xt754746qg3p https://exploreuk.uky.edu/dips/xt754746qg3p/data/mets.xml Lexington, Kentucky University of Kentucky 19381420 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1938-14-sep20. text Minutes of the University of Kentucky Board of Trustees, 1938-14-sep20. 1938 2011 true xt754746qg3p section xt754746qg3p

Minutes of the Regular Meeting of the Board of Trustees, Uni-
versity of Kentucky, September 20, 1938.

The regular September meeting of the Board of Trustees, Uni-
versity of Kentucky, was held in the President's Office, Tuesdlay,
September 20, 1938, 10:30 a.m. The members of the Board present
were Judge Richard C. Stoll, Chairman, Executive Committee, who
acted as Chairman of the meeting; Garth Ferguson, Superintendent
of Public Instruction; H. S. Cleveland; R. Miller Holland; Judge
John Cooper; Harper Gatton; Marshall Barnes; James Park and Louis
Hillenmeyer. President F. L. MoVey, Secretary D. H. Peak, and
Dean James H. Graham were present.

1o Approval of Minutes. The minutes of the Board of Trus-
tees of April 5, 1938; the proceedings of the meeting of the Board
of Trustees of June 3, 1938, and the minutes of the called meeting
of the Board of Trustees of August 3, 1938, were approved as pub-
lished and corrected. The minutes of the meetings of the Execu-
tive Committee of April 28, 1938; June 17, 1938; the called meet-
ing of June 29, 1938; July 20, 1938; July 28, 1938; and August 27,
1938, were approved as published and corrected.

2. President's Quarterly Report,

The President made his regular quarterly report which was ap-
proved and ordered recorded. It is copied as follows:

QUARTERLY REPORT OF THE PRESIDENT
TO THE BOARD OF TRUSTEES

September 21, 1938

Gentlemen:

Enrollment

The University of Kentucky enters upon its seventy-
fourth year of service to the people of the State with
an increase of students in attendance. The Registrar
reports 3621 students enrolled for the first semester of
1938-39. This is something of a growth over last year,
but it may be expected that there will be a continued
enlargement of the student body at the University of
Kentucky.

The enrollment for the first semester of last year
was 3550, and the enrollment for the second semester
was 3540; the enrollment for the entire year including

both semesters and the suminier session was 5741. All
duplicates have been excluded in this statement, It
has been the custom of some schools to add to the en-
rollment figures the student enrollment in the practice
schools as well as correspondence students. If this
were done the total enrollment would run beyond 7000.

The Building Program

The University has completed the building program
of 1936 and is now entering upon a new one. In the
one just finished were included buildings for the En-
gineering College, an addition to the Experiment Station
Building, a building for the College of Law, a Student
Union building, and a heating plant. These projects
are practically completed and the buildings are now
coming into use. The second building program involves
a new P. W. A. grant and the issuance of bonds for the
money which the University must supply. It was started
with the purpose of finishing the Biological Sciences
Building, erecting a Home Economics Building and a women's
dormitory. There may be added to this second program
a cooperative house. Bids have been called for on the
Biological Sciences Building and a woments residence
hall, and they will be presented at this meeting for
your approval.

It is natural that the Board of Trustees should
keep in mind the obligations which the University has
assumed in developing these two building programs. Under
the first one bonds in the sum of 8634,000 were issued
and under the second one the sum of *3l6,000, making a
total of $950,000 in obligations. The University also
owes 340,000 on the warehouse purchase made some six
years ago. The obligation on the Men's Residence Halls
is not included in the bond issue provided for the second
building program. The University, therefore, owes an
aggregate of 8990,000. The highest rate of interest
now paid is 5% upon the warehouse, the rest is upon a
3f% basis. The plans to take care of these obligations
have been carefully developed, and there is no reason
to feel that the University will not be able to carry
them in a satisfactory way.

Additional .

To say that these two building programs will meet
the needs of the University in the matter of construction
is to overlook the need for a number of other buildings.
From time to time I shall point out the needs of the Uni-
versity for additions to laboratory, library and teaching
facilities over what it possesses at the oresent time.
For instance, I can see the need in the near future for
a building to house the College of Commerce; some provision

for laboratories and recitation rooms for the depart-
ment of Psychology, Art and Music, an armory, a gym-
nasium and additional residence halls. Too much
emphasis, however, can be placed upon the material
side of a University, and the interest of adminis-
trators and the Board of Trustees may be largely given
over to the material side.

