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Many SUE COLEMAN, PASDENT UNIVERSITY OF MICHIGAN Iuneaei Hk O88 ‘April 9, 2014 Dear Sue, It is with great pleasure that I offer you appointment as Chancellor ofthe University of Michigan- for the Flint campus, you will serve as an executive officer of the University of Michigan, ‘Your appointment will be effective August 1, 2014, and will be for a renewable term of five years, ending July 31, 2019. We will conduct a reappointment review before the ‘end of your term, if you desire reappointment, Your starting salary will be $300,000 at ‘2.12-month rate, and you will be eligible to receive annual merit increases beginning in September 2015. Pending the normal process of review and approval, you will also receive a tenured faculty appointment in the School of Education and Human Services of the University of behgas int. Wo wl act he approval proc inmedicly. While yon serves , the departmental appointment will carry no salary and no obligations, When ‘youreturn to the faculty, normal departmental obligations will ensue. When you return tothe faculty ftom your chancellor appointment, your salary witl [3] ‘continue at your chancellor's rate for the duration of your appointment at UM-Flint, but calculated st the University-year rate. You will of course be eligible for annual merit increases through your academic department, During your appointment 2s chancellor, you will accumulate 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 chancellor beyond July 31, 2019. The paid administrative leave may be taken et your discretion, and compensation during your administrative leave 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 ‘Susan E. Borrego, Ph.D. April 9, 2014 Page 2 ‘During your tenure as Chancellor, it is expected you will reside in the chancellor's residence, Ross House, which the University will maintain for your use University purposes. You will also be provided with a University vehicle personal and official business while you serve as chancellor, with taxes being assessed based upon Internal Revenue Service 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 University policy, you nut 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 $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 benefits programs, as may be amended from time to time, including a choice of health insurance coverage, medical and dependent ‘care expense reimbursement plans, short term and long term sick and dissbility plans, ‘vacation acerual, and holiday and season days, ‘The University provides a retirement package thet includes participation in the University’s retirement plan, as may be amended from time to time, and currently provides that the University will match your 5 percent contribution with a 10 percent University contbution lary ligible earnings of up to $260,000. (This number is set by federal law and will be indexed periodically.) The University contribution will begin ‘one year after your appointment. ‘At your discretion, you may participate in University activities as an executive officer of the University forall 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 enhance the quality of our University. April 9, 2014 Page 3 Sincerely, Thus ne Mary Spe Coleman President ‘Taccept your offer of appointment as Chancellor for the University of Michigan-Plint in accordance with these terms. am foKy He i0-14 ‘Susan E. Borrego Date