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MEETING OF EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE TRUSTEES OF PURDUE UNIVERSITY
September 16, 1972
At the request of President Knoy, the Executive Committee of the Board of Trustees of The Trustees of Purdue University met on the evening of September 16, 1972 at the home of President Emeritus Hovde to discuss the proposed contract between Purdue Research Foundation and the Federal Government of Brazil.
President Knoy and Mr. Wilson of the Committee were present but Mr. Brumfield was absent. Also present were all other members of the Board of Trustees except Mr. Hillenbrand.
President Knoy presented a letter from Vice President and Treasurer Freehafer dated September 16, 1972 commenting upon the proposed contract between Purdue Research Foundation and the Federal Government of Brazil and requesting express authority from the Executive Coimnittee or the Board of Trustees to approve the same.
President Knoy advised those present at the meeting that he had discussed the proposed contract and Mr. Freehafer's comments with Mr. George Schilling, legal counsel.  He stated that Mr. Schilling had pointed out that v/hile the contract was loosely drawn in many respects, the principal risk involved was the fact that the Brazilian Government must first approve and certify costs incurred by Purdue Research Foundation before Purdue Research Foundation could obtain reimbursement. The contract does not contain any stated right in Purdue Research Foundation to terminate the contract in the event the Brazilian Government refuses to certify proper costs; however, Mr. Schilling stated that in such event Brazil would be in default and that Purdue Research Foundation would be justified in refusing to proceed further with its performance of the contract.
It was the consensus of the meeting that although the known legal and business risks involved in proceeding with the Brazil contract were substantial.