indemnification of Board. In addition to other rights of
indemnification as they may have as members of the Board, each member of the
Board will be indemnified by the Corporation against all costs and expenses
reasonably incurred by him in connection with any action, suit or proceeding to
which he may be party by reason of any action taken or failure to act under or
in connection with the Plan, or any Option granted thereunder, and against all
amounts paid by him in settlement thereof (provided the settlement is approved
by legal counsel selected by the Corporation) or paid by him in satisfaction of
a judgment in any such action, suit or proceeding, except a judgment based upon
a finding of a breach of the duty of loyalty or acts or omissions either not in
good faith or which involve intentional misconduct or a knowing violation of
law. Upon the institution of any such action, suit or proceeding, each Board
member affected will notify the Corporation in writing of the same, giving the
Corporation an opportunity, at its own expense, to defend the same before the
member undertakes to defend it on his own behalf.

      11.   Stockholder Approval. This Plan, as amended, is subject to the
approval of the holders of a majority of the outstanding shares of Common Stock
of the Corporation, which approval was obtained on May 17, 1995.

                                       6

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