Paul Hewitt Contract - Georgia Tech basketball
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Transcript of Paul Hewitt Contract - Georgia Tech basketball
FIRST AMENDED EMPLOYMENT AGREEMENT
This First Amended Employment Agreement (hereinafter referred to as the
"Agreement") is entered into as of this 15th day of April, 2004 by and between Georgia
Tech Athletic Association, a non-profit corporation organized under the laws of the State
of Georgia (hereinafter referred to as the "Association"), and Paul Hewitt, a resident of
the State of Georgia (hereinafter referred to as "Hewitt"). (Association and Hewitt are
sometimes hereinafter collectively referred to as the "Parties" and individually as a
"Party.")
WITNESSETH:
WHEREAS, Association assists the educational program of the Georgia Institute
of Technology ("Georgia Tech") by maintaining, managing and operating athletics
facilities and intercollegiate athletics programs of and for Georgia Tech;
WHEREAS, Association first employed Hewitt as Head Men’s Basketball Coach
for Georgia Tech under that certain Employment Agreement dated as of April 5, 2000,
which Employment Agreement has been amended and modified prior to execution of this
Agreement (such Employment Agreement and written amendments and modifications are
collectively referred to as the “Prior Employment Agreements”);
WHEREAS, Hewitt is currently the Head Men’s Basketball Coach for the
intercollegiate men’s basketball program of Georgia Tech under that certain Employment
Agreement dated as of June 18, 2003;
WHEREAS, Association desires to continue to employ Hewitt solely and
exclusively in the non-assignable position of Head Men’s Basketball Coach for the
intercollegiate men’s basketball program of Georgia Tech and to extend the term of
Hewitt’s employment, all under the terms and conditions of this Agreement; and
WHEREAS, Hewitt desires to continue and extend the term of his employment
with Association under the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties hereby agree as follows:
1. Employment.
a. The Association hereby agrees to continue and extend the employment of
Hewitt as the Head Men’s Basketball Coach for the intercollegiate men’s basketball
program of Georgia Tech under the terms and conditions of this Agreement. Hewitt
hereby accepts the continued and extended employment as Head Men’s Basketball Coach
under the terms and conditions set forth in this Agreement.
b. Hewitt shall report directly to the Director of Athletics.
2. Term of Employment.
a. This Agreement is for a term of six (6) consecutive years, beginning April
15, 2004 and ending on April 14, 2010, subject to earlier termination in accordance with
the terms of Section 10 herein (such period being hereinafter referred to as the "Term").
b. The first year of this Agreement shall begin on April 15, 2004 and shall
end on April 14, 2005. Thereafter, each year shall begin on April 15th and conclude on
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the following April 14th. Each such period shall hereinafter be referred to as a "Contract
Year.”
c. It is the intention of the Parties to create an automatic “rollover” provision
so that the Term of this Agreement will always have six (6) years remaining after the
automatic rollover occurs. Commencing April 15, 2005 and on April 15th of each year
thereafter, the Term of this Agreement shall be automatically extended by one (1)
additional year so that, on April 15th of each year, the Term of this Agreement shall be
six (6) years unless the Association determines that an extension rollover not be made
and notifies Hewitt of its decision in writing not less than thirty (30) days prior to April
15th in any year during the Term. In the event the Association timely notifies Hewitt in
writing that such extension rollover should not be made in accordance with the
immediately preceding sentence, then this Agreement shall be deemed terminated by the
Association without cause (as hereinafter defined) and Association shall compensate
Hewitt in accordance with the terms of Section 10 of this Agreement.
3. Duties and Responsibilities. The Parties agree that Hewitt’s duties as Head
Men’s Basketball Coach of Georgia Tech shall include, but shall not be limited to, the
following:
a. Report to the Director of Athletics and plan, develop, administer, and
evaluate the men’s basketball program;
b. Comply with the constitution, bylaws, rules, regulations and
interpretations of the Association, the National Collegiate Athletic Association
("NCAA"), and the Atlantic Coast Conference (“ACC”) relating to the conduct and
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administration of the Georgia Tech men’s basketball program, including recruiting and
eligibility rules, as now existing or as may be amended during the Term hereof;
c. Advise the men’s basketball staff and team of all applicable rules and
policies of the Association, NCAA and ACC, as directed by the administration of the
Association, and make a reasonable effort to ensure that the men’s basketball staff and
team are in compliance with said rules and policies;
d. Report to the Director of Athletics any violations of NCAA or ACC rules
of which Hewitt becomes aware or which Hewitt has reasonable cause to believe may
have taken place;
e. Cooperate with the Association administration in monitoring the academic
progress of student-athlete men’s basketball players to facilitate pursuit of a
baccalaureate degree;
f. Recruit, direct, supervise and evaluate the assistant men’s basketball
coaches and all related men’s basketball support personnel;
g. Recommend hiring, selection, compensation, discipline, and discharge of
assistant men’s basketball coaches and all related men’s basketball support personnel;
h. Recommend students for athletic grant-in-aid scholarships from the
Association;
i. Plan and supervise programs for player training, conditioning, and drug
education and testing, using program development input from support sources such as the
head trainer or his designee, team physician, and strength and conditioning coach or his
designee;
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j. Develop, supervise, and conduct the recruiting program for student-athlete
men’s basketball players;
k. Direct student-athlete men’s basketball players to the appropriate
Association source for assistance regarding financial aid, academic advisement, and
general student needs provided by the Association;
l. Provide appropriate program safety requirements by relying upon the
professional advice of the head athletic trainer or his designee, and staff and the team
physician assigned by the Association;
m. Evaluate individual and team strengths and develop strategies for skill
improvement;
n. Supervise all games, scrimmages, and practices or delegate this
responsibility to an appropriate staff member in Hewitt’s absence;
o. Discipline student-athletes for violations of team rules, Association
regulations or conduct impacting upon team matters, team policies or the reputation of
the Association or of Georgia Tech;
p. Oversee expanding operational resources budgeted to the men’s basketball
program in a manner consistent with Association policy;
q. Cooperate with the Sports Information Director in the preparation of
brochures, programs, statistical reports, and press releases in support of the men’s
basketball program;
r. Assist The Alexander Tharpe Fund, Inc., when reasonably requested, in
fund-raising efforts to support the men’s basketball program;
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s. Oversee the preparation and update of the equipment inventory for the
men’s basketball program in conjunction with and upon the advice of the head equipment
manager;
t. Oversee men’s basketball staff activity relating to public relations and
promotions functions for the men’s basketball program;
u. Represent the Association, when reasonably requested, in organizations
governing the intercollegiate men’s basketball program, as deemed necessary by the
Director of Athletics, such as NCAA, ACC, and other relevant organizations;
v. Perform duties assigned by the Director of Athletics customary to the
position of Head Men’s Basketball Coach and the operation of the men’s basketball
program;
w. As Hewitt’s schedule permits, assist and promote the Association by
soliciting and encouraging contributions to and support of the Association’s
intercollegiate men’s basketball program;
x. As Hewitt’s schedule permits, represent the Association and its
intercollegiate men’s basketball program at appropriate events and meetings, including
meetings of The Alexander Tharpe Fund and Alumni Association; and
y. Hewitt is employed solely as Head Men’s Basketball Coach and may not
be assigned to another position.