Graduate Work

The University of Kentucky has really reached a new
point in its history, and demands for graduate work ne-
cessitate the addition of staff members. This addition
ought to be made after careful study of the situation,
and it is my feeling that the University should try to
add to the staff men and women of the highest scholar-
ship and standing in their fields. There are several
fields of knowledge that the University is not touch-
ing in a large enough way, and these fields ought to be
covered, and if provision is made for them, persons of
real ability and standing should be called to the posi-
tions added to ineet these needs.

One of the encouraging things that has happened
is the grant made by General Education Board to study
the work in the field of marketing and rural life and
the economic problems of agriculture. This grant of
the General Education Board has made it possible to
add several persons to the staff in the fields mentioned
and to provide fellowships and-scholarships for a number
of promising students. This grant is for a period of
four years. The hope is that something really worth-
while may be done at the University during this nroba-
tionary period and put such strength in these fields
that it will be a graduate center in this Dart of
the country.

What has been done in the field of agriculture ought
to be done in other fields, and my hone is that some
means may be found whereby the work in the graduate field
may be strengthened. In saying thisT do not mean to
reflect upon the graduate work done in the past, for the
most part it has been of a very high order, but raen
should be added whose whole time would be given to grad-
uate work.

W. P. A. Work on the Campus

During the summer many improvements have been made
in roads and walks on the campus through the use of WPA
labor and Government funds. These improvements have
given to the University campus an appearance it has never
had in the past. Well-made cement walks and re-surfaced
roads have added to the general effect. Likewise,

buildings have been painted, the University furnishing
the materials and the WPA the labor. Taken all in all
the campus looks better than it ever has. There are
still many other things to be done. The old gymnasium
needs to be redecorated and some repairs made upor. the
interior of the building. It will also be necessary
to paint Neville Hall when that building is given up
by the Department of Hygiene and Public Health and
the University Dispensary,

The building formerly occupied by the College of
Law will be given over to the Department of Hygiene and
the Dispensary, and should be ready this fall.

Members of the Board may recall that attention was
directed to educational films to be used by the Depart-
ment of University Extension in connection with the work
in high schools. This matter has been under consid-
eration for a long time, and progress in the State is
being held up waiting the decision of the University
regarding projectors and film material. An appropria-
tion was made by the Board to purchase films and some
of the machines, and it is expected that these will go
into circulation and use during this fall. The amount
of such work to be done is limited only by the amount
of money that can be devoted to it. Its usefulness
is without question.

A week before the meeting of this Board one of
the members, the Honorable Robert G. Gordon, died Sep-
tember 12. Those who have known Mr. Gordon through
the years can appreciate the loss to the work of this
Board, as well as to the University. He had been a
member of the Board since 1916 and served continuously
since then. His keen legal mind proved helpful again
and again in solving the problems of the University.
He was interested in its welfare and gave liberally
of his time and ability whenever called upon to do so.
The University has lost a valuable friend.

For fifty-five years Professor Merry L. Pence served
the University of Kentucky. He died September 14 at
the age of 84. He was appointed a member of the staff
in 1883, a year after the erection of the building in
which this meeting is held, He served the University
in many capacities, and brought to that service a keen
mind and effective teaching. His life was immersed
in the University. During the last six years he worked
on a history of the University, collecting a great deal
of material, which is now deposited in. the office of the
President. In his death the University lost a valuable
teacher and a loyal alumnus.

