Freres Lumber Co., Inc. - Page 7

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            had an interest in the Lyons Veneer partnership (described in                                  
            par. B-2-b, below) owned by the Walker family.  There was                                      
            litigation between Brent Walker and his parents and sister.  A                                 
            court (not specified in the record) decided that Brent Walker's                                
            interest in the Lyons Veneer partnership had terminated in                                     
            September 1983.                                                                                
                  Thomas Creek Lumber & Logging Co. bid on public timber sales                             
            but did not own a mill.  Brent Walker bought timber and paid                                   
            subcontractors to harvest it.  He sold some logs.  He also leased                              
            manufacturing time at a veneer plant.  He milled lumber at the                                 
            Brazier Lumber Co. in Molalla, Oregon, into metric sizes for                                   
            export to Japan.                                                                               
                  2.     The Walker Entities                                                               
                  Before March 1, 1988, the Walker family owned and operated                               
            D.C. Walker Enterprises, Inc., and Lyons Veneer, a partnership,                                
            in North Santiam Canyon.  We refer to D.C. Walker Enterprises,                                 
            Inc., and Lyons Veneer as the Walker entities.  The Walker                                     
            entities were in the business of logging, manufacturing veneer                                 
            and lumber, and related activities.  They bought and performed                                 
            timber contracts.  The Walker entities were smaller than the                                   
            companies with which they competed.                                                            
                         a.    D.C. Walker Enterprises, Inc.                                               
                  D.C. Walker formed D.C. Walker Enterprises, Inc., in 1985.                               
            D.C. Walker Enterprises, Inc., bought Cedar Lumber in 1985.                                    





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