4. Compensation and Benefits. In consideration for Hewitt’s services and for his
satisfactory performance of the terms, conditions and duties stated herein, the Association
agrees to compensate Hewitt in the following manner:
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a. Minimum Annual Cash Compensation.
The Association agrees to pay to Hewitt at least the following amounts set forth in
this Section 4a (the “Minimum Compensation”), to be allocated as set forth in the
remainder of this Section 4, together with any amounts for exemplary performance as set
forth in Section 4f, and provide those other benefits set forth in this Agreement.
Association shall pay to Hewitt the following amounts as Minimum Compensation for
the indicated Contract Year:
(1) 2004-05: $1,000,000;
(2) 2005-06: $1,075,000;
(3) 2006-07: $1,150,000;
(4) 2007-08: $1,225,000;
(5) 2008-09: $1,300,000; and
(6) 2009-10: $1,375,000.
For 2010-11 and subsequent Contract Years, the Minimum Compensation shall be in an
amount negotiated between Hewitt and Association, but in no event less than $1,375,000
per Contract Year. The Minimum Compensation shall be composed of the Annual Base
Salary (as hereinafter defined), the A-T Appearance Compensation (as hereinafter
defined), the Radio-Television Compensation (as hereinafter defined), and the Deferred
Compensation (as hereinafter defined). The Minimum Compensation for each Contract
Year beginning with 2010-11 shall be negotiated and memorialized in writing by the
Parties on or before the June 1st which follows such additional Contract Year being added
by operation of the automatic rollover extension. By way of illustration (but not
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limitation), the Minimum Compensation for 2010-11 shall be negotiated and
memorialized by the Parties on or before June 1, 2005. Such negotiation and
memorialization of the Minimum Compensation shall also designate how Minimum
Compensation is to be allocated among Annual Base Salary, the A-T Appearance
Compensation, the Radio-Television Compensation, and the Deferred Compensation.
b. Annual Base Salary. The Association shall pay Hewitt an annual base
salary in the following amounts:
(1) 2004-05: $400,000;
(2) 2005-06: $475,000;
(3) 2006-07: $550,000;
(4) 2007-08: $625,000;
(5) 2008-09: $700,000; and
(6) 2009-10: $775,000.
(Such annual base salary, as may be increased during the Term, shall be hereinafter
referred to as the "Annual Base Salary.") The Annual Base Salary shall be payable in
equal periodic installments according to the Association’s payroll practices, but no less
frequently than monthly.
c. Use of Automobile.
The Association shall annually provide Hewitt with two (2) courtesy automobiles
or a monetary allowance in lieu of such automobiles. In either event, income taxes will
be withheld from Hewitt through the Association payroll reporting system, either based
on the fair rental value of the automobiles or the monetary allowance, as may be
applicable.
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(1) To the extent that Hewitt elects to be provided with such
automobiles, Association shall reimburse Hewitt for business mileage and for expenses
associated with the maintenance of the automobiles, including, but not limited to, oil,
repairs, and tires. Hewitt will be subject to Internal Revenue Service reporting
requirements for personal use of these automobiles. The Association shall maintain
liability insurance on automobiles it provides with coverage limits in an amount not less
than One Million Dollars ($1,000,000.00) per occurrence with Hewitt and the other
members of his household being insured under said policy.
(2) The Association shall be responsible for expenses associated with
the maintenance of automobiles and for liability insurance only for any automobile
provided by the Association. Association shall have no obligation, either to reimburse
maintenance expenses or to maintain liability coverage, for any automobile other than an
automobile that is provided by Association.
(3) Hewitt will be provided one gas credit card for use in his
automobile only.
d. Club Memberships.
The Association agrees to provide Hewitt with a family membership to
Druid Hills Golf Club in Metropolitan Atlanta, Georgia. During the Term of this
Agreement, the Association agrees to pay the monthly dues and men’s basketball
business related charges for such use of the country club. While not a requirement, it is
the express request of the Association that payments made pursuant to this subsection be
used for Hewitt’s relaxation and enjoyment and to market and promote Georgia Tech, its
academic curriculum, men’s basketball program and alumni relations and fund raising.
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e. Association Benefits.
