James R. Palmer and Linda D. Palmer - Page 8




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          it and determine whether to approve the aggregate amount of fees            
          and expenses claimed in each such invoice or some other amount.             
          (We shall refer to Mr. Harris’ review of each of Mr. Palmer’s               
          monthly invoices as Olin Ordnance’s invoice review process.)                
          Promptly after Mr. Harris completed Olin Ordnance’s invoice                 
          review process, he was to return each of Mr. Palmer’s monthly               
          invoices as approved by him to Mr. Palmer.                                  
               Pursuant to company policy, after Mr. Palmer received from             
          Mr. Harris each of his monthly invoices as approved by Mr.                  
          Harris, Mr. Palmer was required to forward each such invoice                
          promptly to Rita Svarzkopf (Ms. Svarzkopf).  Throughout the                 
          period during which Mr. Palmer provided consulting services to              
          Olin Ordnance at its Marion plant, Ms. Svarzkopf was the procure-           
          ment coordinator at Olin Ordnance’s office in St. Petersburg,               
          Florida (Olin Ordnance’s Florida office).  As procurement coordi-           
          nator, Ms. Svarzkopf was responsible for determining promptly               
          upon receipt of each of Mr. Palmer’s monthly invoices as approved           
          by Mr. Harris whether the charges reflected on each such invoice            
          complied with the terms of the Marion plant/Palmer consulting               
          agreement.  Pursuant to company policy, if Ms. Svarzkopf deter-             
          mined that each of Mr. Palmer’s monthly invoices as approved by             
          Mr. Harris did so comply, she was required to forward each such             
          invoice promptly to Olin Ordnance’s accounts payable department             
          for payment within 30 days after Mr. Harris, on behalf of Olin              






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