- 6 -
stock, at a maximum rate of 1,000 shares per year, for 10 years.
The number of shares to be issued annually as a bonus was to be
determined by Dr. Gow.
In accordance with the stock bonus plan, on February 16, 1989,
WVI issued 800 shares of WVI common stock to Dr. Gow. On February
15, 1990, WVI issued an additional 400 shares of its common stock
to her as a bonus. It is the value of these shares at the time of
award that is subject to dispute--the first issue.
Financing History
WVI borrowed $100,000 from Central Fidelity Bank. These funds
were used to cover startup expenses and other administrative costs.
In late 1983, WVI received an acquisition/development loan from
First American Savings & Loan (First American) in the amount of
$1.75 million; it also received a financing commitment from
Berkeley Federal Savings (Berkeley) for $10 million.
In 1984, Bush began construction of, and Offsite marketed, the
time-share project. In early 1985, Berkeley withdrew its loan
commitment, making it difficult for WVI to timely meet its
financial obligations to Bush for construction and to Offsite for
marketing. WVI became delinquent in its payments to Bush, and in
May 1985, Bush filed a mechanics lien against the project. The
project further became mired in financial difficulties when, in
early 1986, over its concern with Bush’s mechanics lien, First
American threatened to terminate its loan to WVI. Eventually,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011