Robert T. and Mary F. Gow - Page 11




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          designated common and recreation areas, as well as the resources of           
          Resorts Condominium International, a time-share exchange network.             
          Hawaii and Key West Trips                                                     
               Petitioners believed that firsthand observation of other                 
          vacation resorts was necessary to maintain a competitive edge in              
          the time-share industry.  Between 1984 and 1992, on at least seven            
          occasions, WVI’s board of directors approved the expenditure of:              
                    such sums as are necessary in travel and                            
                    entertainment to visit other luxury resorts                         
                    and hotels in order to keep Powhatan                                
                    Plantation competitive in product, services,                        
                    and to remain knowledgeable about innovations                       
                    in the resort industry and to seek new                              
                    business opportunities and to engage in or                          
                    sponsor retreats with political or business                         
                    persons affecting the resort industry.                              
          WVI bore all these expenses, with no commitment of reimbursement              
          from Powhatan Associates.                                                     
               Beginning in 1986, and continuing through the years in issue,            
          petitioners made numerous trips to Hawaii and Key West, Florida.              
          Most of these trips were taken around the Thanksgiving, Christmas,            
          and New Year’s holidays and often lasted between 2 and 3 weeks.               
               During these trips, petitioners conducted “interviews” with              
          guests of the resorts, took tours of the resort facilities and                
          premises, and examined the kitchen amenities and menus for                    
          compatibility with Powhatan Plantation.  The purpose of the                   
          interviews and inspections was to gauge customer service and                  
          determine the level and efficiency of those services each resort              






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