Hewitt shall be entitled, at no charge, to life insurance and disability insurance in
the following amounts which Association shall provide:
(1) Life insurance: group term life insurance with a death benefit in an
amount of three (3) times Hewitt’s Annual Base Salary; and
(2) Disability insurance: disability coverage in an amount equal to
sixty percent (60%) of Hewitt’s Annual Base Salary, subject to all necessary medical
examinations and approval of the particular insurance company which issues the
disability insurance policy up to a maximum salary of $180,000.00 per year; and
(3) Hewitt shall also be provided, at no charge, the same family
medical insurance, paid vacation leave, sick leave, and retirement benefits as other
non-classified Association employees. Such employee benefits are set out in detail in the
Staff Reference Manual, to which reference is hereby made and which provisions are
incorporated herein by reference. Additionally, the Association agrees to allow Hewitt to
buy his COBRA benefits as allowable by law and Association’s agreements after
separation or termination, provided he otherwise qualifies for such benefits.
f. Exemplary Performance.
In recognition of the fact that exemplary performance by the Georgia Tech
intercollegiate men’s basketball team produces both tangible and intangible benefits for
the Association and Georgia Tech by focusing favorable, public attention on the
Association and Georgia Tech, and in further recognition of the additional work and
sacrifice of Hewitt to prepare and participate in postseason competition, the Association
shall pay additional compensation to Hewitt in the particular Contract Year of this
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Agreement in which any of the following events occur (the “Exemplary Performance
Payments”):
(1) Hewitt shall be paid an additional amount equal to the greater of
$30,000 or one-twelfth (1/12th) of his Annual Base Salary for each season in which the
Georgia Tech Men’s Basketball Team wins the ACC Men’s Basketball regular season
championship;
(2) Hewitt shall be paid an additional amount equal to the greater of
$40,000 or one-twelfth (1/12th) of his Annual Base Salary for each season in which the
Georgia Tech Basketball Team wins the ACC Men’s Basketball post-season tournament
championship;
(3) Hewitt shall be paid an additional Thirty Thousand Dollars
($30,000.00) for each season in which the Georgia Tech Men’s Basketball Team is
selected to participate in the NCAA Men’s Basketball post-season championship
tournament (the "NCAA Tournament");
(4) Hewitt shall be paid an additional Ten Thousand Dollars
($10,000.00) for each game that the Georgia Tech Men’s Basketball Team wins in the
first and second rounds of the NCAA Tournament;
(5) Hewitt shall be paid an additional Twenty-five Thousand Dollars
($25,000.00) for each game that the Georgia Tech Men’s Basketball Team wins in the
regional semifinals and regional finals of the NCAA Tournament;
(6) Hewitt shall be paid an additional Forty Thousand Dollars
($40,000.00) in the event that the Georgia Tech Men’s Basketball Team wins a National
Semifinal Game in the NCAA Tournament;
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(7) Hewitt shall be paid an additional Eighty Thousand Dollars
($80,000) in the event that the Georgia Tech Men’s Basketball Team wins the National
Championship Game in the NCAA Tournament;
(8) Hewitt shall be paid an additional Ten Thousand Dollars ($10,000)
for each season in which the Georgia Tech Men’s Basketball Team is selected to
participate in the post-season National Invitational Tournament (the "NIT");
(9) Hewitt shall be paid an additional Five Thousand Dollars
($5,000.00) for each game that the Georgia Tech Men’s Basketball Team wins in the
rounds of the NIT preceding the semifinal round;
(10) Hewitt shall be paid an additional Seven Thousand Five Hundred
Dollars ($7,500.00) in the event that the Georgia Tech Men’s Basketball Team wins a
game in the semifinals of the NIT;
(11) Hewitt shall be paid an additional Ten Thousand Dollars
($10,000.00) in the event that the Georgia Tech Men’s Basketball Team wins the NIT
Championship Game; and
(12) Hewitt shall be paid an additional Twenty Thousand Dollars
($20,000.00) if he is named ACC Coach of the Year by the Atlantic Coast Conference or
by any generally recognized media outlet or nationally recognized club or organization
and an additional Twenty-Five Thousand Dollars ($25,000.00) if he is named National
Coach of the Year by any generally recognized media outlet or nationally recognized
club or organization.
It is understood and agreed that any Exemplary Performance Payments earned
under this subsection f shall be payable on or before the April 30th which follows the
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Contract Year in which it is earned and Hewitt will be deemed fully vested and entitled to
any Exemplary Performance Payments upon the occurrence of the event giving rise to the
Exemplary Performance Payments, despite termination of employment prior or
subsequent thereto.
The amounts set forth above are cumulative and, in any Contract Year, Hewitt
may earn some or all of the amounts set forth above. There shall be no limitation on the
total amount of Exemplary Performance Payments.
g. Personal Appearances and Speaking.
Hewitt agrees to make at least twenty (20) appearances or speaking engagements
for the Alexander-Tharpe Fund to assist fund raising and public relations, if requested to
do so. In consideration of Hewitt’s agreement to provide such services, Hewitt shall be
paid the sum of Two Hundred Thousand Dollars ($200,000) (hereinafter referred to as the
“A-T Appearance Compensation”) during each Contract Year by the Alexander Tharpe
Fund in equal quarterly installments, as an independent contractor. In the event the
Alexander Tharpe Fund fails to pay the compensation set forth in this paragraph, then the
Association guarantees said payment to Hewitt in the amount of the A-T Compensation
for each Contract Year, according to the terms set forth above.
h. Radio and Television Shows.
(1) It is understood and agreed that Association has contracted with
and granted to International Sports Properties, Inc. ("ISP") the exclusive right to produce
and market certain television and radio shows in connection with the Georgia Tech men’s
basketball program. Hewitt agrees to appear on and make reasonable efforts to assist in
the production and promotion of such television and radio shows. By separate agreement
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between ISP and Hewitt, ISP shall pay to Hewitt the sum of $250,000 (the “Radio-
Television Compensation”) for each Contract Year during the term of ISP’s license
agreement with the Association for Hewitt’s services in connection with such television
and radio shows and Association shall have no responsibility or liability to Hewitt in
connection with the payment of such compensation.