3. Financial Report.

The Business Agent filed the June financial report, which
is the annual report for year 1937-38. It was examined and or-
dered recorded in the minutes. The report reads as follows:

Statement of Income and Expenditures
Month of June 1938

Previously
Reported

Current
Month

Fiscal
Year
to Date

General Fund Incomq ril N1r
Federal Appropria fon 4l,10. 00
Vocational Ed. Board 29,895.37
State Appro.-Sum.Sch. 8,000.00
Special Agr. Appro. 22,000.00
State Appro.-General 612,182.15
Int. on Peabody Endow. 1,000.00
Int. on Endowment Bonds 8,644.50
State Appro.-Repairs
to Bldgs. 7,981.73
Federal Appro.-Bank-
head-Jones 35,325.47
Student Fees 263,726.34
Student Fees - Sum.
Sch. 62,454.40
Student Fees - UHS 10,710.00
Student Fees El.Tr.Sch.8,250.00
Student Fees - Un.Ext. 14,947.78
Miscellaneous Receipts 9,259.81
Rentals 2,028.00
Men's Dormitories 18,839.26
Total 1.158,054.81

Expenditures
Instruction
Adm.,Expense & Maint.
Additions and Better.
Total
Fxcess of Expenditure
over Income

Patterson Hall Income
Board
Misc. Receipts
Room Rent - Sum. Sch.
Total

5,345.03

2,000.00
54,549.17
450.00

18.27

42,750.00
35,240.40
8,000.00
24,000.00
666,731.32
1,450,00
8,644.50

8,000.00

35,325.47
6,415.23 270,141.57

211.00
360.00
60.00
1, 520.47
1,084.01
186.00
1,867.75

62,665.40
11,070.00
8,310.00
16,468.25
10,343.82
2,214.00
20,767.01

74,066.93 1.232.121.74

829,142.10 95,709.18 924,851.28
286,749.03 32,788.26 319,537.29
,_ 24,423.&S __ 2,150.13 26,573.69
1,140,314.69 130.647.57 1,270,962,26
~s
17,740.12 5 (381840.52)

61,458.48 1,039.45 62,497.93
72.77 10.65 83.42
1,932.56 2,313.00 4,245.56
63,463,81 3,363.10 66,826L91

Expenditures
Expense 40,636.86
Additions and Betterments 20.40
Total 40X657.26
Excess of Inc. over Expend 22,806.55

General Fund Income 1,221,518.62
General Fund Expenditures 1,180,91.95_
Excess of General Fund
Expend, over Income 40,546.67
Excess of Receipts over
Expend. for General
Ledger accounts (29,262.85)
Accounts payable (19,802.19)
Excess of Expenditures over
Receic)ts for the fiscal
year to date-General
Fund (8,518.37)
Excess of expenditures over
Receipts for the fiscal
year to date-General Fund
Cash in Bank July 1, 1937-
General Fund
Cash in Bank June 30, 1938 -
General Fund

7,246.78
133.04
7J384. 82
(4,021.2

77,430.03
138,032. 39

(60,602.36)

51,916.23
9,844 89

47,883.64
153.44
48,042,08
18,784.83

1,298,248.65
1)319,004.34

(20,055.69)

22,653.38
(9,957.30)

1158. 76 (7,359.61)

(7,359.61)

89,788.13

82E 8. 52

Experiment Station Income
Hatch-Federal Appropriation
Milk and Butter -Cash Rec.
Beef Cattle Sales
Dairy Cattle Sales
Sheep Sales
Swine Sales
Poultry Sales
Farm Produce Sales
Horticultural Sales
Seed Test
Seed Inspection
Rentals
Miscellaneous
Fertilizer Fees
Public Service - St. Appro.
Public Service - Misc.Rec.
Feeding Stuffs - Fees
Adams - Fed. ADTpro.
Serum - Sales
Serum - Virus Sales
Serum - Supply Sales
Serum - Misc. Sales
State ApDro.
Creamery-License Fees
Creamery - Testers Lic.

15,000.00
9,870.30
450.95
1,445.57
897.71
1,451.20
1,556.94
2,827.74
1,063.02
1,378.97
28,842.67
5,366.37
385.77
61,999.75
19,186.06
106.00
51,893.20
15,000.00
2,713.93
129.12
112. 54
77.41
43,567.27
8,808.50
3,355.40

1,122.97
18.00
90.86

69.19
201.72
3.08
135. 39
21.25
623.15
94. 67
40.90
2,437.50
1,813.94

4,115.68

271. 52
13.95
10.80

4,432.73
406.50
784.00

15,000.00
10,993.27
468.95
1,536.43
897.71
1,520.39
1,758.66
2,830.82
1,198.41
1,400.22
29,465.82
5,461.04
426.67
64,437.25
21,000.00
106.00
56,008.88
15,000.00
2,985.45
143.07
123.34
77.41
48,000.00
9,215.00
4,169.40

