University of Cincinnati Recommendation to the Board of Trustees For Action Date: January 23, 2012 Title: LYLE JONES EMPLOYMENT CONTRACT Synopsis: It is recommended that the Board approve amendments to the employment contract for Head Football Coach Lyle "Butch" Jones Since coming to the University in 2009, Head Football Coach Lyle "Butch" Jones has successfully exemplified UC's comprehensive commitment to excellence. This year, Coach Jones returned the Bearcats to the championship ranks, winning the BIG EAST Conference Championship and the Autozone Liberty Bowl. The team finished the year nationally ranked in multiple polls. Coach Jones earned BIG EAST Coach of the Year honors in only his second year. His student-athletes also achieved in the classroom and led the Conference on that front as well, highlighted by a 2.731 team GPA this past quarter. 41 Football Student-Athletes attained a 3.0 GPA or higher. Coach Jones's current agreement extends until December 31, 2014. If approved by the board of trustees the proposed amended agreement (a copy of which is submitted with this recommendation) would extend Coach Jones's appointment by an additional three years to December 31, 2017. In addition to an extension of the term, the agreement increases Coach Jones's guaranteed compensation to $1,575,000 in the first year and provides for specific increases in each succeeding year. The amendment also provides for an increase to the assistant coach salary pool. It is recommended that the board of trustees approve the amended employment agreement for Coach Jones. Prepared by: 7; Whit Babcock APPROVED JAN 24 2012 Director of Athletics BOARD Reviewed by: 0 Mitchell D. McCrate General Counsel Attachment FOR BOARD OFFICE USE ONLY: Recommendation Number: ALL Date of Board 3 3012- Submitted by: President 8K AIVIENDMENT TO EMPLOYMENT AGREEMENT This Amendment to Employment Agreement ("Amendment") is made and entered into to be effective as of the 1st day of January, 2012, by and between the UNIVERSITY OF CINCINNATI ("University") and Lyle "Butch" Jones ("Coach"). RECITALS WHEREAS, the University employed Coach as its Head Football Coach under an Employment Agreement dated December 16, 2009 ("Original Employment Agreement"); and WHEREAS, the University and Coach wish to continue such employment relationship, but desire to amend and add to the terms of the Original Employment Agreement, which amendments and additions are incorporated into the terms and conditions contained herein; NOW, THEREFORE, in consideration of the mutual covenants, conditions, and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. Section 1: TERM Section 1 of the Original Employment. Agreement shall by amended by substituting "December 31, 2017" for "December 31, 2014" and by substituting "2017 2018 football season" for "2014 -- 2015 football season". 2. Section 3: COMPENSATION a. Section Academic Performance, of the Original Employment Agreement shall be amended by substituting "the then-current NCAA minimum for "925" in the table entry providing for a $10,000 bonus. b. Section Loan, of the Original Employment Agreement shall be amended by deleting the existing language entirely and replacing it with the following language: Within thirty (30) days of the approval of this Agreement by the Trustees of the University of Cincinnati, the University shall provide Coach with a Seven Hundred Thousand Dollar ($700,000) interest-free loan (the "Loan"). The Loan shall be forgiven by One Hundred Forty Thousand Dollars ($140,000) on Ianuaiy 1, 2011 or after the completion of any University bowl game of the 2010 football season, whichever is later. Commencing on February 1, 2012, the Loan balance shall be forgiven in equal amounts over the remaining months of the Term pursuant to the terms of a promissory between the University and Coach. The terms of the Loan are set forth in the Promissory Note Coach shall execute the Note within seven days of the approval of this Amendment by the University's Board of Trustees. Coach understands and agrees that he shall be responsible for the payment of all taxes incurred as a result of the Loan and the forgiveness of the Loan. Section Business Entertainment Allowance shall be amended by changing the title of that Section to "Business Entertainment and Professional Development Allowance", by substituting "business entertainment and professional development allowance" for "business entertainment allowance" in the first sentence of that Section, and by adding