NAO 203-31 — Exhibit 3

Effective 04/24/90
IMPROPER INVOICE RETURNED TO CONTRACTOR LATE
Terms: $10,000, due in 30 days
Facts: An improper invoice was returned to the contractor on the 10th day after receipt which was 3 days over the 7 day period allowed, thereby reducing the due date of a corrected invoice to 27 days.
A corrected proper invoice was paid on the 50th day after receipt.
Days Interest Penalty: 23
Interest Computation: $10,000 x 7% x 23/360 = $44.72 Interest Penalty

NOTE: The 7% interest rate used above is for illustrative purposes only. The current "Renegotiation Board Interest Rate" should be used in actual cases.