Creamery - Glassware Tested 809.22
Robinson - State Appro. 11,736.35
Robinson - Misc.Receipts 3,086.76
West Ky. - State Appro. 12,539.14
West Ky. - Misc, Receipts 11,241.94
Purnell - Fed. Appro. 60,000.00
Bankhead-Jones - Fed. Annro. 59,203.53
Nursery Inspection - St.Appro. 1,980.00
Nursery Inspection-Fees 2,180.00
Total 440,293.33

85.64 894.86
2,263.65 14,000.00
233.19 3,319.95
1,460.86 14,000.00
'E2.03 11,595.97
60,000.00
59,203.53
716.35 2,696.35
45.00 2,225.00
21,864.52 462,157.85

Expenditures
Expense
Additions and Betterments

358,922.06
20,828.92

Total 379.750.9
Excess of Income over Ex-
penditures 60,542.3~
Excess of Expenditures over
Receipts for General Ledger
accounts (5,200.5
Accounts Payable (11,535.2
Excess of Receipts over Ex-
penditures 43,806.5
Excess of Receipts over Ex-
penditures for the fiscal
year to date - Experiment
Station
Cash in Bank July 1, 1937-
Experiment Station
Cash in Bank June 30,1938-Exp. Station

B8)

70,819.42 429,741.48
3,709.01 24,537.93:,.
74,528.43 454,279.41

(52,663.91) 7,878.44

4,639.37 (561.2I-)
9,265.32 (2,269.93)

(38.759.22)

5,047.30

26,472 4 45
31,519.75

Extension Division Income
Federal Bankhead-Jones
Federal Smith-Lever
Federal Supplementary
Federal Capper-Ketcham
State Smith-Lever
County and Other
Total

Expenditures
Expense

Excess of Income over Ex-
penditure s

Excess of Expenditures over
ceipts for General Ledger
accounts

Excess of Receipts over Ex-
penditures

366,730.49
148,308.32
26,545.52
36,800.98
109,408.19
20,119.46

10,X9]
22.

366,730.49
.44 148,308.76
26,545.52
36,800.98
..81 120,000,00
2.83 20,342.29

_07,912Q.96 10,815,08 78,07.04

5641,131.80 77,579 69 718,711 49

66,781.16 (66,764.61) 16.55

Re-

_ -__ _ - 44)(.44)

66 7Bl 16 (66 765,P5) 61
-- I a 1 .l

Excess of Receipts over Ex-
pernditures for the fiscal
year to date - Extension
Division
Cash in Bank July 1, 1937 - Ex-
tension Division
Cash in Bank June 30, 1938-Exten-
sion Division

Trust Fund Income
Student Loan Fund
Student Notes Paid
Total Receipts

Expenditures
Expense
Student Notes
General Ledger accounts
Total Expend.

Excess of Receipts over
Expenditures

2,337.86
'2,996.39
5,334.25

38.50
440.00
400.00
878;.50

4.455.75

Excess of Receipts over Ex-
penditures for the fiscal
year to date - Trust Fund
Cash in Bank July 1, 1937 -
Trust Fund
Cash in Bank June 30, 1938 -
Trust Fund

Summary
General Fund Income
Experiment Station Income
Extension Division Income
Trust Fund Income
Total

General Fund Expend.
Experiment Station Expend,
Extension Div. Expend.
Trust Fund Expenditures
Total

1,221,518.62
440,293.33
707,912.96
2X337.86
2,372,062.77

1,180,971.95
379,750.98
641,131.80
38.50
_ 2, 201,893_, 23

77,430.03
21,864.52
10,815.08
171.44
1 1 0 8 1 0 7. .
110,281.07

138,032.39
74,528.43
77,579.69

290.140.51

1,298,948.65
462,157.85
718,728.04
2,509.30
2,482.343.84

1,319,004.34
454,279.41
718,711.49
38.50
2.492.033.74

Excess of Expenditures over
Inc orne

Accounts Payable

Excess of Receirnts over Ex-
penditures for General
Ledg~er accounts

170,169.54 (179,859.44)

(31,337.44) 19,110.21

(9,689.90)

