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and sell to Union Carbide Corporation intermodal bulk container
liners using the Amoco patents and their foreign counterparts. In
exchange for such license, Insta-Bulk agreed to pay a royalty of 11
percent of the gross sales of such liners. The agreement also
provided that Powertex is granted a "limited, exclusive, non-
transferrable license" to make and sell to Amoco intermodal bulk
container liners having inflatable air corner bags using patents
owned by Raymond Stopper of Insta-Bulk. In exchange for such
license, Powertex agreed to pay a royalty of 11 percent of the gross
sales of such liners.
E. The Tri-Podd License Agreement
During late 1986, sales of Amoco liners became an increasingly
significant portion of Powertex's total sales, with net profit
margins for these sales increasing to 50 percent by 1989. Sales of
Amoco liners accounted for the following percentages of Powertex's
overall business:
Fiscal Percentage of
Year Total Sales
1986 <1
1987 40
1988 69
1989 68
1990 60
Sales of Amoco liners contributed to significantly increased profits
for Powertex, as shown below:
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