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EXHIBIT 99.3
ADDENDUM
Pursuant to Article XVI of the Employment Agreement made the 14th day of
September 1998, effective July 2, 1998, by and between Xxxxxx X. Xxxxxx
("Executive"), and Comprehensive Care Corporation (the "Company"), the parties
agree to modify the Employment Agreement effective July 2, 1999 as follows:
Article V(D), Compensation, is deleted and replaced by a new paragraph:
(D) In addition to the Base Salary, Executive shall be eligible to earn an
annual incentive bonus (the "Incentive Bonus") through Executive's
participation in the Company's Annual Management Bonus Plan ("MBP Plan") with a
target of $60,000 for achievement of target company financial and non-financial
individual objectives. This target amount will be based 25% on individual
performance against agreed upon objectives and 75% on the Company's financial
performance (based on net earnings). Actual pay-out will be based on the
parameters of the Management Bonus Plan. Pay-out of this bonus will be as soon
as reasonably possible after the closure of the books for the fiscal year.
Article V(E), Compensation, is amended to include a new paragraph:
(E) If the Executive continues as an active employee for the period through
December 31, 2000, the Executive will be eligible to receive at the end of this
period, a Retention Bonus equal to the higher of $125,000, or 83% of the then
current Base Salary, provided that:
(i) the Company maintains financial viability as is evidenced by the
timely filing of 10(k) reports from the present day through and including
the filing date for the 2000 fiscal year, and
(ii) if not in active service throughout the period that such termination
of employment is involuntary and not for cause as defined in Article
IX(B)(iii), and
(iii) in the event of a Change in Control, defined in Article IX(B)(v),
the right to the Retention Bonus will become immediately vested and will be
paid at the end of the year in which the Change in Control occurred.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum and affixed
their hands and seals this 15th day of July, 1999.
(Corporate Seal) COMPREHENSIVE CARE CORPORATION
By: /s/ XXXXXX X. STREET
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Xxxxxx X. Street,
Chairman, President and Chief
Executive Officer
/s/ XXXXXX X. XXXXXX
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Xxxxxx X. Xxxxxx (Executive)