Free Redacted Document - District Court of Delaware - Delaware

Case 1:04-cv—OO180-KAJ Document 118-13 Filed O4/O4/2005 Page 1 of 4
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
iGAMES ENTERTAINMENT, INC.,
Plaintifi C.A. N0. 04-180 (KAJ)
v.
CHEX SERVICES, INC. and
EQUITEX, INC., Z —
: JU RY TRIAL DEMANDED
Defendants.
Appendix of Exhibits To iGames’s Opposition To The
Motion By Chex’s And Eguitex For Summagg Judgment
30
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C - ‘ - II SI ;}. I• n·| - ·• I4 I4 II '.g· • 4
1
1 UNITED STATES DISTRICT COURT
2 FOR THE DISTRICT OF DELAWARE
3 , - -
4 iGAMES ENTERTAINMENT,: CIVIL ACTION
U INC., :
5 v. :
6 CHEX SERVICES, INC. :
and EQUITEX, INC. :CIVIL ACTION NO.
7 : C.A. 04-180-KAJ
3 - - -
December 10, 2004
g - - -
10
11 Oral deposition of JEREMY
12 STEIN taken pursuant to nLtice, was held
13 at the law offices of DUANE MORRIS, LLP, g
14 4200 One Liberty Place, 1650 Market
l 15 Street, Philadelphia, Pennsylvania
16 beginning at 10:05 a.m., on the above
17 date, before Terri L. Ochipinti, a
18 Professional Reporter and Commissioner of
19 Deeds in the Commonwealth of
20 Pennsylvania.
21 - - -
22 ESQUIRE DEPOSITION SERVICES
15th Floor
23 1880 John F. Kennedy Boulevard
Philadelphia, Pennsylvania 19103
24 (215) 988-9191

Case 1 :04-cv-00180-KAJ Document 118-13 Filed O4/O4/2005 Page 3 of 4
JE RE MY S TE IN
sz si
1 this assets purchase agreement, Exhibit 1 potential $250,000 loan from Mercantile
2 96, to anyone at Chex or Equitex 2 to iGames; is that correct?
3 personally? 95, excuse me. 3 A. Are you referring to this
4 A. When I would discuss the 4 document?
5 business of iGames this product would be 5 Q. Yes.
6 mentioned. 6 A. Correct.
7 Q. I understand that that was 7 MR. PORETTI: Can you hand
8 one of the products that iGames was 8 him Exhibit 84, please?
9 selling in 2003, correct? 9 MR. TAYLOR: S4? Sure.
10 A. Marketing, correct. 10 BY MR. PORETTI:
11 Q. Marketing. My question to 11 Q. You have been given Exhibit
12 yon is, do you believe that the asset 12 84, Mr. Stein. If you would turn to Page
13 purchase agreement, Exhibit 95 was ever 13 22 of that document, can you coniirm
14 provided to anyone at Equitex or Chex? 14 that's your signature on Page 22?
15 A. Idon’t know. 15 MR. TAYLOR: You are on the
16 Q. Okay. _ 16 wrong page.
17 A. I'd have to refer to the 17 MR. PORETTI: There's two
18 closing docs. 18 Page 22s.
19 Q. Do you know if you ever told 19 MR. TAYLOR: Oh.
20 anyone at Equitex or Chex about the terms 20 BY MR. POREITI:
21 of this assets purchase agreement, 21 Q. That's Bates number 2742.
22 Exhibit 9S? 22 A. That is my signature.
23 A. I don‘t recall discussing 23 Q. Okay. And I don't need you
24 terms. 24 to review this document in detail, but
as ss
1 MR. PORETTI: Do you Want to 1 would you agree with me that this is the
2 grab Exhibit 83, please, Matt. 2 document that was entered into as part of
3 MR. TAYLOR: Sure. Q 3 the $250,000 loan referenced in Exhibit
4 MR. PORETII: I‘ve got a 4 S3?
5 copy for you. That's your copy. 5 MR TAYLOR: Objection to
6 BY MR. PORETTI: 6 the form. The document speaks for
7 Q. Do you recognize Exhibit S3? 7 itself. You can answer.
8 A Yes. 8 Tl-IE WITNESS: That's what it
9 Q. That‘s a letter addressed to 9 appears.
10 you dated September 18, 2003 from 10 BY MR. PORETTI:
11 Mercantile Capital; is that correct? 11 Q. Did you ever, you
12 A. That's correct 12 personally, ever provide the loan and
13 Q. You were introduced to 13 security agreement, Exhibit 84, to anyone
14 Mercantile Capital by Mr. Wollington, 14 at Equitex or Chex?
15 right? 15 A. I don't believe I gave them
16 A. Correct. 16 this agreement.
17 Q. You understood at the time, 17 Q. Do you believe that you
18 in September of 2003, that Mr. Wolhngton 18 verbally informed anyone at Equitex or
19 had an ongoing banking relationship with 19 Chex that iGa1nes was taking out a
20 Mercantile Capital? 20 $250,0001oan with Mercantile in November
21 A. Idonlt know the nature of 21 of Z003?
22 their relationship, but I know there was 22 A. Yes.
23 one. 23 Q. Who do you think you told
24 Q. Okay. This relates to a 24 that to?
17 (Pages 62 to 65)
Esquire Deposition Services