(2) It is further understood and agreed that, at the expiration or
termination of Association’s agreement with ISP, Association may contract with and
grant to another third party vendor the same rights regarding television and radio shows
as set forth in subsection (1) above. Hewitt agrees to provide the same services to such
third-party vendor as set forth in subsection (1) above in accordance with the same
compensation terms.
(3) In lieu of a third party vendor of these radio and television rights,
the Association guarantees payment to Hewitt, during the Term of this Agreement, the
sum of $250,000 for each Contract Year.
i. Miscellaneous Benefits.
The Association agrees to grant to Hewitt, for use during the Term of this
Agreement, the following additional benefits by virtue of his position as Head Men’s
Basketball Coach:
(1) Hewitt shall receive, at no cost, eight (8) tickets to all Georgia
Tech home football games; and
(2) Hewitt shall receive, at no cost, twelve (12) tickets to all home
Georgia Tech Men’s Basketball games played at Alexander Memorial Coliseum and
twenty (20) tickets to the ACC Men’s Basketball Tournament.
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It is understood that these tickets may be considered as a taxable benefit for which
income taxes should be withheld from Hewitt through the Association payroll reporting
system based on the face value of such tickets.
j. Deferred Incentive Compensation Plan.
As previously recognized under the Prior Employment Agreements, Hewitt has
been designated as a “key employee” and he has been selected to participate in a
deferred incentive compensation plan established by Association for certain key
employees.
(1) Association represents and warrants that it intends to exercise its
best efforts to establish and implement, as expeditiously as possible, a new deferred
incentive compensation plan that is mutually agreeable to Hewitt and Association and
which shall constitute a “top hat” plan (such plan shall hereinafter be referred to as the
“Plan”). Association and Hewitt agree that, upon such Plan being selected and
implemented, this Agreement shall be amended by attaching hereto as Exhibit “A” a true
and correct copy of the Plan.
(2) In consideration of Hewitt’s continued and extended employment
under the terms of this Agreement, Association acknowledges and agrees that
Association shall roll into the Plan all amounts in any and all deferred incentive
compensation plans that Association has previously established on Hewitt’s behalf in
accordance with the Prior Employment Agreements. Such amounts shall be rolled over
into the Plan in such manner as to avoid the creation of a taxable event.
(3) Association agrees that, on or before July 15th of each Contract
Year of this Agreement, Association shall make an annual contribution to the Plan in the
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amount of One Hundred Fifty Thousand Dollars ($150,000.00) (the “Deferred
Compensation”).
5. Outside Activities.
a. Generally. While Hewitt is representing Georgia Tech and Association as
Head Men’s Basketball Coach, he shall have the opportunity to earn outside income as a
result thereof from the activities outlined in this Section 5, but only upon the following
terms and conditions:
(1) Hewitt’s outside income activities shall not in any manner interfere
with the full and complete performance by Hewitt of his duties and obligations as an
employee of Association, recognizing always that his primary obligations lie with
Association;
(2) Hewitt shall not accept or receive directly or indirectly any monies,
benefit or any other gratuity whatsoever from any person, corporation, or other
benefactor if such action would be in violation of NCAA or ACC rules or regulations, or
Federal, State or local law. Changes to such rules, regulations or laws shall automatically
apply to this Agreement without the necessity of a written modification hereto; and
(3) All basketball-related contractual agreements between Hewitt and
persons, parties, or legal entities of any type, outside of the Association, shall first receive
prior written approval from the Association’s Chief Executive Officer for all
athletically-related income, in accordance with the requirements of NCAA Bylaw 11.2
and its subparts and any amendments thereto. The request for approval shall be in
writing and shall include the amount and sources of the income. Sources of such income
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shall include but are not limited to income from annuities, sports camps, country club
memberships, complimentary ticket sales, television and radio programs and
endorsement or consultation contracts for equipment manufacturers. In addition, such
outside contracts shall be consistent with the terms of this Agreement, Association
policies and procedures and all Federal, State and local laws, including the laws of the
State of Georgia. Upon request by Association, Hewitt agrees to provide to Association
copies of all financial records and contracts related to his athletically-related income.
b. Commercial Endorsements. Subject to the restrictions otherwise set
forth in this Agreement, including but not limited to Section 9 of this Agreement, Hewitt
shall be entitled to undertake commercial endorsements of products and services in which
he identifies himself as the Head Men’s Basketball Coach of Georgia Tech and to retain
any and all income derived therefrom; provided, however that Hewitt agrees to obtain the
approval of the Director of Athletics before engaging in any such commercial
endorsement.
c. On - Campus Summer Camp . Hewitt shall be entitled to utilize the
facilities of the Association, to conduct an annual summer men’s basketball camp. The
Association waives any interest in the revenue generated by the camp conducted by
Hewitt in view of the benefit to the Georgia Tech men’s basketball program derived from
the conduct of the camp. Association shall provide its facilities and staff to Hewitt for
such summer camp at no charge to Hewitt, provided that Hewitt will be responsible for
any costs paid to Georgia Tech or a third party by the Association which are reasonably
required to return the facilities used by Hewitt to the condition in which they were
received.
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d. Income from Speeches, Appearances and Written Materials. The
Association expressly authorizes Hewitt to participate in any speaking engagements,
clinics, public appearances, videos, radio and/or television appearances, appearances in
any other type of media (including Internet), and authorship of basketball-related books
and articles, provided said activity does not conflict with: (1) Hewitt’s responsibilities as
Head Men’s Basketball Coach; (2) any exclusive sponsorship rights granted by
Association or its multi-media rights holder to a sponsor; or (3) any applicable federal,
state or local laws or ordinances or any rules or regulations of the NCAA, ACC or any
other such organizations with jurisdiction over the activities of Hewitt. Association
waives any interest in the revenue generated by these activities, provided the revenue is
disclosed annually in accordance with NCAA and Association policies. Hewitt agrees to
obtain the prior written approval of Association’s Director of Athletics, which shall not
be unreasonably withheld, before undertaking said activities.
e. Shoe, Apparel and Equipment Company Agreements. Association and
Hewitt understand and agree that Association reserves the exclusive right to select and to
contract with athletics shoe, apparel, and equipment companies regarding the athletics
shoes, apparel, and equipment that the Association’s men’s basketball team will wear and
utilize during practice, competition, and otherwise while representing the Association.
