SETTLEMENT AGREEMENT
between
WASHINGTON STATE UNIVERSITY
and
MITZI M. MONTOYA

I. PARTIES AND PURPOSE
This agreement (AGREEMENT) is between Washington State University (WSU) and Mitzi
M. Montoya (EMPLOYEE). EMPLOYEE is employed as Provost and Executive Vice
President but will transition to a faculty position effective October 28, 2019. This
AGREEMENT provides the terms and conditions of that transition. It also provides for a
complete release of any and all claims that EMPLOYEE has or may have relating to
EMPLOYEE's employment relationship with WSU.
II. CONSIDERATION AND COVENANT

This AGREEMENT is made in consideration of the mutual covenants set forth in this
AGREEMENT. EMPLOYEE and WSU agree to the following terms, conditions, and
mutual considerations:
A.

Obligations of WSU. In consideration for the promises and obligations of
EMPLOYEE, WSU agrees as follows:
1.

Transition Year (October 28, 2019, until October 28, 2020)

a.

Appointment.
Effective October 28, 2019, EMPLOYEE's
appointment as Provost and Executive Vice President will end,
having been terminated without cause, and she will assume her
faculty appointment as full Professor with tenure in the Carson
College of Business, Department of Management, Information
Systems, and Entrepreneurship. The general terms and conditions
of this appointment are governed by the WSU Faculty Manual.
During the Transition Year, EMPLOYEE also will have the title of
Special Assistant to the Dean of the Carson College of Business.

b.

Salary and duties. During the Transition Year, EMPLOYEE will be
on an academic year appointment at her current annual salary rate
of four hundred sixty thousand dollars ($460,000). EMPLOYEE will
have a one hundred percent (100%) research assignment with no
teaching, service, or other responsibilities, except that the Dean of
the Carson College of Business may assign EMPLOYEE to special
projects and, if applicable, assign her to prepare for assuming
designated teaching and/or other responsibilities in spring semester
2021.

Settlement Agreement between WSU
and Mitzi M. Montoya

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 c.

Work location. During the Transition Year, EMPLOYEE's work
location will be WSU Seattle. WSU will provide EMPLOYEE with
office space at the WSU Seattle location. EMPLOYEE also will be
permitted to work remotely as desired and will retain the use of her
current WSU computer.

2.

Appointment, salary, and duties after Transition Year. Beginning
October 28, 2020, EMPLOYEE's annual salary rate will be two hundred fifty
thousand dollars ($250,000). The Dean of the Carson College of Business,
in consultation with EMPLOYEE, will determine EMPLOYEE's location and
work assignment, and whether she will retain her title of Special Assistant
to the Dean.

3.

Resignation during Transition Year.
If EMPLOYEE obtains other
employment during the Transition Year, she will provide prompt written
notice to the WSU President and to the Dean of the Carson College of
Business of her resignation from WSU employment and relinquishment of
her tenure, with an effective date of no later than fourteen (14) calendar
days after EMPLOYEE's acceptance of such other employment.
Regardless of whether EMPLOYEE has obtained other employment, if she
resigns from her WSU employment and relinquishes her tenure, and the
effective date of her resignation is prior to the end of the Transition Year,
WSU will pay EMPLOYEE, within fourteen (14) calendar days of her last
day of employment, a lump sum, minus standard withholdings, in the
amount of the salary she would have been paid from the effective date of
resignation to the end of the Transition Year. The WSU benefits package
will end as of the last day of the month of EMPLOYEE's resignation. The
lump sum payment will not reflect any deduction for any benefit or
retirement contributions. In no event shall EMPLOYEE continue on the
WSU payroll after starting other employment.
Upon resignation,
EMPLOYEE shall promptly return all WSU property in her possession to
WSU's Vice President for Finance and Administration.

4.

Moving and relocation expenses
a.

WSU will pay EMPLOYEE a lump sum of fifteen thousand dollars
($15,000), minus standard withholdings, for reasonable moving
expenses from Pullman, in accordance with WSU policy
(BPPM 55.62). WSU will make this payment to EMPLOYEE on or
around January 24, 2020, but not later than January 31, 2020.

b.

On or around January 24, 2020, but not later than January 31, 2020,
WSU will pay EMPLOYEE forty-two thousand four hundred and five
dollars and fifty cents ($42,405.50), which represents the second half
of her relocation expenses pursuant to Paragraph V. E. of her May 1,
2019, Contract of Employment and WSU Policy (BPPM 55.62),
minus standard withholdings. In the event EMPLOYEE resigns prior
to January 10, 2020, WSU will pay EMPLOYEE forty-two thousand

Settlement Agreement between WSU
and Mitzi M. Montoya

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 four hundred and five dollars and fifty cents ($42,405.50) within
fourteen (14) calendar days of her last day of employment.

B.

5.

Discretionary funds. WSU will allow EMPLOYEE the use of discretionary
funds in the amount of fifteen thousand dollars ($15,000) to be used solely
for expenses incurred while employed by WSU during the Transition Year
as allowed by WSU policy (BPPM 70.33). To access these funds,
EMPLOYEE will submit invoices for reimbursement of expenses incurred,
as directed by the Vice President for Finance and Administration.

6.

Letter of reference. Upon receipt of a written request to the WSU
President from EMPLOYEE or a prospective employer of EMPLOYEE, the
President shall provide the letter of reference attached as Exhibit A. Any
request for additional information shall be referred to Human Resource
Services, and no other information will be provided, except as required by
law.

7.

Joint statement. Within seven (7) days of execution of this AGREEMENT,
WSU agrees to publish in the WSU Insider the joint statement attached as
Exhibit B and to provide a copy of this statement to the firm of Isaacson,
Miller. In addition, WSU Marketing and Communications will provide the
joint statement in response to any media inquiries regarding EMPLOYEE
through December 31, 2019.

EMPLOYEE's obligations. In consideration for the promises and obligations of
WSU, EMPLOYEE agrees:
1.

To accept the terms and conditions specified in Section A of this
AGREEMENT.

2.

That except for EMPLOYEE's specific contractual rights under this
AGREEMENT, EMPLOYEE, EMPLOYEE's heirs, assigns, or other
successors in interest waive and release each and every claim and
right which EMPLOYEE has or may have as of the date of this
AGREEMENT against WSU, the State of Washington, and/or any
officer, employee, student, regent, contractor, consultant, or agent of
any of them, including, but not limited to, any claim based upon
wrongful discharge, breach of contract, defamation, invasion of
privacy, payment of wages, retaliation, discrimination, or harassment
of any kind, and any other claims arising in tort or in contract; this
waiver and release specifically includes, but is not limited to, any
claim or right that may be supported by mistakes of fact discovered
after the date of this AGREEMENT; and

3.

Specific release of age discrimination claims-EMPLOYEE hereby
WAIVES AND RELEASES any and all rights and claims which
EMPLOYEE has or may have as of this date under the Age
Discrimination in Employment Act (ADEA), pursuant to 29 U.S.C. § 626

Settlement Agreement between WSU
and Mitzi M. Montoya

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 and other applicable law, as well as the Washington Law Against
Discrimination (WLAD), RCW 49.60.
C.

Denial of wrongdoing. By entering into this AGREEMENT, neither party admits
any violation of any duty, contract, order, rule, or law. The negotiation of this
AGREEMENT shall not be admissible in any proceeding as to any kind of
acknowledgment or admission of such a violation, wrongdoing, or negligence.

D.

No representation by WSU. EMPLOYEE has been advised to consult a personal
attorney, financial adviser(s), and/or other adviser(s) for advice as to retirement
benefits, taxes, and other consequences of this AGREEMENT. EMPLOYEE has
done so to EMPLOYEE's satisfaction. WSU makes no representations and has
provided no advice in regard to any consequences of this AGREEMENT and
EMPLOYEE confirms this by signature on this document.

E.

EMPLOYEE's request and negotiations. EMPLOYEE has asked to take
advantage of this AGREEMENT, with the understanding that it is made available
and negotiated on an individual, case-by-case basis.

F.

Payments and consequences-including tax and retirement. Both parties
recognize that any payment made under this AGREEMENT is, according to
Internal Revenue Service (IRS) rulings, subject to standard withholdings.
EMPLOYEE is solely responsible for any tax consequences of this AGREEMENT.
Therefore, WSU will withhold applicable withholding and contributions when
making payments to EMPLOYEE and also will contribute the appropriate amount
itself for its shares as applicable. EMPLOYEE specifically agrees to waive any
and all future payments or obligations that WSU has or may have to make in
EMPLOYEE's retirement program or benefits package beyond the effective date
of separation from employment at WSU, if applicable. EMPLOYEE is solely
responsible for any attorney fees, costs, or other expenses incurred by EMPLOYEE.

G.

Changes/modifications. No modification or waiver of this AGREEMENT shall be
valid or binding unless executed in writing and signed by EMPLOYEE and the
WSU President or his designee.

H.

Construction. This AGREEMENT shall be construed as written by both of the
parties; should any provision or clause of this AGREEMENT be deemed not in
accordance with law, the remaining provisions shall survive.

I.

Voluntary agreement.
EMPLOYEE acknowledges and agrees that
EMPLOYEE's signing of this AGREEMENT is a knowing and voluntary act, after
careful reading and consideration of all of its terms and after being encouraged to
consult an attorney, and that such execution signifies full understanding and
acceptance of all of the AGREEMENT's terms and conditions. EMPLOYEE
understands that THIS IS A FINAL RELEASE OF ALL CLAIMS. This
AGREEMENT shall be binding on each of the parties and their heirs, successors,
assigns, and legal representatives.

Settlement Agreement between WSU
and Mitzi M. Montoya

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 J.

Entire agreement. This AGREEMENT constitutes the entire agreement between
the parties as to its subject matter and supersedes any and all other agreements,
understandings, negotiations, and discussions, oral or written , express or implied,
specifically including, but not limited to, the Contract of Employment between WSU
and EMPLOYEE executed May 1, 2019, the First Amendment to the Contract of
Employment executed May 22, 2019, the accompanying offer letter of the same
date , and the September 27, 2019, letter of termination without cause. The parties
agree that no other representations, inducements, promises, agreements, or
warranties relating to this AGREEMENT, oral or otherwise, have been made to or
by them.

Ill. SIGNATURES
I agree to the above AGREEMENT with all of its terms and conditions .
EMPLOYEE

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Approved as to form by:

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Settlement Agreement between WSU
and Mitzi M. Montoya

Danielle Hess, Sr. Asst. Attorney General
Attorney for W~
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 Exhibit A
Letter of Reference
Dear [Prospective Employer]
Dr. Mitzi Montoya was Provost and Executive Vice President of Washington
State University during fall 2019. During that time, Dr. Montoya was engaged in several
important initiatives in the areas of student success, enrollment management, budget
modeling, academic operations planning, and corporate engagement while providing
additional services and resources to help faculty and students succeed. I greatly
appreciated the energy and insight she brought to the table during her time as Provost
and Executive Vice President.
Dr. Montoya evidenced a high degree of initiative during her time as Provost and
Executive Vice President for Washington State University. Her innovative and
entrepreneurial background and experiences were evident in her approach to
developing strategies and solving problems. She is greatly supportive of faculty and
student success, while also promoting a culture of excellence at the institutional level.
Dr. Montoya is an experienced and accomplished leader, and I am confident that the
skills she brings to the table can greatly benefit another institution. I wish her great
success in her future endeavors.
Sincerely,

Kirk H. Schulz, President
Washington State University

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 Exhibit B
Joint Statement
Montoya Named Special Assistant to the Dean of the Carson College

Dr. Mitzi Montoya will assume the title and duties of Special Assistant to the
Dean of the Carson College of Business, along with her faculty appointment in the
Carson College, at the end of October.
Dr. Montoya served as Provost and Executive Vice President during fall 2019.
She was engaged in several important initiatives in the areas of student success,
enrollment management, budget modeling, academic operations planning, and
corporate engagement while providing additional services and resources to help faculty
and students succeed.
Dr. Montoya will serve as a full professor with tenure in the Department of
Management, Information Systems, and Entrepreneurship. "As Professor and Special
Assistant to the Dean, I will continue my research on the drivers of success and failure
in organizational innovation. I will support the Carson College of Business's corporate
engagement efforts and continue my Advancing Women in Leadership initiative," she
said.
"The University looks forward to having Dr. Montoya work in this new role," said
WSU President Kirk Schulz.
Dr. Montoya's appointment begins October 28, 2019.

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