Chairperson Bearden yielded the floor to Regent Lysonge to discuss the proposed contract between the University and Dr. M. Christopher Brown II.

Regent Lysonge recounted that he was appointed by the Board Chairperson to shepherd the presidential search process and the University's agreement with the President-elect. Regent Lysonge stated the contract was drafted by outside counsel Bill Johnson and that its terms were negotiated by Regent Lysonge, Bill Johnson, and the KSU Office of General Counsel. He stated that the principal terms agreed upon are as follows:

• a)Three year initial term, with possibility of one-year extension;
• b)Base Salary of $270,000, not including fringe benefits;
• c)Health benefits and payments into retirement account;
• d)Professional Membership Fees shall be paid in amount not to exceed $6,000;
• e)Presidential Fund of $30,000 to recognize faculty, staff, and students;
• f)Travel Reimbursements associated with his travel on behalf of KSU
• g)Vehicle allowance in the amount of $950 per month;
• h)Standard vacation and sick leave;
• i)Standard life and disability insurance;
• j)Use of presidential residence at Hillcrest;
• k)Relocation expense of $20,000;
• I)Merit Incentive Payment equal to as much as 20% of Base Salary, if and only if annual metrics are met;
• m)Retention Incentive of $20,000 per year, deferred until third anniversary of beginning of contract start date;
• n)Subject to termination for cause;
• o)Provision for severance pay in the event Dr. Brown's employment is terminated for any reason, other than cause, death, or disability.

Regent Lysonge explained that Dr. Brown could also be eligible for a performance bonus (merit incentive) based upon the evaluation of certain metrics, which include an increase in enrollment, an increase in retention of at least 10%, an increase of brand awareness and University honors, and an increase in contributions to scholarships.

Regent Bearden thanked Bill Johnson, Regent Lysonge, and the Office of General Counsel for their efforts in negotiating the contract terms.

Regent Jantzen remarked that the proposed compensation for Dr. Brown is far less than the compensation for presidents at sister universities in Kentucky. He complimented the negotiators for their hard work and results.

Regent Lysonge stated that he was glad that the contract included specific metrics to measure performance and felt that it was important to do so.