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       President Wethington announced that he would be combining the Strategic Plan Progress
Report with the budget presentation, and he would make that presentation at the end of the
Finance Committee Report.

       M.    Finance Committee Report

       Mr. Chellgren, Chairperson of the Finance Committee, asked to make one modification
in the agenda for the Finance Committee. He moved FCR 12, the acceptance of a gift from
Douglas J. Von Allmen, to the first action item.

      N.    Douglas J. Von Allmen Gift and Pledge (FCR 12)

      Mr. Chellgren informed the Board that Mr. Von Allmen is from Louisville, Kentucky and
graduated from the University of Kentucky in 1965 with a degree in accounting. Mr. Von
Allmen is chairman of Group One Capital and lives in Fort Lauderdale, Florida. His gift is
contingent on the University's receiving matching funds from the state's Research Challenge
Trust Fund and will be paid over the next five years by the end of December, 2004.

      Mr. Von Allmen is giving a gift of $700,000 and a pledge of some $6,300,000 to
establish and endow two endowment funds in the Carol Martin Gatton College of Business and
Economics. One fund of $5,000,000 will benefit the School of Accountancy. The second fund
of $2,000,000 will establish and support the Center for Entrepreneurship and E-Commerce.

      The $5,000,000 endowment for the School of Accountancy will establish a $2,000,000
endowed chair, establish a $2,000,000 fund to support faculty research and provide a $1,000,000
fund for graduate fellowships. The $2,000,000 endowment for the Center for Entrepreneurship
and E-Commerce will provide funds to support research programs; activities related to the
commercialization of the University's research, and support research laboratories. Mr. Von
Allmen has requested that special consideration be given to supporting research projects that
have a potential for enhancing the economic development of the Commonwealth of Kentucky.
Mr. Chellgren moved adoption of FCR 12. The motion, seconded by Mr. Bates, carried. (See
FCR 12 at the end of the Minutes.)

      President Wethington asked that Doug and Linda Von Allmen stand and be recognized
along with their children. Mr. Von Allmen introduced his children, Julie Von Allmen Steurer,
Laura Kretschmar, David Von Allmen and Dean Kretschmar. Mr. Von Allmen stated that when
he went to the University of Kentucky he received a lot of help in grants from the University of
Kentucky, and to a very great extent the life he now enjoys is the direct result of the education he
received at the University. He continued to say that he felt that he owed the University and that
the University has still given him far more than he has given it. The Von Allmen family
received a round of applause and a standing ovation.

      President Wethington commented that it is his intention to recommend to the Board at the
next meeting that the School of Accountancy and the Center on Entrepreneurship and E-
Commerce be named for Mr. Douglas Von Allmen. He thanked Mr. And Mrs. Von Allmen for
their most generous contribution.