Gifts made to the Board of Trustees of the Leland Stanford Junior University ("the Board"), an educational institution, for this purpose may, for investment purposes, be merged with any of the general investment assets of Stanford University, but they shall be entered in the University's books and records as an endowed fund known as The Kailath Lectures and Colloquia Fund ("the Fund") in the Department of Electrical Engineering in the School of Engineering. The Board shall spend so much of the Fund income and appreciation as it shall determine reasonable first for an annual lecture at Stanford University to be known as "The Kailath Lecture", and then for academic activities in the general area of mathematical engineering, including, but not limited to, support for colloquia, specialized workshops and other research-enhancing activities.

If, in the judgment of the Board, changed circumstances should at some future time render the designated use of the Fund no longer appropriate, then the Board shall use so much of the Fund income and appreciation as it shall determine reasonable to further the objects and purposes of Stanford University, giving consideration to the special interest set forth above.