- 4 - was incorporated, Silbernagel had been the president of a large mobile home loan servicing company; prior thereto, he had worked for about 8 to 10 years for an automobile loan servicing company. In his prior employment, Silbernagel procured loans and marketed them for sale in bulk to banks and savings and loan associations. Silbernagel had developed contacts at 200 to 250 banks and savings and loan associations with which he had worked. Utilizing his experience and contacts in the loan servicing industry, Silbernagel organized VALC and began providing loan procurement and marketing services, as well as collection and foreclosure services, primarily to mobile home mortgage lenders. On March 1, 1987, VALC's mobile home mortgage servicing business, which at that time represented about 75 to 80 percent of the company's operations, was sold to WESAV Financial Corp. (WESAV) for approximately $2,180,000. The sale contract between WESAV and VALC included a covenant not to compete pursuant to which VALC agreed to refrain from owning or operating a mobile home loan servicing business for a period of 18 months. In addition, Silbernagel personally executed a consulting and noncompetition agreement with WESAV. That agreement noted Silbernagel's "substantial knowledge and expertise in the operation, management, business contacts, and research and development activities of the business" and required him to refrain from aiding any competitor or potential competitor for a period of 18 months. As compensation for services to be rendered and for his covenant not to compete,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011