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facility near Amoco's Cooper River plant, thus ensuring an
alternative supply source should production become impaired at the
Rouses Point facility.
During March 1988, Amoco and Powertex discussed entering into a
purchasing agreement for Amoco's liner requirements and the opening
of a second manufacturing facility near Amoco's Cooper River plant.
On February 22, 1989, Powertex and Amoco executed a blanket purchase
agreement. In the agreement, Amoco agreed to purchase liners for
its Cooper River plant exclusively from Powertex during the 2-year
period commencing January 1, 1989. The agreement was renewable by
Amoco for four 1-year periods, provided estimates of Amoco's 1989
liner requirements, set forth guaranteed prices, and imposed
manufacturing specifications. The agreement also allowed Powertex
to supply Amoco with liners at the end of the initial 2-year period
at matching prices, if a competitor offered to sell non-infringing
liners at lower prices.
During 1990, the Podds incorporated Powertex South Carolina
(Powertex SC) in Moncks Corner, South Carolina, which began
manufacturing liners for Amoco's Cooper River plant in April of
1990. Eventually, Powertex SC came to sell 50 percent of the liners
it manufactured to customers throughout the world. Powertex SC did
not pay any royalties to the Podds or Powertex for its sale of the
Amoco liners.
On September 27, 1988, Mr. Podd filed a patent application with
the U.S. Patent and Trademark Office for certain improvements on the
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