North Dakota University System Interim Chancellor Contract

This employment agreement is entered into on September 25, 2013 by and between the State Board of Higher Education (SBHE) of North Dakota and Dr. Larry C. Skogen, who is hereby appointed Interim Chancellor of the North Dakota University System. The appointment is subject to all applicable SBHE policies except to the extent they conflict with this Agreement. In the event of a conflict, the terms of this Agreement supersede any conflicting policy provision. 1. Term The term of this Agreement will commence after the appointment of an interim president for Bismarck State College by the SBHE and no later than November 1, 2013. The Agreement will terminate on June 30, 2015. 2. Return to Presidency of Bismarck State College The Interim Chancellor will not be considered as a candidate for the permanent Chancellor position. Upon the completion of the Interim Chancellor term, the Interim Chancellor will return to his previous position as President of Bismarck State College His salary and benefits at that time will revert to the salary and benefits set forth in his Presidents Contract dated _______ plus a salary increase to be negotiated with the SBHE or its appointed representative. 3. Powers, Duties, and Responsibilities The Interim Chancellor is accountable to the SBHE, which establishes the priorities and strategic plan for the North Dakota University System. The Interim Chancellors job duties and responsibilities are those established by law and SBHE policy or otherwise defined by the SBHE. While working for the NDUS, the Interim Chancellor agrees to devote his attention to the position and tasks at hand. He will not engage in any employment outside the scope of his role as Interim Chancellor. 4. Compensation The Interim Chancellor will receive an annual salary of $291,000, subject to payroll deductions and payable twice monthly, plus the benefits set forth for a nonbanded employee in SBHE policy and North Dakota state law. These benefits include, but are not limited to, annual and sick leave, participation in the state employee health plan and retirement plan contributions. The Interim Chancellor will also receive a $11,000 for a vehicle allowance. Nothing in this Agreement shall prohibit the SBHE from granting a salary increase after the first twelve (12) months of the Interim Chancellors tenure upon outstanding performance by him during that time.

In addition, the Interim Chancellor will receive reimbursement for appropriate travel expenses related to his representation of the North Dakota University System, as allowed under North Dakota law and SBHE policy. All expense reimbursement requests will be subject to approval by the SBHE President or Vice President. 5. Goals and Performance Reviews The Interim Chancellor will prepare five proposed goals for the first twelve (12) months of his tenure and will present them to the SBHE at its meeting on November 21, 2013. The SBHE may amend or accept the proposed goals. The SBHE-approved goals will form the basis of the SBHEs reviews of the Interim Chancellor. In order to ensure ongoing communication between the Interim Chancellor and the SBHE concerning the Interim Chancellors goals and job responsibilities as well as achieve a mutual understanding between the parties concerning the accomplishments of such objectives and responsibilities, the Interim Chancellor shall prepare progress reports on a quarterly basis for review and evaluation by the SBHE. These reports will review the Interim Chancellors progress toward achievement of his SBHE-approved goals. The SBHE will review and provide feedback on these progress reports to the Interim Chancellor. 6. Sabbatical The duration of Interim Chancellors appointment will count toward his sabbatical within the North Dakota University System. 7. Termination of Contract This agreement may be terminated under the following conditions: A. Upon Interim Chancellors Decision to Terminate Contract The Interim Chancellor may terminate this Agreement upon thirty (90) days written notice. If the Interim Chancellor so terminates this Agreement, he will be paid all salary and benefits up to the date of termination but will not be entitled to any other payment or compensation. B. Without Cause The SBHE may terminate this Agreement without cause upon ninety (90) days written notice. C. For Cause The Board may dismiss the Interim Chancellor for cause following written notice of its intent to do so and an opportunity for an evidentiary hearing.

8. Integration Clause The agreement contains the entire agreement and understanding between the parties. There are no oral understandings, terms, or conditions, and neither party has relied upon any representations, express or implied, not contained in this agreement.

IN WITNESS WHEREOF, the parties have executed this agreement as of the day and year indicated below. BY: _______________________________________ Chair, North Dakota State Board of Higher Education _____________________________________ Secretary, North Dakota State Board of Higher Education BY: ______________________________________ Dr. Larry C. Skogen Dated: ____________

Dated: ____________

Dated: _____________