Stephen D. Podd - Page 11

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          $20 for each Sea Bulk liner sold.  On May 27, 1983, Insta-Bulk and          
          Sea-Land settled their litigation, with Insta-Bulk agreeing to the          
          validity and enforceability of the Sea Bulk patents and to                  
          infringement of one or more of the claims of the patents.  Effective        
          January 1, 1989, the royalty rate for the Insta-Bulk sublicense was         
          reduced to 13 percent.  On March 15, 1991, Powertex terminated its          
          sublicense agreement with Insta-Bulk.                                       
               D.  The Amoco-Style Liner                                              
               During mid-1985, Gene Rakar of Amoco Chemical Company (Amoco)          
          approached Mr. Podd concerning the feasibility of using intermodal          
          container liners to transport pure terephthalic acid (PTA), a fine,         
          white powder used to make polyester fiber.  In the fall of 1985, Mr.        
          Podd invited Mr. Rakar, Frank Hall (Amoco's Marketing Product               
          Manager), and Tracy Sommer (an engineer at Amoco) to observe a test         
          loading of a Sea Bulk liner at General Electric, a Powertex                 
          customer, in Selkirk, New York.  After witnessing the demonstration,        
          the Amoco personnel determined that the Sea Bulk liner was not              
          acceptable for shipping PTA, due to the 2 to 3 hour loading time,           
          which needed to be shortened to approximately 15 minutes.                   
          Additionally, Amoco needed a liner that was moisture sensitive and          
          utilized a center discharge opening in order to be compatible with          
          their customers' unloading equipment.  A short time later, Amoco            
          employees visited another Powertex customer in New Orleans to               
          witness another loading demonstration.                                      






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