James R. Palmer and Linda D. Palmer - Page 18




                                       - 18 -                                         
               As quoted above, paragraph 6 of the July 1995 amendment                
          provided, inter alia, that correct invoices submitted to Mr.                
          Harris “shall be paid within thirty (30) calendar days of the               
          date of receipt, or deferred to a mutually agreed upon future               
          date, but not later than January 31, 1997".  Both Mr. Palmer and            
          Olin Ordnance interpreted, understood, and applied that provision           
          as requiring Olin Ordnance to pay the amount that it owed to Mr.            
          Palmer with respect to each of his approved monthly invoices                
          within 30 days after it first received each such invoice or, at             
          the direction of Mr. Palmer, thereafter on a date that Mr. Palmer           
          selected which was not later than January 31, 1997.                         
               Pursuant to paragraph 6 of the amended Marion plant/Palmer             
          consulting agreement, on the dates indicated Mr. Palmer first               
          submitted to Olin Ordnance at its Marion plant the following                
          monthly invoices covering the following periods:                            
                                  Period Covered by    Date of Submission             
          Mr. Palmer’s Monthly      Mr. Palmer’s       of Mr. Palmer’s                
          Invoice Number          Monthly Invoice      Monthly Invoice                
                   0016           07/03/95-07/30/95         07/31/95                  
                   0017           07/31/95-09/03/95         09/01/95                  
                   0018           09/04/95-10/01/95         10/03/95                  
                   0019           10/02/95-10/29/95         11/20/95                  
                   0020           10/30/95-12/03/95         12/15/95                  
               Each of Mr. Palmer’s monthly invoices 0016 through 0020 was            
          promptly reviewed and approved, with very minor changes in                  










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