(34,863,43) 56,555.16

16.11

'2,672.00

2,509.30
3,679.84
6,189,14

171.44
683.45
854.89

38.50
440.00
400.00
878. 50

854.89

51310.64

5,310.64

4.267. 53

9,578.17

21,691,73

Student Loan Fund Notes

Excess of Receints over
Denditures for the fisc
year to date-Combined
Fund

106,525.06 (103510.62)

Excess of Receipts over Ex-
penditures for the fiscal
year to date-Combined Fund
Cash in Bank and on hand July
1, 1937-Combined Fund
Cash in Bank and on hand June 30,
1938-Combined Fund

3,014.44

125,400.11

128,414.55

Abstract of item shown on State-
ment of Income and Expenditures
as "LExcess of Receipts over Ex-
penditures for General Ledger Ac-
courts .21,691.73"

Debit

Accounts Receivable

Sundry accounts

Credit

21,316.00

4,224.27

Funds for reinvestment

4.600.00

4,224.27

25,916.00
4,224.27
21,691.73

4. Requisition Committee Report.

The Requisition Committee filed written report of its action
each week from June 1, 1938, to September 14, 1938. The report
showed orders made by the Business Office on authority of the Requi-
sition Committee in the manner prescribed by the Board of Trustees
and State Laws, running from No. 115 to No. 1881. The report was
examined and, on motion and second, the orders named therein were
ratified and approved and payments on said orders were authorized
and approved.

5. Investment of Peabody Fund.

The Business Agent called attention to the fact that the Pea-
body Fund now on deposit in First National Bank and Trust Company,
Lexington, Ky., has not been invested. He presented lists of

2.556.39

683.45

3.239.84

10.

available bonds for consideration of the Board. After being ad-
vised it was deemed best to invest the fund in U. S. Government
Bonds, the Business Agent was authorized to make investment in
United States Treasury 2j%, 1950/52 bonds.

6. Lease to College Catering Company Ordered Recorded.

The Chairman of the Executive Committee was authorized to
.cknowledge, which he did on this date, the lease to the College
Catering Company, and it was ordered that when the lease should be
acknowledged by the College Catering Company, that it be filed
for record in the Fayette County Kentucky Court Clerk's Office,
Lexington, Ky.

7. Lease to Security Trust Company (Men's Dormitories).

a. Judge Stoll's Resolution.

Chairman Richard C. Stoll reported to the Board that the Se-
curity Trust Company had agreed to cancel the old lease on the Men's
Dormitories and had agreed to execute a new lease and so there was
no necessity to execute action referred to in the resolution adopt-
ed August 1938. He also reported that he had executed a new
lease with the Security Trust Company, which said lease is as fol-
lows:

THIS LEASE, made and entered into this 1st day of
September, A. D. 1938, by and between SECURITY TRUST
COMPANY, a corporation organized under the laws of the
State of Kentucky and having its principal office in the
City of Lexington, Kentucky, party of the first part,
hereinafter called the "Lessor", and the University of
Kentucky, a corporation organized under the laws of the
State of Kentucky and having its Principal office in
the same city of Lexington, party of the second part,
hereinafter called the "Lessee", witnesseth that:

For and in consideration of the rents and covenants
hereinafter stipulated to be paid and performed by the
Lessee, the Lessor does hereby lease, demise and let
unto the Lessee all that certain lot or parcel of land,
together with the buildings and improvements thereon,
situated on the campus of the Lessee, in Lexington, in
the County of Fayette, of the State of Kentucky, and
bounded and described as follows, to-wit:

Beginning at a point in the north curb
of Washington Avenue 235 feet 81 inches from
the intersection of the north curb line of
Washington Avenue and the West curb line of
Rose Street, a new corner to the property of
the University of Kentucky; running thence
with the property of the University of Kentucky

11.

