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      Ms. Smith Edge suggested that it might be advantageous for the Board to receive a
management review statement from President Todd prior to the evaluation process next year.
She explained that it was more of a system comment rather than the individual evaluation
comment.

      E.    Discussion Regarding Consideration of Bonus for President Lee T. Todd, Jr.

      Mr. Reed said that the next item on the agenda is the discussion regarding consideration
of a bonus for President Todd. He gave some background information about the bonus and
reminded the Board that the bonus criteria had been discussed in the past. President Todd's
contract calls for him to be eligible for a bonus consideration up to $100,000 annually. Some of
the things the Board was to look at in considering this bonus were the ability of the president to
rise above the expected in times of crisis and raise the level of the university to another level by
doing innovative things, the overall picture of what the President is doing to raise the well-being
of the university.

      Mr. Reed said that the evaluation and bonus are interrelated. Much of what was
discussed in the overall evaluation somehow directly or indirectly relates to what effects the
criteria for the bonus consideration. He welcomed any comments regarding the bonus.

      Mr. Reed explained that the Executive Committee would need to make a
recommendation for the bonus to the Board and entertained a motion for approval of
a $100,000 bonus for President Todd.

      Ms. Wickliffe said based upon the comments that had been expressed at the meeting and
the comments that had been made to her, she would recommend that the Board grant the
president the bonus for this year. Mr. Hardymon seconded her motion, and it carried without
dissent.

      Mr. Harydmon said that the record should show that the Executive Committee voted with
one member not present at the time the vote was taken.

      Mr. Reed asked Peggy Way to note that for the record.

      Mr. Reed said that some would ask how the university can afford to pay the president a
$100,000 bonus in these tough budget times with tuition increases and the economy as it is. In
fairness to President Todd, his contract does not call for a bonus provided the economy is great.
It calls for the president to be eligible for and to be considered for a bonus based on his
performance. Everyone should be mindful that the president's salary, when relative to that of
many other institutions, is not as high as many of UK's benchmark institutions. People need to
be cognizant of that when they question this commitment of resources to the president.

      He said that it is important when you look at the things a president can bring to the table
and how much a president can single handedly move a university forward and inspire the
Commonwealth and the public. The president travels around the state inspiring the citizenry
about the university.