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WA9302-CS 970523 NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. Attorneys & Counselors at Law LAWRENCE W. JACKSON 1800 Lincoln Plaza JOHN F. ROEHM Ill ROBERT L. OILLARD III 500 North Akard JENNIFER R. DIETZE ROBERT E. HAGER Dallas, Texas 75201 JASON C. MARSHALL PETER G. SMITH DAVID M. BERMAN (214) 965-9900 BRUCE A. STOCKARD Fax (214) 965-0010 ROBERT L, DILLARD, JR. H. LOUIS NICHOLS OF COUNSEL May 23, 1997 Mr. Larry E. Gee 10046 Monroe Drive Dallas, Texas 75229 Re: Gee Consultants, Inc.'s claim for outstanding invoices against Natgun Corp. Dear Mr. Gee: This letter acknowledges the receipt of your correspondence dated May 13, 1997, regarding Gee Consultant's claim for unpaid invoices against Natgun, Corp. Please be advised, that as with all contracts, the City of Coppell intends to insure that the above-referenced matter is handled in a manner consistent with the Standard Specifications for Public Works Construction as relates to final payment of contracts. The relevant section of the Specifications, enclosed, provides that final payment to the contractor will occur after the contractor has furnished to the owner an affidavit or other satisfactory evidence that all indebtedness connected with the work has been paid or otherwise satisfied. The City is aware that Gee Consultant's have not been paid by Natgun Corporation for work performed. Thus, at the completion of the contract, unless Natgun Corporation provides satisfactory evidence that all payments to subcontractors for material and labor have been made, the City intends to withhold payment to Natgun Corporation for any amounts not paid to Gee Consultants for work performed. This money will not be paid directly to Gee Consultants, but only withheld from Natgun Corp. until the claim is resolved. Thank you for your attention to this matter. Please feel free to call if you have any questions. 95S2 Mr. Larry E. Gee May 23, 1997 Page - 2 Very truly yours, NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. ~--a~n C~' Marshall JCM/mmm Enclosure cc: Ken Griffin, City Engineer, City of Coppell NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P.