for seven lines: N 44 30 E parallel to Rose
Street and parallel to the front wall of the
new dormitory "C" 214 feet 4 inches to a stake;
thence at right angles S 45 30 E 119 feet to a
stake; thence at right angles N 44 30 E parallel
to Rose Street and parallel to and 10 feet from
the southeast wall of dormitory "B" 63 feet 5
inches to a stake; thence at right angles N 45 30
W parallel to and 10 feet from the northeast wall
of dormitory "3" 120 feet to a stake; thence at
right angles S 44 30 W 34 feet 5 inches to a stake;
thence at right angles N 45 30 W 61 feet 9 inches
to a stake; thence at right angles S 44 30 W
parallel to and 10 feet from the northwest wall
of dormitory "C" 243 feet 4 inches to a point in
the north curb line of Washington Avenue, a new
corner to the proiperty of the University of Ken-
tucky: and thence S 45 30 E 62 feet 9 inches to
the place of beginning; and being the same proper-
ty conveyed to the Lessor by the Lessee by deed
dated the 6th day of December, 1928, and recorded
in the Office of the Clerk of the County Court of
Payette County, Kentucky, in Deed Book 254, page
87:

TO HAVE AND TO HOLD the said demised Dremises, together
with all and singular the rights, privileges and appurtenances
thereunto belonging or in anywise appertaining, unto the Les-
see for and during the term of one year beginning this 1st
day of September, 1938, and ending the 31st day of August,
1939, And the Lessor hereby covenants that it will keep the
Lessee in quiet enjoyment of the said premises during the said
term,

The Lessor hereby covenants that it will keep the build-
ings on the leased premises insured against damage or destruc-
tion by fire, in a sum to be determined by the Lessee, but
to be at all times equal to or greater than the then current
repurchase price, as hereinafter fixed, with loss clauses on
all insurance policies thereon making same payable to the Les-
sor and the Lessee as their respective interests may appear;
and that upon the occurrence of any such damage or destruction
the proceeds of such insurance policies shall, at the option
of the Lessee, either (1) be used for the repair, restoration
or re-building of the pronerty damaged or destroyed,--in which
event the Lessee's liability for rent, and its other liabil-
ities hereunder shall in nowise be affected-; or, (2) be paid
over to the Lessee for use in re-purchasing the leased -rem-
ises (under the option hereinafter granted to the Lessee) irm-
mediately upon the termination of the term that is current
when the insurance money is collected, -in which event the pro-
ceeds of the insurance shall be used by the Lessee, to the
extent necessary, in payment of the re-nurchase price of the
leased nremises, and the balance, If any, of the oroceeds
of the insurance shall be retained by the Lessee as its own

12.

property. But throughout the term hereof the Lessee shall
pay the Lessor on demand, as part of the rental hereunder,
the actual cost to the Lessor of such insurance, together
with interest thereon at the rate of 6% per annum from
the dates of the Lessor's disbursements therefor.

The Lessor hereby grants to the Lessee the right to
e'-tend or renew the term hereof for an additional period of
one (1) year, and also from year to year to extend or
renew each such extended or renewed term for an additional
year, until the term hereof shall have been extended for
a total of twenty (20) years from the 1st day of September,
1939, each such extension being upon the same terms,
covenants and conditions as are herein set forth,--including
especially the option hereinafter granted the Lessee to
re-purchase the demised premises-; provided, moreover, that
unless the Lessee shall give the Lessor written notice
by registered mail addressed to the Lessor at Lexington,
Kentucky, and mailed at least thirty (30) days prior to
the termination of the term hereof, or any extended or
renewed term as the case may be, then the term hereof
shall ipso facto be extended for an additional year,
upon the terms, covenants and conditions herein set forth,
including especially the option hereinafter granted the
Lessee to re-purchase the demised premises.

And, whereas the rental herein reserved is in such
amounts that if paid for the original term hereof and
also for twenty (20) additional extended terms it will
complete the amortization of the cost of the erection of
the buildings and appurtenances upon the leased premises,
the Lessor hereby covenants that if the term hereof shall
have been successively extended or renewed for a total of
twenty (20) years from and after the original one-year
term herein granted, and if the rental herein reserved and
provided for shall have been fully paid for all of such
twenty-one (21) years, and the Lessee shall have complied
with all and singular its obligations hereunder, the Les-
sor will at the end of the twentieth extended term, viz.,
on Septemiiber 1, A.D., 1959, re-convey the demised premises
to the Lessee in fee simple, free of all liens and encum-
brances, except any taxes that may have been levied or
assessed thereon, and with covenant of general warranty
of title.