Subject to the foregoing, Hewitt shall be entitled to endorse, consult, or provide other
services for shoe, apparel, and/or equipment companies, provided that:
(1) any compensation for such outside services provided by Hewitt to
shoe, apparel or equipment companies shall be paid by such company or companies and
the Association shall not be obligated to pay any such compensation to Hewitt;
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(2) the services rendered by Hewitt in connection with such agreement
and compensation shall be separate from the services Hewitt shall provide in connection
with this agreement;
(3) any such agreement that Hewitt desires to enter into with a shoe,
apparel, and/or equipment company to endorse, consult with or provide other services to
may not require Hewitt to endorse or consult regarding the company’s shoes, apparel,
and/or equipment (including the wearing or use of such shoes, apparel, and/or equipment)
in circumstances in which such endorsements or consultation would be in conflict with
rights granted by the Association to its sponsors;
(4) any such agreement that Hewitt desires to enter into with a shoe
apparel and/or equipment company to endorse, consult with or provide other services to
may not restrict Hewitt from making any appearance on behalf of an Association sponsor
or vendor, even if such sponsor or vendor manufactures or distributes shoes, apparel,
and/or equipment;
(5) Hewitt will provide to the Association, upon request, copies of any
agreements with such shoe, apparel, and/or equipment companies;
(6) any such agreement which Hewitt desires to enter into with a shoe,
apparel, or equipment company to endorse, consult or provide other services shall be
subject to the prior written approval of the Association’s Chief Executive Officer and
must be in the best interests of the Association, which approval shall not be unreasonably
withheld; and
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(7) no portion of the compensation paid by such shoe, apparel or
equipment companies for such outside services rendered by Hewitt shall be considered as
or counted toward the Minimum Compensation.
f. Indemnification for Outside Income Activities. Hewitt understands and
agrees that all outside income activities, including but not limited to the activities set
forth in this Section 5 of this Agreement, are independent of Hewitt’s employment with
Association and Association shall have no responsibility or liability for the payment or
compensation generated from such activities, including but not limited to claims by third
parties, or claims by Hewitt for loss of income, business opportunities, perquisites, or any
form of consequential damages in the event Hewitt is terminated by Association pursuant
to Section 10, or otherwise. In addition, Hewitt agrees to indemnify and hold harmless
the Association, Georgia Tech and the Board of Regents of the University System of
Georgia and their respective affiliates, trustees, officers, directors, employees,
representatives and agents from any and all suits, claims, demands, damages, settlements,
liability, fines, penalties, costs and expenses, including reasonable attorney’s fees, arising
from any such outside income activity.
6. Representations and Warranties.
a. By Hewitt. Hewitt represents and warrants to the Association as follows:
(1) That he has been given a reasonable opportunity to read this
Agreement carefully;
(2) That he has had an opportunity to discuss this Agreement with an
attorney of his choice;
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(3) That he has read this Agreement and fully understands the effect of
this Agreement;
(4) That he executes this Agreement of his own free will for the
consideration set forth herein;
(5) That he is not relying upon any representations whatsoever of the
Association or Association’s representatives, other than those set forth herein, as an
inducement to enter into this Agreement;
(6) That he is free to enter into and perform services under this
Agreement and that his execution of this Agreement and rendition of any services
hereunder will not violate any contract to which he may now be a party;
(7) That he is not aware of any pending or threatened investigation by
the NCAA in connection with the basketball programs at Hewitt’s prior employment; and
(8) That he is not under any penalty or sanction imposed by the NCAA
which would affect his employment as Georgia Tech Head Men’s Basketball Coach.
b. By Association. Association represents and warrants to Hewitt as follows:
(1) Association is a validly existing Georgia corporation;
(2) Association has the capacity to enter into and perform this
Agreement and all services contemplated pursuant hereto, and all actions required to be
taken to authorize it to enter into and perform this Agreement have been properly taken;
(3) Association has had the opportunity to discuss this Agreement with
an attorney of its choosing; and
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(4) execution and delivery of this Agreement by Association and the
performance by it of its obligations hereunder will not constitute a breach by it of any
other agreements to which it is a party.
7. Association Obligations. In consideration for Hewitt’s continued and extended
employment and as an inducement for Hewitt to enter into this Agreement, Association
has indicated its intention to provide the following upgrades and benefits to the Georgia
Tech men’s intercollegiate basketball program and Association will exercise its best
efforts to implement the following:
a. Beginning with the 2004-05 season and at all times when school is in
session, provide charter air transportation for the Georgia Tech men’s basketball team on
charter flights both to and from weekday games and on charter flights either to or from
weekend games, in an attempt to minimize the number of classes that members of the
men’s basketball team may miss due to away games;
b. Undertake construction of a new practice facility to be used by the
Georgia Tech men’s basketball team;
c. Beginning with the 2004-05 season, upgrade the video equipment utilized
throughout the Georgia Tech men’s basketball program, including acquisition of laptop
computers for designated members of the basketball coaching staff to enable the coaches
to view games on such computers and enhance the Internet and computer capabilities in
the basketball offices; and
d. At the beginning of the 2004-05 season, increase the salary budget for the
assistant men’s basketball coaching staff, including operations director, to that level paid
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by North Carolina State University to its assistant basketball coaches.
