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insulation process starting in 1984, which process was
ultimately successful in securing the All American
contract (the “contract”).
3. The corporation, notwithstanding the successful
insulating process, would have been unable to complete
the contract without the financial backing of a public
corporation or a joint venture partner with financial
backing. The President, through his thirty years
association with the President of the Permanent Concrete
Ltd., was able to secure a financially strong joint
venture partner for the corporation, which partner
secured for the joint venture Five Million Dollars
($5,000,000) of financing and obtained approximately
Twenty-Three Million Dollars ($23,000,000) of bonding.
This was accomplished without giving up more than fifty
percent of the participation which would have otherwise
been the case.
4. The President personally guaranteed the
corporation’s share of the bank financing and indemnified
the joint venture partner, Anchor Wate, a subsidiary of
Permanent Concrete Ltd., in respect of the bonding and
further pledged his assets in support of the guarantee.
5. The President has received no compensation from the
corporation for 1985 and 1986. In addition, the
corporation was unable to pay compensation to its
President in those years due to Royal Bank of Canada
credit line restrictions, which credit line was also
personally guaranteed by him. Not until now, with the
contract completed and the benefits from subsequent
grading and fencing contracts awarded being realized, is
the corporation in a position to adequately compensate
its President for his unique and extremely profitable
contribution to the corporation.
Accordingly, the board unanimously agreed to pay Mr. Leonard a
$1,680,000 bonus.
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