Case 1 :04-cv—OO180-KAJ Documentrktléémf Sléjkegbt?4/O4/2005 Page 4 of 4 [
6 6 6 a
1 A Ijaz. 1 A. Not that I recall. 1
2 Q. When do you think you 2 Q. Let me give you Exhibit 52.
3 referenced that or disclosed that to 3 A. Yes.
4 Mr. Anwar? 4 Q. Is that your signature, sir, 1
5 A. I don't recall an exact 5 on the first page? 1
6 conversation, but over a few phone calls, 6 A. Yes, it is.
7 Enancial conditions were discussed. 7 Q. This one's dated November 3, r
8 Q. What was the purpose for 8 2003 and also talks about signing a -- i
9 this loan; what was iGames going to do 9 assigning certain rights to a portion of
10 with the 250,000? 10 the termination fee to Mr. Wellington. »
11 A. The loan was to assist in 11 My Erst question to you is, why was 1
12 paying some of the operating expenses of 12 iGames assigning the rights to the
13 iGames. 13 termination fee to Mr. Wolfington? i
14 Q. Do you believe that you 14 MR. TAYLOR: Two issues. :
15 informed Mr. Anwar of the loan before 15 One, objection. The question
16 November 26 or after? 16 mischaracterizes the document. i-
17 A. I believe before. 17 Two, the document speaks for
18 Q. You can't recall a specific 18 itself. You can answer the
19 meeting or a telephone conversation where 19 question —- and objection to the 1
20 that was discussed? 20 form.
21 A. Not specifically. 21 THE WITNESS: The document's
22 Q. Okay. Do you know if Chex 22 November 11. I believe you said ,
23 or Equitex ever gave iGames written 23 the 3rd. But why did we assign I
24 permission to enter into that loan 24 the termination --
6 v 6 e
1 agreement? 1 MR. PORETTIE That's the
2 A I‘m not aware of it. 2 question. _,
3 Q. Let me give you Exhibit 53. q 3 THE WITNESS: -— funds to V
4 Is that your signature on the second 4 Chris?
5 page? 5 BY MR. PORE'ITI: I
6 A Yes, it is. 6 Q. Yes.
7 Q. All right. This is an 7 A. He was putting cetain risks ~
8 assigmn =· t agreement also dated November 8 out there in attempting to help us close
9 26, 2003 in which iGames is assigning 9 or attempt to close this deal. And if *
10 certain rights to a million-dollar 10 this deal didn't close, wanted to make
11 termination fee to Mercantile Capital; is 11 sure he felt protected in that he could
12 that your understanding? 12 recover any losses that he may incur j
13 MR TAYLOR: The document 13 Q. Did you infirm Mercantile
14 speaks for itself. Objection. 14 Capital before you executed Exhibit 53 of _
15 The document speaks for itself. 15 the existence of the November 11 if
16 TI-E WITNESS: Thats what it 16 agreement, Exhibit S2? i
17 states in the document. 17 A. Mercantile and Chris had a
18 BY MR. PORETTI: 18 working relationship and understood the l
19 Q. Did you ever inform anyone 19 terms of our agreements.
20 at Chex or Equitex that this 20 Q. The quesion is this, did
21 million-dollar termination fee called for 21 you personally inform Mercantile of the ;
22 under the stock purchase agreement was 22 existence of the November 11 letter,
23 being assigned or transferred to 23 Exhibit 52.
24 Mercantile? 24 A. No. h
_ 18 (Pages 66 to 69)
Esquire Deposition Services i

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