3 -



      City Initiates First Employer-assisted Housing Program - President Todd reported the
      administration's interest in making money available to help subsidize mortgages for
      faculty and staff who would locate in the college-town area. The University will provide
      up to $15,000 for faculty and staff, and they can lock in mortgage rates with a Fannie
      Mae loan.

      Fannie Mae, Samaritan Hospital, and Lexington-Fayette Urban County Government
      representatives attended the recent press conference. The Samaritan Hospital and the
      City have similar programs.

      President Todd reminded the Board of UK retiree, Dick Barbella, who won the lottery
      and contributed $1M to an endowment that allowed the President of the University to use
      at his discretion. The University will be using the proceeds from this endowment to help
      provide these mortgages.

      President Todd Presents First Annual Awards for Diversity - President Todd reported
      that the First Annual Awards for Diversity was a recommendation from the Commission
      on Diversity. The reception to announce the awards was very well received and nearly
      300 people attended the event at the Boone Center. Outstanding winners were Joseph
      Lambert, Chief Justice of the Kentucky Supreme Court, and Joseph Kelly, Executive
      Vice President and Chief Operating Officer of Columbia Gas of Kentucky. Both
      gentlemen have done some great things. Don Witt, UK Director of Undergraduate
      Admission and University Registrar, and Lauretta Byars, UK Associate Provost for
      Multicultural and Academic Affairs, were also among the recipients as well as others
      listed in PR 1.

      Gatton College Partners with Greek University to Offer MBA in Athens - President Todd
      reported that the Gatton College is partnering with a Greek University to offer a MBA in
      Athens. He said that he would probably be able to announce that UK is partnering with a
      university in China very soon. This partnership is something that Dean Devanathan
      Sudharshan has promoted. SACS commented that this type of program change is one of
      the best-prepared significant changes that they have seen offered. President Todd
      congratulated Provost Nietzel on moving quickly with the program. UK has to get more
      international programs, and this is a great step in that direction.

      President Todd said that concluded his report. He noted that PR 2 was on the consent
agenda and said that a decision had been made to table PR 3 until a later date.

      E.    Doctor of Philosophy Degree in Theatre Practice (AACR 1)

      Alice Sparks, Chair of the Academic Affairs Committee, reported that the Committee met
that morning, and there were three items to recommend to the Board. The first item is the
establishment of a Doctor of Philosophy Degree in Theatre Practice. The Dean, the Department
Head and Provost were at the meeting and explained the recommendation in great detail. They
talked about what the degree would mean to the University and said that UK would be the first