The Lessor hereby grants to the Lessee the exclusive
right and option to re-purchase the within-demised prem-
ises at the end of the term herein granted or of any ex-
tended or renewed term in the manner and at the price
herein below specified, such price diminishing from year
to year as the amortization of the original investment pro-
gresses, viz.: the times for such repurchase, and the
purchase price at each of such times, respectively, shall
be as follows:

13.

Date

September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,
September 1,

1939
1940
1941
1942
1943
1944
1945
1946
1947 .
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958 .

* . -6..

. 6 0 .

.. . .

Re-Purchase Price

.. . $183,000.
. . .177,000.
. 171,000.
. 165,000.
..... ... 158,000.
. 150,000.
142,000.
* * * * * * * . , 134,000.
. . . . . . . . 126,000.
. 0. . . . . . 118,000.
l.. X.. . . . 109, 000.
*.. . .. . . . 99,000.
* ... . . . . . 89,000.
.. . .. *. . . 79,000.
69,000.
* ... . . . . . 58,000.
.. *.. . . . . 46,000.
.. . . *. . . . 34,000.
.. . . . . . . 22,000.
. . . . . . . . 10,000.

In order to exercise said option to r e-purchase, the
Lessee shall give written notice of its intention, so to
do, by registered mail, addressed to the Lessor at Lexington,
Kentucky, and mailed to the Lessor not less than thirty (30)
days prior tc the termination of the then current term of
the lease, whether original term or extended term, and pay-
ment of the re-purchase price shall be made to the Lessor
on delivery by it of a general warranty deed of re-conveyance
of the premises to the Lessee in fee simple free of all liens
and encumbrances except taxes; and such re-conveyance shall
be made on the 1st day of September next after the mailing
of such notice. The re-purchase price shall be paid to
the Lessor as follows: at least forty percentum (40%) there-
of shall be paid in cash and the balance in not more than
three (3) negotiable promissory notes payable to the order
of the Lessor not later than one (1), two (2) and three (3)
years, respectively, after date, and bearing interest at
the rate of 6% per annum, payable semi-annually, from their
date until paid, and secured by vendor's lien upon the Dron-
erty and by pledge of fire insurance on the improvements
thereon, and with provision made in the deed and in the
notes for the customary precipitation in evelnt of default
for as long as thirty (30) days in respect of payment of
any of such notes or any interest instalment thereon.

For and in consideration of the letting and the cov-
enants and conditions hereinabove expressed on the part of
the Lessor, the Lessee hereby covenants to and with the
Lessor that, during the term hereby created, and during any
and all extensions of same:

1. The Lessee will pay cash rental for the within-
demised premises, in monthly paymLents to be sent by mail
or messenger to the Lessor at Lexington, Kentucky, on

14.

the 1st day of each month for the month current at the time,
the following sums of money for and during the following
periods:

(a) For the term of this lease, viz., from
September 1, 1938, to August 31, 1939, Seventy-
Three Hundred and Twenty Dollars ............. 7320.00
payable in twelve monthly instalments of Six
Hundred and Ten Dollars (.610.00) each;

(b) For the successive extended terms here-
of,-provided, as to each period hereinafter
listed, that the term shall have been extended
to cover such period-, the following rentals
for each successive half-year, each payable,
however, in six equal monthly instalments, viz.:

For the 6 months beginning

Sept. 1, 1939
March 1, 1940
Sept. 1, 1940
March 1, 1941
Sept. 1, 1941
IMiarch 1, 1942
Sept. 1, 1942
March 1, 1943
Sept. 1, 1943
March 1, 1944
Sept. 1, 1944
March 1, 1945
Sept. 1, 1945
March 1, 1946
Sept. 1, 1946
March 1, 1947
Sept. 1, 1947
March 1, 1948
Sept. 1, 1948
March 1, 1949
Sept. 1, 1949
March 1, 1950
Sept. 1, 1950
March 1, 1951
Sept. 1, 1951
March 1, 1952
Sept. 1, 1952
March 1, 1953
Sept. 1, 1953
Mvtarch 1, 1954
Sept. 1, 1954
March 1, 1955
Sept. 1, 1955
March 1, 1956

t6 660.
6600.
6540.
6480.
6420.
6360.