An agreement to end a contract dispute between the University of Hawaii and June Jones is part of a renewed relationship between the school and the former Warriors football coach, people involved in the mediation said.

“;This was done based on mutual respect,”; said mediator Clyde Matsui, who called the agreement unprecedented. “;It ends on a handshake. There will be no release (of liability), no settlement agreement. ... They trust each other.”;

Jones, who coached for nine seasons at UH, left in January six months before his contract expired to become the football coach at Southern Methodist University with a $2 million salary.

Jones' UH employment contract called for him to pay the university about $400,008—half a year's salary—for leaving before the five-year deal ended. University officials demanded the payment, but Jones and his agent, Leigh Steinberg, said former athletic director Herman Frazier told Jones he would not have to pay the money for leaving early.

As part of the agreement announced yesterday, the University of Hawaii Foundation received two donations totaling $200,010 last month.

Jones will also make another unspecified donation next year.

“;There are other nice components to come,”; Matsui said. “;I wish I could talk. ... I gotta clam up, but I'm so happy inside.”;

“;Everyone thought that his (Jones') relationship with UH had ended,”; said John De Fries, a longtime friend of Jones who stepped into the negotiations in September. “;As it turned out, his relationship with UH was changing as opposed to ending. He should have an ongoing relationship with them.”;

The Star-Bulletin reported in August that an agreement had been reached to settle the contract dispute for $200,000.

Matsui and De Fries said the final settlement was hung up, in part, over the details of where the money should go.

In a Sept. 22 letter to Matsui, Jones asked that De Fries be allowed to negotiate for him without lawyers involved.

“;John stepped in and started looking for a more pono way of settling the case, rather than just money,”; Matsui said.

De Fries said he spoke directly to UH President David McClain over several weeks.

“;I understood what was meaningful to June, and as it turned out it was meaningful to the university as well,”; De Fries said.

Another factor that led to the deal was the death in September of Kanalu Young, another friend who helped put together the Hawaiian ha'a ritual that UH players perform before games.

Last month, the June Jones Foundation donated $100,010 to the Na Lei O'iwi Scholarship Fund in memory of Young. The fund supports students pursuing degrees in Hawaiian Studies or Hawaiian Language. An anonymous donor also contributed $100,000 to be used at the discretion of UH-Manoa Chancellor Virginia Hinshaw.

“;The university is pleased to be able to move forward with this matter resolved. June Jones has contributed much to the UH-Manoa football program and our community, and this resolution lays the foundation for our continuing relationship,”; McClain said in a written news release.

“;Our foundation's monetary gift in memory of Dr. Kanalu Young honors the life and legacy of a great Hawaiian man. For me, Kanalu will always be remembered as the 'Warrior Elder of the Ha'a'; UH's pregame ritual that ignites and unifies the spirit of all UH Warriors, on the field and throughout the state of Hawaii,”; Jones said in the news release. “;Hawaii is my home; therefore as I look beyond our past achievements in football, maintaining a healthy relationship with UH and sustaining productive contributions to our island communities will always be important to me. On Christmas Eve, Beat Notre Dame!”;