- 14 - 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.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