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various Boards. These are just names to the Board members, and the Board would like to have
some background information on these appointments in the future.

      President Todd said it was a good suggestion, and it would be done for future
appointments.

      H.    Establishment of the Baxter Healthcare Chair in Engineering (PR 6)

      President Todd said that PR 6 recommends that the Board authorize the establishment of
the Baxter Healthcare Chair in Engineering in the College of Engineering. Over the past five
years, Baxter Healthcare has provided in excess of $650,000 in support of research initiatives in
the College, and the College felt that it would be nice to name a position for them. The selection
of the recipient will be under the rules of the College of Engineering.

      Dr. Jones asked if the selection of the recipient would be governed by the rules of the
College or the administrative rules (dean's rules process or faculty rules process).

      Provost Nietzel said he presumed it had been through the Faculty Council, and it would
be the rules of the College of Engineering in the selection of endowed chairs and professorships.

      On motion made by Ms. Sims, seconded by Dr. Jones and carried, PR 6 was carried
without dissent. (See PR 6 at the end of the Minutes.)

      I.    Establishment of a 401(a) Retirement Plan (PR 7)

      President Todd said that PR 7 is a recommendation that the Board approve the
establishment of a 401 (a) retirement plan effective January 1, 2004, for regular full-time
employees who have exceeded the Internal Revenue Service limits allowed for retirement
contributions available under the University's 403(b) retirement plan. He provided an
explanation and said that this will extend the opportunity for employees with a 401 to be able to
defer that income in a retirement plan as well. Ms. Wilson moved approval.

      Ms. May asked how many people does this impact and is there any additional cost to the
University.

      Mr. Siemer replied that there were about 90 people impacted, and there is no cost to the
University.

      Ms. Wilson's motion, seconded by Ms. Smith Edge, carried without dissent. (See PR 7 at
the end of the Minutes.)

      J.     Proposed University of Kentucky Ethical Principles and Code of Conduct (PR 8)

      President Todd reminded the Board that they had previously seen the Ethical Principles
and Code of Conduct that had been circulated. He noted that there was some input from some of
the Board members. He pointed out that Dr. Phyllis Nash had overseen the committee to prepare