Minutes of the Special Meeting of the Board of Directors of the University of Louisville
Athletic Association, Inc.

May 3, 2007

In Open Session

Members of the University of Louisville Athletic Association, Inc. Board of Directors met at 9:30 a.m. on May 3, 2007, in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:

Present:            Dr. James Ramsey, Chair 
                        Mr. Zach Brooks                                                                                   
                        Prof. Tom Byers     
                        Mr. Brent Fryrear
                        Mr. Gordon Gahm
                        Prof. Brenda Hart                                                        
                        Mr. Wade Houston                                                                             
                        Dr. J. Blaine Hudson
Mr. Tom Jurich , ex officio   
                        Prof. Melissa Laning
                        Mr. Darrell Messer   
                        Mr. Larry Owsley 
                        Mr. Sam Rechter
                        Prof. Craig Roberts
                        Mr. Mike Seebert 
                        Prof. Gerald Tolson  
                        Prof. Elaine Wise  

Absent: Mr Bob Benson
                        Mr. Burt Deutsch
                        Dr. Henry Enck
                        Mr. Owsley B. Frazier
                        Mr. Grant Helman
                        Mr. Harry Jones
                        Prof. Bruce Kemelgor
                        Prof. George Raque
                        Ms. Annette Schnatter
                        Prof. Robert Stenger
                        Dr. Shirley Willihnganz

From the Trustees:        Mr. Bill Stone

From the
University:        Ms. Angela D. Koshewa
                        Ms. Amy Shoemaker
                        Mr. Mike Curtin
Mr. Kevin Miller                                  
Mr. Kenny Klein
Ms. Kathleen Smith                             
Ms. Debbie Dougherty

I.          Call to Order

Having determined a quorum present, Chair Ramsey called the meeting to
order at 9:30 a.m.

II.         Approval of Minutes

Mr. Seebert made a motion, which Mr. Rechter seconded, to approve the minutes
of February 9, 2007.  The motion passed unanimously.

III.       Executive Session

Pursuant to KRS 61.810(1)(f), Prof. Tolson made a motion, which Prof. Hart seconded, to go into executive session to discuss a personnel matter at 9:37 a.m.  The motion passed unanimously.

IV.       Open Session

Chair Ramsey reconvened the open session at 9:50 a.m.  He asked Vice President Jurich to summarize the issues.  Mr. Jurich said he approached Coach Pitino about extending his current contract for an additional three years.  Coach Pitino has done a remarkable job on the basketball court and in the community.   Mr. Jurich recommended to the Board revisions and extensions to Head Basketball Coach Rick Pitino’s contract.  Mr. Rechter made a motion, which Dr. Hudson seconded, to approve the

Athletic Director’s recommendation that the Board of Directors authorize the Chairman of the Board to execute a revised employment contract for Head Basketball Coach Rick Pitino consistent with the attached.

The motion passed unanimously.

V.        Adjourment

Prof. Wise made a motion, which Prof. Hart seconded, to adjourn the meeting at 9:55 a.m.  The motion passed unanimously.  Following the meeting, the Board welcomed Coach Pitino with a round of applause.  Coach Pitino thanked Board members.  He expressed his enthusiasm for all sports at the University, noting the Track and Field team earned a national championship and other teams were prospering as well.  He noted Mr. Jurich has built a a total team environment.  The basketball team is a very young team and he shared his optimism for the coming seasons.  The Board applauded Coach Pitino.  An official signing of the contract ensued. 
 

Minutes of the Special Meeting of the Board of  Directors of the University of Louisville
Athletic Association, Inc.
May 3, 2007

In Executive Session
 
Present:            Dr. James Ramsey, Chair 
                        Mr. Zach Brooks                                                                                   
                        Prof. Tom Byers     
                        Mr. Brent Fryrear
                        Mr. Gordon Gahm
                        Prof. Brenda Hart                                                        
                        Mr. Wade Houston                                                                             
                        Dr. J. Blaine Hudson
Mr. Tom Jurich , ex officio    
                        Prof. Melissa Laning
                        Mr. Darrell Messer   
                        Mr. Larry Owsley 
                        Mr. Sam Rechter
                        Prof. Craig Roberts
                        Mr. Mike Seebert 
                        Prof. Gerald Tolson  
                        Prof. Elaine Wise  

