Donald N. and Rosemarie F. Merino - Page 16

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          petitioner estimated at "about a 4-cent per pound penalty".  In             
          addition, PI was not in a good location; trucks had difficulty              
          getting in and out, especially during the summer, and therefore             
          it also paid a "location differential" that petitioner estimated            
          at several cents per pound.                                                 
               Petitioner also questioned Bambara about the sources of PI's           
          recyclable scrap.  Petitioner testified that in his view "it's              
          difficult to make money in plastics recycling.  You need to have            
          enough product in terms of the volume."  Petitioner understood              
          from Bambara that PI's customers purchased plastic foam from an             
          average of 3 to 5 suppliers.  Consequently, petitioner reasoned,            
          "if the machines went to those suppliers, it was not only PI's              
          volume that could supply those machines, but also two or three or           
          four other suppliers could supply that".  Petitioner also                   
          understood from Bambara that PI had been working on the machine             
          for "a long time" and had been using it in practice.  To confirm            
          this claim, petitioner allegedly spoke to one of his Cape Cod               
          neighbors who worked in PI's machine shop in Hyannis.  Petitioner           
          claims that he understood from his neighbor that PI first began             
          working on the Sentinel EPE recycler under a prior president at             
          PI, and that it had been using the machine in practice.                     
               Petitioner recalled being satisfied that the Sentinel EPE              
          recycler was unique because it recycled 1- to 2-pound low density           
          polyethylene foam.  He recalled:                                            
                    I was surprised that they could do this, the 1- to                
               2-pound.  I read pretty much all the literature.                       



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