James R. Palmer and Linda D. Palmer - Page 19




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          several instances, by D.E. Findley (Mr. Findley)9 on behalf of              
          Olin Ordnance and promptly returned to Mr. Palmer.  Mr. Palmer              
          promptly forwarded each of his approved monthly invoices 0016               
          through 0020 to Ms. Svarzkopf at Olin Ordnance’s Florida office.            
          Ms. Svarzkopf promptly completed Olin Ordnance’s invoice payment            
          authorization process with respect to each such invoice.  How-              
          ever, pursuant to paragraph 6 of the amended Marion plant/Palmer            
          consulting agreement, Mr. Palmer directed Olin Ordnance not to              
          pay him the amount that it owed to him with respect to each of              
          his approved monthly invoices 0016 through 0020 within 30 days              
          after Olin Ordnance first received each such invoice.  At Mr.               
          Palmer’s direction, Olin Ordnance paid Mr. Palmer the amount that           
          it owed to him with respect to each of his approved monthly                 
          invoices 0016 through 0020 by issuing a check to him in the                 
          following amount on the following date selected by Mr. Palmer:              

        Mr. Palmer’s Monthly  Amount of Check Issued  Date of Check Issued            
        Invoice Number        by Olin Ordnance        by Olin Ordnance                
                0016                $15,173.00              01/09/97                  
                0017                18,243.36               01/09/97                  
                0018                15,824.16               01/09/97                  
                0019                15,239.46               01/09/97                  
                0020                404.89                  01/09/97                  
        The only reason Olin Ordnance did not pay Mr. Palmer the amount               
        that it owed to him with respect to each of his approved monthly              


               9The record does not disclose why Mr. Findley, instead of              
          Mr. Harris, reviewed and approved, on behalf of Olin Ordnance,              
          Mr. Palmer’s monthly invoices 0016 through 0020.                            





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