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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,
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