8. Disability, Long Term Illness or Incapacity .
a. If Hewitt cannot or does not substantially perform his duties as the
Association’s Head Men’s Basketball Coach because of illness, medical or psychological
incapacity or physical or mental disability of any type whatsoever for a cumulative total
of more than six (6) months in any Contract Year (the “Disability”), the Director of
Athletics may terminate this Agreement, with the approval of the President of the
Association or his designee, upon thirty (30) days notice to Hewitt.
b. No final determination of the existence of a Disability or action shall be
taken thereon until the following procedure is utilized. After the initial determination by
the Director of Athletics and President, Hewitt and the Association shall each appoint a
licensed physician and the licensed physicians together shall appoint a mutually agreed
upon third licensed physician to review the medical evidence. Their findings are
non-binding, but shall be admissible and used in any subsequent proceeding. If the
Parties to this Agreement are unable to reach agreement regarding the application of this
Section, then the arbitration provisions set forth in Section 11 shall apply.
c. Should Association terminate Hewitt’s employment by virtue of a
Disability, Association agrees to pay to Hewitt those amounts set forth in Section 10 of
this Agreement.
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9. Conditions of Employment.
a. Hewitt shall devote his time, attention, energies and abilities to his duties
as the Association’s Head Men’s Basketball Coach, and during his employment, except
as otherwise herein provided and authorized, he shall not engage in any other business or
occupation, without first obtaining the written approval of the Director of Athletics.
b. Hewitt shall recognize and comply with the laws, policies, rules and
regulations of and governing Georgia Tech and the Association and the rules and
regulations of the NCAA and ACC as now constituted or as they may be amended during
the Term hereof. Hewitt shall also use reasonable efforts to ensure that all assistant
coaches and any other employees for which he is administratively responsible comply
with the aforesaid policies, rules and regulations as well.
c. Hewitt shall have the right to incorporate himself into a personal service
corporation for the purposes of protecting his personal assets from liability resulting from
sports camps or other professional activities outside of his employment with the
Association, and/or to shelter income in the appropriate retirement plan vehicles resulting
from sources outside the Association’s system, and approved herein.
d. Any income resulting from clinics, professional activities, endorsements,
speaking engagements, or other self-employment income generated from activities
relating to his conduct as Men’s Basketball Coach not set forth herein shall be non-W-2
income and paid directly to Hewitt, but reportable to the Director of Athletics and
President of Georgia Tech. Furthermore, it is recognized that the aforementioned income
and benefits shall be subject to NCAA rules and regulations regarding the reporting and
institutional controls with respect to Hewitt’s outside income, as required by that
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governing body and its members, and must be also consistent with Association, NCAA
and ACC policies and procedures.
e. Hewitt shall have the right to operate men’s basketball camps during the
summer months, using the Association’s facilities, personnel and other services, provided
he provides adequate insurance against any claims, demand or action that might arise as a
result of such operations. Staff compensation shall be solely subject to Hewitt’s control
and shall be the sole responsibility of Hewitt but shall be in accordance with NCAA
policies and procedures.
f. Hewitt shall conduct such travel as is necessary to carry out his duties as
Head Men’s Basketball Coach, and he shall be entitled to reimbursement for
transportation and per diem expenses as authorized by applicable law and Association
policy upon presentation of the appropriate vouchers and receipts. In addition thereto,
Association shall reimburse Hewitt for reasonable travel expenses incurred by his spouse
for three (3) trips during each Contract Year when she accompanies Hewitt. Said
reasonable travel expenses shall include, but not be limited to, airline transportation, hotel
expenses, meals, rental cars, and convention expenses, including registration fees.
g. Should another employment opportunity in coaching or otherwise be
presented to Hewitt or should Hewitt be interested in other such employment during the
Term of this Agreement, Hewitt must notify the Director of Athletics of such opportunity
or interest before any discussions may be held or undertaken, directly or indirectly, by
Hewitt or anyone acting on his behalf with anticipated employment principals or their
representatives.
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10. Termination .
a. Event of Termination. Hewitt’s employment shall terminate upon
occurrence of any of the following (hereinafter referred to as a “Termination
Event”):
(1) for Cause (as defined in Section 10.b.); or
(2) Without Cause (as defined in Section 10.c.); or
(3) for Good Reason (as defined in Section 10.d.); or
(4) upon the death of Hewitt; or
(5) upon the Disability of Hewitt (as defined in Section 8); or
(6) upon Voluntary Resignation (as defined in Section 10.e.); or
(7) upon Other Resignation (as defined in Section 10.f.).
Upon occurrence of a Termination Event, Association and Hewitt shall have those
payment rights and obligations set forth in Section 10.g., as well as all other rights and
remedies that may be available to them at law or in equity.
b. Definition of “Cause”. “Cause” shall mean:
(1) Conviction of a crime involving moral turpitude or conviction for a
felony for which the penalty for conviction either is more than one (1) year in prison or a
fine of more than One Thousand Dollars ($1,000.00);
(2) Failure by Hewitt to substantially perform all of the material and
substantive duties as set forth in this Agreement; or
(3) Willfully violating an NCAA or ACC regulation or rule which
results, after hearing, in probation or loss of scholarships or knowingly allowing a
member of the Men’s Basketball coaching staff to engage in conduct which results in
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similar sanctions; provided, however, that “Cause” shall be deemed to exist only after
Hewitt has been given written notice of the basis upon which “Cause” is deemed to have
occurred and thirty (30) days have expired since Hewitt’s receipt of such written notice
without Hewitt having cured such circumstance that has been alleged to constitute
“Cause” and further provided that the President of the Association or the President’s
designee approves that such “Cause” exists. Should Hewitt disagree with the
Association’s assertion that “Cause" exists, Hewitt may, within ten (10) days of receipt of
such written notice, give written notice of his objection to the Association and seek
arbitration pursuant to the terms of this Agreement.
c. Definition of “Without Cause ”. “Without Cause” shall mean any termination
by Association of Hewitt’s employment for any reason other than for Cause, including
but not limited to the notification by Association to Hewitt under Section 2c of this
Agreement that the automatic rollover provision shall not take effect. Termination of
employment Without Cause shall take effect immediately upon Hewitt’s receipt of
written notification that the Association has terminated Hewitt’s employment.
d. Definition of “Good Reason ”. “Good Reason” shall occur if:
(1) David T. Braine ceases to continue as the Director of Athletics of the
Association for any reason whatsoever and Hewitt elects to terminate
his employment within two (2) years after Mr. Braine ceases to
continue as Director of Athletics; or
(2) Hewitt wishes to accept employment with a team that is a member of
the National Basketball Association or the National Basketball
Association itself.
