The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.

The Board of Trustees of the University of South Carolina met on Thursday, April 30, 1998, at 10:45 a.m. in the Gressette Room of Harper College.

Members present were: Mr. William C. Hubbard, Chairman; Dr. C. Edward Floyd, Chairman Emeritus; Mr. Herbert C. Adams; Mr. Arthur S. Bahnmuller; Mr. James Bradley; Mr. Mark W. Buyck, Jr.; Mrs. Helen C. Harvey; Mr. Miles Loadholt; Mr. Michael J. Mungo; Mr. Robert C. Osborne, Jr. Mr. M. Wayne Staton; and Mr. Othniel H. Wienges, Jr. Members absent were: Mr. Mack I. Whittle, Vice Chairman; Mr. Donald A. Bailey; Mr. Samuel R. Foster, II; Mr. William M. Gregg, II; Mr. Toney J. Lister; Mr. Robert N. McLellan; Mr. J. DuPre Miller; and Dr. Barbara S. Nielsen. Student representative Kimberly Dickerson was also present.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Human Resources Jane M. Jameson; Vice President for Development Charles D. Phlegar; General Counsel Walter (Terry) H. Parham; Senior Director, Planned Giving and Legal Liaison with Foundations, Harriette D. Wunder; Director of Development J. Cantey Heath, Jr.; Chief Executive Assistant to the President J. Lyles Glenn; Director of Public Affairs Russell McKinney; representative from Media Relations Jason Snyder; and Mrs. Ann Loadholt.

Chairman Hubbard called the meeting to order and welcomed those present. He then stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the members; and a quorum was present.

Mr. Hubbard said there was a contractual matter regarding a naming opportunity appropriate for Executive Session and called for a motion. Mrs. Harvey moved to enter Executive Session, and Mr. Bradley seconded the motion. The vote was taken, and the motion carried. All those present were invited to remain.

Executive Session

CONTRACTUAL MATTER

Return to Open Session

I. Report of the Academic Affairs and Faculty Liaison Committee: Mrs. Harvey stated that the names of the following candidates for honorary degrees were presented in Executive Session to the Academic Affairs and Faculty Liaison Committee and to this Board without objection. On behalf of the Committee, Mrs. Harvey moved to remove the following names from the table:

Thomas Calderwood Johnstone

Zell Bryan Miller

Steven Woodward Naifeh

Gregory White Smith

James Harvie Wilkinson, III

Mr. Buyck seconded the motion. The vote was taken, and the motion carried.

II. Naming Opportunity: Dr. Palms stated that this naming had been approved by the Gift Naming Opportunities Committee at its meeting of April 13, 1998. The Academic Affairs and Faculty Liaison Committee was briefed about the gift in Executive Session at its meeting of April 14, 1998, and the full Board was briefed in Executive Session at its meeting of April 23, 1998, in Aiken.

An following outline of the $20 million gift commitment, as mailed with the materials for this meeting, follows:

The Robert and Janice McNair Foundation will contribute $20 million to the USC Educational Foundation by permanently allocating a portion of its assets for the benefit of the University of South Carolina. Beginning in 1998, The McNair Foundation will designate $2 million each year for 10 years or until the fair market value of the corpus reaches $20 million, to the McNair Scholars Program Fund in the McNair Foundation. In addition, the McNair Foundation will make gifts from its assets on an annual basis beginning in 1998 to begin funding the McNair Scholars Program immediately.

The assets will remain part of the McNair Foundation until the death of Mr. and Mrs. McNair when the value of the University of South Carolina Educational Foundation's irrevocable share, at its then capital value, will be transferred to the USC Educational Foundation.

The McNair Scholars Program Fund will be used for the McNair Scholarships for entering freshman students who are nonresidents of South Carolina. The number of scholarships and funding will be phased in according to Schedule A which is attached. [Schedule A is maintained in the permanent meeting file maintained by the Office.] Initially, five scholarships will be awarded to freshmen, and the number of new scholars will increase each year by five so that ultimately 20 freshmen annually, for a total of 80 students, will be McNair Scholars. The Scholars will be awarded $12,000 each year, which with tuition abatement, will have a value over four years of some $65,000. The Scholars will be selected according to guidelines adopted by the University on the basis of extraordinary academic achievement (65%) and superlative qualities of leadership, talent and responsibility as well as service to others (35%). In addition, five finalists who are not named McNair Scholars will receive scholarships of $8,000 each year for four years.

The McNair Foundation will provide funding for recruitment activities, including publications, and for an Interview Weekend that will cover travel expenses for the Finalists and one family member.

The McNair Foundation is a private foundation organized under the Internal Revenue Code for the purpose of supporting charitable endeavors. The additions to the McNair Foundation for the benefit of the University of South Carolina will approximately double the assets of the McNair Foundation. The Foundation invests its assets through investment counsel and has projected its returns at a very conservative 10% per annum.

In consideration of the gift commitment, The McNair Scholars Program will be so named, effective immediately upon the approval of the Board of Trustees, so long as the terms and conditions of the Gift Agreement are adhered to in all respects.

Dr. Palms heartily endorsed the proposed gift naming. Mr. Bradley moved to accept the proposed contribution from the Robert and Janice McNair Foundation and to name the Program and the Scholars selected "The McNair Scholars" under the terms and conditions of the proposed gift agreement. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

Mr. Bradley said he was impressed with the work schedule of the personnel from the Development Office.

Chairman Hubbard asked that the minutes reflect the deep appreciation of the Board of Trustees for the generosity of Robert and Janice McNair and for the opportunity that their generosity will create for the students of the University of South Carolina and the progress of the University.

Mr. Mungo moved that a Resolution be sent to the McNairs, signed by the Chairman, expressing the Board's gratitude for their gift. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

There being no further business for the Board, the Chairman declared the meeting adjourned at 11:20 a.m.

Respectfully submitted,

Thomas L. Stepp

Secretary