Contract
Exhibit 99.3
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Xxxxxx Xxxx |
June 22, 2005
Xx. Xxxx Xxxxxx
32 Pheasant Chase
West Hartford, CT 06117
Dear Xxxx:
On behalf of Xxxxxxxx, it is my pleasure to offer you the position of Chief Growth Officer, Magellan Health Services. In this role, you will report directly Xxxxx Xxxxxxx, Chairman and Chief Executive Officer Magellan Health Services. The terms of your current agreement, dated November 24, 2003 will remain the same, except for the amendments detailed below.
Compensation
Your base salary will be $275,000.00, paid on a semi-monthly basis.
Bonus
You will be eligible to participate in a bonus plan with a target of 50 percent of your base salary. Funding for this plan is based on company performance and approved by the Board of Directors, and actual payouts are based on individual and business unit performance.
Stock Options
You will be granted 7,500 stock options and 1000 restricted shares on the date that your new position becomes effective. The exercise price of the stock options will be the average of the opening and closing price of the Company’s common stock on the date of grant. Both options and restricted shares will vest ratably over a four year period. The provisions of the stock option and restricted share agreements will be included in your option award.
Benefits
In addition to the benefits you are currently eligible to receive, in an Officer role, you are also eligible for an annual discretionary contribution through our Supplemental Accumulation Plan (SAP) at the level of 9% of your base salary. The SAP is a deferred compensation plan, designed to create an additional long term financial planning vehicle for executives. Discretionary contributions are reviewed and approved by the Board annually.
Xxxx, on behalf of Xxxxxxxx, we are delighted to be able to create the opportunity for growth and development of our best talent. Congratulations on a job well done. We are very much looking forward to your contributions on a whole new level, and look forward to working with you in your new role.
Sincerely,
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/s/ Xxxxxx Xxxxx-Xxxxxxx |
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/s/Xxxx Xxxxxx |
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Xxxxxx Xxxxx-Xxxxxxx |
Xxxx Xxxxxx |
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Chief Human Resources Officer |
June 27, 2005 |
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Magellan Health Services |
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