Opinion ID: 3008141
Heading Depth: 2
Heading Rank: 4

Heading: Sale of WCI’s Assets to Kuranda Capital

Text: WCI entered an asset purchase agreement with Kuranda Capital, LP (“Kuranda”),6 on April 18, 2003. The parties agreed upon a purchase price for WCI’s assets of $4,923,091 in cash and a $500,000 promissory note. As part of the transaction, Watkins, Barone, and WCI agreed not to compete with Kuranda in the environmental remediation business. The asset purchase agreement allocated $3.4 million of the purchase price to the noncompetition agreement. Taxpayers’ accountant reported all of the noncompetition agreement’s proceeds, including interest from the note, on WB Partners’ tax returns. 6 Kuranda later changed its name to Watkins Contracting, L.P., and finished the environmental remediation portion of the NTC project as WCI’s subcontractor. 14 DJB HOLDING CORP. V. CIR