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       2. The Graduate School will be starting a new program this fall designed to attract high
          quality graduate students to the University. New non-resident graduate students will
          now be eligible for tuition scholarships based on their prior academic performance.
          The Graduate School's Graduate Incentive Free Tuition (GIFT) program is underway
          and has been very successful. There are currently more than 400 students enrolled in
          the program.

       3. Lexington Community College recently opened its South Campus on Regency Road,
          a campus formerly occupied by Sullivan University.

       4. The Gill Heart Institute is the first in Kentucky to offer a new treatment to help
          prevent the arteries from re-clogging. This procedure involves radiation to open
          arteries that have re-narrowed after angioplasty.

       5. The Cooperative Extension Service has organized agriculture development boards in
          all 120 counties to administer $50 million in grants from part of the tobacco
          settlement for the Commonwealth of Kentucky.

       President Wethington asked the members to read the other items in the report at their

       He said he would like to change the order on the agenda and come back to PR 1 A and PR
lB later.

       E.    Personnel Actions (PR 2)

       President Wethington recommended that approval be given to the appointments, actions
and/or other staff changes which require Board action; and that the report relative to
appointments and/or changes already approved by the administration be accepted. Ms. Wilson
moved approval. The motion, seconded by Mr. Glenn, carried. (See PR 2 at the end of the

      Mr. Guthrie noted that Joe Burch's name was among the list of early retirees. He
commented that Mr. Burch has been at the University for 37 years. He has held many positions
and has provided great service to three presidents. He expressed his appreciation to Mr. Burch
for his service and dedication to the University and wished him well in the future. He said the
Board and the University owe Mr. Burch extraordinary congratulations.

      Mr. Burch received a round of applause from the Board members.

      President Wethington said that Mr. Guthrie's words are certainly well deserved by Mr.
Burch. He added that upon retirement, Mr. Burch would be working on a part-time basis for the
Alumni Association for two years. He expressed his appreciation to Mr. Burch for his service.

      F.    Proposed Amendment to the Governing Regulations (PR 3A)

      President Wethington stated that PR 3A is the proposed change in the Governing
Regulations that was presented to the Board at the last meeting. It is on the agenda for final