DEPARTMENT OF INTERCOLLEGIATE ATHLETICS UNIVERSITY OF WASHINGTON ADDENDUM TO EMPLOYMENT CONTRACT HEAD FOOTBALL COACH This Addendum ("Addendum") to the
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35 DEPARTMENT OF INTERCOLLEGIATE ATHLETICS UNIVERSITY OF WASHINGTON ADDENDUM TO EMPLOYMENT CONTRACT HEAD FOOTBALL COACH This Addendum ("Addendum") to the Employment Agreement ("Agreement") entered into effective December 6, 2013 between Christopher S. Petersen ( "Employee") and the University of Washington ( "University"; unless otherwise indicated, capitalized terms used herein have the same meanings as provided in the Agreement) is made this 25th day of November, The purpose of this Addendum is to extend the Term of the Agreement through January 31, 2021 and to make related conforming changes to the Agreement. The Parties agree to amend the Agreement as follows: 1. Section 2 of the Agreement is hereby amended and restated to read as follows: 2. Term. a. The term of this Agreement ("Term of the Agreement" or "Term") shall be for seven (7) Contract Years (defined below) subject, however, to earlier termination in accordance with the provisions of Sections 10, 11, 12 or 13 of this Agreement. b. As used in the Agreement, the term "Contract Year" is defined to mean: the twelve (12) month period commencing February 1 and ending the following January 31, except the first Contract Year will begin on December 6, 2013 and end on January 31, Each such Contract Year shall be numbered to correspond to the period specified below as follows: Contract Year Period Contract Year One Effective Date - January 31,2015 Contract Year Two Febmary 1,2015- January 31,2016 Contract Year Three February 1, January 31,2017 Contract Year Four Febmary 1, January 31, 2018 Contract Year Five February 1,2018- January 31,2019 Contract Year Six Febmary 1,2019- January 31, 2020 Contract Year Seven Febmary 1, January 31, 2021 c. Automatic Extension. [DELETED IN ITS ENTIRETY]
36 2. Subsections (a), (b), and (h) of Section 5 of the Agreement are hereby amended and restated to read as follows: 5. Compensation and Benefits. *************************** a. Base Salary. Employee's base salary for services and performance of the terms and conditions of this Agreement (the "Base Salary") shall be as follows: Contract Year 1: $345,161 Contract Year 2: $330,000 Contract Year 3: $360,000 Contract Year 4: $390,000 Contract Year 5: $420,000 Contract Year 6: $420,000 Contract Year 7: $420,000 Base Salary shall be paid monthly on a pro rata basis in accordance with established University and State of Washington payroll procedures. b. Additional Compensation. Employee will receive additional compensation, at the annual rates set forth below, as compensation for his participation in Media Programs, Appearances, shoe and/or apparel sponsorships, consulting. University promotion and other services at the request of the University as part of his duties and responsibilities as the Head Coach ("Additional Compensation"). The annual amount of Additional Compensation shall be as follows: Contract Year 1: $2,286,559 Contract Year 2: $2,020,000 Contract Year 3: $2,190,000 Contract Year 4: $2,360,000 Contract Year 5: $2,530,000 Contract Year 6: $2,530,000 Contract Year 7: $2,530,000 Additional Compensation shall be paid monthly on a pro rata basis in accordance with established University and State of Washington payroll procedures. ^;^^^^^;^t^^^;^^^^^^^^^^^^^^^^t^ h. Courtesy Car. Employee will be eligible to participate in the University's Courtesy Car Program and will be assigned two vehicles each year if he so elects. The vehicles may be used for personal and official purposes. Employee must insure both vehicles. Employee is responsible for paying taxes on the Annual Lease Value of the courtesy car(s) in accordance with IRS mles and established University policies and procedures for its Courtesy Car Program. Provided, always, if (a) a Courtesy Car Program vehicle is not available for Employee's use, or (b) the Director, within his sole discretion, determines that an appropriate Courtesy Car Program vehicle is not available for Employee's use,
37 Employee will instead receive (per vehicle) a monthly automobile stipend having a value commensurate with the Courtesy Car Program perquisite. Taxes, if any, will be deducted from the stipend in accordance with IRS mles and established University policies. 3. Section 7ofte^^^ is hereby amended and restated to as follows: 7. Camps. The Parties acknowledge that during the first Contract Year, Employee will oversee University of Washington Football Camp and/or Clinic(s). All revenue from the camp(s)/clinic(s) shall be received by the University. The University shall deduct all expenses plus 9% for institutional overhead from the camp gross revenue. The remaining net revenue shall be distributed in accordance with normal payment rules and deductions to the University of Washington Employees who, in accordance with their employment contracts, perform work at the camps/clinics. Compensation shall be distributed based on a formula established by Employee and Director. 