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Sonnleitner v. Commissioner, 598 F.2d 464, 468 (5th Cir. 1979),
affg. T.C. Memo. 1976-249; Fulton Container Co. v. United States,
355 F.2d 319, 325 (9th Cir. 1966); Annabelle Candy Co., Inc. v.
Commissioner, 314 F.2d 1, 7-8 (9th Cir. 1962), affg. T.C. Memo.
1961-170; Schulz v. Commissioner, supra; Peterson Machine Tool,
Inc. v. Commissioner, 79 T.C. 72, 85 (1982), affd. 54 AFTR 2d 84-
5407, 84-2 USTC par. 9885 (10th Cir. 1984); Major v.
Commissioner, 76 T.C. 239, 251 (1981); O'Dell & Co. v.
Commissioner, supra at 468-469; Rudie v. Commissioner, 49 T.C.
131, 139 (1967); Levinson v. Commissioner, 45 T.C. 380, 389
(1966).
3. D.C. Walker's Covenant Not To Compete
D.C. Walker had the experience and ability to compete with
petitioner. He had nearly 30 years of experience in the forest
products industry. He had ably competed with petitioner since
1959. He substantially contributed to the success of the Walker
entities. D.C. Walker had good contacts and relationships with
suppliers and customers. Robert T. Freres, Jr., credibly
testified that petitioner wanted to eliminate D.C. Walker from
competition. He and D.C. Walker testified that competition from
D.C. Walker could damage petitioner. We believe that their
testimony is substantially true and is generally supported by the
record. D.C. Walker's covenant was limited to 5 years and to a
140-mile radius around Lyons, Oregon. We think these limits were
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