Norstam Veneers, Inc. A Kentucky Corporation - Page 6

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            operating day.  WTC agreed to pay petitioner for finished veneer                           
            at a specified rate per board foot depending on the type of wood                           
            used.  Petitioner was to bill WTC weekly for finished veneer, and                          
            the rates were subject to adjustment if the price of logs changed                          
            substantially.  Upon termination of the Agreement, WTC was to                              
            remove the WTC Equipment at its expense and restore petitioner's                           
            plant to its original condition.                                                           
                  The Agreement required petitioner to assign at least six                             
            employees to WTC-related work:  One to process logs in the vats                            
            and clean the logs; one to saw and transport the logs to lathes;                           
            two to remove veneer from the lathes; one to place veneer in the                           
            dryer; and one to remove veneer from the dryer.  The Agreement                             
            provided that these individuals were to remain petitioner's                                
            employees at all times.  Petitioner was also required to provide                           
            any incidental manpower necessary to produce at least 1,200 board                          
            feet per day.  The costs of any personnel necessary to produce                             
            more than that amount were to be reimbursed by WTC at an hourly                            
            rate established in advance.  At times during the term of the                              
            Agreement, petitioner provided as many as 20 employees to perform                          
            WTC-related work.                                                                          
                  The Agreement was extended 1 year by letter dated                                    
            September 7, 1989, and 1 additional year by letter dated                                   
            October 23, 1990.  The letters made certain price and term                                 
            adjustments not relevant to this case.  No further extensions                              
            were executed, and the relationship between petitioner and WTC                             




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