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e. Definition of “Voluntary Resignation ”. “Voluntary Resignation” shall mean
the voluntary resignation by Hewitt of his employment with Association without the
existence of Good Reason or by virtue of a Disability, in order to accept a head men’s
basketball coaching position with another college or university.
f. Definition of “Other Resignation”. “Other Resignation” shall mean the
resignation by Hewitt of his employment with Association without the existence of Good
Reason or the existence of a Disability and which is not a Voluntary Resignation. Other
Resignation shall mean a resignation by Hewitt in which he does not accept employment
by a National Basketball Association team or a head men’s basketball coaching position
with another college or university.
g. Termination Pay.
(1) Termination By Association For Cause . If Association terminates
Hewitt’s employment for Cause, Hewitt will be entitled to receive
the Minimum Compensation through the date such termination is
effective, which Minimum Compensation for such Contract Year
shall be prorated for such portion of the Contract Year through the
effective date of termination. Following such termination for
Cause, Hewitt shall be free to accept any employment whatsoever
without restriction or limitation and with no further obligation to
Association.
(2) Termination By Association Without Cause . If Association
terminates Hewitt’s employment Without Cause, Association shall
compensate Hewitt for Association’s obligations under this
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Agreement by paying to Hewitt, in equal monthly installments
over the remaining Term (as though his employment had not been
terminated), the Minimum Compensation for each Contract Year
that remained in the Term immediately prior to termination
Without Cause. Following such termination Without Cause, Hewitt
shall be free to accept any employment whatsoever without
restriction or limitation and with no further obligation to
Association.
(3) Termination By Hewitt For Good Reason. If Hewitt terminates
his employment for Good Reason, Association shall compensate
Hewitt by paying him the Minimum Compensation due through
the date of termination. Following such termination for Good
Reason, Hewitt shall be free to accept any employment whatsoever
without restriction or limitation and with no further obligation to
Association.
(4) Termination Upon Death of Hewitt . If Hewitt’s employment is
terminated because of Hewitt’s death, Association shall
compensate Hewitt for Association’s obligations under this
Agreement by paying to the estate of Hewitt, in equal monthly
installments over the remaining Term (as though his employment
had not been terminated), the Minimum Compensation for each
Contract Year that remained in the Term immediately prior to
termination because of Hewitt’s death; provided that Association’s
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obligation under this subsection (4) shall be conditioned upon
Association procuring a life insurance policy upon the life of
Hewitt in the amount of Association’s obligation under this
subsection (4) as to which Association agrees to exercise its best
efforts to procure expeditiously.
(5) Termination Upon Disability of Hewitt . If Hewitt’s employment is
terminated because of Hewitt’s Disability, Association shall
compensate Hewitt for Association’s obligations under this
Agreement by paying to Hewitt the Minimum Compensation owed
by Association for the six (6) months following determination of
Hewitt’s Disability, less amounts paid to Hewitt by disability
insurance procured by Association pursuant to Section 4e(2) of this
Agreement.
(6) Termination Upon Voluntary Resignation of Hewitt . If Hewitt
terminates his employment by means of Voluntary Resignation,
Hewitt will be entitled to receive the Minimum Compensation for
such Contract Year through the date that his Voluntary Resignation
is effective, together with any Exemplary Performance Payments
which may be due. In the event of a Voluntary Resignation,
Hewitt shall pay to the Association an amount equal to one-half
(1/2) of the Minimum Compensation due for the remaining Term,
determined as of the time of the Voluntary Resignation. Hewitt
agrees to pay such amounts to Association in equal installments on
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a monthly basis for the period which would otherwise remain in
the Term in the absence of his Voluntary Resignation. Following
such termination by Hewitt upon his Voluntary Resignation,
Hewitt shall be free to accept any employment whatsoever without
restriction or limitation and with no further obligation to
Association except as specified in the immediately preceding
sentence.
(7) Termination By Hewitt For Other Resignation . If Hewitt
terminates his employment by means of Other Resignation, Hewitt
will be entitled to receive the Minimum Compensation for such
Contract Year through the date that his Other Resignation is
effective, together with any Exemplary Performance Payments
which may be due. Following such termination by Hewitt upon his
Other Resignation, Hewitt shall be free to accept any employment
whatsoever other than with a National Basketball Association team
or as head men’s basketball coach at another college or university
without restriction or limitation and with no further obligation to
Association.
(8) Termination Pay Not Subject To Offset or Duty To Mitigate. The
Parties acknowledge and agree that, to the extent that Hewitt’s
employment shall be terminated by Association Without Cause, or
upon the death or Disability of Hewitt, neither the payment
obligations of the Association nor the entitlement of Hewitt or his
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estate to receive the payments as set forth in this Section shall be
reduced, affected, modified or be subject to offset or any duty to
mitigate of any type whatsoever by virtue of any subsequent
employment that Hewitt may procure.
