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officer, Maffit was production manager, Strand was head of sales
and marketing, and Rakhshan was plant manager.
In October of 1987, Schweigert and TeSelle sold their
respective stock interests in Santa Fe to Kerr Glass
Manufacturing Corp. In connection with the stock sale, both
Schweigert and TeSelle entered into covenants not to compete with
Santa Fe. The covenants not to compete had a duration of 5 years
and apparently encompassed the entire United States.
During 1991 and 1992, Maffit and Strand used their
understanding and knowledge of the plastics manufacturing
business to put together a business plan for petitioner that
projected an early likelihood of success and purported to improve
upon the model used to start and develop Santa Fe. Prior to the
startup of petitioner’s operations in August of 1993, TeSelle,
Maffit, and Strand contacted and received commitments from former
customers of Santa Fe, signed contracts with suppliers and
equipment manufacturers, and otherwise prepared for petitioner to
begin operations. The record is unclear as to Schweigert’s
participation in planning for the startup of petitioner.
Prior to August of 1993, petitioner received as initial
capital a total of $183,500 in equity contributions from its
seven original shareholders. The amount of each shareholder’s
initial equity contribution and the number and percentage of
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