O'Brien's base pay will be $1,137,096 in the year that begins July 1, 2014, and $1,650,994 the next year. A 5 percent hike for July 1, 2016 would boost his base to $1,733,544. O'Brien signed a five-year contract on Jan. 6, 2012.
Another new provision covers O'Brien's buyout if he is to take another job.
If O'Brien takes an NFL position, he would have to pay back just his base salary for each year over the remainder of the contract.
However, if he were to go to another college, he would have to pay an additional $1.35 million - $1 million for radio, TV, and public appearances and $350,000 for the shoe and apparel deal with Nike - for every year of the contract.
The amendments to the original contract also address the sanctions that the NCAA imposed last July, especially the performance incentives that O'Brien was to receive for leading Penn State to the Big Ten championship game, a bowl, or the BCS championship game - all of which are not available to the Nittany Lions through 2016.
The new plan allows Penn State to pay O'Brien up to $200,000 annually in incentives that it estimates he would have earned without sanctions based on the Nittany Lions' record as compared to other Big Ten teams.
O'Brien also will have increased use of Penn State's aircraft for recruiting or other university business He will have use of the jet for 85 hours a year for business and 35 hours for personal use.
The new deal also calls for O'Brien to receive a retrofitted van to accommodate his special-needs son, Jack, who has a brain disorder, lissencephaly.
Contact Joe Juliano at email@example.com. Follow on Twitter @JoeJulesInq.