- 14 - during the year, the 36 class A memberships account for 2,160 of the available days on which the complex could be used during the year (i.e., 36 memberships x 60 days). The 30 remaining available days were allocated to the class C memberships. Under the Articles and Bylaws, the total number of class C memberships is three, and each class C membership entitled its holder to use a villa for 10 days per year. The consideration specified in the Restated Articles and First Amended Bylaws for each class A membership is $155,000 (i.e., "membership fee" of $15,000 and "initiation fee" of $140,000). Typically, a prospective member paid the membership fee in cash and issued a promissory note, payable to the club, for the initiation fee. Thus, the total consideration that the club would receive from the sale of 36 class A memberships is $5,580,000. The consideration specified in the Restated Articles and First Amended Bylaws for each class C membership is $2,500 (i.e., "membership fee" of $2,500 and no "initiation fee"). Thus, the total consideration that the club would receive from the sale of three class C memberships is $7,500. The maximum amount of money that the club could realize from the sale of 36 class A memberships and three class C memberships was $5,587,500 (i.e., $5,580,000 plus $7,500).Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011