the following language to the end of that Section: The Allowance may also be used for professional development opportunities for the assistant coaches and the Program staff, provided such opportunities are approved in accordance with Athletic Department policies. Section Guaranteed Payments, of the Original Employment Agreement shall be amended by deleting the last two sentences "The Um'versz'ty farther agrees that the Guaranteed Contract Payment will be increased by zfty Thousancl Dollars 000) as of January 1, 2011, and on each successive January I thereafter of the Term. The zfify Thousand Dollar (3 5 0, 000) increase shall be allocated to paragraphs 3(a) -- as agreed to by Coach and Director of Athletics") and adding the following language to the end of that Section: Effective March 1, 2012, the Guaranteed Contract Payment for a full calendar year of the Term shall be increased to One Million Five Hundred Seventy Five Thousand Dollars which amount shall be prorated for the remainder of 2012 ten payments of $131,250.00 each less required deductions). Thereafter the Guaranteed Contract Payment for a full calendar year of the Term shall be increased as follows: 2013 $1,600,000 2014 -- $1,600,000 2015 $1,650,000 2016 $1,700,000 2017 -- $2,050,000 The Guaranteed Contract Payment shall be allocated to paragraphs 3(a) -- as agreed to by Coach and Director of Athletics. The parties' failure to agree to an allocation of such monies shall not affect or offset Coach's right to earn such monies. e. Section Retention Bonus of the Original Employment Agreement shall be amended by substituting the following amounts and payment schedules for all remaining retention bonus payments set forth for in the Original Employment Agreement (the language "The end of the -- $350,000" is deleted): January 15, 2012 -- $100,000 January 15, 2013 -- $0 January 15, 2014 -- $0 January 15, 2015 $300,000 January 15,2016 -- $300,000 January 15, 2017 -- $300,000 Section 5: TERMINATION Section 5(b) of the Original Employment Agreement shall be amended by substituting the following schedule of liquidated damages for the schedule set forth in the Original Employment Agreement Date of Termination Liquidated Damages Before January 31, 2013 $2,500,000 Before January 31, 2014 $2,000,000 Before January 31, 2015 $1,750,000 Before January 31, 2016 $1,500,000 After January 31, 2016 $1,000,000 Section 6. ACCEPTANCE BY COACH OF ANOTHER LIQUIDATED DAMAGES Section 6(a) of the Original Employment Agreement shall be amended by substituting the following schedule of liquidated damages for the schedule set forth for in the Original Employment Agreement: Date of Termination Liquidated Damages Before 2012 National Signing Day $1,750,000 Before 1/1/2013* $1,400,000 Before l/1/2014* $1,100,000 Before 1/1/2015* $1,000,000 Before 1/l/2016* $850,000 Before 1/1/2017* $550,000 After 1/1/2017 $0 or before the playing of any University bowl game for that season, whichever is later 5.. THE UN VERSITY OF CINCINNATI By:_ By: Date: By: Section 7. ASSISTANT COACH Section 7 of the Original Employment Agreement shall be amended by adding the following language at the end of that Section: Effective March 1, 2012, the compensation pool for each full fiscal year shall be increased to One Million Eight Hundred Fifty Thousand Dollars ($1,850,000) and shall remain at that level for each full fiscal year remaining in the Term, provided that beginning with the fiscal year commencing July 1, 2013, the compensation pool shall be increased by the same percentage as any general salary increase approved by the Board of Trustees of the University for all University unclassified, unrepresented administrative personnel during the remainder of the Term. For the remainder of the fiscal year ending June 30, 2012, the increase to the compensation pool shall be prorated. In addition to the Program's nine (9) assistant coaches and head strength and conditioning coach, allocations from the salary pool may also be made to staff positions wilhin the Program with the agreement of the Director of Athletics. Except as otherwise expressly stated in this Amendment, all other terms and conditions of the Original Employment Agreement remain in full force and effect. This Agreement is subject to final approval by the University of Cincinnati Board of Trustees. Lyle "Butch" Jones, Head ootball Coach Gregms, President I1- Date: 55, Bradley Whitney Babcock, Athletic Director Date: APPROVED Chair, University of Cincinn?ti!Board of Trustees Date: