James R. Palmer and Linda D. Palmer - Page 28




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                  later than January 31, 1997.  In such a case, I                     
                  would present my invoice and backup material month-                 
                  ly as incurred (as is done now) so that Olin could                  
                  perform the necessary audits upon submittal.  Olin                  
                  would then hold the payment until called for by me.                 
                  [Emphasis added.]                                                   
        The language that Mr. Palmer used in his March 22, 1995 memorandum            
        is consistent with an offer by him to enter into an agreement with            
        Olin Ordnance under which he would agree to continued consulting              
        work on certain terms and is inconsistent with petitioners’                   
        contention that when Mr. Palmer wrote his March 22, 1995 memoran-             
        dum there was in effect a binding oral modification of the Marion             
        plant/Palmer consulting agreement.                                            
             Mr. Palmer’s May 22, 1995 memorandum to Ms. Svarzkopf also               
        supports our finding that petitioners have failed to establish                
        that Mr. Palmer and Olin Ordnance orally modified the Marion                  
        plant/Palmer consulting agreement as of September 12, 1994, and               
        belies petitioners’ contention to the contrary.  In the May 22,               
        1995 memorandum, Mr. Palmer requested that Olin Ordnance not issue            
        payments for his approved invoices 0011, 0012, and 0013 covering              
        the period from February 6 through April 30, 1995.  In making that            
        request, Mr. Palmer stated in his May 22, 1995 memorandum:                    
        “Please phone me and we can discuss the agreement that I am                   
        working on with Cutler and Picker.”  (Emphasis added.)  The                   
        foregoing language shows that no modification, oral or written, of            
        the Marion plant/Palmer consulting agreement was in effect at the             
        time Mr. Palmer sent his May 22, 1995 memorandum to Ms. Svarzkopf             





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