11. Arbitration . Any dispute, disagreement, difference, controversy or claim arising
out of or relating to this Agreement or the breach thereof ("Claim") shall be submitted to
a meeting of the Parties. The Parties and their representatives shall meet within ten (10)
days after one Party submits a notice to the other Party requesting such meeting. If the
Claim is not settled within ten (10) days after receipt of the aforesaid notice, any Party
may cause the Claim to be submitted to and be determined by binding arbitration to be
administered by the American Arbitration Association ("AAA") in accordance with the
AAA’s commercial rules and judgment upon the award rendered by the arbitrators may
be entered in any court having jurisdiction thereof. The arbitration shall be held in
Atlanta, Georgia, and conducted before a panel of three (3) neutral arbitrators selected
from a panel supplied to the Parties by the AAA. The arbitration proceedings shall be
conducted using the expedited procedures of the AAA. The arbitrators shall have the
authority to award any remedy or relief permissible under Georgia law including, without
limitation, specific performance of any obligation created under this Agreement, the
awarding of punitive damages, the issuance of an injunction, or the imposition of
sanctions for abuse or frustration of the arbitration process. All fees and expenses of the
arbitration shall be borne by the Parties equally. However, each Party shall bear the
expense of its own attorneys, witnesses, and preparation and presentation of proofs.
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Notwithstanding the foregoing, the Parties shall be able to seek equitable relief from a
court of competent jurisdiction to provide equitable relief in aid of arbitration.
12. Miscellaneous.
a. Waiver of Breach. The waiver by either Party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver by that Party of
any subsequent breaches.
b. Severability. In the event that any provision of this Agreement shall be
deemed invalid, unreasonable or unenforceable by any Court of competent jurisdiction or
arbitration panel because of a violation either of applicable law or of NCAA or ACC
rules or bylaws, such provision shall be stricken from the Agreement or modified so as to
render it reasonable, and the remaining provisions of this Agreement or the modified
provision shall continue in full force and effect and be binding upon the Parties so long as
such remaining or modified provisions reflect the interest of the Parties at the date of this
Agreement. Any such stricken items shall be subject to renegotiation at the first possible
time, subject to right of refusal by the Association.
c. Notices. All notices hereunder shall be in writing and shall be given by
personal delivery, registered or certified mail or telecopy to the following addresses (or
such other addresses as may be designated in writing by either Party):
As to Hewitt: Paul HewittHead Men’s Basketball CoachGeorgia Tech Athletic Association150 Bobby Dodd Way, N.W.Atlanta, Georgia 30332-0455
With a copy to: Legal DepartmentCareer Sports & Entertainment, Inc.
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200 Galleria Parkway, Suite 2060Atlanta, Georgia 30339
As to Association: Director of AthleticsGeorgia Tech Athletic Association150 Bobby Dodd Way, N.W.Atlanta, Georgia 30332-0455
Notice shall be deemed received when actually received by the recipient, in the case of
personal delivery or overnight mail, when the sender receives confirmation of successful
telecopy delivery, or on the third (3rd) business day, in the case of transmission by
certified mail.
d. Applicable Law. This Agreement shall be construed in accordance with
the laws of the State of Georgia.
e. Successors and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and assigns of the Association and Hewitt.
f. Headings. The headings at the beginning of each section and subsection
of this Agreement are for convenience only and shall not in any way affect the
interpretation of any section of this Agreement or the entire Agreement.
g. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which shall constitute
one and the same Agreement.
h. Remedies. The remedies provided for herein or otherwise available to the
Parties shall be cumulative and no one such remedy shall be exclusive of any other and
the exercise of any one shall not preclude the exercise or be deemed to be a waiver of any
right or remedy at law or in equity which may be available to a Party, including any
rights to damage or injunctive relief.
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i. No Assignment. This Agreement is one which requires the personal
services of Hewitt and therefore cannot be assigned by Hewitt.
j. Modifications. The terms of this Agreement may not be modified,
waived, amended, discharged, terminated or supplemented, otherwise changed, except by
a written document executed by an authorized representative of each Party.
k. Compliance With Laws. This Agreement is made subject to all
applicable federal, state and local laws and regulations and NCAA and ACC rules and
regulations now existing or hereafter in force.
l. Construction of Agreement. Each Party acknowledges participation in
the negotiation of this Agreement and that no provision of this Agreement shall be
construed against or be interpreted to the disadvantage of any Party hereto by any court,
arbitration panel, or other governmental or judicial authority by reason of such Party
having or deemed to have structured, dictated or drafted such provision.
m. Survival. The covenants, acknowledgments, representations, agreement
and obligations contained in Sections 6, 10.g., 11 and 12 of this Agreement shall survive
the termination or expiration of this Agreement, including but not limited to occurrence
of a Termination Event. Additionally, all accrued but unpaid payment obligations on the
part of the Parties shall survive termination or expiration of this Agreement.
n. Additional Documents. The Parties shall execute and deliver any and all
additional papers, documents and other instruments and shall do any and all further acts
and things reasonable necessary in connection with performance of their obligations
hereunder to carry out the intent of this Agreement.
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o. Entire Agreement. This Agreement represents the entire understanding
of the Parties regarding Hewitt’s employment and supersedes all other agreements, if any,
express or implied, written or oral, regarding Hewitt’s employment with Association.
Notwithstanding the foregoing, Hewitt shall be entitled to be paid any and all exemplary
performance payments earned under the Prior Employment Agreements which may
remain unpaid as of the date of this Agreement. Further, neither Party is relying upon
any representation not expressly contained in this Agreement.
p. Acknowledgment. Association and Hewitt acknowledge that they have
each read and that they understand the foregoing provisions of this Agreement, that such
provisions are reasonable and enforceable and that they agree to abide by this Agreement
and the terms and conditions set forth herein.
IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date
first set forth above.
Witness:
_____________________ ____________________________________PAUL HEWITT
Witness: GEORGIA TECH ATHLETIC ASSOCIATION
______________________ By:_____________________________________ David T. Braine
Director of Athletics
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EXHIBIT “A”
Deferred Incentive Compensation Plan
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