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4. Covenants Not To Compete
The Walker family agreed to sign covenants not to compete
with petitioner. The covenants prohibited D.C. Walker, Mary
Walker, and Bebout from participating or engaging in the same
business as or any business similar to petitioner's within 140
miles of Lyons, Oregon, for 5 years. The covenants prohibited
the Walkers from encouraging any prior employees, suppliers, or
customers of Walker entities to curtail or reduce their
employment or business dealings with petitioner.
Payments were combined into one payment schedule and
promissory note. If petitioner did not make payments under the
agreement, the Walker family would not be bound by the covenant
until the price of the covenant was paid in full.
5. Payment
Petitioner made a downpayment of $1 million and signed a
$3,650,000 note secured by a trust deed and Uniform Commercial
Code financing statements. Petitioner made the promissory note
payable to D.C. Walker Enterprises, Inc.
6. Events After the Sale
D.C. Walker had no future plans when he sold the Walker
entities. He went to Washington State to bid on timber. He also
unsuccessfully tried to buy a mill in Olympia, Washington.
Buying the Walker entities' assets helped petitioner to
enter the export lumber market. The Sumitomo Forestry Co.
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