4. Section 12 of the Agreement is hereby amended and restated to read as follows: 12. Termination by Employee for Convenience. This Agreement may be terminated by Employee at any time prior to the expiration of the Term upon written notice to the University, in which case the University shall have no further obligation to Employee under this Agreement other than funding the Supplemental Contributions accrued through the effective date of termination as provided in Section 5(c)(l)-(3) and paying (i) any compensation earned pursuant to Sections 5(a) and (b) on a pro-rata basis to the date of termination, (ii) all compensation earned and accrued pursuant to Sections 5(d) and (e) as of the date of termination, (iii) any amount accmed pursuant to Section 6 as of the date of termination, and (iv) any other allowance or expense reimbursement to which Employee is otherwise entitled as of the date of termination. In the event Employee owes the University liquidated damages under this Section 12 as provided below, University shall have the right to withhold payment of any amount University owes Employee under the preceding sentence as an offset against the liquidated damages owed by Employee. Employee recognizes he has been hired to use his unique talents for a specialized position, and his promise to work for the duration of the Agreement is essential to the purpose of this Agreement. Both parties acknowledge University is making a very substantial investment in Employee's continued employment by entering into this longterm contract, and the value of this multi-year contract is significantly higher than University would have offered for a one-year contract. Both parties also recognize stability is an integral component of developing a long-term successful athletic program, and the relationships Employee forms and the value of Employee's personal services will be irreplaceable by University. Both parties are familiar with the operations of Division I athletic programs and University's program, in particular, and they understand the economic and non-economic losses University would incur if Employee were not to fulfill the term of this Agreement. Such damages are difficult to quantify, and the true damages caused by Employee's departure may not be fully known for years to come. In light of these considerations, the Parties agree that in the event Employee terminates this Agreement prior to the expiration of the Term (as the same may have been extended from time to time), and Employee accepts other employment as a head coach at another NCAA member institution or at any level of professional football ("Other Coaching Employment"), he will pay, or cause to be paid,
38 as a repayment of compensation, perquisites and benefits paid to or accmed by Employee in anticipation that Employee would fulfill the Term of the Agreement, a fixed sum to University according to the following schedule: a. If Employee terminates the Agreement and accepts Other Coaching Employment during the first (1st) Contract Year, Employee shall pay the University $3,000,000.00; b. If Employee terminates the Agreement and accepts Other Coaching Employment during the second (2nd) Contract Year, Employee shall pay the University $2,500,000.00; c. If Employee terminates the Agreement and accepts Other Coaching Employment during the third (3rd) Contract Year, Employee shall pay the University $2,500,000.00; or d. If Employee terminates the Agreement and accepts Other Coaching Employment during the fourth (4th) Contract Year, Employee shall pay the University $1,500, e. If Employee terminates the Agreement and accepts Other Coaching Employment during the fifth (5 ) Contract Year, Employee shall pay the University $1,500, f. If Employee terminates the Agreement and accepts Other Coaching Employment during the sixth (6 ) Contract Year, Employee shall pay the University $1,500, The Parties agree the payment described above is their reasonable attempt to quantify the economic and non-economic losses to University, and it is not a penalty. The payment shall be made within sixty (60) days of the end of Employee's employment. University agrees to accept the payment as its sole and exclusive remedy in the event Employee leaves his position before the expiration of the Agreement's Term to obtain Other Coaching Employment, and to forego all other remedies, including actual damages and injunctive relief.
39 5. Unless specifically modified by this Addendum, all of the terms set forth in the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have executed this Addendum to be effective as of the date first written above. ^ t ^ -f- Scott Woodward Director of Athletics j_ /l-^.f( ^ Date Christope^ S. Petersen Head Football Coach //-^-/r" Date Ana Man Cauce Date University of Washington President // 30./5' Approved as to Form: 2,, James Bu4er Assistant Attorney General Date!/^/0
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