The Threatening Letter from Gary Kluck

March 25, 2002

Kenneth & Latrice Innes
Redding, Ca 96002

Dear Mr. & Mrs. Innes,

On December 2nd you entered into a contract with Pacesetter Corporation for the amount of $16,530.00. This price included the garage door discussed in my previous phone conversation with you and my Installation Manager and also in my previous letter.

Since you no longer wanted the garage door I made you an offer of $12,730.00, which included the price without the garage door and for the problems you had with the installation. That was $3,800.00 off, which you said sounded good but you had to talk to your wife and wanted to see a breadown of the product costs.

Your original contract of $16,530.00 had a list price of $24,088.00. After the Company promotion of 20% the new list price was $19,270.32. The Sales Rep then disounted that price to the price with you agreed on, which was $16,530.00. The difference between $19,270.32 and $16,530.00 is $2740.00.

I think the confusion you may have is that your contract doesn't state anything about blinds, mutin bars or obscured glass being free. But the Sales Rep discounted those products off your list price of $19,270.00 and after the 20% promotion price of $24,088.00.

When you ask for a breakdown of cost on your job, I assigned the project to an Administrative Clerk to look up in the computer. Our accounting method is to breakdown the cost ot all items furnished on the job site. In other words, we had to pay for all the items listed and also assign a percentage of the sales price to each item. It's similar to buying a car and you get the dealer to throw in new chrome wheels versus the standard aluminum ones. Your price is the same, but the breakdown of optoins on your car would include the chrome wheels, which the dealer paid extra for.

I gave you a breakdown off our accounting system and if the Rep said the blinds, mutin bars and obscure glass was free. Since he discounted $2,740.00 and then some, we could have shown the blinds, mutin bars and obscure glass as a zero cost to you, but the other products would have been 14.3% higher, which was the amount (discount) he discounted after the 20% Company promotion.

I sent you a letter March 7th showing you that your new list without the garage door was $20,053.00 and you received a 20% Company promotion and then another 20.65% discounted (which was the rep's 14.3% and another 6.35% by the General Manager). I thought I was being more than fair when aster subtracting the garage door I took off another $1,303.65 off the job.

Mr. & Mrs. Innes, I am trying to work with you. Your products have been installed and the service work completed. I do not wish to have legal battles with you, however we are prepared to do so. You signed a Deed of Trust which is filed against your home as a security.

Please accept my more than fair offer.


Gary S. Kluck
V.P./General Manager

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Since 3/8/07