Repository: UIHistories Project: Board of Trustees Minutes - 1900 [PAGE 269]

EXTRACTED TEXT FROM PAGE:

1900.]

PROCEEDINGS OF THE BOARD OF TRUSTEES.

249

and belonging to said party of the first part is two hundred and seventeen thousand ($217,000.00) dollars, and that said sum is agreed upon as the price at which the same shall be purchased by the said party of the second part as hereinafter provided. 7. It is hereby further agreed by and between the parties hereto that the term "net earnings" used in this instrument shall mean all that sum remaining of the gross earnings of the College of Medicine for any year after the payment of all current expenses including all sums herein named as contingent rental payable to the College of Physicians and Surgeons. 8. It is further agreed between the parties hereto that the net earnings of the College of Medicine shall belong to the College of Physicians and Surgeons and the University of Illinois, and shall be divided semi-annually as follows, to-wit: On the fifteenth day of November and the fifteenth day of May of each year, not including May of the first year, and on the thirtieth day of April in the final year of this lease, the Business Manager of the University of Illinois and the Actuary of the College of Medicine shall determine the net earnings for the then current or expiring year and two-thirds of said net earnings shall be paid to the Treasurer of the College of Physicians and Surgeons and one-third shall remain in the hands of the Treasurer of the University of Illinois, as in the paragraph next below agreed. Provided, however, that on the fifteenth day of November of each year, only so much of said net earnings shall be divided as the Business Manager of the University of Illinois and the Actuary of the College of Medicine shall decide may not be needed to meet the estimated current expenses of the College of Medicine for the succeeding six months. 9. It is further agreed by and between the parties hereto, that the Univer" sity of Illinois shall set apart that portion of the net earnings of the College of Medicine belonging to the University of Illinois under the division aforesaid in a distinct and separate fund called the Medical College Purchase and Endowment Fund, and that the University of Illinois shall keep the moneys of said fund, including the annual interest thereon continually invested in interest bearing securities till the completion of the life of this lease and the conclusion of the purchase of the property and good will of the College of Physicians and Surgeons as provided for in this agreement, and except as hereinafter provided for for the payment of the mortgage indebtedness of the College of Physicians and Surgeons. 10. It is further understood and agreed, that the stockholders of the College of Physicians and Surgeons and said corporation have agreed to sell and transfer, and do hereby agree to sell and transfer to the University of Illinois, and the University of Illinois has agreed and does hereby agree to purchase all the rights, title, and interest of the College of Physicians and Surgeons in all its real estate described in section % of this agreement and the equipments and good will and property of all kinds hereinbefore described and referred to in Schedule A, free from all incumbrances and liens for the sum of two hundred and seventeen thousand ($217,000.00) dollars, the said transfer to be made on the first day of May in the year of Our Lord one thousand nine hundred and twenty-five, if the amount of the Medical College Purchase and Endowment Fund described in section 9 above shall at that date have amounted to the purchase price provided for, and agreed to in this instrument. And it is further agreed by and between the parties hereto, that if the amount of the said Medical College Purchase and Endowment Fund shall not at that date equal the amohint of the purchase price herein provided for, then this lease shall continue from year to year until the amount of the Medical College Purchase and Endowment Fund, through its periodical divisions of one-third of the net earnings of the College of Medicine, with interest which shall accrue thereon, shall amount to the full purchase price of the property of the College of Physicians and Surgeons under the provisions of this agreement. It is provided, however, and hereby agreed, by and between the parties hereto that at the end of the twenty-five (25) year term provided for in this instrument, the University of Illinois shall have at that time the right and option to pay the full purchase price of the property and good will of the College of