Mary Sue COLMAN PRESIONT UNIVERSITY OF MICHIGAN —— Cl copy Dear Ruth, {tis with great pleasure that I offer you appointment as Chancellor of the University of Michigan-Flint, subject to approval by the Board of Regents, As chancellor, you will report directly to the president, and in addition to serving es the chief executive officer for the Flint campus, you will serve as an executive officer of the University of Michigan, ‘Your appointment will be effective August 18, 2008, and will be for a renewable term of five years, ending August 17, 2013. We will conduct a reappointment review before the end of your term, if you desire reappointment. Your starting salary will be $250,000 st a 12-rmonth rate, and you will be eligible toreceive annual merit increases beginning in September 2009. Pending the normal process of review and approval by the Schoot and the Regents, you will receive a tenure faculty appointment in the School of Management of the University of Michigan-Flint. We will start the approval process immediately. While you serve as chancellor, the departmental appointment Will ‘carry no salary and no obligations, When you fetum to the faculty, normal departmental obligations will ensve ‘When you retum to the faculty from your chaneellor appointment, your salary will continue at your chancellor's rate forthe duration of your appointment at UM-Flint, but calculated at a University-year (5) rate. You will of course be eligible for annual merit increases through your academic department. ‘During your appointment as chancellor, you will accurmulate one month of administrative leave for each year you serve, with an extra month added for completing your five-year term. In addition, you will also accrue one month of additional paid administrative leave for each year you serve as chancelior beyond ‘August 17, 2013. ‘The paid administrative leave may be taken at your discretion, and compensation ‘during your administrative leaves will be at your final chancellor salary rate. If you are renewed for & ‘second term as chancellor, you may take a short leave at a time mutually agreeable to you and the president, During your tenure as chancellor, itis expected you will reside in the chancellor's residence, Ross House, which the University will maintain for your use and for University purposes, You will also be provided with a University vehicle for both personal and official business while you serve as chancellor, with applicable taxes being assessed based upon Intemal Revenue Services guidelines. ‘You may continue to serve on any corporate boards on which you currently serve during your term of this appointment in accordance with University regulations on outside employment. Consistent with existing,Dr. Ruth J. Persons Page 2 May 23, 2008 University policy, you must discuss with and seek approval from the president prior to accepting any additional appointments. Such approval will not be unreasonably withheld, ‘The University will reimburse you for all ordinary, necessary, and reasonable documented moving expenses for your relocation to Flint. Coverage of all moving expenses and travel expenses are subject to University and Intemal Revenue Services guidelines. The University will also provide you with a one~ time taxable payment of $15,000 to help cover additional costs of your transition to Flint, We will also cover travel expenses for visits to Flint or Ann Arbor prior to your appointment, ‘You are eligible to participate in University flexible benefits programs, as may be amencied from time to ‘time, including s choice of health insurance coverage, medical and dependent care expense reimbursement plang, short term and long term sick and disebility plans, vacation acerual, and holiday and ‘season days, ‘The University provides retirement package that includes participation in the University’s retirement plan, ‘a5 may be amended from time to time, and currently provides that the University will match your 5 percent ‘contribution with a 10 percent University contribution on salary (eligible earnings) of up to $230,000, (This ‘number is set by federal law and will be indexed periodically.) ‘At your discretion, you may participate in University activities as an executive officer of the University for all special events. All other terms and conditions of your appointment will be those generally applicable to University employees. 1 deeply appreciate your willingness to join me in serving the University of Michigan, Your professional and personal capacities will greatly enbiance the quality of our University. Sincerely, Dee Cla ‘Laccept your offer of appointment as Chancellor of the University of Michigan-Flint in accordance with these terms. LokMARY SUK COLEMAN Pesan INIVERSITY OF MICHIGAN ee FLENaN ADMINUSTRA TION POTN: EomioweousTnuar BSN ARBOR Ht 0 qineeso" TAR SES April 30, 2014 Personal and Confidential Dr. Ruth Person Chancellor University of Michigan-Flint Campus 221 University Pavilion Flint, Michigan 48502-1950 Dear Ruth, ‘This is to confirm the arrangements regarding extending your term as ctiancellor and your assumption of a fulltime faculty post after an administrative leave. This updates my letter to you of January 22, 2013. ‘You have graciously agreed to extend your term as chancellor until July 31, 2014, to allow for a smooth transition of leadership to Dr. Borrego, Upon the conclusion of your term as chancellor, you will take an administrative leave of 8 months at your current chancellor salary rate of $273,524 (pursuant to your original employment agreement and updated for your additional service), Commencing April 1, 2014, you will assume a full- time faculty position in the School of Management, Again, pursuant fo your employment agreement, your salary will continue at your chancellor's rate for the duration of your appointment at UM-Flint, but calculated at a University-year rate. As of April 1, 2014, this rate will be $223,571. We have clarified that you will accrue vacation during the period of your administrative leave and that any vacation balance that exists as of July 31, 2015, shall be paid out at that time at your full chancellor salary rate of $273,524, ‘You have graciously agreed to vacate Ross House by June 30, 2014, to allow us to complete needed repairs and updates and ready the house for the new tenants. If you need to secure other housing for your final month as chancellor, you will be reimbursed for the reasonable cost of such housing or for other reasonable expenses that you may ‘incur related to the necd for housing, ic, if you choose to live in your Ann Arbor residence during this period, transportation costs and occasional hotel expenses in the Flint area should you need to stay over and the like. Treally appreciate your flexibility in these matters, Ruth. 1am looking forward to your continuing contributions to UM-Flint and indeed, o the whole University, in the years ahead. Sincerely, Man Se Mary Sue Coleman. President MSC/emy