Absent: Mr Bob Benson
                        Mr. Burt Deutsch
                        Dr. Henry Enck
                        Mr. Owsley B. Frazier
                        Mr. Grant Helman
                        Mr. Harry Jones
                        Prof. Bruce Kemelgor
                        Prof. George Raque
                        Ms. Annette Schnatter
                        Prof. Robert Stenger
                        Dr. Shirley Willihnganz

From the Trustees:        Mr. Bill Stone

From the
University:        Ms. Angela D. Koshewa
                        Ms. Amy Shoemaker
                        Mr. Mike Curtin
Mr. Kevin Miller                                  
Ms. Kathleen Smith                             

I.          Call to Order

Chair Ramsey called the executive session to order at 9:40 a.m.

II.         Personnel Matter

Vice President Jurich discussed Head Basketball Coach Pitino’s contract.

III.       Adjournment

Ms. Laning made a motion, which Prof. Wise seconded, to adjourn the executive
session at 9:50 a.m.  The motion passed unanimously.

MEMORANDUM OF UNDERSTANDING
           
            This Memorandum of Understanding is made and entered into as of the 3rd day of May, 2007, between the University of Louisville Athletic Association, Inc., a Kentucky non-profit corporation (hereinafter for convenience referred to as the “Employer”) c/o Director of Athletics, Student Activities Center, University of Louisville, Louisville, Kentucky 40292, and Richard A. Pitino (hereinafter for convenience referred to as the “Employee”).

                        WHEREAS , the Parties shall finalize a Restated Employment Contract, in accordance with the action of the Board of Directors of the Employer of this date, which shall supersede and take the place of that certain Employment Agreement, dated May 25, 2004, also entered into between Employer and Employee;
           
The Parties have agreed to the salary terms and completion bonus terms and conditions set forth below:

1.         Salary Terms

In consideration for services and satisfactory performance of the conditions of this Employment Contract by Employee, Employer promises to provide Employee:
                       
                                       YEAR                                  COMPENSATION

July 1, 2007 – June 30, 2008                      $2,250,000
July 1, 2008 – June 30, 2009                      $2,250,000
July 1, 2009 – June 30, 2010                      $2,250,000
July 1, 2010 -  June 30, 2011                     $2,500,000
July 1, 2011 -  June 30, 2012                     $2,500,000
July 1, 2012 -  June 30, 2013                     $2,500,000
                       
The foregoing payments shall be payable in equal monthly installments on the thirtieth (30th) day of each month, or more frequently in equal installments throughout the term of the Employment Contract yet to be finalized.

2.         Retention Bonuses

            In consideration for Employee’s prior service, on July 1, 2007, Employer shall pay to Employee a lump sum bonus in the amount of One Million, Seven Hundred Fifty Thousand Dollars ($1,750,000). 

            If on March 31, 2010, Employee is actively employed as coach of the Sports Team, then on July 1, 2010, Employer shall pay to Employee a lump sum bonus in the amount of Three Million, Six Hundred Thousand Dollars ($3,600,000).

            If on March 31, 2013, Employee is actively employed as coach of the Sports Team, then on July 1, 2013, Employer shall pay to Employee a lump sum bonus in the amount of Three Million, Six Hundred Thousand Dollars ($3,600,000).

            The final terms of the Restated Employment Contract, including review and possible revision of insurance provisions, shall be finalized by the Chairman of the Board of Directors of the University of Louisville Athletic Association Inc.

EMPLOYER:                                                 EMPLOYEE:

UNIVERSITY OF LOUISVILLE
ATHLETIC ASSOCIATION, INC.

 BY:     ________________________                        BY: __________________________
            JAMES R. RAMSEY                                            RICHARD A. PITINO
            Chairman, Board of Directors                              Head Coach, Men’s Basketball
 

RECOMMENDED BY:                                           

________________________________                   
Thomas M. Jurich                                                      
Athletic Director