President Todd called attention to the retirement of Eugene Williams listed in PR 2. Mr.
Williams has been at the University about 27 years. He officially announced his retirement from
the University effective June 30, 2004. Even though it is sad to see Mr. Williams leave his post
as Vice President for Information Technology, it is pleasing to see that he has accepted a three-
year post-retirement appointment to continue to oversee the Information Technology functions
and the integration of the IRIS project. The University is just beginning the IRIS project, and
this is a critical stage for the University. IRIS will be a major transformation for the campus, and
the Information Technology side of the business does not need to go backward during this
process.

       President Todd said that Mr. Williams has had a tremendous history with the University,
having served as the Chief Information Officer during a time when information technology has
just gone crazy. He played a key role in building and occupying the W. T. Young Library and
developing the Distance Learning Program. He helped raise the money from CISCO to acquire
some equipment and other things for the James F. Hardymon building as well as for the library.
He was instrumental in developing the university's e-mail systems and developing university-
wide networks for voice, data and video communications. He also helped create the Student
Computing Services group that operates and manages the computer labs for the student
community with well over 1,200 computer seats on campus. President Todd asked the Board to
join him in recognizing a gentleman who has put 27 years of his life into the University and is
going to put in three more years. Mr. Williams received a round of applause.

       Dr. Jones said that he wanted to make one comment for the Board about NIH grant
funding. The pay line unfortunately has dropped in the economy so that some of the faculty are
getting scores back on their grant proposals that are the highest they have ever received, the
highest quality grants that they have done. When the pay line dropped like it did recently to the
15th percentile, the University is in the Top 20 on scores, but it is not seen in the funding. There
are efforts going on by the faculty that are achieving Top 20 quality performance that might not
be visible. He said that he wanted the Board to be apprised of this information.

       President Todd asked Dr. Baldwin if she concurred with Dr. Jones, and she replied that
she did.

       Dr. Baldwin said that NIH is now facing a time of less growth in their budget. That is
going to affect the work of UK's outstanding researchers, and the University must be prepared
for that. She said that she has been working with individual investigators and the NIH to try to
find a way to try to negotiate something. It is going to be a very difficult time for NIH funding,
which is the university's biggest single source of funding.

       President Todd applauded Dr. Baldwin, the faculty, and the staff for the significant
increase in proposal output. This is something that is being tracked on a regular basis now, and
there will be some measures on proposal output. He thanked Dr. Jones for pointing that out.